ENTREPRENEURSHIP

Assignment 1
Idea & Opportunity

SUBMITTED BY:
Ishita Sabharwal MFM/20/68
Nikhil Prabhakar MFM/20/393
Jyoti Sharma MFM/20/658
Rushikesh Bhattad MFM/20/106
Ruchi Dedhia MFM/20/117

1
 CONTENTS

1. ONJECTIVE
2. BUSINESS IDEAS
2.1. CUSTOMIZABLE ACCESSORIES FOR APPLE
ECOSYSTEM
2.2. LUXURY PRODUCTS RENTING
2.3. DIY TRAVEL ITINARY
2.4. STOCK ROTATIONINVENTORY MANAGEMENT
3. BUSINESS IDEA DEVELOPMENT
3.1. BRAINSTORMING
3.2. MIND-MAPPING
4. SKILL E-MANAGEMENT SYSTEM & SERVICE PROVIDER
5. EXISTING BUSINESS
5.1. HISTORY
5.2. COMPANY VALUES
5.3. COMPANY APPROACH
5.4. SUCCESS FACTOR
6. SUCCESSFUL ENTERPRENEUR
7. MARKET STUDY
8. OTHER COMPETITIONS
9. FUTURE
10 GROWTH SUGGESTIONS

2
 OBJECTIVE

• Group will think of an idea and elaborate it using a tool like brainstorming etc.
• Group will identify the opportunity related to the idea using secondary research
• Group will talk about 5 ideas and 5 related opportunities. 4 Ideas and 4 opportunities will be
generic with or without basis. One idea will be based on brainstorming and mind mapping.
• Group will identify a successful entrepreneur and his business in the identified opportunity
• Group will write about the type, characteristics, strengths etc of the entrepreneur
• Group will write about the business – its start date, growth story, success factors etc.
• Group will study the market including competitions related to the opportunity
• Group will give suggestions for the growth of the existing business based on secondary research
• Evaluation criteria will be selection of idea and opportunity, research, content and presentation

3
 BUSINESS IDEAS
CUSTOMISABLE ACCESSORIES FOR APPLE ECOSYSTEM

As customisation has become prominent trends among the brands, we came up with the third idea to
provide the platform for the customisation of apple accessories. Apple is the largest brand in the
technology industry in terms of its revenue generated as well as its brand ranking. It is not a surprise to
many because Apple has time and time again presented products which were ground-breaking, and which
revolutionised the market. Apple has given us many delights over the years including the MacBook, the
iPod, iPhone, iPad, iWatch, iTunes and others. And due to its excellent product and differentiation, it is
close to the heart of many techie enthusiasts. It generally uses lifestyle segmentation as Apple is the most
premium brand out there. The segment is usually the urban population with enough buying power for
purchasing Apple products. These are early adopters in life, but the brand equity of Apple is such that
even laggards have started adopting the products.

Pros:
• Market is exclusive, thus, there is more control on the price.
• The Liberty for customisation gives customers a lot of choices.
• Higher customer retention since there are wide availability of the choices.
• Reduces overhead costs.

Cons:
• Although, prices of iPhones are high, despite of it people buy it for the status symbol but
customising the accessories will further enhance the price, thus making the market opportunity
limited.
• Providing too many choices will cause choice paralysis that will turn users off which is a big loss
for producer.
• Impossible to predict all the possible design that users will order, it becomes cumbersome take
to manage the expectations of the customers.
• Wait time from order placement to in- hand increases.
• Increased cost on the supplier end also increases to meet the demand of the customers (design,
material, colour etc)
• Impossible to build stock ahead of time.

4
LUXURY PRODUCTS RENTING

Luxury fashion is now heading more towards access than ownership. With the climate crisis rising, people
are becoming more aware of how detrimental the fashion industry is for the environment and looking for
alternatives to fast fashion. The online rental space has come as a boon for fashion enthusiasts worldwide.
Today, everything from designer outfits and home décor products to furniture, is available for rent, on a
pay-per-use basis.

A lot of people cannot afford high-end brands. And making these clothes available on rent opens up a new
market segment for luxury brands. Also, the customer has the luxury of keeping the outfit for any number
of days, depending on their needs and preferences. Fashion rentals are an integral part of the sharing
economy. In the age of Facebook and Instagram, nobody wants to be photographed in the same attire.
Besides, rental business is not restricted to garments. One can hire even furniture according to their taste
and preference.

