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Harvard Case - Roposo.com: Share Your Style: Entrepreneurial Pivoting & Strategic Thinking in Indian Fashion Social Networking

"Roposo.com: Share Your Style: Entrepreneurial Pivoting & Strategic Thinking in Indian Fashion Social Networking" Harvard business case study is written by Chirantan Chatterjee, Reechal Vardhan. It deals with the challenges in the field of Entrepreneurship. The case study is 20 page(s) long and it was first published on : Jun 1, 2017

At Fern Fort University, we recommend Roposo.com adopt a multi-pronged strategy focused on leveraging its strong community and unique content to drive sustainable growth and profitability. This strategy involves expanding its e-commerce platform, diversifying revenue streams, and building strategic partnerships to solidify its position as a leading player in the Indian fashion social networking space.

2. Background

Roposo.com is a social networking platform focused on fashion and style, catering to the Indian market. Founded in 2012, it initially operated as a photo-sharing platform, allowing users to share their style and connect with others. However, the company faced challenges with monetization and competition from established players like Facebook and Instagram.

Recognizing the need for business model innovation, Roposo pivoted towards e-commerce, integrating a marketplace for fashion products. This move aimed to capitalize on the growing online fashion market in India and generate revenue through commissions and advertising.

The case study focuses on the company?s entrepreneurial journey and its efforts to navigate the complexities of the Indian market. It highlights the challenges of scaling a startup, attracting investment, and building a sustainable business model in a competitive landscape.

3. Analysis of the Case Study

Strategic Analysis:

  • Porter?s Five Forces: The Indian fashion social networking market is characterized by high competition (Facebook, Instagram, Myntra), low barriers to entry (due to the prevalence of mobile technology), strong bargaining power of buyers (due to numerous options), and moderate supplier power. Roposo?s strength lies in its niche focus on fashion and its strong community engagement.
  • SWOT Analysis:
    • Strengths: Strong community, unique content, focus on Indian fashion, growing e-commerce platform.
    • Weaknesses: Limited brand awareness, dependence on mobile technology, reliance on third-party logistics.
    • Opportunities: Expanding e-commerce, diversifying revenue streams, partnering with brands and influencers.
    • Threats: Intense competition, evolving consumer preferences, regulatory changes.

Financial Analysis:

  • Roposo?s initial business model based solely on advertising revenue was not sustainable. The shift towards e-commerce offered a more viable revenue stream but required significant investment in infrastructure, logistics, and marketing.
  • The company?s reliance on venture capital highlighted the need for strategic financial management to ensure long-term profitability.

Marketing Analysis:

  • Roposo?s community-driven approach to content creation and sharing was a key strength. The platform leveraged user-generated content to build a strong brand image and engage its target audience.
  • The company?s marketing strategy focused on social media marketing, influencer collaborations, and strategic partnerships to reach a wider audience.

4. Recommendations

1. Expand E-commerce Platform:

  • Focus on curated selection: Offer a curated selection of fashion products, catering to specific niches and trends.
  • Enhance user experience: Improve the website and mobile app interface, providing a seamless and personalized shopping experience.
  • Develop robust logistics infrastructure: Invest in efficient warehousing and delivery systems to ensure timely and reliable order fulfillment.
  • Implement data-driven pricing strategies: Leverage analytics to optimize product pricing and promotions.

2. Diversify Revenue Streams:

  • Expand advertising offerings: Offer targeted advertising solutions to brands, leveraging Roposo?s user demographics and engagement data.
  • Introduce subscription-based services: Offer premium features and exclusive content to users willing to pay for enhanced experiences.
  • Explore partnerships with brands: Collaborate with fashion brands to create co-branded products and exclusive collections.

3. Build Strategic Partnerships:

  • Partner with influencers: Collaborate with fashion influencers and bloggers to promote Roposo and its products.
  • Integrate with other platforms: Partner with social media platforms and e-commerce marketplaces to expand reach and drive traffic.
  • Collaborate with fashion schools and designers: Offer opportunities for emerging designers to showcase their work on Roposo.

5. Basis of Recommendations

These recommendations are based on a comprehensive analysis of Roposo?s strengths, weaknesses, opportunities, and threats. They align with the company?s core competencies, cater to the needs of its target audience, and address the competitive landscape.

  • Core Competencies: The recommendations leverage Roposo?s strong community engagement and unique content to drive growth.
  • External Customers: The recommendations focus on improving the user experience and offering a wider range of products and services.
  • Competitors: The recommendations aim to differentiate Roposo from competitors by focusing on its niche focus on Indian fashion and its strong community.
  • Attractiveness: The recommendations are expected to increase revenue, improve profitability, and enhance brand value.

6. Conclusion

Roposo.com has the potential to become a leading player in the Indian fashion social networking market. By implementing a multi-pronged strategy focused on expanding its e-commerce platform, diversifying revenue streams, and building strategic partnerships, the company can achieve sustainable growth and profitability.

7. Discussion

Alternatives:

  • Focusing solely on advertising revenue: This approach would be difficult to sustain in a competitive market with established players.
  • Acquiring a competitor: This could be a costly and risky strategy, with uncertainties about integration and market acceptance.

Risks:

  • Competition from established players: Roposo needs to differentiate itself and offer unique value propositions to attract and retain users.
  • Evolving consumer preferences: The company needs to stay ahead of trends and adapt its product offerings to meet changing consumer needs.
  • Technological advancements: Roposo needs to invest in technology and innovation to stay competitive in the evolving digital landscape.

Key Assumptions:

  • The Indian fashion market will continue to grow.
  • Roposo?s community will remain engaged and active.
  • The company can successfully implement its strategic initiatives.

8. Next Steps

  • Develop a detailed business plan: Outline the specific strategies, timelines, and resources required to implement the recommendations.
  • Secure funding: Seek additional investment to support the expansion of the e-commerce platform and marketing efforts.
  • Build a strong team: Hire experienced professionals in e-commerce, marketing, and technology to execute the strategy.
  • Monitor progress and adapt: Regularly track key performance indicators and adjust the strategy based on market feedback and performance data.

By taking these steps, Roposo.com can solidify its position as a leading player in the Indian fashion social networking space and achieve sustainable growth and profitability.

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Case Description

Roposo founders from their original days as founders of Giveter learnt about sustainable ways of doing business in the e-commerce world and therein lay the roots of Roposo. Over time, they acquired new knowledge about user behavior and exhibited agility in acquiring new functionalities and setting up of new teams to respond to evolving user behavior on the internet both using product development skills and by creating network effects. In doing so, they seem to be stepping on new competitive realms with existing competitors from the Silicon Valley or even from Asian entrepreneurial firms. The question now arises for Roposo founders on what to do and what not to do so that the firm can continue creating competitive advantage both in its original niche space of fashion social networking and more in fashion social e-commerce going forward. At a broad level, this case is ideal to teach MBA students: 1) How firms dynamically acquire capabilities over time responding to the market and external conditions and build competitive advantage. 2) In addition, it also addresses the issue of entrepreneurial pivoting that is essential to entrepreneurial survival. 3) Finally, the case also raises the issue of focus as a key construct in strategy - where firms need to decide whether it wants to build and/or acquire new capabilities keeping in mind anticipated competitive responses from the market.

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