Me Online Case Study

Group 8
31/09/2014
Akansha Singh
Kujja Shiva Shankar
Masiullah Khan
Niharika Dembla
Rimzhim Mathur
S Madhurakshara
Shashank Yadav

1. What were the strengths of the traditional business model of SHMEC

prior to E-business transformation?

The company was rich in fixed assets.

It had large distribution network and its product portfolio was rich.

It had strong customer base and industry know-how. Its customer included
General electric , Volkswagen etc.

The chain store model helped the company to master the art of managing
procurement and selling.

Its logistic center was skilled in troubleshooting and they had complete
understanding of selling through multichannel system.

The logistics and distribution system associated with the company was adept
at handling the corresponding nuances of the electrical and mechanical
equipment sector.

In 1991 company introduced computerised management which helped in

sharing inventory information across company.

2. What were the environmental factors that were necessary for

the success of the traditional business model?

To remain as a seller driven market so to have the power to control the

market.

The company should have kept track of its account receivable ,and improved
receivable turnover.

It had buy first sell later approach which would deeply hurt the business in
cases of high price fluctuation.

Proper monitoring by management and keeping track of sales pitch to avoid

selling on credit which later amounted to large debt.

Closed economy and no economic liberalisation would maintain its market

monopoly.

There was large inventory pile up due to the lack of proper information flow
about clients and suppliers .

Proper book keeping should have been done to maintain records of product
procurement, sales and inventory.

Efficient processing of capital, logistics and information was a neccissity to

keep a pace with the rapid changes in the market.

3.What was the value of the service provided by the

traditional SHMEC to its customers (i.e. Why were customers
ready to pay a higher price to SHMEC for the products they
bought)?

It was able to develop good business relationship with the customers.

It had wide range of product portfolio with variety of specification.

It was a great understanding of the nuances of the sector and maintained

good logistics system.

The chain store model helped customer to easily access the products.

Large inventory made sure that there was minimum delay and no equipment
were out of stock.

It had a wide distribution network .

4.What were the strengths of the new business model of Meonline after to E-business transformation?

The various business and management functions were highly efficient as the
inventory could be managed scientifically , distribution and procurement
management became easier.

Me-Online was designed to have an information and a trading section. Trading

section provided members with wide variety of services.

The model could be extended to equipment companies of similar nature.

It was easy to use, and the browser at the user end upgraded automatically.

It was the first company to issue value added tax invoices online.

It provided a world class trading platform.

It added digital certificate to make transaction authenticate and secure.

5.What are the environmental factors necessary for the success

of this new business model?

Availability of suitable manpower to cope up with the increased complexity of

the tasks in order to perform the processes efficiently.

Capability to implement an IT platform so as to bring international

manufacturers of mechanical and electrical equipment on a platform.

The ability to implement a strict financial assessment policy to reduce the

receivables and improve the financial condition of the company.

The ability to establish control systems in tandem with the e-business system
to reduce its operating risk.

Effective streamlining of logistics of mechanical and electrical equipment

with information processing.

The ability of the IT platform to provide a fair and transparent platform

between the manufacturers and the buyers.

6.What was the value of the service provided by Me-online to its

customers (i.e. Why were customers ready to pay anything for the
service they received)?

Wide variety of products with complete information & available at

competitive prices.

Integrated services and Improved quality of products .

Timely distribution of goods ordered through transparency in procurement.

Orders were processed quickly and accurately.

ME-Online had developed core competency and could not be replicated

effectively by competitors.

Facilitated management of inventory, distribution management and easy

procurement while providing the benefit of maintaining zero inventories.

Browser based self-updating client package which was easy to use.

How sustainable is the Me-online business model? How easily can

competitors replicate it?
7.

It provided a unique information and trading platform coupled

with years of experience in logistics and distribution.

It has transformed the business with this model building larger

expansion in customer base.

It has a stable relationship with enterprises in both the lower

and upper chain which was difficult to replicate.

It was focused in expanding the franchise which ensured

stability during the period of transformation.

The Me-online business model was built on the core

competencies of the SHMEC.