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M-Commerce: Next Technological Wave for the Marketers?

CASE FLYER, MARKETING MANAGEMENT
ET Cases, 6 pages
AUTHOR(S) : Dr. Radhika Jonnalagedda and Dr. Nagendra V. Chowdary

Case Preview

M-Commerce: Next Technological Wave for the Marketers?

 

Expected Learning Outcomes

• Understand the concept of M-Commerce and discuss on its value proposition
• Understand the growing importance of M-Commerce for Indian companies – both off-line as well as online and analyse the Critical Success Factors (CSFs) for the same

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M-Commerce: Co-creating Value

1. What do you understand by M-Commerce? What are the differences between E-Commerce and M-Commerce?
2. Inferring from Exhibit I(a) and Exhibit I(b), can you analyse the integrated business structure for M-Commerce platforms?

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M-Commerce in India

1. The base article quotes six companies (Dominos, Airtel, Flipkart, Myntra, MakeMyTrip and SnapDeal) having been benefitted from M-Commerce usage in India. The article poses an interesting question – What does the explosion of mobile devices mean for the Indian businesses? How do increased internet and mobile phone penetration and Tele-Density influence the M-Commerce usage in India?

2. What factors do you think must have contributed to the M-Commerce usage in India?

3. Flipkart’s Co-founder and CEO, Sachin Bansal is quoted in the base article, “The ticket size on this (mobile) platform is comparable to the web”. Do you think M-Commerce has the potential to outgrow E-Commerce in India? If yes, what specific reasons can you outline? If no, why not?

4. .......

Exhibits

Exhibit I(a): M-Commerce – Bank-Led Model

Exhibit I(b): M-Commerce – Mobile Operator-led Model

Exhibit II: M-Wallet – Country-wise Usage of Mobile Phones

Exhibit III: The Relative Need and Importance of M-Commerce in Developed and Developing Countries

Teaching Note Preview

M-Commerce: Next Technological Wave for the Marketers?

 

Synopsis

The case flyer has been used to analyze the implications of growing popularity of M-Commerce for Indian companies, both off-line as well as on-line companies. It orchestrates the interrelatedness between the upcoming M-Commerce companies and the existing Indian technology, mobile service operators, government policies, etc.

The base article1 indicates how some selected companies like Dominos Pizza India, Myntra, Flipkart, MakeMyTrip.com, SnapDeal, etc., in India using the M-Commerce platform. It indicates M-Commerce can prove to be a breakthrough in rural reach by the marketers. The case flyer assists in debating different models in M-Commerce and the scope of future potential for each one. This case flyer can be used in discussing the alternate distribution channels, both for brick and mortar companies and e-commerce companies.

Expected Learning Outcomes

  • • Understand the concept of M-Commerce and discuss on its value proposition
  • • Understand the growing importance of M-Commerce for Indian companies – both off-line as well as online and analyse the Critical Success Factors (CSFs) for the same

 

Positioning and Setting

This case flyer can be ideally positioned for:

  • a) General Marketing Course – for discussing Brand Strategies – Digital Marketing
  • b) Advertising Management Course – Integrated Marketing Management
  • c) Strategic Marketing Course – GE Industry Attractiveness Matrix

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Suggested Orchestration

Before the Case Flyer Discussion in the Classroom

The students were asked to read the following two reports before they came in for the case flyer discussion:

a) Infosys Finacle Report: – To understand the CSFs and the challenges of M-Commerce in India.
b) The TNS Report3 – To understand the growing trend of mobile wallet usage globally

During the Case Flyer Discussion in the Classroom

The discussion on the case flyer was conducted under two broad related topics:

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The case flyer was discussed under the broadly related topics as follows:

I. M-Commerce: Co-creating Value

This section was used to highlight the importance of co-creating value in M-Commerce.

• The classroom discussion was initiated with understanding the important differences between a known concept and technology to them, the E-Commerce. After their initial discussion on how E-Commerce evolved as an industry in the last two decades, the topic of discussion was navigated towards the emerging concept of M-Commerce. It was explained that some of the developing countries have seen quite a remarkable progress in M-Commerce usage. The students raised queries about the value delivery architecture of M-Commerce, which was explained referring to [Exhibit (TN)-I(a)] . The basic business structure of M-Commerce was an integration of the below basic platforms, this was explained as the bank-led model.

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Exhibits

Exhibit (TN)-I(a): M-Commerce – Bank-Led Model

Exhibit (TN)-I(b): M-Commerce – Mobile Operator-Led Model

Exhibit (TN)-II: M-Wallet – Country-wise Usage of Mobile Phones

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Abstract


The case flyer enables a discussion on the growing power of M-Commerce in India. Would M-Commerce be the next big leap for the marketers in India? It orchestrates the viability of Indian companies to gear up with the gigantic shift within the limitations like - the existing technology, Government intervention, policies, etc. The base article1 gives an overview of businesses carried by selected companies in India using the M-Commerce platform. It also indicates M-Commerce as a breakthrough business model for effective rural reach. Can companies in India see an upsurge in the fee-based revenue in M-Commerce by 2015? This case flyer can be used in discussing the Alternate Distribution Channels, both for brick and mortar companies and e-commerce companies in Marketing Management Course.



Pedagogical Objectives

  • To understand the concept of M-Commerce and discuss on its value proposition
  • To understand the growing importance of M-Commerce for Indian companies - both off-line as well as online and analyse the Critical Success Factors (CSFs) for the same


1 Moinak Mitra and Rahul Sachitanand, 'M-Commerce: The Next Money Spinner', The Economic Times, December 30th 2013



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