HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgePepperfry.com: Turning the tables on disruptionback to Strategy

Case Study

Pepperfry.com: Turning the tables on disruption

By Amit M. Joshi and Ivy Buche

19 pages

October 2018

Order this case study

Reference: IMD-7-2023

The case discusses how Pepperfry, India’s largest online furniture retailer, disrupted the furniture and home decor market while overcoming the challenges of India’s weak infrastructure, age-old methods of buying and selling furniture from local carpentry shops, lack of consumer trust in e-commerce and a massive geography. By 2018 Pepperfry had grown exponentially to control over 60% of the online furniture business in the country. However, several questions regarding its current and future trajectory remained. First, despite controlling costs and significantly expanding revenues, it was not profitable. What could it do to achieve profitability? Second, in response to the demands of the market, Pepperfry embarked on an omnichannel strategy, establishing 34 studios in Tier 1 cities with targeted expansion to 70 studios by 2019. How could it manage this added online-offline complexity, while still staying on track to break even? Finally, the competitive space had significantly heated up, with the arrival of IKEA (September 2018), and with Flipkart’s (acquired by Walmart) growing focus on the furniture segment. Did Pepperfry have the systems, brand name and agility to respond to these challenges? Or will the disruptor be disrupted?

Learning Objective

How platform strategy can be cleverly used to disrupt a fragmented and unorganized marketplace where customers demand significant variety
The importance of a curated platform, compared to an open one
The challenges of traditional supply chain and marketing channels in developing countries
How firms in such markets can go about building a multi-sided platform
The critical role of the offline channel and the challenges of managing an omnichannel business

Keywords

Strategy, Furniture, eCommerce, Curated Marketplace, Long Tail, Disruption, Supply Chain, Logistics, Omnichannel, Franchise, Ecosystem

Settings

Asia, India
Pepperfry, Information Technology, eCommerce
2012 - 2017

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

2019 EFMD CASE WRITING COMPETITION AWARD WINNER (1st prize) – Indian Management Issues and Opportunities category

Keep reading

Case Study

Mastercard 2023: Rewired for infinite optionality

Disruption Digital Strategy

By Howard H. Yu, Mark J. Greeven and Martin Králik

Article

Management myth-busters: Does culture really eat strategy for breakfast?

Culture eats strategy for breakfast is one of the most enduring truisms of management. But is it really the case? And what is culture anyway?

Organizational Culture Strategy

By Michael R. Wade

in I by IMD

8 November 2024

Article

Strategy stack: An integrated approach to decision-making

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Change Management Competitiveness Decision Making Innovation Strategy

By Albrecht Enders, Ajay K. Kohli, Andreas König and Arnaud Chevallier

in I by IMD

Case Study

Bossard’s AI strategy for proven productivity (Cartoon case)

Bossard, a Swiss company founded in 1731, has successfully transitioned from a product-centric approach to one that offers services and solutions. It has achieved significant revenue growth despite economic challenges. Its brand promise, “proven p...

Artificial Intelligence Business Transformation Strategy

By Stefan Michel

Case Study

The AI paradox: Will generative AI enhance or destroy the business model of 99designs.com? (Cartoon case)

99designs.com is a global platform connecting freelance designers with potential clients. The case study examines the potential impact of generative AI on 99designs’ business model. The platform uses a crowdsourcing approach that invites designers...

Strategy Business to Business Digital Disruption

By Stefan Michel

Article

How CEO’s drive saved car giant Ford from the scrapyard

Companies desperately in need of a turnaround in fortunes should take inspiration from the 2008 rescue mission by the then-new Ford boss Alan Mulally.

Agility Business Transformation Change Management Competitiveness Decision Making Future Readiness Leadership Organizational Culture Performance Management Strategy

By Howard H. Yu

in I by IMD

Article

Look in to look out: Strategy and family business identity during COVID-19

COVID-19 challenges the value systems of family firms and urges them to adapt their behaviors, affecting their identities. This study aims to explore how and why family businesses strategically respond to challenges to their identity during COVID-...

Family Business Strategy

By Alfredo De Massis, Rebecca Alguera Kleine and Bingbing Ge

in Small Business Economics

October 2024, vol. 63, pp. 993–1018, https://doi.org/10.1007/s11187-023-00846-3

Article

Family businesses and strategic change: The role of family ownership

In this study, we analyze how the performance-aspiration gap influences strategic change in family firms, providing evidence of the moderating role of family ownership in this relationship. According to socioemotional wealth (SEW) theory, family o...