It has been called the end of ownership -- consumers forgoing personal possessions in favour of renting
and borrowing items. The sharing economy, and the notion of consuming without having to buy has
certainly reached new levels of demand. From environmental concerns to a new wave of minimalism,
wealthy consumers are shifting toward the economy of sharing rather than the absolute ownership of
luxury goods. People are simply becoming less interested in owning things, but still want access to things
and experiences that bring them joy and excite them. It can be easily seen that short-term renting and
sharing provides an effective way to lighten the load of one’s belongings, give access to previously
unattainable luxury items, minimise an individual's contribution to the global culture of "things" and
lessen the negative environmental impacts of mass consumerism.
In 2020, Sharing is Caring, The movement has fuelled an explosive growth in new platforms that allow
peer to peer lending and renting, featuring all kinds of products and services. With the financial challenges
young people now face to own a home, consumers are seen to be living in smaller and smaller apartments,
or alternatively renting or sharing with others for longer into their adult life as they seek to step onto the
property ladder. The rise in the sharing economy is further fuelled by the modern consumers’ desire to
gain meaningful experiences through each spend. . Connecting with others and feeling part of a
community is something that sharing platforms provide naturally, cultivating an exchange which is more
than simply transactional. The potential to have a transformative effect on one's being, to engage in local
culture or share in an experience can be provided by platforms that bring people together over shared
items.

Pros:
• Renting saves you time. Instead of visiting dozens of stores in the mall, you can take advantage of
one-stop shopping online and browse through outfits for every occasion.
• Experimenting with trends can be expensive. A rental allows you to try the outfit or accessory and
then decide if you wish to incorporate the trend into your wardrobe.
• The outfits are well-packaged and include return shipping labels.
• Some stores offer a 24-hour try-on period. If you do not like the item, you can return it and get a
refund.
• Renting clothes gives more opportunities to be creative and incorporate new things into style
without the need to buy more stuff. It reduces the burden on the environment of producing new
things

5
 • Get the products for a fraction of retail price. The customer can get the Luxury pieces only at 10
to 20 percent of their retail price.
• Renting allows the buyer to free up space in his or her own wardrobe. The saved-up money can
be used to buy the products that can be used for years.
• One can use the rental as the test drive and then decide whether one want to purchase the
product or not.

Cons:
• The customer may be liable to pay additional insurance.
• The customer will be liable for replacing the products if the item is lost or stolen.
• The price which the customer is supposed to pay for the item may be less than the actual price
but then too it may be costly for the customer.
• Learning curves when it comes to using, operating, or handling the luxury item.
• If the rented product faces any damage, the n customer is liable and has to pay for the product
which will burn a whole in the pocket.
• The payment of initial insurance amount before renting the product.
• The price for rent will be less than the retail price but still due to the nature of the product it could
still be costly.
• There is a risk factor involved for both the seller and the customer.
• The investment amount required for maintaining the inventory is also a point of concern.

6
DIY TRAVEL ITINERARY

Most people who go on vacation like to book trips through a travel agent in order to take
some of the stress out of the planning process. Travel agents can also help you save money on
flight, hotel rooms, cruises, and more; but what about online travel agencies? While people
worry that Internet travel agencies could scam you or provide low-quality service, there are
several benefits to choosing an online travel agency, providing that you pick the
right one. At DIY Travel Itinerary is a user-friendly travel website giving user the full access to plan his own
itinerary, his mode of transport, accommodation, food, places to visit etc. as per his own choice and
comfort.

Pros:
• Customers can find all the necessities of the travel like transport, accommodation, food, places of
interest etc. at one place within the range of his pocket with multiple payment options
• Multiple service providers to choose from, hence diversified options.
• Details of the destination provided along with assistance provided from multiple reviews.
• No need to compromise with the pre-defined tour packages made by the travel agents. Build your
on-tour plan from scratch according to your choice and budget without outside influences or
pressure.
Cons:
• Difficult to list all modes of transportations like airlines, trains, buses and car rentals on a single
platform.
• After arriving at one’s destination, it is not possible to update his/her service because of
prebooking.
• Your travel destination is extremely alien to you, so it’s difficult to decide which services to book.
• A person’s privacy may be hindered if the platform’s site is not secure & hence important details
like (passport/Aadhar card number) may be compromised.
• No spontaneous decisions can be made as everything is already finalised in the advance.

7
STOCK ROTATION INVENTORY MANAGEMENT

Retailing is one of the largest sectors in the global economy and is going through a transition phase not
only in India but all over the world. In India retailing is receiving global recognition and attention and this
is emerging market that is witnessing a significant change in its growth and investment pattern.
Retailing is one of the pillars of economy in India and accounts for 22% pf GDP. The retail industry is
divided into two parts – organised and unorganised. Unorganised refers to the traditional formats of low-
cost retailing. It is any retail outlet which is run locally by the owner or the caretaker.
To overcome this problem, we came up with the solution of “stock rotation between the retailers”. The
basic logic behind this idea was that if a merchandise does not become popular at one store, it may find
popularity at some other store in other location.
Basically, the idea is to rotate the merchandise between the stores every 15 days so that each store may
get the new variety and colours of the merchandise every fort night with this plan.
A store will get the stock of merchandise suppose on Day 1, he must make the sells for it for 15 days as
much as it is possible. After 15 days the merchandise will be checked properly and will be moved to
another store at other location. A shopkeeper must pay only for the merchandise that he has sold. With
this there will not be any dead stock with the shopkeeper and he will get fresh merchandise every time.

