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Slide 3 Introduction
Slide 4 Industrial Analysis
External Environmental Analysis of Paytm
Slide 5 • Porter’s Five Forces
Slide 6 • PEST Analysis
Slide 7 • Opportunities and Threats
Internal Environmental Analysis of PayTM
Slide 8 • Value Chain
Slide 9 • Strengths and Weaknesses
Slide 10 • STP & Core Competencies
Slide 11 • VRIN Framework
Slide 12 • Strategy Canvas
Slide 13 Overall Impacts
Slide 14 Suggestions
Slide 15-16 Bibliography
Slide 17 Task Allocation

 Paytm is an Indian electronic payment and e-commerce brand based out of Delhi NCR,
India. Launched in August 2010, it is a consumer brand of parent company One97
(Source: PayTM, 2017) Parent Organization:
One97 Communications
(YourStory, 2015)
Investors: SoftBank, SAIF
Partners, Alibaba Group,
Ant Financial (Alipay) and

Services Used:

Employees: Registered Users:

13000+ 250mn

3 million offline (Economic Times, 2016)

(PayTM, 2017) merchants
Market Share (%)
MobiK Others
wik 10% (Financial Express,
Money 2017)
5% (KalaGato Pte., 2017)


(DSIM, 2015)
Impact of

(Economic Times, 2016) (PayTM, 2016) (LiveMint, 2016)


Bargaining Power of Buyers [HIGH] Bargaining Power of Suppliers [LOW]

Buyers are extremely price sensitive, therefore any differences in price/offers Alliances with banks (to provide better interest rates)
will change the customer’s preference, at a very low switching cost, and Several banks are capable of providing the same interest rates, making it
make them move to a competitor. easy for PayTM to switch to any other bank.
Competitive Rivalry [HIGH]
Government Involvement: UPI and
BHIM app to rival cashless transactions.
Capabilities of competitors to provide
Threat of Substitutes [HIGH] similar/better services Threat of New Entrants [LOW]
There are several options available for the consumers to make transactions. As Paytm is well established and is market leader in this segment, it has
Example: Net banking, Credit or Debit Cards, Cash, Gift Vouchers, diversified too much due to which it becomes difficult to compete as it has
Sodexho Coupons, Gold. alliance with various FMCG companies, allowing them to provide cashback
of more than 50% the cost of the product.

Factor Implication

Social – Positive Impact The number of smartphone and internet users is projected to increase by up to 240% by the end of 2020.
(Times of India, 2016) As projected by Nasscom, 2016, the number of new users from rural areas will increase by 75% and more
(Nasscom, 2017) than 70% of the E-commerce transactions will be via mobile.

Technological – Positive The price-war between the telecommunication companies has benefited its consumers. There are more
Impact number of smartphone users enabled with high-speed internet, giving Paytm a wide audience to cater to,
(Fieldwork) therefore a potential increase in the customer base.

Economic – Positive After demonetization, the company claims to have registered a 700% increase in overall traffic on the
Impact platform and 1000% growth in the value of money added to PayTM accounts.
(Forbes, 2016) In addition, the average transaction value has increased by 200% and the number of mobile app downloads by
(Livemint, 2016) 300%.

Political – Positive Impact Digitisation: The Digital India Program ensured governmental support and promoted digital transaction
(Hindustan Times, 2016) policies to maintain and increase the number of cashless transactions.
The number of users multiplied within the span of 4 months since the government’s declaration.
1. In India, 72 of every 100 inhabitants have a mobile phone while 1) The average literacy rate in India is 74.4% with rates as low as
only 35% have a bank account with a total of 233 million in 60% in rural areas. (, 2017) The low
the unbanked population. (, 2015) literacy rate, lack of infrastructure in rural areas and the lack of
The sheer size of the market can allow PayTM to offer their technological knowledge will restrict the adaptation of people
services to various segments of the society. to the e-transaction route.
(, 2016)
2) Usage of cash as a primary mode of transaction.
2. India has a low internet penetration of about 34.8% from
which 26.3% are smart phone users considering this statistics
this is a loop where PayTM can attract and increase customer
base. (Internet Live Stats, 2016).

3. There are over 50 million registered small businesses in India,

with about 2 million of them paying service taxes. Wallets have
only partnered with 30,000 such merchants for online to
offline payments, therefore, PayTM can acquire new
merchants by targeting these businesses. (Your Story, 2016).
Firm Infrastructure: Headquartered in Noida with Regional Offices in Bangalore, Chennai, Mumbai, Kolkata and Toronto. Setting up acquisitions with several
offline merchants to establish the Online-To-Offline (O2O) business model. (PayTM, 2017).
Human Resources: 13,000+ employees with over 3 million offline merchants (PayTM, 2017). Wallet handled by non-bank entities (, 2016).
Technology Development: PayTM Payments Bank, is India’s first bank with zero fee on online transactions, has no minimum balance, issues a free virtual debit
card, keeps every online transaction free, and makes services like cheque book, demand draft and debit card available at a nominal fee. (Economic Times, 2017).