Family Business Strategy

By Nina Schweiger, Kurt Matzler, Julia Hautz and Alfredo De Massis

in Review of Managerial Science

October 2024, vol. 18, pp. 2981-3005 https://doi.org/10.1007/s11846-023-00703-3

Report

Nature's ROI: Five key enablers for building a nature-positive business strategy

As the global environmental crisis reaches unprecedented levels, businesses face mounting pressure to act. But this challenge is also a major business opportunity. The companies that move quickly to tackle biodiversity loss will not only protect o...

Sustainability Strategy

By Julia Katharina Binder, Adrian Dellecker and Aurélie V. Stamm

IMD Center for Sustainable and Inclusive Business Report, October 2024

Mastercard 2023: Rewired for infinite optionality

By Howard H. Yu Mark J. Greeven and Martin Králik
Case reference: IMD-7-2455 ©2024

Summary

In the 2010s, card processing – Mastercard’s flagship service – started showing signs of commodification as new, nimble players (typically, fintech startups thriving on digital) entered the payment processing space, and customer preferences evolved beyond plastic cards and traditional contact payments. To re-energize its central position and its ability to capture value, Mastercard – as the incumbent – had to make bold decisions. The case details Mastercard’s approach to conceptualizing and building a global platform ecosystem that upholds the principles and design elements of modularity (i.e. interoperability and scalability) and optionality. Today, Mastercard's services, based on application programming interfaces (APIs), integrate with a variety of platforms and offer flexibility to businesses that require customized payment solutions. All along, the company has accommodated a high level of internal disruption. The case also explores the nature of Mastercard’s systematic collaboration with fintechs – players that often started out as competitors in specific parts of Mastercard’s value chain. It describes the company’s engagement with fintechs as fostering collaboration and co-creation and facilitating access; in other words, opening doors and sharing tools with partners. The case presents observations and quotes by CEO Michael Miebach, whose career trajectory at Mastercard – spanning Africa & Middle East experience, fintech partnerships, product management and the CEO role – sheds additional light on the philosophy and values that have driven the company’s transformation to a technology powerhouse and self-described original fintech.

Reference IMD-7-2455

Organization Mastercard

Industry Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Disruption

Digital

Strategy

Browse all topics

Strategy stack: An integrated approach to decision-making

By Albrecht Enders Ajay K. Kohli Andreas König and Arnaud Chevallier
in I by IMD

Summary

The ways popular frameworks are used fall short in today’s rapidly changing environment. Here is a new way to make better-informed strategic choices.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Change Management

Competitiveness

Decision Making

Innovation

Strategy

Browse all topics

Bossard’s AI strategy for proven productivity (Cartoon case)

By Stefan Michel
Case reference: IMD-7-2575 ©2024

Summary

Reference IMD-7-2575

Organization Bossard Holding

Industry Manufacturing, Fasteners

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Business Transformation

Strategy

Browse all topics

The AI paradox: Will generative AI enhance or destroy the business model of 99designs.com? (Cartoon case)

By Stefan Michel
Case reference: IMD-7-2505 ©2024

Summary

Reference IMD-7-2505

Industry Manufacturing, Graphic Design

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Strategy

Business to Business

Digital

Disruption

Browse all topics

Look in to look out: Strategy and family business identity during COVID-19

By Alfredo De Massis Rebecca Alguera Kleine and Bingbing Ge
in Small Business Economics October 2024, vol. 63, pp. 993–1018, https://doi.org/10.1007/s11187-023-00846-3

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Strategy

Browse all topics

Family businesses and strategic change: The role of family ownership

By Nina Schweiger Kurt Matzler Julia Hautz and Alfredo De Massis
in Review of Managerial Science October 2024, vol. 18, pp. 2981-3005 https://doi.org/10.1007/s11846-023-00703-3

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Family Business

Strategy

Browse all topics

Nature's ROI: Five key enablers for building a nature-positive business strategy

By Julia Katharina Binder Adrian Dellecker and Aurélie V. Stamm
IMD Center for Sustainable and Inclusive Business Report, October 2024

Summary

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Sustainability

Strategy

Browse all topics