Case Study- Pak Wheels

Q1. How does Pakwheels.com create value for its customers? How is it different from
existing/traditional car dealer models?

Disparate other car dealers, Pakwheels.com's work is very varied and unique, making them more
open and effective in their car handling activities. In addition, because of their innovative way of
doing the job, Pakwheels.com has made it possible to create outstanding value for its clients,
because of their large and varied membership and their freedom of expression at the discussion
boards, allowing them to achieve incredible user commitment and loyalty. Another manner in
which Pakwheels.com is different from most car dealers is that they used the right use of their
platform, and if there were no social channels available to promote the introduction of the
website, one thing they did was to advertise the website by its contents. Pak Wheels evolved
organically with people signing in to the website, asking questions, receiving useful responses,
sharing feedback and photographs, and observing on others. Almost immediately, with new
people entering the group, Pak Wheels turn into Pakistan's biggest car enthusiast community.
Whereas, traditional car trading has created many obstacles for both the consumer and the seller.
The customer needs to visit several locations. The purchaser would visit several merchant stores
to find the perfect vehicle and pay a larger price than the real marketing price due to the
merchant's margin. Likewise, the purchaser must keep the vehicle with the dealer for a longer
period before the buyer has found or sold the car to the merchant at a concession on the real
marketing worth. Some of the other functioning of Pak Wheels made them different from other
dealers which also helped them to boost the value for its customers,

1. Even with the growing industry and business, Pak wheels held a check on its website and
updated the technologies with a modern web design. This has significantly modified the
design of Pak Wheels, assembling it more accessible and modern, without changing the
main structures of the automobile listing.
2. In order to ensure the worth of the content, every solo ad and picture earlier went live and
was approved and reviewed by dedicated team members, allotted for this purpose.
3. Pak Wheels introduced an auto blog run by trained auto reporters and content publishing
supervisor. The blog displayed car analyses, news, opinions, and other info that
contributed to a substantial recognition of the Pak Wheels brand.
4. In different cities, Pak Wheels also arranged several large-scale auto shows every year
and small ones meet every fortnight so that consumers could know each other
individually. Pak Wheels has begun working with other auto-related activities, which had
a strong crowd of 30,000–40,000 participants. Both of these events have strengthened the
efforts of Pak Wheels to grow the neighborhood.
5. The business model of Pak Wheels generated worth by lowering search and processing
expenses in the relationships between car purchasers and suppliers that created an auto
 services ecosystem—all details on purchasing, sale, analysis, auxiliary services, etc. can
be found at Pakwheels.com.
6. Pak Wheels concentrate on the production of equity through the distribution of resources
and goods rather than profits.
7. Pak Wheels has launched new marketing promotions. In-house Pak Wheels experts used
proven tactics such as SEO, paid search marketing and remarketing to maximize website
visibility to aimed markets across multiple online networks.

Q2. How do you assess the company's business model? What are its strengths and
weaknesses?

Different factors come into play when a Company's business model is to be evaluated or
analyzed but before that one must ask a rare basic questions in order to comprehend the basic
strategy of the business, these questions are below :-

 What strategy or tool will make the business model legitimate and guarantee that it is the
best decision for the company?
 What tool should be used to evaluate and track a company on a daily basis?
 What measures are needed to ensure quality progress in my business?

There can be more questions in order to deeply understand the structure of the business model
but these three are the most essential subjects to be looked upon.

Pak wheels' core business model was to expand in the online-classified car market, not only
proud of the successes of the website, but also actively contribute to the forums. A good amount
of money has also been spent on the domain and on the internet for business purposes.

Pakwheels.com has become one of the rare foremost brands in Pakistan's online business based
on overall industry growth led by a growing operational population online and expanding web
traffic. Their professional model was very simple, it did not charge visitors, but certain payments
were accused for banner advertising on the website. They were so committed to developing
society that they kept investing in the website. In addition, Pak Wheels has spent a small amount
in selling stickers to group members to help the portal. In July 2015, the business expanded to
250 staff, with more than 350,000 registered users, and website attracting 20 million visits a
month, 8 out of 2 million visitors, 9 and 45,000 car lists.

Power of the market model:-

 It attracted many consumers because of its diverse scope.

 They became one of the rare foremost brands in Pakistan's online business due to the
online community and rising web traffic.
  Various purchases such as Lead Generation, Featured Ads, and Dealership Bundles
helped them gain more money.

The drawbacks of the business model:-

 If PECA 2015 were applied in its severest procedure, there was a strong risk that the rules
could be severe and that a certain number of trustworthy supporters could be eliminated.
 A lot of money has been spent on domains and hosting. Customer-to-customer contact
helped as a free market model, with consumer comfort in mind. As a result, Pak Wheels
made absolutely no revenue from C2C experiences.
 While Pahuja and Bhatti wanted Pak Wheels to produce, they were not having the time
and resources to commit and felt the necessity for second hand to cope with the fast
expanding community.

Q3. Which of the two options should the company choose in order to scale up and why,
using the investor funding going forward?

In order to expand the market, Pak Wheels could opt for one alternative, because it would
encourage the company to spread its arms to those consumers who are not connected to the
internet world and would enable the company to develop in other fields. As at present, the
majority of Pak Wheels customers come from its website, while option one would allow the
company to target the market/area of ATL and BTL. This will not only allow the organization to
compete with OLX.

Q4. Overall, what would you do differently to grow a business such as Pak Wheels if you
were the entrepreneur behind the wheel instead of Suneel Sarfaraz Munj (CEO, Pak
Wheels)?

Pak Wheels business model was already up to the mark wich exquisitely didn't require any major
changes or modifications but with the growing age and technology there are a few things which
can definitely be adapted by the company to better growth and performance, some of those are:-

 Now when social media has become such an integral part of this generation, Pak Wheels
can step into the social world to attract more customers.

 Targeting marketing strategies to expand the company, whether digital or conventional.

Find out where the clients hang out, whether they are physically or online, and chat to
them personally. Not only can this allow for more targeted targeting, but it is also
generally a smarter use of financial capital, so you do not have to talk to the people who
are not even involved in your goods and services.
  Mergers and Transactions, Pak wheels can search for weaker companies to approach or
buy mergers.
These are some ways in which Pak Wheels can expand their company and increase their market
share along with their reach to the audience.