Procurement: The suppliers are associated with the “PayTM Marketplace” where merchants can easily even Chat to Bargain with its consumers. (PayTM,
Inbound Logistics Operations Outbound Marketing and sales Service
• Transactions with • Creating credit limits in banks Logistics • In the year 2016-2017, the company aimed Cashback to clients
banks for transactions with E-fulfilment centres to spend over Rs. 600 crores on branding on their purchases
• Setting up systems for accordance to laws set by RBI. and return and marketing for products on
immediate cash (Reserve Bank of India, processing centres. (Livemint, 2017) Paytm Mall and
transfer on wallet. 2015) (, other Retail Outlets
• Interacting with • Maintaining user records and 2015) • PayTM launched a TVC highlighting accepting PayTM.
sellers and short-listing taking care of transactional Paytm wallet's multiple use to further
products to list down on errors manually. strengthen its core messaging 'Paytm
wallet, according to (PayTM Blogs, 2016) Karo'. The focus of the campaign is to
which, cashback and • Depositing money in Escrow showcase Paytm wallet as an alternate
other offers are accounts for interests upto 6%. currency leading the way to a cashless
provided (, 2016) nation. (, 2017)

• Customer base of over 250 million registered users with 68% market share in
• PayTM is rated at 5% customer satisfaction rate with only 579 out
the electronic payments industry. (Financial Express, 2017), (Paytm, 2017).
of the 14015 complaints successfully resolved.
• Paytm wallet is accepted at over 15 lakhs merchant locations online and offline.
(, 2017)
(PayTM Blogs, 2016)
• The usage of Paytm wallet is restricted only to the national
• Most preferred payment option for over 16 million users. (Paytm Blogs,
boundaries of India, therefore, overseas payments are unavailable
through Paytm.
• Paytm users do not require a bank account to receive money in their Paytm
• Due to a limited reach in the market, PayTM is not available at
every store in India, therefore, customers need to keep alternate
• Paytm aggressively diversifies into new markets to ensure a high rate of
payment solutions to make payments in these stores.
customer acquisition to maintain a strong competitive advantage.
(Financial Express, 2017)

In 2016, RBI approved Paytm to operate as Bharat Bill Payments Operating Unit,
which allows its customers to pay electricity, telephone and other bills.
(, 2016).

Segmentation Target Group Positioning

• Geographic Segmentation: Urban • Young and middle aged people • Positioned as an alternate for cash,
areas with availability and • Tier-1 and major Tier-2 Cities with added benefits in every
knowledge of internet transaction.
• Sponsorship in sporting events,
• Psychographic Segmentation: cultural events.
People with smartphones looking • Acquisitions with several brands for
for cashless payment transactions cashback options.


Support from One97 Alliances/ Acceptance in

PayTM Payments
Communications and Partnerships: Uber, several online and
Investors Bookmyshow, etc. offline locations
Factor Valuable Rare Inimitable Competitive Advantage

Sustained Competitive Advantage

Customer Base Yes Yes Yes Yes PayTM is the leading wallet company in India with over 250mn
registered users. (Paytm, 2017)

Temporary Competitive Advantage

The Reserve Bank of India (RBI) issued licences to 11 companies in 2014
Payment’s Yes Yes No Yes
to operate as payment banks and of those Airtel and Paytm have started
operations. (The Hindu, 2017)

Affiliations and Temporary Competitive Advantage

Yes Yes No Yes
Partnerships Partnerships with companies like Uber, Swiggy, BookmyShow, etc.

Competitive Disadvantage
Rural Markets No Yes Yes Yes
Lack of presence in rural areas compared to its competitors.

Competitive Rivalry
Offers and
Yes No Yes Yes Every competitor is capable of providing similar or better offers to its
Other Services
Source: Fieldwork (Questionnaire)

Blue Ocean Strategy Red

Transaction Security User Interface Customer Base Alliance/Partnerships Offers & Other Services Customer Care

MobiKwik Freecharge PayTM Jio Money


Porters Five Forces PEST Analysis Opportunities & Threats Strengths & Weaknesses
With the high level of As per the statistical analysis The overall size of market Even though Paytm
governmental the external factors works in can enable PayTM to offer remains the market leader
involvement and the favour of PayTM as there is their operations to different in India, there remains a
capabilities of other e- an increasing growth in the portions of the general threat of possibly losing
wallet companies number of customers, and an public, as there is a possible several customers due its
providing the same opportunity of market increase in the number of poor customer service.
services, Paytm faces development. users in the rural areas The company majorly
aggressive competition The economical factors (regardless the low literacy focuses on acquiring new
that would destabilise allowed the company to rate). customers rather than
the strategic plans of extensively grow in The major threat for the trying to retain the existing
the company. numbers, with an increase in company is the customer’s ones.
The availability of other overall traffic and preference of choosing cash
payment methods downloads. over cashless transactions.

