Q1.What Could Be Target Verticals/white Spaces Options?

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Q1.

What could be target verticals/white spaces


options?

Target Verticals Indian Market

In the late 2000s, Indian economy was the 5th largest in the world by gross domestic
product(GDP), based on purchasing power purity.

Potential Market Segments in India:


Government:
National e-Governance Plan (NeGP)/Indian government was investing on IT. Indian government
was focusing on e-governance & encouraging IT adoption by Indian industry.

Large Enterprises (> 1,000 employees):


Average spending of large enterprises on IT was $3 million in 2009-10, and was expected to
grow. Some risks include inflexibility from Enterprises due to significant capital already invested
in their IT infrastructure.

Small and Medium Businesses (SMBs):


India has a large number of SMBs (around 3.9 million small businesses and 35,000 medium
businesses), but they dont have in-house IT expertise or capacity to invest in big IT
infrastructure (software solutions designed by independent software vendors (ISVs).

Q2.Evaluate each option in terms of its


attractiveness.
Opportunities:
1)Studies (Zinov) estimate global cloud market to be over $70
billion by 2015
2)India has over 1,300 ISVs, 1.4 million developers, and over
11,000 system integrators (SIs) and custom software development
organizations.
3)Indian government was focusing on e-governance & encouraging
IT adoption by Indian industry.
Challenges
Insecurities of business owners as cloud
computing considered to be of lower data
integrity and security
Inexpensive and widely available labor force
Non availability of affordable, reliable
broadband across country
High piracy activities, mainly from SMBs

Highly fragmented SMB market

Advantages
Applications and products offered as a
horizontal industry
Provided productivity tools, email, and chat
applications, portals and other services
across industries
Delivered both on-premise and cloud
offerings to customers (hybrid nature)
It could leverage the reach of its partners
and channel re-sellers to contact the end
customers
Had strong relationships with the Indian
ISVs

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