Pros:
• New stock will be maintained in all stores.
• Customers can get the fresh merchandise every time.
• No deadstock at any store.

Cons:
• High cost due to frequent transportation.
• Conflicts may cause between the stores if proper record of merchandise in and out is not
maintained.
• Each merchandiser must be fully checked before letting out.
• Risk and responsibility of damaged merchandise will not be borne by retailers.

8
 BUSINESS IDEA DEVELOPMENT
BRAINSTORMING

Step 1:

Firstly, all the group members had a session where all come up with approx. 100 words listed as follows:

9
Step 2:

Secondly, 30 words from the initial 100 were selected which were later narrowed down to 15 words as
shown below:

10
Step 3:

Finally, from the previously selected 15 words each group member chose a word narrowing it down to 5
words and after that all the group members agreed upon the word “Digitalisation” for the mind mapping
exercise.

11
MIND – MAPPING

All the team members conducted the Mind-mapping Exercise and through the process we identified the
word “E-Management” on which we modelled our Business Idea.

12
 SKILL E-MANAGEMENT SYSTEM & SERVICE PROVIDER
• Through our skill E- Management System an applicant can build his resume and verify the skills
enlisted through the wide variety of tests provided by us.
• The skills enlisted by the applicant are verified and evaluated through the different levels of tests
which in turn categorises the applicants into different levels of expertise for their enlisted skills
• The recruiter in turn can easily search for the right candidate for the job and can judge the level
of expertise of the applicant through the levels allotted to him.
• This system can be used for wide variety of skills and job profiles.

For Example:
If an applicant enlists himself and mentions that he/she is a Microsoft Excel expert, then he needs to verify
his skill by providing it credibility through the tests provided by the site. As the level of the tests increases
so does the level of expertise in the skill he mentioned will be shown on his profile. Thus, when a recruiter
wants an employee with say Level 4 expertise in Microsoft Excel then he only need to search for the
candidate with the required credential without worrying about falsified resumes and will meet the right
employee for the job.

Pros:
• It’s a one place destination for both skill testing and recruitment.
• It prevents applicants from falsifying their resume.
• It eases the shortlisting process.
• The process is both time and cost for the recruiter.
• Recruiters are also vetted and hence verified.
Cons:
• Time consuming for the applicant.
• Limited accessibility for people residing in remote areas.
• The applicants can cheat on their tests.

13
 EXISTING BUSINESS
LinkedIn

Founder Reid Hoffman · Allen Blue Konstantin Guericke Eric Ly Jean-Luc Vaillant.

Founded In December 28, 2002 California, U.S

Parent Company Microsoft corporation

CEO Ryan Roslansky

• LinkedIn provides a multi-sided platform, which offers several solutions for different customers.
• The main goal is to build a professional identity and develop useful contacts for business, with the
purpose to broaden their career frontiers.
• The greatest benefit of the platform is the convenience
• On LinkedIn, every profile stands for a kind of résumé.

14
 HISTORY
LinkedIn began in co-founder Reid Hoffman's living room in 2002 and was officially launched on May 5,
2003.

In August 2004, LinkedIn reached 1 million users. In March 2006, LinkedIn achieved its first month of
profitability. In April 2007, LinkedIn reached 10 million users. In February 2008, LinkedIn launched a
mobile version of the site.

On June 13, 2016, Microsoft announced the acquisition of LinkedIn for $196 a share, a total value of $26.2
billion and the largest acquisition made by Microsoft to date.
After the acquisition of LinkedIn by Microsoft, a new desktop version was introduced.

In 2019, LinkedIn launched globally the feature Open for Business that enables freelancers to be
discovered on the platform.

LinkedIn connects the world's professionals to make them more productive and successful. With more
than 675+ million members worldwide, including executives from every Fortune 500 company, LinkedIn
is the world's largest professional network. The company has a diversified business model with revenue
coming from Talent Solutions, Marketing Solutions, and Premium Subscriptions products. Headquartered
in Silicon Valley, LinkedIn has offices across the globe.

15
 COMPANY VALUES
Transformation
Every one of us is here to transform ourselves, our company, and our world for the better.

Integrity
We do not believe the ends justify the means. Do the right thing.

Collaboration
We are capable of so much more when we work together.

Humour
Changing the world is hard work. It’s important to have a few laughs along the way.

