Introduction
Shaadi.com was started in 1996 as a Matrimonial site when most Indians were even not about what the internet is all about. Specialized in matchmaking service, Shaadi.com is on the forefront of matrimonial industry and has touched the lives of more than 35 million people. The Business model of Shaadi.com involves its business plan, revenue model, its competitors, SWOT Analysis and many more.
By promising a higher level of matrimonial success, the online agency has been attracting attention and sign-ups. Shaadi.com has been connecting profiles with potential compatibility for over 22 years, and its marriage success stories have surpassed 5 million.
Business Plan
There were new websites coming in and people were slowly getting familiar with the term ‘Internet’.
Mr Anupam took advantage of this period and created a user-friendly platform where one can fill in their personal details including all parameters like height, caste, education qualification, etc, and their choices regarding the kind of a life partner they were searching for and the platform will find the perfect match for the user.
The platform acquires its customers using Newspapers, advertisements on television, and digital marketing. Once the user registers on the platform, there is a personal contact created between the platform and the user via regular phone calls to inform them about the different packages available, which eventually increases the conversion rate.
Revenue Model
Shaadi.com has a very modest & candid revenue model. They charge the member for a premium membership with various plans. Registration over the platform is free of cost. User can look for various matches according to their requirement. Once they find their preferred match, then to get connected, any one of the two members has to pay.
The portal started as an experiment has transformed the whole matrimonial industry and has touched the lives of 35 million people all across the globe which has recorded about 3.2 million marriages across the globe. Indian matchmaking market size is of around $1 billion and Shaadi.com shares around 40% of it.
Shaadi.com is free for registration but you will have to pay a fee to initiate contact with any individual on the platform.
Competitors
This industry is one of the oldest electronic industries in the India, Mr. Anupam Mittal grabbed the industry when its name was also not heard by anyone. Today, there is a greater list of company’s coming up to gather their share of the market. Here is the list of some of its competitors:
- Bharat Matrimony
- Jeevansaathi.com
- Tinder
SWOT Analysis
Strengths
First mover advantage in the increasingly crowded market place. The new products are rapidly increasing Shaadi.Com market share in the Computer Services industry.
Success of new product mix – Shaadi.Com provides exhaustive product mix options to its customers. It helps the company in catering to various customers segments in the Computer Services industry.
High margins compare to Computer Services industry’s competitors
Brands catering to different customers segments within Computer Services segment – Shaadi.Com extensive product offerings have helped the company to penetrate different customer segments in Computer Services segment. It has also helped the organization to diversify revenue streams.
Strong brand recognition – Shaadi.Com products have strong brand recognition in the Computer Services industry. This has enabled the company to charge a premium compare to its competitors in Computer Services industry.
Weaknesses
High turnover of employees at the lower levels is also a concern for the Shaadi.Com. It can lead to higher salaries to maintain the talent within the firm.
Declining market share of Shaadi.Com with increasing revenues. In such a scenario, the company has to carefully analyze the various trends within the Technology sector and figure out what it needs to do to drive future growth.
Gross Margins and Operating Margins which could be improved and going forward may put pressure on the Company’s financial statement.
Low investments into customer oriented services – This can lead to competitors gaining advantage in near future. It needs to increase investment into research and development especially in customer services oriented applications.
Niche markets and local monopolies that companies such as Shaadi.Com able to exploit are fast disappearing. The customer network that it has promoted is proving less and less effective.
Opportunities
Opportunities in Online Space – Increasing adoption of online services by customers will also enable Shaadi.Com to provide new offerings to the customers in Computer Services industry.
Customer preferences are fast changing – Driven by rising disposable incomes, easy access to information, and fast adoption of technological products, customers today are more willing to experiment / try new products in the market. It has to carefully monitor not only wider trends within the Computer Services industry but also in the wider Technology sector.
Accelerated technological innovations and advances are improving industrial productivity, allowing suppliers to manufacture vast array of products and services. This can help Shaadi.Com to significantly venture into adjacent products.
Increasing government regulations are making it difficult for un-organized players to operate in the Computer Services industry. This can provide Shaadi.Com an opportunity to increase the customer base.
Local Collaboration – Tie-up with local players can also provide opportunities of growth for the Shaadi.Com in international markets. The local players have local expertise while Shaadi.Com can bring global processes and execution expertise on table.
Threats
Competitive pressures – As the new product launch cycles are reducing in the Technology industry. It has put additional competitive pressures on players such as Shaadi.Com. Given the large customer base, it can’t respond quickly to the needs of the niche markets that disruptors are focusing on.
Commoditization of the product segment – The biggest challenges for Shaadi.Com and other players in the industry is the increasing commoditization of the products in Technology industry.
Growing technological expertise of local players in the export market – One of the biggest threat of tie-up with the local players in the export market for Shaadi.Com is threat of losing IPR. The intellectual property rights framework is not very strong in emerging markets especially in China.
Competitors catching up with the product development – Even though at present the Shaadi.Com is still leader in product innovation in the Computer Services segment. It is facing stiff challenges from international and local competitors.
Conclusion
Since 1996, people have trusted Shaadi.com, one of the world’s oldest and most popular matchmaking services, to help them discover their right life partners. Hundreds of thousands of people have found their life partners and countless others have acquired some very special friends as a result of this groundbreaking matchmaking service.
