Rivalry is high in such market as the local players

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rivalry is high in such market as the local players also compete among themselves along with the established players like Ola and Uber to create the market share for themselves. Internal Factors In this section, Jugnoo's internal strength and weaknesses in various functional areas such as strategy, finance, human resources, information technology, operations, and marketing have been identified using SWOT analysis. Strategy Strengths/ Positives Targeting Niche Market: The founders of Jugnoo focused their business in Tier 2 and Tier 3 cities rather than Tier 1 cities. They know that their app would benefit the autorickshaw market immensely rather than taxis. It is justified to the fact that in these cities, autorickshaws represent the primary mode of transportation for the public because they could be operated through the narrow streets of these cities. Moreover, these cities were significant economic drivers and have contributed to the development of the nation to a broader extent. Furthermore, by targeting this market, they also avoid any competition from already established companies such as Ola and Uber. Asset free Business Model : Jugnoo developed its business model in such a way that they want their business to be free from assets as much as possible. By adopting such a model, they kept themselves away from any financial or operational risks associated with owning the autorickshaws or hiring the drivers for those auto rickshaws. In this way, they could merely focus on their core competencies. Expanding to other markets : Jugnoo also ventured into other markets such as Business to Business (B2B) and Business to Consumers (B2C). They extended their target customers by
JUGNOO PART-II 16 launching the delivery system to the customers. The company started delivery products ranges from vegetable to brands such as Subway, KFC and many more. Moreover, they also began providing platforms to other businesses for advertisements. With these kinds of startups, Jugnoo entered into Tier 1 cities which were far more prominent and lucrative market than Tier 2 and Tier 3 cities . Strategic Partnerships and Acquisitions: Various partnerships and acquisitions from Jugnoo also helped in reinforce their position in the market. To improve their operational activities in the delivery system, Jugnoo acquired SabKuchFresh, an online store and partnered with various brands such as KFC, Subway, Pizza Hut and many more. Moreover, investment from Paytm and Snow leopard were equally critical in increasing the efficiency and expansion of Jugnoo. Challenges/ Weaknesses Trial and Error Strategy: Jugnoo followed the trial and error strategy which resulted in launching the auto service in Tier 1 cities only by the success they experienced in Tier 2 and Tier 3 cities. Preferably, they are up against severe competition and were forced to withdraw from the Tier 1 market. Therefore, following this strategy does not seem to represent a rational decision.

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