Results
We set clear goals. We measure our success. We fix what does not work. We deliver.

16
 COMPANY APPROACH
The companies' decision-making process is determined by the following factors:

Members first
Without our members, there is no LinkedIn. Everything we do, we do for them.

Inspire excellence
No challenge is too big. We keep learning, iterating, and improving.

Relationships matter
We are in the business of building relationships. This includes our workplace.

Take intelligent risks

One of the secrets to LinkedIn’s success. Not every risk works out – but some do.

Be open, honest, and constructive

We strive to communicate clearly and share helpful feedback.

Act like an owner of #OneLinkedIn

We make every decision, big or small, with care.

17
 SUCCESS FACTOR
The success factors of LinkedIn, which is the world’s largest professional networking platform are derived
from its mission and goals.

Some of the services the platform provides in order to make users more approachable to the recruiters
are paid. It offers several paid features like premium accounts, talent solutions, marketing and sales
solutions. LinkedIn offers a portfolio of solutions which allow employers to connect to the applicants.

Business solutions:
Every user on LinkedIn has a different set of requirements. Be it finding new networking opportunities,
potential employees, marketing of new campaigns, searching for a sales lead or learning business
concepts, LinkedIn business solutions have services to fulfil most of these needs.

Talent Solutions:
With over 65% contribution to the total revenue, talent solutions are the most important services and
tools included in the LinkedIn business model. Talent solutions include premium recruiting tools for the
companies and recruiters to help them find the most suitable employees/partners for their business. The
primary services offered under Talent Solutions are LinkedIn recruiter, job slots, recruitment media,
career pages, and work with us ads.

Marketing Solutions:
LinkedIn apart from being the best recruitment platform is also a sought-after social networking website
by marketers to execute their marketing campaigns. This service contributes to over 18% of the total
revenue of the company and offers features which let companies to not only create a company page but
also enhance their marketing efforts by creating sponsored content, sponsored InMail’s and text
advertisements.

Premium Subscriptions:
Premium subscriptions are premium solutions catered to individuals on LinkedIn. It allows users to unlock
certain features that are not available to normal users. The premium plans are designed to cater to the
specific needs of the users.

CUSTOMER SEGMENTATION -

LinkedIn operates under four customer segments.

•Professionals (Users) – The first one is comprised of Internet Users who can access its site online and
create their own profiles.

•Recruiters – The next ones are the recruiters who are searching for those who show the most potential,
promise, and talent.

•Advertisers and Marketers – The next one is the advertisers and marketers who make it their
responsibility to reach senior decision makers as well as a wealthier audience.

18
•Third-party developers – Finally, there is a developer community who is interested in developing and
deploying software tools by utilizing LinkedIn APIs.

CUSTOMER RELATIONSHIP-

Direct Network Effect –

LinkedIn heavily relies on social networks to pursue its customer relationships. The more there are users
on these networks the more it wants them to participate in its own.
Normal users regard this as the same side network which symbolizes the importance of its users more
than the site itself.
All they require is a platform which LinkedIn provides with its own set of rules.

Indirect Network Effect –

The presence or absence of recruiters and advertisers do not affect the site in any way whatsoever.
However, recruiters and advertisers are utilized with respect to the site’s cross-side network effects. Even
in this case, the users hold more importance than the latter.

VALUE PROPOSITION-

LinkedIn has different value propositions for its various customer segments.

For Professionals (Users):

• It provides them with the opportunity to display their talents, professional skills as well as
expertise.
• It enables them to build new contacts and relationships.
• Many of its users have utilized its platform to build their own brands and secure new recruitment.
• The best thing about the LinkedIn platform is that its free of charge for the most essential features.
• No dime needs to be spent. All LinkedIn is really concerned with is ensuring that its user
engagement.

For Recruiters:
• LinkedIn acts as an effective tool for them to find their respective candidates and evaluate them
accordingly.
• Its database has a wealth of information and resumes with references. All these resumes/ CVs are
easy to find and structures at a professional level.
• For recruiters, their job has been made more convenient. They no longer have to go out and create
candidate lists through word of mouth.'
• With a network like LinkedIn in their arsenal, they can have a wider reach in their listing.

For Advertisers:
• the same data can be used by advertisers to access a targeted audience
• You simply need to locate the senior executives of your companies of choice in order to set up
the targeted advertisement.
• It will function without posing much resistance from the executives.

19
For Third-party developers
• Finally, developers can create software tools and solutions by leveraging LinkedIn APIs.
• Often, these software tools are hosted on third party websites to support customers.

CHANNELS OF LINKEDIN:

Self- Serve Platform – LinkedIn’s main channels are its website and mobile apps. This lets people access
and engage with the site’s platform.

Offline Field based Sales – The sales organization directly deals with large and small enterprise customers.

