Case Study > Strategic Management_Zerodha Case_Group 1 ZERODHA: SUSTAINING A LEADERSHIP POSITION IN

downloaded from

Scholarfriends

https://scholarfriends.com Downloaded by: writerforacademic@gmail.com | https://scholarfriends.com/singlePaper/275858/case-study-strategic-management-zerodhacase-group-1-zerodha-sustaining-a-leadership-position-in Distribution of this document is illegal.

Strategic Management

ZERODHA: SUSTAINING A LEADERSHIP POSITION IN INDIA GROUP - B TEAM- 1

Our Team

Anand Raj 210207410 84

Vaishnav M 210207410

Rakshita Parvatikar 21020741129

Shivang Gesota 21020741140

Mamta Singodia 21020741112

Index 1 About ZERODHA

2

3

What is Blue Ocean

Blue Ocean in Stock Broking

5

4

Conclusion

ERRC CHART

About ZERODHA Zerodha was launched in Investors were paying exorbitant fees to traditional brokers for information and advice.

So, to facilitate zerobarrier trading building a completely online brokerage firm

Founder & chief executive officer (CEO): Nithin Kamath, Co-founder and chief information officer: Nikhil Kamath Zerodha was a coined word that combined the word zero and the Sanskrit word rodha, meaning “barrier”

Zerodha’s business model

August 2010 with a flat

It is a complete online

differed from that of the

brokerage of ₹20 per

brokerage firm

traditional brokers by

trade

Rainmatter, which aimed

offering personalized

In 2015, it began using

to invest in new age fintech

services to stocks and

Kite, which allowed

start-ups

commodity market

clients to trade from their

Pi, a unique desktop

investors and charging

desktop or their smart

application that offered

lower fees

phone & it decided to

advanced charting and

Primary focus : pricing

offer services for trades

backtesting capabilities

and transparency

on equity shares for zero

.

.

PURPOSE

VALUES

PROCESS

PRODUCT/SERVICE

INFRASTRUCTURE

WHY

WHO

HOW

WHAT

WHEN/WHERE

brokerage fees

Blue Ocean Strategy

What is it ?

As the no : of players in the market increases, the ocean turns into red due to cutthroat competition. Hence it becomes inevitable to explore the market which is untainted by competition. The new market which doesn’t have competition is called blue ocean

Compete in existing market

Create new market

RED OCEAN

BLUE OCEAN

Blue ocean strategy turns strategic management on its head by replacing “competitive advantage” with “value innovation” as the primary goal. Firms must create consumer demand and exploit untapped markets. The Focus is on creating new markets .

High

BUYER VALUE

Blue Ocean Strategy

Low Low

Some famous blue ocean strategy adoptions iTunes Canon’s personal desktop copier Uber

RELATIVE VALUE

High

Blue Ocean Shift MINDSET : It's about deviating from the established business model and venturing into uncharted territory. Companies must change their attitude to identify where untapped opportunities exist, which includes asking fresh questions and questioning the MINDSET : It'snew about deviating from the established business old process to see what needs are formed model and venturing into uncharted territory. Companies must change their attitude to identify where untapped Zerodha’s intention was to be disruptive pioneers inopportunities the exist, which includes asking fresh questions and questioning the Indian stockbroking industry. They introduced discount oldto process what newretail needsinvestors are formedto brokerage India to bysee leveraging drastically reduce brokerage Zerodha’s intention was to be disruptive pioneers in the Indian stockbroking industry. They introduced discount brokerage to Indiamove by leveraging retail investors to TOOL : Making a systematic to a blue ocean approach drastically reduce brokerage necessitates the use of management tools. Implementing a blue ocean plan isn't a one-time policy change; rather, it necessitates a steady transition to the new domain. When done correctly, it : Makingtoa make systematic move to a blue ocean approach allows theTOOL organisation a significant leap forward, necessitates the use of management tools.

Implementing a blue unleashing lucrative and quick development. ocean plan isn't a one-time policy change; rather, it necessitates steady transition to the new domain.

