Abstract 

This case on Qwikcilver and Woohoo analyses the development of the Qwikcilver gift card processing business, its various challenges in evolving the primary B2B business model and how the firm has introduced the Woohoo platform to help with direct customer connect. It begins with the efforts of the founders in identifying a green field opportunity, how they go about bringing in the initial customer base and then the case delves into the different developments that have shaped the firm’s evolution. The case helps develop an understanding of the gifting market in India, the challenges of building a sustainable business in this sector and how the firm compares with the rest of the competition worldwide. It highlights how a Software-as-a-Service (SaaS) business model could increase resilience to competition by bringing in a new side in the form of direct connect with customers who buy or redeem gift cards, thus transforming from a pipeline business to a two-sided platform business model. The case is used to teach the basics of pipeline and multi-sided platform business models, the different actors in the platform business and the concept of network effects. It should help the students appreciate the differences between the pipeline and platform business models, and how a platform business model can bring in additional competitive differentiation as compared to a pure SaaS approach by increasing switching and multi-homing costs for the customers.

Learning Objective (Maximum of 500 Characters):  Briefly describes teaching goals of case. 

1. Introduce the difference between SaaS and Multi-Sided Platform (MSP) business models; the demand drivers, the existence of network effects, and the importance of multi-homing costs (versus switching costs).
2. Emphasize how the MSP business model (Woohoo) complements the SaaS (Qwikcilver) business model. Elucidate conditions where such complementarities could be leveraged for sustained growth and competitive advantage.