20
 SUCCESSFUL ENTREPRENEUR

Introduction
Reid Garrett Hoffman (born August 5, 1967) is an American internet entrepreneur, venture capitalist and
author. Hoffman was the co-founder and executive chairman of LinkedIn, a business-oriented social
network used primarily for professional networking.
Hoffman was LinkedIn's founding CEO for the first four years. He became executive chairman in June 2009.

Intellectual works
Hoffman has published a variety of posts as a "LinkedIn Influencer" on LinkedIn. He published an essay
proposing a new form of credentialing for university students and professionals entitled "Disrupting the
Diploma". Hoffman is co-author, of the career book The Start-Up of You: Adapt to the Future, Invest in
Yourself, and Transform your Career.

Early Career
Hoffman had a childhood that was in no way indicative of the future he had as a networking
entrepreneur. He studied epistemology and was also into farming for a while during his high school
days and a little after that. Later, he got into the prestigious Stanford University from where he
graduated with a B.S in symbolic systems and cognitive science. An M.A in philosophy from the
Oxford University followed. It was Hoffman’s dream to influence the world on a big scale, which is
why he thought academia was the right profession for him. He later decided that he wanted to
pursue a career as an entrepreneur instead. Reid bagged a job in Apple computers in 1994 and
worked on eWorld, which was one of the first attempts at social networking.
PayPal, an electronic money transmission service was where he worked next and with all the talent
that he’s exhibited in the field of networking, he quickly climbed up the ladder at PayPal to become
the Vice President of the company by the time it was sold to ebay in 2002.All the professional
experience he gained while at PayPal and all the external contacts that he got for himself during
the time helped him in the establishment of LinkedIn along with his two other
friends. LinkedIn then began operating in 2003, and quickly became a humongous success with 332
million users from 200 countries using it, as of 2014.
The shrewd businessman that he is is, Reid Hoffman started investing shortly
after LinkedIn's success into nearly 30 to 40 internet businesses - Flickr, Wikia, Coupons, Xapo,
OneKingsLane, Edmodo and Wrapp being some of them.
Hoffman also got the opportunity to live up to his initial dream of changing the world by lecturing
by all his motivational speeches and books later in his life. He also blogs on LinkedIn as ‘LinkedIn
Influencer at times. Hoffman’s ‘The Start-Up Of You’, one of his books on business venturing is
highly acclaimed by his followers. The book went on to become a New York Times best seller.
Hoffman has always motivated his followers to think big. One of his famous entrepreneurial quotes
goes, “Every internet entrepreneur should answer these questions: How do we get to one million
users? Then how do we get to ten million users? Then how will you get them engaged deeply?”.
This says it all.

21
 IDEOLOGIES
1. Winning requires more than just building superior product
Hoffman says, " don't enter a crowded market. Launching another social network or daily deals
site is a mistake because the market is crowded. You cannot forget about product distribution.
The best product without great distribution means the product dies.

2. Take Intelligent risk

Hoffman advises entrepreneurs to take “intelligent risks. When you stop taking risks, you start
dying. You stagnate, and inertia grabs hold of your life and business.

3. Have a plan Z
Hoffman recommends that you have a plan if you fail or your company does not work out. It’s the
“lifeboat plan.” So, before you launch a new business, it is important to have a plan Z so that you
know what to do if everything crumbles.

4. Aim Big
“If you don’t start out aiming for the big game, you almost never can get there.” Hoffman says,
think big but be smart.

5. Maintain flexible persistence

“Be persistent and hang on to your vision. And at the same time, be flexible,” Hoffman says

6. Rules can be broken

Hoffman says that “Rules of entrepreneurship are guidelines, not laws of nature.” whenever we
make something new, we need to break the predefined rules and do something completely
different.

7. If You are Not Embarrassed by your First Launch, You’ve Launched Too Late-
Hoffman emphasizes that entrepreneurs should start with a very thin product. Launching early
brings the benefit of seeing how customers use and interact with your product. It is also important
to have metrics that tell you if your aspiration and vision are on target.

8. A Team Needs to Have a High Clock Speed and Learning Cycle

Since your startup is doing things that have never been done before, it helps to have people who
can learn fast. Employees must have an underlying skillset with raw learning abilities. Another thing
you look for is creativity. You need people who tell, what is working, what is not working. And you
need to have people who are…very honest with each other, but also fun, hardworking, and want
to win.
9. Plan for Good Luck and Bad Luck
People know that they need to plan for bad luck. They need to have a “backup plan” in case things
do not work out. Hoffman says that you also need to plan for good luck. This means that, once you
see something catching on, you can shift and go after it.

