STRATEGIC

MANAGEMENT ANSWER
SHEET

Ashish Tiwari 1/11/22 21PGDM020

1.
A value chain activity or aspect that has a significant impact on customer value and difference is
known as a uniqueness driver.
(1) High-quality inputs
(2) innovation and technological advances
(3) superior product features
(4) production-related R&D investments
(5) continuous quality improvement
(6) improving personnel skills, marketing, and brand-building, and
(7) improved customer service is some of the uniqueness drivers.
Managers can adopt the most systematic approach by focusing on value drivers, which are a set of
criteria that are comparable to cost drivers and are particularly effective at establishing distinction.
a. Appeal to a broad range of buyers using product features and performance qualities. A product's
physical and functional attributes, such as improved user safety or environmental protection, have a
big impact on its differentiation. Styling and appearance are major differentiators in the apparel and
vehicle sectors.
b. Improve customer service or expand services. Better customer service in areas like as shipping,
refunds, and repair can be just as important as superior product characteristics in establishing a
competitive advantage.
c. Invest in important R&D projects for production. You may be able to manufacture custom orders at
a reduced cost, provide greater product variety and selection through "versioning," or improve product
quality by investing in manufacturing R&D. Many companies have developed flexible manufacturing
processes that allow multiple models and product variants to be produced on the same assembly line.
Being able to provide clients with made-to-order products can be a great distinction.
d. Make a concerted effort to advance technologically and innovate. Successful innovation is a
powerful differentiator that leads to additional first-to-market wins. If the invention is difficult to
duplicate, it can provide a company with a long-term first-mover advantage in the form of patent
protection or other means.
e. Continue to improve the product's quality. Quality control procedures eliminate product flaws,
prevent early product failure, extend product life, reduce the expense of providing extended warranty
coverage, improve ease of use, boost end-user convenience, or improve product aesthetics.
2.
The McKinsey 7S Model is a technique for analysing an organization's "organisational design." The
model's purpose is to show how the interactions of seven important aspects - structure, strategy, skill,
system, shared values, style, and staff – can lead to organisational effectiveness.
Were
The 7-S model can be applied to a variety of circumstances in which it is beneficial to study how
various components of your business interact.
for example, assist in improving your organization's performance or determining the best way to
implement a particular strategy.
The framework can be used to assess the potential consequences of future organisational changes, as
well as to align departments and procedures during a merger or acquisition.
how
The model can be used to determine which pieces of the 7-S' need to be realigned in order to improve
performance, or to keep alignment and performance throughout other changes. Restructuring, new
processes, an organisational merger, new systems, and a change in leadership are all possibilities.
Step 1: Determine which areas are not properly aligned.
Are the values, strategy, organisation, and systems all in sync? Look for gaps and discrepancies in the
elements' relationships. What needs to be altered?
Step 2: Determine the best organisational structure.
It's critical to bring top management's perspectives together and establish a general, ideal
organisational architecture that will allow the company to define realistic goals and objectives.
Because there are no "organisational industry templates" to follow, this step necessitates a significant
amount of research and analysis.
Step 3: Determine what adjustments should be made and where they should be done.
Once the outliers have been identified, a plan of action can be developed, which will include specific
modifications to the chain of command, communication flow, and reporting connections. It will
enable the corporation to create a more efficient organisational structure.
Step 4: Make the changes that are required.
The decision strategy's implementation is a make-or-break situation for the company's ability to
realistically achieve what they set out to do. Several roadblocks exist during the implementation
process, which are best overcome with a well-thought-out implementation strategy.
3.
Porter’s five forces on the payment industry in India

Entery Barrier
1. specialist
knowledge
2Economies of scale Buyer
Rivalry
3.Brand equity 1.Extermely price
1.Large number of sensitive
competitors 4.Advertisiment cost
2.low transaction
2.Diversity of cost
competitors.
3.high volume

Supplier Substitute
1.Few payment 1.cash
process service
providers 2. Gold

Overall, bargaining power and risk are moderate to high, but growth is very high, and the internet is
predicted to penetrate deeper into the country's hinterlands, assisting in the creation of more prospects
for the online payment business.

Entry barriers: moderate- high

Bargaining power of buyers: high
Bargaining power of suppliers: moderate
Rivalry: moderate to high
Substitute: high
 Swot analysis of payment industry in India

STRENGTH
Financial inclusion WEAKNESS
Easy to use Hot cash is king
Safety and security Lack of infrastructure
Easy to connect to other Smart phone market up tapped
account Sluggish economy
Enable Passwords On e-illiteracy
Devices

