Abstract  

The case on Tarnea Technology Solution is about a startup focused on providing supply chain solutions to the Indian pharmaceutical retail industry with a business model that connected distributors with retailers through a cloud-based interface, enabling real-time data access. In building an equivalent of a stock exchange at the pharmaceutical retail value chain (the last mile of the supply chain), Tarnea had developed the product and completed the pilot project. The case is set at a time when Tarnea had to decide on (a) pricing for both sides of the platform (retailers and distributors), (b) import of data from legacy products onto the Tarnea platform, (c) issues of direction of growth (whether to expand geographically first, or to diversify into other products), and (d) in their race to acquire customers, whether to outsource application development or not. The case discussion would help students to understand why and how platforms need to race to acquire customers as an insurance against envelopment.

Learning Objective 

This case is intended to be used in courses on Strategies for Platform-Mediated Networks (SPMN). It is used to highlight issues on platform envelopment, and how firms insure themselves against envelopment.

1. To highlight pricing issues in network growth, in the context of winner-takes-all (WTA) markets
2. To discuss issues around platform envelopment
3. Highlight the need for speed of execution and first mover advantage as an insurance against envelopment threats.