22
 MARKET STUDY
Market Size of LinkedIn

The global revenue of LinkedIn amounts to $2,016 million in 2020. LinkedIn generates more than $454,000
per employee.
LinkedIn's 2nd Quarter 2020 revenue has increased by 14%.

LinkedIn user stats

• LinkedIn now has over 660+ million members.
• LinkedIn has 675 million monthly users.
• 40% of monthly active users use LinkedIn daily.
• 70% of LinkedIn’s users are outside the United States.
• LinkedIn received 844.11 million visits from July 2019 to December 2019.

LinkedIn Content Marketing Statistics

• LinkedIn is the #1 channel B2B marketers use to distribute content at 94%.
• 94% of B2B marketers use LinkedIn as a content distribution channel, compared to Twitter at 89%,
Facebook and YouTube both at 77%, and Google+ 61%.
• 91% of marketing executives list LinkedIn as the top place to find quality content.

LinkedIn Users region wise distribution

• As of May 2020, Spain has 12 Mn+ users and the Netherland has 8 Mn+ users, Whereas Belgium,
Portugal, Sweden, and Poland each have 3 Mn+ LinkedIn users.
• Australia has 11 Mn+ LinkedIn users and Turkey, Philippines and Colombia has 8 Mn+ users.
• Argentina, and South Africa, has 7 Mn+ users LinkedIn Content Marketing
• LinkedIn is the most preferred channel for B2B marketers to distribute content at 94%.
• 91% of marketing executives list LinkedIn as the top place to find quality content
• 92% of B2B marketers include LinkedIn in their digital marketing mix

23
Global Corporate Assessment Services Scope and Market Size

In 2019, the global Corporate Assessment Services market size was USD 3064.8 million with a CAGR of
7.5% during 2021-2026.

Corporate Assessment Services market is segmented by Type, and by Application. Players, stakeholders,
and other participants in the global Corporate Assessment Services market will be able to gain the upper
hand as they use the report as a powerful resource. The segmental analysis focuses on revenue and
forecast by Type and by Application in terms of revenue and forecast for the period 2015-2026.

Segment by Type, the Corporate Assessment Services market is segmented into Psychometric Tests,
Aptitude Tests, Domain Tests, In-Person Interviews, Others, etc.

Segment by Application, the Corporate Assessment Services market is segmented into Recruitment of
Frontline Employee, Recruitment of Managers, Internal Assessment and Promotion, etc.

Assessment Services Market to Reach USD 10.73 Billion By 2026

An increasing number of competitive examinations and certifications coupled with a rising population of
the young labor force are estimated to stimulate market demand.

Market Size – USD 6.08 billion in 2018, Market Growth - CAGR of 7.3%, Market Trends – Growing
preference among corporates and governments to opt for online exams

India assessment services market is projected to cross $ 750 million by 2021, during the forecast period.
Anticipated growth in the market is backed by increasing number of competitive examinations and
certifications, growing need for skill assessment for increasing employability, and rising population of the
young labor force in the country.

Competition

Some of the most popular methods for assessing job candidates’ or employees’ skills are:

1. Resume reviews
2. Job interviews
3. Reference checks
4. Job simulation exercise (such as mock sales call, writing assignment, presentation, etc.)
5. Skill assessment tests.

High-quality skill assessment tests are the only completely standardized, formal and scientific method for
evaluating the skills of employees and job candidates.

24
A rising number of young jobseekers and entrepreneurs are one of the significant drivers for the market.
They often refer to the internet platform where they can find new and various forms of employment,
which can offer adaptability and increase income-earning opportunities.

Corporate eLearning enables organizations to decrease HR costs associated with training, onboarding,
recruitment, retainment, and appointment via automated processes, sophisticated reporting and a
reduced need for hiring talent to manage and provide training or continued education.

Some of the major players operating in India assessment services market are MeritTrac Services Pvt.
Ltd. Mettl Online Assessment, Aspiring Minds, Sify Technologies Limited, CoCubes Technologies Pvt.
Ltd., eLitmus Evaluation Pvt. Ltd., Tata Consultancy Services Limited, EdCIL (India) Limited, Prometric
Testing Pvt Ltd, and Pearson India Education Services Pvt. Ltd., among others.

Competition: Merirtrac

About the company Incorporated in 2000, MeritTrac is a leading assessment and testing company in India,
providing examination management and assessment solutions to educational institutions, corporate and
Government / public sector units (PSUs). Educational assessment forms the mainstay, followed by the PSU
/ Government segment. MeritTrac, with over eighteen years of experience, has been designing,
developing delivering tests for over 400 customers in more than 350 cities through 2000 certified test
centres. The service offerings for conducting examinations start from application processing, generating
admit cards, examination planning and administration till result processing. MeritTrac has experience in
conducting examinations in offline (paper-pencil) as well as online modes. It also offers modular services
to address some critical areas of admission, assessment and examination administration, such as
candidate authentication using biometrics, and on-screen marking of answer booklets.

