GT Case
GT Case
GT Case
launch a new business unit with an investment of at least $50 million. The company has narrowed down its choices to three proposed ideas -
OBJECTIVE • International E-Marketplace for Indian SMEs: Connecting Indian SMEs with global buyers, leveraging low production costs and high international trade potential.
• Domestic E-Procurement Service for SMEs: Extending ABC's existing procurement expertise to smaller businesses within India.
• Domestic E-Marketplace for Agricultural Products: Targeting the vast Indian agriculture sector, building on ABC's experience with tea and spice e-marketplaces.
Strategic Direction and Financial Goals Strategies for Success Addressing SME Barriers
The company is prepared to burn cash for • Tailored Onboarding: Implement a structured onboarding process with clear milestones, • Improving digital literacy and
3-5 years, The strategic objectives include: personalized support, and comprehensive training to ensure smooth user adoption 3 4 providing extensive training
• Driving ABC to an excess of $1 billion • Value-Added Services: Integrate additional services such as payment solutions, logistics support, programs
valuation by fiscal year 2028 and customer relationship management tools to enhance the platform's value proposition 5 • Addressing security concerns
• Creating a scalable and replicable • Digital Infrastructure Leverage: Utilize India's advanced digital payment services and initiatives through robust data protection
venture targeting vast addressable like ONDC and OCEN to improve operational efficiency and credit access 6 measures
markets • Regulatory Compliance: Capitalize on the streamlined tax compliance and logistics facilitated by • Offering financial incentives and
• Developing an asset-light model GST and eWay Bill implementation 6 flexible pricing models to alleviate
requiring no working capital for • Cross-Border Trade Focus: Position the platform to take advantage of India's growing status as a resource constraints
inventory purchases global export hub, supported by free trade agreements and a skilled tech workforce 6 • Providing clear value propositions to
• Generating revenue from both buyers demonstrate the benefits of e-
Cost Considerations
and sellers, unlike ABC's current single- commerce adoption 9
sided model Launching and operating a B2B e-marketplace involves costs: Approach/Conclusion
Market Analysis and Opportunities Platform Development and Licensing: $50,000 to $200,000+, with annual licensing fees potentially
reaching $200,000 ABC's new business unit targets India's
The B2B e-commerce market in India is • Add-ons and Customization: Varying from free to $500+ per feature 7 growing B2B e-commerce market by
projected to reach $90-100 billion by 2030, • Website Design and Development: $50,000 to $200,000 for custom solutions 7 leveraging expertise in e-auctions and
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with a current market penetration of only 1%. • Hosting and Infrastructure: Costs vary based on chosen services (managed or cloud-based) 7 e-procurement. Success hinges on
This presents a significant growth opportunity • Data Migration and Integration: $5,000 to $50,000+ depending on complexity 7 effective SME onboarding, value-added
for ABC. The market is primarily dominated by • Ongoing Maintenance and Support: Consider managed service providers for cost-effectiveness 7 services, and overcoming adoption
the intermediary-oriented model, accounting barriers. Despite high initial costs, the
• Operational Costs: Include SSL certificates, payment processing fees, and regular UX designs 7
for over 60.5% of the market share in 2023 2 scalable, profitable platform aligns with
• Marketing and Customer Acquisition: Essential for attracting and retaining users 8
ABC's strategic goals for Project Leap.