THREATES
OPPORTUNITES
Malware attackes
Tax collection
Sim swapping
Saving huge Expenditure
loss of money
4.
India is a youthful country with a large number of working-class citizens. They like to dine and shop
on the internet. Paytm may take a step in the right way by establishing a dependable logistics network
for home delivery services.
Paytm has dominated the Indian mobile payments market. The business recently pioneered 'Scan any
QR' to make payment, focusing on offering innovative digital payment solutions that simplify the
day-to-day lives of its consumers and merchant partners. The brand, which is already a leader in tier I,
II, and III cities, aims to invest Rs 750 crore in tier IV and V locations. Apart from that, it is planning
to enter the insurance and loan markets in the near future.
They began with the first to see the need for a low-cost payment option, which has been credited with
revolutionising the digital payment ecosystem in terms of convenience and time savings, which has an
impact on people's work habits. Also, it is not just about payments; it includes a variety of additional
services such as movie, bus, and aircraft ticket bookings, as well as Paytm Mall, bank, and other
financial services. When it comes to the customer and merchant experiences, they have put forth a lot
of effort. Being the market leader is vital, but so is treating the end user, particularly merchants, as
equals. Also, cashback as a tactic is only effective if it attracts some customers; what brands do with
the goods and the experiences are far more important.
Unlike the typical cashbacks that firms offer, Paytm has certain types of loyalties.
Paytm First is a premium subscription-based loyalty programme that offers exclusive benefits over
and above the brand's regular offers, such as video music streaming, travelling, shopping lifestyle,
deals on Zomato Gold membership, annual Gaana membership, Oyo, UberEATS, and other services
that I use as well. Furthermore, because they concentrate on such a wide range of products and
services, the company engages in various types of marketing assistance at various stages of product
life, resulting in a demand for more and more users. Their security is top-notch, with the greatest level
of encryption and a slew of other safeguards that allow for not just a large volume of transactions but
also ensure that the customer's hard-earned money is safeguarded.
Understanding the inside and exterior parts of an organisation aids us in assessing its current state as
well as providing important information for its future position.
Following the analysis of market structure and Paytm’s position in the market, the main solutions or
issues that need to be addressed are: 1) bringing merchants on board to strengthen a double-sided
market, 2) lowering the customer adoption barrier, 3) exploring merchant adjacencies and erecting
exit barriers, and 4) taking an iterative and adaptive approach to innovation. 4) Exorbitant costs for
technical innovation and marketing techniques. 5) New entrants resulted in a decrease in consumer
base and market share.
To address these issues and preserve their market position, Paytm should adopt the following small
business strategies:
Low-cost Broad Strategy
In marketplaces with a large number of price-sensitive buyers, striving to attain lower costs than
competitors targeting a broad range of buyers is a particularly effective competitive strategy. Because
consumers prefer free systems like UPI, which offer no service costs on transactions, a low-cost
strategy is always beneficial.
Differentiation Strategy on a Large Scale
When a buyer's demands and preferences are too variable to be fully met by a standardised product
offering, differentiation strategies are appealing. Due to the large number of players in this market,
some differentiation products or supplementary services generate additional value, which helps to
retain customers. Because there is no cost to switching customers, adding a differentiation service
helps the organisation stand apart.
Customer service and trust are built over time. All participants are doing the same thing with no
uniqueness, and due to fraud cases in financial services and on-time payment systems, customers may
lose faith in the system. As a result, the organisation must improve its customer service system, as
well as build confidence and establish a secure relationship with users.
Offer something related to payment: the corporation needs to check over some extensions of product
lines that generate marginal revenue and engage with customers in such a way that once they come,
they never leave. All payment-related services are housed under one roof or plateform for the
customer. Customers must be able to become entrenched in an environment where they can get all of
their wants met.
Strategic group mapping
Strategic group mapping is a method of presenting the various competitive positions that competing
companies hold in the sector. Strategic groupings are conceptually defined groups of competitors who
share similar strategies and hence compete more directly with one another than other companies in the
same industry.
The mapping method can be used to determine the strategy for maintain Paytm’s position in the
Indian mobile payment market.
Yes, strategic group maps are instructive in a variety of ways. The most crucial is determining which
industry members are near competitors and which are distant competitors.
Due to current competitive pressures from the industry's five forces, the profit potential of different
strategy groups may vary. Profit prospects of firms in different strategic groups can range from good
to poor due to varying degrees of competitive rivalry within strategic groups, varying pressures from
potential entrants into each group, varying degrees of exposure to substitute products outside the
industry, and varying degrees of supplier or customer bargaining power from group to group.
Some strategic organisations may benefit from industry driving forces, while others may suffer.
Similarly, industry driving forces might improve the business prospects of some strategic groups
while harming the prospects of others.
In India, there are numerous payment platforms such as Paytm. None, though, has been able to carve
out a place for itself quite like this finance unicorn. Paytm is the market leader because to its extensive
security measures. The Reserve Bank of India has approved the Paytm Wallet. While demonetization
created its dominance in the market on its own, its sheer ease of use, availability in multiple regional
languages, user-centric experience, and simple interface are all elements that cannot be discounted in
its appeal.

END OF ANSWER SHEET