The ratings remain supported by strong parentage (Manipal Global Education Services Private Limited
(rated [ICRA]A-/ negative), established position of MeritTrac Services Private Limited (MeritTrac / the
company) in the Indian education and testing assessment solution space and diversified revenue profile,
which includes educational assessment (accounted for ~50% to revenues in FY2019), corporates (~16%),
government institutions (~27%) and international segment (~7%). MeritTrac’s scale of operations remains
moderate with revenues of Rs. 93.5 crore in FY2019.

The revenues declined by ~4% YoY with no materialisation of few orders in Q4 FY2019 ahead of the
General elections, and lower revenues from its key clients. Lower sales coupled with delay in ramp-up of
new products segment had impacted the operating and net profit margins, which stood at 8.4% and 1.2%
respectively in FY2019. While its revenues in H1 FY2020 is expected to be subdued due to the election
impact on government orders, expectation of demand revival and committed orders shall support its
revenues in H2.

Rising competitive intensity resulting in pricing pressure: The industry is marked by no major entry barriers
and high competition from domestic as well as international players constraining pricing flexibility of the
company. While MeritTrac has an established market position in the industry, its scale of operations is
relatively moderate. However, association with Manipal group, diversified segmental presence, and
strong relationship with its customers mitigates the risk.

25
Earnings exposed to regulatory and reputation related risks: Amidst favourable demand prospects, the
earnings of industry players (including MeritTrac) remains exposed to the industry related risks (e.g.
change in regulations), and operational risks like system downtime, examination centre related issues etc.
thus impacting the reputation of players.

The global online recruitment Market Size

In 2018, the global Online Recruitment market size was 22800 million US$.
Asia Pacific was the largest Market in 2017 owing to the booming industries in china and India.
Technical and engineering dominated the market valued at USD 3.8Bn dollars.
The global online recruitment is expected to reach USD 39.76 billion by 2025 at the CAGR of 7.1% during
the forecast period. The market is primarily driven by major outsourcing of employee hiring processes
through e-recruitment platform partners. Also, digital transformation and the fourth industrial revolution
has created a new wave of job opportunities which is positively impacting the online recruitment market.

The key online recruitment vendors operating in the market are LinkedIn, Recruit, CareerBuilder, Monster,
SEEK, Naukri, StepStone, Dice Holdings, and 58.com among others. The companies are leveraging both
organic and inorganic growth strategies to stay ahead of the competition.

Market Drivers

1. Integration of Data Analytics, Artificial Intelligence and Machine Learning.

2. Increasing popularity of background check and assessment technology.
3. Real time communication platforms for recruitment.

Competition: Glassdoor
Glassdoor runs the second-largest job website in the U.S. and is known for hosting anonymous employee
reviews about the culture and management of their companies. Glassdoor was taking steps earlier this
year toward an initial public offering and was said to be interviewing banks for a market debut in 2018.

Japanese human-resources and consumer-information provider Recruit Holdings Co. has agreed to buy
Glassdoor for $1.2 billion in cash. Through the tie-up, Recruit will gain access to the U.S. website’s
extensive cache of content such as employee reviews, while Glassdoor will seek to accelerate its push into
non-U.S. markets. Recruit shares rose as much as 3 percent in Tokyo.

Glassdoor has almost 59 million monthly users, 40 million reviews and insights for approximately 770,000
companies. Within Recruit, Glassdoor will operate as an independent business, Hohman said. The
company does not expect to change its headcount of about 750 employees as an immediate result of the
deal. Idekoba said there were no plans to integrate Glassdoor and Indeed, although he said they may
partner on “specific challenges” in the future.

FUNDING

Glassdoor was founded about a decade ago by Hohman and Tim Besse, along with Rich Barton, who
started travel website Expedia Inc. and co-founded real estate marketplace Zillow Group Inc. The biggest

26
venture capital backers selling their stakes are Tiger Global Private Investment, Benchmark Capital
Partners and Battery Ventures.

The company received its first financing in 2008, receiving $3 million in funding, before launching its
website. In 2012 Glassdoor received $20 million of venture capital, taking its total outside funding to $42.2
million. The following year, the company raised an additional $50 million. In 2015 the company raised an
additional $70 million, in an investment round led by Google Capital, giving the company a valuation of
just short of $1 billion. The total of investment at this point was $160 million. In 2016 Glassdoor raised an
additional $40 million from investors. In May 2018, Recruit Holdings announced its intention to acquire
Glassdoor for $1.2 billion in cash, with the acquisition completed in June 2018.

