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News Paper Summary

In: Business and Management

Submitted By jithinsubash
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Strategic Management

News Paper Article Summary

Article Summary
This article is about how intense the battle between internet companies is becoming and in what new strategies the companies are building up to tackle the situation and the predominant strategy used is barter marketing tactics. This article emphasizes on the partnership entered by OLX, Flipkart, Uber and Redbus.
Last month Flipkart and OLX entered into partnership to leverage each other’s strengths. OLX announced a marketing partnership that allows potential customers to sell their used products on the latter while buying new ones on Flipkart. With this partnership they will be able to provide end to end solutions to the customer, where selling a product is an integral part of a buying process. Industrial experts believe that this is a way of barter marketing tactics where companies are trying to grow disproportionally in a short span of time in other words called as growth hack. Experts believe for OLX this is an opportunity for them to leverage the vast customer base of Flipkart. But there is no clarity in weather there is a revenue sharing partnership between the two companies. Another partnership mentioned in the article is between Uber and Redbus. Uber is new taxi service launched last year is operating in 6 major cities such as Mumbai, Pune, Bangalore, Hyderabad, Delhi and Chennai. So a tie up between them is very much helpful for the startup as Redbus has nearly 2 million users. The tie up is a success as nearly they were able to reach out to 150,000 users through Redbus app users. Other mentioned tie ups such as real estate venture CommonFloor, have tied up with taxi services providers like Olacabs and TaxiForSure, and were the customers can avail free taxi service for the visit of the site.
The barter marketing tactics is a new way internet companies in India looking to get a stronger grip on the consumer's wallet, in a hyper-competitive market, which is currently estimated at $2 billion (Rs 12,000 crore) but which could touch $38 billion (Rs 2.3 lakh crore) by the end of the decade. The specialty of this tactics is that it is unique to India and it is not seen in other developed countries. With the increasing internet user base and the rise of smartphones, the competition is increasing and new ways of marketing strategies has to be found and implemented.

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