INDIAN ONLINE CLASSIFIEDS MARKET:

QUIKRS VERTICALIZATION STRATEGY

ABSTRACT
This case study introduces the participants to two important constructs of strategy: emergence
of a firms strategy and industry structure modelling a firms strategy. Quikr, Indias largest
online cross-category (horizontal) classifieds platform has been reinventing itself since its inception
in 2008. Co-founded by IIT-IIM alumnus, Pranay Chulet and Jiby Thomas, Quikr grew rapidly
with 12 million listings and 20 million responses every month. Headquartered in Bangalore
(on a sprawling 4-acre campus), Quikr has presence in 1,000 Indian cities and operates majorly
in 13 categories mobile phones, real estate, jobs, cars, etc. With a total funding of $350
million from seven funding rounds since its inception, Quikr had been aggressively following a
verticalization strategy in realty and automobile sectors QuikrHomes and QuikrCars with
opportune acquisitions in the last few months. Why did Quikr change its track and adopt
verticalization strategy? What are the challenges in horizontal classifieds strategy? Would Quikr
be able to garner market traction and become profitable with verticalization strategy? How
would Quikrs strategy affect its competitors? How would the competitors react?

Pedagogical Objectives

To understand the business dynamics of Indian online classifieds market and analyze the
nature of firm rivalry using Michael Porters Five Forces Model

To debate on the impending challenges with the horizontal classifieds strategy followed by
most of the players and to discuss and debate on why Quikr has adopted a verticalization
strategy to further its market leadership in Indian online classifieds market

To examine the competitive scenario, i.e., how would Quikrs new competitors respond
to Quikrs verticalization strategy?

Case Positioning and Setting

This case study can be used in the MBA program for the following:

Strategy Course Michael Porters Five Forces Model, Competitive Strategy, Horizontal
and Verticalization Strategies
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