When done Zerodhaaalso married technology with stockbroking bycorrectly, it allows the organisation to make a significant leap forward, launching several technology features, including Kite, a unleashing lucrative and quick development. broking platform; Varsity, an online learning platform; and TradingQnA, a forum for traders and investors Zerodha also married technology with stockbroking by launching several technology features, including Kite, a broking platform; Varsity, an online learning platform; and TradingQnA, forum for investors HUMAN-NESS :A successfulatransition to traders the blue and ocean, according to the notion, requires a humanistic process. It must instil trust in individuals to engage in the process, as well as drive the process to completion HUMAN-NESS :A successful transition to the blue ocean, to the notion, requires a humanistic process. It must Zerodhaaccording started training young minsets so that they instil trust in individuals to engage in the process, could become successful traders and in return would as well as drive clients the process to completion benefit their Zerodha started training young minsets so that they could become successful traders and in return would benefit their clients

MINDS ET

HUMANNESS

Tool

Major Players in the Industry, Customers – 1.02 Lakh

before Zerodha came in existence

ICICI Securities

Customers – 1.26 Lakh

HDFC Securities

SHAREKHAN Limited

Customers – 1.78 Lakh AXIS Securities

Customers – 2.10 Lakh

Application of Blue Ocean to Stock Broking Business of India Electronic trading had dramatically increased the trading volumes and liquidity, & helped reduce the cost of intermediaries, & broadened access to markets

The revolutions in mobile and Internet technology were changing the way customers participated in stock market activities

PHASE 3

PHASE 5

PHASE 7

PHASE 6

PHASE 8

High-end mobile apps in the market could understand the investor’s goals and, accordingly, customized solutions for their investments

PHASE 1

PHASE 4

PHASE 2

The BSE, established in 1875, was Asia’s first stock exchange and the 11th largest stock exchange in the world in January 2019

ML & AI enabled traders and brokers to identify better opportunities

In 2018, the Indian stockbroking industry was among the top growing segments in the Indian financial sector

NSE, India’s first demutualized exchange, set up in 1992 by a group of leading Indian financial institutions and supported by the Government of India was an effort to bring transparency to the Indian capital market

The Indian stockbroking industry had transformed from an unorganized sector to a sophisticated, organized, and technology-driven sector with more than 22,000 brokers in 2018

Mobile phones accounted for less than 1 % of trades for brokers until 2014, but by 2018, most brokers admitted that a majority of their trades came from

Expectation vs Reality Check The next wave of stock market growth was expected to introduce new factors, such as low-cost, highvolume products that would create wealth for all They were expected to offer voice-based support and services in native languages to attract customers from various regions of the country

Companies needed to maintain the right balance between automating processes with adequate physical support and a human approach to client servicing

Zerodha leveraged mobile and Internet technology to provide complete online services and reduce costs drastically

Financial literacy and education helped people realize the importance of managing and growing their assets

Technology was expected to continue to be one of the most critical factors for driving up market participation

This made participation accessible and affordable for all

Smart phonebased platforms brought the markets to the fingertips of traders

Technology not only reduced the hassles and costs of stock market investments but also made clients self-dependent

It also minimized their interactions with a live broker

ERRC Chart

Eliminate - E

Raise - R

Removing Factors that customer pay for as

Can any existing product attribute

a part of status quo that industry players

competitive factors be enhanced

take advantage of

in such a way that they provide

ERRC chart Reduce - R

extra consumer value

Create - C

Are there any elements that can be

To find an opportunity to bring something

reduced or eliminated if their relative

novel to the market that solves a consumer

value or cost does not justify the means or

problem in a more effective way than a

erodes profits or reduce competitive

competitor offering instead of creating

advantage

complex things.

Raise

Eliminate  Information gap traditionally present between the investors and 09 share brokers  Exorbitant Fees which the traders 08 were charging per share to the investors  Lack of understanding about the financial markets by the masses 07

Reduce

03

 Reduce brokerage fees to zero  Reduce the platform’s load04 on 05 internet bandwidth  Reduce discrepancies and hassle for firms entering into financial markets  Raise % of investments in volatile markets like stock market

 Raise Transparency and Awareness 01  Awareness about the trading market via literacy programs: Varsity, 08 TradinQnA 02  Raise the amount of money entering into the share market (2%)  Improving the experience of the users by07offering hassle free trading experience 03

Create 06

 Create awareness about latest trends in business, finance, and markets through online portals  Create a market and provide information which is accessible to consumers  middle-class Created platforms for investing in startups and applications to serve public and personal users  Create platforms that enables users to access mutual funds directly

CONCLUSION 1 million accounts by 2020

Deepen Financial Inclusion Varsity Hassle-free User Experience Discount Broking Model Zero Commission Trading

REVOLUTIONIZED

TradinQnA Innovation Strategy Collaboration Rainmatter

FOCUS ON TECHNOLOGY

A TRADING ECOSYSTEM

THANK YOU