Abstract

The case on IndiaMART enumerates important decisions that are made in platform business models with regards to the pricing of the different sides of the platform. Discussions on the case would encompass the role of pricing in creating and leveraging network effects analyze the ‘‘penguin problem’’ and how firms could overcome manage and resolve the same. The case is set in 2013-2015 and describes the evolution of IndiaMART, the challenges they faced while addressing four major concerns at the turning point at which the organization was: namely, the speed of customer acquisition, arresting customer churn, responding to the opportunity of the increasing penetration of mobile phones for a platform such as IndiaMART and the decision to venture into new markets such as the B2B business.

Learning Objective

1. Analyze pricing issues in multi-sided platforms (MSPs)
2. Understand the process of network evolution across both sides of the platform
3. Appreciate the critical role of network effects in pricing decisions

Adapting the business model to changes in the external environment such as local search, penetration of mobile devices, and fulfillment expectations in a B2B marketplace