Trimester-3

End Term
New Age Business Model
Set 1

Duration: 120 mins Total Marks: 40

Instructions:

● Section 1- All compulsory questions, 1 marks each.

● Section 2- Short Answers, answer any five out of eight questions given, 3
marks each.
● Section 3- Case Study Analysis, answer any two out of three given, 7.5 marks
each.
● Answer sheets to be uploaded in the provided template else would not be
accepted.
● It is an Open book exam.
● There will be a thorough Plagiarism check and if any form of copying found will
not be accepted.
● Please make sure the all the particulars along with roll numbers are entered in
the answer sheet
● All the best!

Section 1
Multiple Choice Questions

All compulsory questions (10X1=10)

1.Which one of the following are types of e-commerce?

a) C2B
b) B2C
c) B2B
d) All of the above

2. Finance model must include:

a) Value
b) cost
c) profitability
d) All of the above

3. A ______________ is the set of planned activities designed to result in a profit in a

marketplace.
a) Profit model
b) Business plan
c) Business model
d) Revenue model
4. Which of the following is a part of BMI techniques?
a) Target audience
b) Scenario
c) Direct to consumer
d) Value configuration

5. Which of the following are types of the revenue model ?

a) Mergers and acquisitions
b) Leveraged buyout model
c) 3 statement model
d) Freemium model

6. What are the revenue models of amazon:

a) Subscription model
b) Affiliation model
c) Transactional model
d) All of the above

7. Every industry has zombie projects that don’t go anywhere but refuse to die some
managers refuse to give up their___________
a) Portfolio boat
b) Pet ideas
c) Fixation on idea
d) Internal focus

8. Which of following is not a Business Model Design Techniques

a) Ideation
b) innovation
c) Visual thinking
d) Prototyping

9. 4 Parts of the Business Model The offering, Infrastructure, Customers and_______

a) Finances
b) Value
c) cost
d) profitability

10. A ______________ is the set of planned activities designed to result in a profit in a

marketplace.
a) Profit model
b) Business plan
c) Business model
d) Revenue model
 Section 2
Short Answer Type Questions

Answer any five out of eight given questions (5 X 3= 15)

1. Classify different business Models in the business model domain. Any 2.

2. Discuss the difference between Merger and Acquisition with examples.

3. What is the Revenue Model of AIRbnb explain?

4. What are different types of business components? Explain competitive strategy

with example.

5. discuss market segment and value offering with taking example.

6. Discuss the difference between target audience and revenue audience with
example.

7. What is the sharing economy model in Revenue Model and how is it significant in the
business?

8. What are different types of internet models? Explain any 2 in detail.

 Section 3
Case Study

Case Study Analysis, answer any two out of three (2X7.5=15)

Case Study 1

BAJAJ AUTO: WORLD MARKET IN A SNAPSHOT

Bajaj Auto led by their CEO, Rajiv Bajaj has been using a brand led growth strategy. At
the core of the strategy lies the realisation that brands are unique and need to be
positioned in accordance with the market segments. Bajaj Auto refers to this as the
principle of
realisation. For example, in the two-wheeler business, the company has adopted a
geographic segmentation. At the beginning of the new millennium, the company
decidedto axe its age-old scooter product line and focus exclusively on bikes. Bajaj was
looking
forward to competing with Honda in the global market. It decided to engage in war
against Honda based on positioning of its products. To mitigate risks of growing too
fast, it decided to focus on three geographic segments in the global market – South
Asia, Africa and
US & Europe.
In India Bajaj targeted the young working class population. Hence, product development
proceeded accordingly. The objective was to roll out a product (with several variants in
the later stages) that would have a powerful engine, have the look and feel of a sports
bike and thus shall be positioned as a direct substitute of Japanese brands like Honda.
Advertisement campaigns went on air showing trained professionals doing stunts that
one would expect off a Japanese bike. India got Pulsar.
In the markets of Africa, Bajaj focused on positioning its product as being adventurous,
wild and tough. The African market demanded that Bajaj position its product based on
the rough local terrain. Advertisement campaigns focused on the effectiveness of the
bike
for long rides through any kind of geographical terrain. Africa got Boxer.
In the markets of US & Europe, Bajaj had to compete against much stronger brands that
were already entrenched in the psyche of the consumers. Brand loyalty of American
two-wheeler brands and the Yankee look of heavy-duty bikes powered by powerful
engines posed big challenges to the company. It had to compete against
Royal Enfield, Harley-Davidson and others. Product development and positioning of the
bikes was done showing them as being big, swanky, improvising and powerful. USA and
Europe got KTM, a premium brand form the staple of Bajaj that is exclusive, expensive
and reflects the interests of the Anglo-American bike riders community.