Market Size for the Proposed Business Idea

• Assessment Services Market to Reach USD 10.73 Billion By 2026 & Global Online Recruitment
Market is projected to reach US $39 Billion by 2025 as talent acquisition remains a top priority.
• An increasing number of competitive examinations and certifications coupled with a rising
population of the young labour force are estimated to stimulate market demand.
• India assessment services market is projected to cross $ 750 million by 2021, during the forecast
period. Anticipated growth in the market is backed by increasing number of competitive
examinations and certifications, growing need for skill assessment for increasing employability,
and rising population of the young labour force in the country.
• Recruiters are looking for faster and easier hiring channels.

27
 OTHER COMPETITIONS

INDEED:

Indeed, is the #1 job site worldwide, with over 250 million unique visitors per month. Indeed, is available
in more than 60 countries and 28 languages, covering 94% of global GDP.

Since 2004, Indeed has given job seekers free access to millions of jobs from thousands of company
websites and job boards. As the leading pay-for-performance recruitment advertising network, Indeed
drives millions of targeted applicants to jobs in every field and is the most cost-effective source of
candidates for thousands of companies.

Founded by Paul Forster and Rony Kahan, Indeed is a subsidiary of Recruit Holdings Co., Ltd. In the US,
Indeed has offices in Austin, New York, San Francisco, San Mateo, Seattle, and Stamford. Outside of the
US, Indeed has offices located in Amsterdam, Dublin, Düsseldorf, Hyderabad, London, Paris, Sydney,
Tokyo, Zürich, and Toronto. For more information about Indeed, see our blog, press releases or contact
us.

CAREERBUILDER:

CareerBuilder is an employment website founded in 1995 and with offices in the United
States, Canada, Europe, and Asia. In 2008, it had the largest market share among online employment
websites in the United States, where it was founded. CareerBuilder.com provides labour market
information, talent management software, and other recruitment related services. The company is owned
by investment firm Apollo Global Management.

NAUKRI.COM:

Naukri.com is an Indian employment website operating in India and Middle East founded in March 1997.
Naukri.com was founded by Indian businessman Sanjeev Bikhchandani, who started Info Edge (India) Ltd.
in 1995. As of Dec 2016 Naukri.com had a database of about 49.5 million registered job seekers and an
average of about 15,000 resumes were added daily while about 130,000 resumes were modified daily
during the Fiscal year 2013–14. During the Fiscal year 2013–14, 51,000 corporate customers (including
hiring consultants/firms) paid Naukri.com for services like database access, job postings, advertising /
listing on the site amongst others.

ASPIRING MINDS:

Aspiring minds is one of the finest leading assessment companies, founded in 2007. It helps the recruiters
to recruit a suitable candidate. It is also an open environment for the candidates to check or upgrade one’s
skills and talent in order to find an appropriate job. The assessment is done by AMCAT exam. The selection
can be done by the company through AMCAT test score. There are different sections in the exam through
which a general assessment score card is provided to the candidate. These assessments score cards are
provided to the recruiters. Aspiring minds is first ever job skills company on Skill Map U.S. 2016.

28
COCUBES TECHNOLOGIES Pvt. Ltd:

CoCubes is India's leading assessment and hiring platform. We run assessments to measure employability
across all domains - from programming to plumbing. CoCubes works with 600+ corporate clients to
execute entry level and lateral assessments and has access to more than a million candidates through its
platform. We run 2 million+ assessments each year in 350+ cities; thus, everyday helping our corporate
clients reduce interview bandwidth using our central assessment platform, helping our institutional clients
measure and improve employability and helping candidates move ahead on their career path. Our vision
is to ensure that everyone in the country gets an equal opportunity to build a career. We are the
visionaries of this space with a strong growth trajectory and an exciting firm to be with. CoCubes is part
of Aon plc (NYSE: AON)

29
 FUTURE

Future works of LinkedIn

The pandemic has made learning new skills, and the skills we'll need for the future of work, more difficult,
says Allen Blue, co-founder of LinkedIn.
Allen blue says, “The COVID 19 has had major impact on skills and distant learning."
The jobs of the future will be a combination of technical and human skills.
Microsoft and LinkedIn announced a global reskilling project with the aim of reskilling 25 million people
worldwide.

Accelerating inequality
It's a healthcare crisis, but it's also an economic crisis," he said. The biggest impact is actually going to be
the acceleration of inequality."

The jobs of tomorrow

He explained that, while jobs might be technological - for example a data scientist or artificial intelligence
engineer - they might be paired with a salesperson, who knows how to use the technology, or a marketer
who understands how AI works.

30
 GROWTH SUGGESTIONS
With expanding market and reach we can expand and diversify the genres and fields for testing.

It can expand into the field of skill development through workshops and paid courses. Hence, it can
become a platform for teachers, students and recruiters.

It will result in providing more employment opportunities in the country.

31