Just Dial was the largest phone and Internet based local search provider in India. The company started providing services in 1996, but the revenues of the company shot up in 2004 with the penetration of telecoms in the Indian market. Several private equity investors funded the growth of Just Dial. Almost 90% of Just Dial revenues came from Tier I cities in India. In order to mark its presence and expand its network to Tier II cities, Just Dial required funds. With funds already raised from private equity investors, Just Dial planned to take the IPO route for further fundraising. In March 2013, Just Dial's IPO was approved by SEBI after five previous unsuccessful attempts - twice on NASDAQ, two aborted filings in India in the last two years and one on a smaller exchange. The case is positioned in May 2013, just a few days before the IPO's launch, when there was a great deal of negative news in the market regarding Just Dial's overvaluation. The business model was completely new and there were no industry comparables in order to do a fair valuation. Analysts in the market repeatedly warned investors, suggesting they avoid the IPO because it was overvalued. Furthermore, they said that it was only meant to provide an exit option for the PE investors. Consequently, investors were sceptical of Just Dial's valuation. With this negative perception prevailing in the market, should Just Dial consider delaying the IPO or lowering the price range (thus reconsidering its valuation)?
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Case Analysis of Just Dial's IPO
Just Dial's IPO is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Just Dial's IPO is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Just Dial's IPO case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Just Dial's IPO will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.
Case Study Solutions Background Work
Just Dial's IPO
case study solution
is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Just Dial's IPO, is to not only build a competitive position of the organization but also to sustain it over a period of time.
Strategic Management Tools Used in Case Study Solution
The Just Dial's IPO case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
Texas Business School Approach to Strategy & Execution Solutions
In the Texas Business School, Just Dial's IPO case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.
We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Just Dial's IPO
Step 1 – Problem Identification of Just Dial's IPO - Harvard Business School Case Study
The first step to solve HBR Just Dial's IPO case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Dial Dial's is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Dial Dial's, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.
Step 2 – External Environment Analysis
Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Just Dial's IPO.
The external environment analysis of Just Dial's IPO will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.
What is PESTEL Analysis? Briefly Explained
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Just Dial's IPO case study. PESTEL analysis of " Just Dial's IPO" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?
As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Just Dial's IPO macro-environment and how it impacts the businesses of the firm.
How to do PESTEL Analysis for Just Dial's IPO
To do comprehensive PESTEL analysis of case study – Just Dial's IPO , we have researched numerous components under the six factors of PESTEL analysis.
Political Factors that Impact Just Dial's IPO
Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.
Policy Making Impact on Just Dial's IPO
Government policies have significant impact on the business environment of any country. The firm in “ Just Dial's IPO ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.
Data safety laws – The countries in which Dial Dial's is operating, firms are required to store customer data within the premises of the country. Dial Dial's needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.
Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Just Dial's IPO has numerous instances where the competition regulations aspects can be scrutinized.
Import restrictions on products – Before entering the new market, Dial Dial's in case study Just Dial's IPO" should look into the import restrictions that may be present in the prospective market.
Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Dial Dial's in case study “ Just Dial's IPO ” should look into these export restrictions policies.
Foreign Direct Investment Policies – Government policies favors local companies over international policies, Dial Dial's in case study “ Just Dial's IPO ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.
Taxation & Regulation Impact on Just Dial's IPO
Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.
Tariffs – Chekout how much tariffs the firm needs to pay in the “ Just Dial's IPO ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Dial Dial's can compete against other competitors.
Government Scheme & Subsidies Impact on Just Dial's IPO
Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Just Dial's IPO case study have to assess whether their business can benefit from such government assistance and subsidies.
Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.
Political System & Stability, and its Impact on Just Dial's IPO
Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.
Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.
Corruption level – Dial Dial's needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.
Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.
Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.
Economic Factors that Impact Just Dial's IPO
Social Factors that Impact Just Dial's IPO
Technological Factors that Impact Just Dial's IPO
Environmental Factors that Impact Just Dial's IPO
Legal Factors that Impact Just Dial's IPO
Step 3 – Industry Specific Analysis
What is Porter Five Forces Analysis
PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Just Dial's IPO case study. PESTEL analysis of " Just Dial's IPO" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.
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