Impact Negative Positive Positive Negative


1) Market Development: With a projected increase in the number of smartphone users in

rural areas and improved infrastructure in these areas, we suggest Paytm to expand in these
areas and capitalise on the low competition there.
2) Customer Service: Paytm’s customer service is deemed as poor due to its high rate of
dissatisfied customers. The company must emphasise on retaining customers, rather than
acquiring them. We suggest the company to retrain its employees in the customer service
department, improvise the refund and exchange policies, introduce a new loyalty program,
and limit the number of sellers in the PayTM Mall to only reputed and brand authorised
3) Further Partnerships: With every competitor capable of providing high discounts to its
customers, we suggest the company to increase the number of acquisitions with other
companies. These partnerships will allow them to provide better offers and services, which
will thereby help them retain and attract new customers.
1. (2017). All About One97 Communications Limited that you Wish to Know. [online] Available at:
[Accessed 8 Nov. 2017] (2017).

2. About Paytm. [online] Available at: [Accessed 8 Nov. 2017].

3. Writer, O. (2017). What Is Paytm Wallet? How To Use Paytm App?. [online] Available at: [Accessed 8 Nov. 2017].

4. nz, i. (2017). Demonetisation effect: Paytm clocks Rs 5,000 crore worth of transactions in January. [online] Available
[Accessed 8 Nov. 2017].

5. (2017). Forbes Welcome. [online] Available at:
[Accessed 8 Nov. 2017].

6. (2017). Indo-German ties: Towards new highs | Free Press Journal. [online] Available at: [Accessed 8 Nov. 2017].

7. FrankBanker. (2017). Payments Banks in India. [online] Available at:

[Accessed 8 Nov. 2017].

8. Care, P. (2017). PayTM Mobile Solutions Customer Care, Complaints and Reviews. [online] Available at: [Accessed 8 Nov. 2017].
9. Shukla, T. (2017). Technology will drive compulsive consumption: Paytm founder. [online] Available at: [Accessed 8 Nov.
10. Solution, P. (2017). Paytm Partners With Wipro For Development of Their Core Banking Solution. [online] - Indian Business of Tech, Mobile &
Startups. Available at: [Accessed 8 Nov. 2017].
11. Paytm Blog. (2017). Know more about your Paytm Wallet: Security Features, Various Fees, Refunds. [online] Available at: [Accessed 8 Nov. 2017].
12. Writer, O. (2017). What Is Paytm Wallet? How To Use Paytm App?. [online] Available at: [Accessed 8 Nov. 2017].
13. (2017). Redirect Notice. [online] Available at:
[Accessed 8 Nov. 2017].
14. Ananya Bhattacharya, q., Nupur Anand, q., Ananya Bhattacharya, q. and Nupur Anand, q. (2017). There are too many e-wallets in India and most are near-
empty. [online] Available at: [Accessed 8 Nov.
15. Chopra, A. (2017). Paytm claims record number of transactions after govt’s demonetization move. [online] Available at: [Accessed 8 Nov.
16. Paytm Shop. (2017). – Digital & Utility Payment, Entertainment, Travel, Payment Gateway & more Online !. [online] Available at: [Accessed 8 Nov. 2017].
17. The Hindu. (2017). RBI grants in-principle nod for 11 payments banks. [online] Available at: [Accessed 8 Nov. 2017].
18. Paytm Blog. (2017). Paytm Blog. [online] Available at: [Accessed 8 Nov. 2017].
19. Singh, R. (2017). Payments banks have an opportunity in the millions of unbanked, but are these viable?. [online] The Economic Times. Available at:
[Accessed 8 Nov. 2017].
20. Sahay, P. (2017). Paytm to spend Rs600 crore on branding, marketing in 2016-17. [online] Available at: [Accessed 8 Nov.
21. (2017). Paytm launches new ad campaign to push brand message - ET BrandEquity. [online] Available at: [Accessed 8 Nov.
22. Malik, Y. (2017). Paytm arm unveils online shopping portal Paytm Mall. [online] Available at: [Accessed 8 Nov. 2017].
23. Digital Marketing Blog - DSIM. (2017). DSIM- Digital Marketing Blog. [online] Available at: [Accessed 8 Nov. 2017].
24. Singh, R. (2017). Demonetisation: Why the challenge to take digital payment to rural India is as huge as the opportunity. [online] The Economic Times.
Available at:
[Accessed 8 Nov. 2017].

 1727276: PEST Analysis, Porter’s Five Forces

 1726504: STP, Core Competencies, Opportunities and Threats, Strengths, Impacts
 1724061: Strengths & Weaknesses, Porter’s Five Forces, Impacts
 1723794: VRIN, Value Chain, Strategy Canvas, PEST Analysis, Presentation,
Industry Analysis
 1724089: Opportunities and Threats
 1723819: Strengths and Weaknesses