Answer the following questions:

1. Create the business canvas of the above brand in systematic format.

2. Discuss the commerce activity and BMI required to sustain in the market.

3. Identify the key markets and strategies moving forward for the company?
 Case Study II
The Rise and Fall of Groupon Inc.
Groupon, Inc. (Groupon), a Chicago based e-commerce marketplace that connected
merchants to consumers by offering goods and services at a discounted price, reported
a net loss of US$49.1 million in the first quarter of 2016 compared to a loss of US$14.3
million in the corresponding period of the previous year . The company had reportedly
been struggling since the beginning of 2016 as it announced layoffs, streamlined its
international operations, and spent heavily on attracting new customers. Talking about
the challenges facing the company, the newly appointed CEO, Richard Williams
(Williams), said, “It’s a big task but it’s an exciting one. We’re the clear leader in our
space. It’s been a bumpy road, but smooth roads are pretty rare for pioneers and we’re
clearly in that space.
BACKGROUND NOTE
Groupon was co-founded by Andrew Mason (Mason) and Eric Lefkofsky (Lefkofsky) in
2008. Mason, a graduate in public policy at the University of Chicago, was involved in
building databases on a contract basis at a company founded and funded by Lefkofsky,
an entrepreneur. In January 2007, with Lefkofsky's backing, Mason started a
crowdfunding start-up for social activism called ThePoint in order to get groups of
people together to solve problems. ThePoint was a platform for organizing protests and
fund-raising initiatives for social causes. It was constructed around the tipping point
concept where the campaign required commitment from a specified number of people
to kick off. Though the start-up gained traction in Chicago, it made hardly any money.
THE RISE
By the end of 2009, Groupon had spread to 28 US cities and had a presence in
international markets including Germany, France, Italy, Spain, the UK, Switzerland, and
Belgium. It had just over 150,000 subscribers. Reportedly, revenue jumped from
US$94,000 in 2008 to over US$30 million in 2009. According to industry observers,
Groupon had revived the concept of couponing for the Facebook and Twitter
generation....

GROWING PAINS
Soon after going public, the company’s auditors required Groupon to disclose a material
weakness in its internal controls over financial reporting which was impacting its
disclosures on revenue and its estimation of returns..

THE ROAD AHEAD

In the third quarter ended September 2016 Groupon’s revenue was US$720.5 million as
against US$713.6 million in the third quarter of 2015. The company posted a net loss of
US$35.8 million in the quarter. In 2015, the company also sold its controlling stake in
Ticket Monster . With slowing demand for daily deals, Groupon began moving away from
its daily-deal roots, converting itself into an online marketplace. The company planned
to venture into areas like mobile commerce and building specific vertical businesses
such as restaurants and travel.
1. Create business model of Groupon .
2. what lead to fall of Groupon
3. Elaborate the competitive strategy .

Case Study III

Introduction

On May 19, 2020, India-based B2B foodtech company HungerBox launched a Safe Café
Suite solution to make corporate office cafeteria operations COVID-19 safe based on
FSSAI (Food Safety & Standards Authority of India) and WHO (World Health
Organization) guidelines. Powered by artificial intelligence and machine learning, the
platform regulated customer flow into cafeterias and prevented overcrowding by
ensuring that users visited the café only when it was safe and social distancing could be
maintained. According to Sandipan Mitra (Mitra), CEO and co-founder of HungerBox,
“The HungerBox ‘COVID-19 Safe’ solution follows a five-pronged approach which
envelops aspects such as technology, user connect and communication, WHO-
prescribed supervisor training and enhanced protocols for kitchen and cafeteria
operations.”

Background Note

HungerBox was co-founded by Mitra and Kumar in 2016. Long before foodtech became
a catchword, Mitra started an online food ordering company in 2007 and named it
HungryBangalore.com. When investor Indian Angel Network (IAN) came on board, they
advised Mitra to change the brand name to Hungryzone.com. After running for a couple
of years, in 2011, Hungryzone.com was acquired by UK-based foodtech player JustEat
Inc. and eventually by FoodPanda in December 2014.
Expansion and Success
HungerBox called the “SAP for food” by its founders successfully addressed the needs
of the typical working professional. In 2017, the team managed to add 30 more clients
from cities outside of Bengaluru. The year 2018 was a turning point for the company.
The startup raised US$2.5 million in funding from Singapore-based Lion Rock Capital
Ltd and individual investor Kris Gopalakrishnan in January 2018. By February 2018, the
number of orders placed through HungerBox reached a total of 7 million. For the fiscal
2018, HungerBox’s Gross Food Sales (GFS) were Rs. 1.24 billion and revenue generated
was Rs. 96 million with 120,000 daily orders..

Coping with Covid-19

As of February 2020, HungerBox was processing 600,000 orders per day and was close
to turning EBITDA positive by March 2020. By April 2020, HungerBox planned to expand
its operations to 10 more cities across India; it was also expected to hit the one million
order mark by August 2020. However, the outbreak of COVID-19 cut HungerBox’s dream
run short. In March 2020, the pandemic halted the growth and HungerBox’s orders
halved to only 300,000 orders per day..

Challenges Ahead

As of fiscal March 2020, HungerBox’s GFS were Rs. 5.6 billion and revenue was Rs. 480
million (See Exhibit V). It emerged as the leading institutional foodtech startup in India,
leaving behind rivals such as Zomato’s Food@work Swiggy’s Café , Box8 , and GoKhana.
Reportedly, the foodtech industry in India was poised to grow at 25-30 % to US$8
billion by 2022. Going forward, HungerBox planned to deepen its engagement with the
corporate sector, expanding into sectors with massive scope for improving F&B
management, such as education, healthcare (hospitals), and retail (malls), and
expanding geographically beyond India
1. Analyse the above case and explain the business model of hunger box.
2. What are key challenges faced by the brand?
3. Elaborate hungerBox competitive strategy