This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Power2Sme's Business Model is so successful?

Get all the answers


Power2Sme’s Company Overview


Power2Sme is a pioneering business-to-business (B2B) e-commerce platform based in India. Established in 2012, the company caters to the procurement needs of small and medium enterprises (SMEs). Power2Sme operates as an online marketplace that enables SMEs to source raw materials such as steel, polymers, chemicals, and yarns directly from the manufacturers at competitive prices. The platform streamlines the procurement process by eliminating intermediaries, thus ensuring cost-effectiveness and efficiency. Power2Sme is committed to empowering SMEs by providing them with a seamless purchasing experience, financial assistance, and enterprise resources planning solutions. The business model of Power2Sme revolves around the concept of bulk buying. By aggregating the demand from numerous SMEs, Power2Sme is able to negotiate better prices from manufacturers. The company also provides value-added services such as quality checks, logistics, and financing. Power2Sme has developed strategic partnerships with leading manufacturers and banks to offer these services. Furthermore, Power2Sme operates on a technology-driven model, leveraging data analytics to understand customer behavior and preferences, which helps in offering tailored solutions and improving customer satisfaction. As for the revenue model, Power2Sme primarily earns through a margin-based model. The company purchases raw materials from manufacturers at negotiated prices and sells them to SMEs at a margin. The margin is determined by the market dynamics and the value-added services provided by Power2Sme. Additionally, the company generates revenue from its financial services. Power2Sme partners with financial institutions to offer working capital loans to SMEs, and in return, it earns a commission on the loan amount. The company also monetizes its logistics services, charging a fee for the delivery of goods.

https://www.power2sme.com/

Country: Haryana

Foundations date: 2012

Type: Private

Sector: Industrials

Categories: Manufacturing


Power2Sme’s Customer Needs


Social impact:

Life changing: affiliation/belonging

Emotional: provides access

Functional: saves time, simplifies, reduces risk, reduces effort, avoids hassles, reduces cost, quality, variety, informs


Power2Sme’s Related Competitors



Power2Sme’s Business Operations


Channel aggregation:

Consolidating numerous distribution routes into one to achieve greater economic efficiency. A business model for internet commerce in which a company (that does not manufacture or warehouse any item) gathers (aggregates) information about products and services from many competing sources and displays it on its website. The firm's strength is in its power to create an 'environment' that attracts users to its website and develop a system that facilitates pricing and specification matching.

Cross-selling:

Cross-selling is a business strategy in which additional services or goods are offered to the primary offering to attract new consumers and retain existing ones. Numerous businesses are increasingly diversifying their product lines with items that have little resemblance to their primary offerings. Walmart is one such example; they used to offer everything but food. They want their stores to function as one-stop shops. Thus, companies mitigate their reliance on particular items and increase overall sustainability by providing other goods and services.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Digital transformation:

Digitalization is the systematic and accelerated transformation of company operations, processes, skills, and models to fully exploit the changes and possibilities brought about by digital technology and its effect on society. Digital transformation is a journey with many interconnected intermediate objectives, with the ultimate aim of continuous enhancement of processes, divisions, and the business ecosystem in a hyperconnected age. Therefore, establishing the appropriate bridges for the trip is critical to success.

Integrator:

A systems integrator is an individual or business specializing in integrating component subsystems into a unified whole and ensuring that those subsystems work correctly together. A process is known as system integration. Gains in efficiency, economies of scope, and less reliance on suppliers result in cost reductions and may improve the stability of value generation.

Low cost:

A pricing strategy in which a business provides a low price in order to drive demand and increase market share. Additionally referred to as a low-price approach. The low-cost model has sparked a revolution in the airline industry. The end-user benefits from low-cost tickets as a result of a revenue strategy that seeks various sources of income. Ryanair was one of the first businesses to embrace this approach.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Transaction facilitator:

The business acts as an acquirer, processing payments on behalf of online merchants, auction sites, and other commercial users for a fee. This encompasses all elements of purchasing, selling, and exchanging currencies at current or predetermined exchange rates. By far the biggest market in the world in terms of trade volume. The largest multinational banks are the leading players in this industry. Around the globe, financial hubs serve as anchors for trade between a diverse range of various kinds of buyers and sellers 24 hours a day, save on weekends.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Tiered service:

Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements. Such systems are widely used in the telecommunications industry, particularly in the areas of cellular service, digital and cable television, and broadband internet access. Users may choose from a limited number of levels with gradually rising price points to get the product or goods that are most appropriate for their requirements.

Supply chain:

A supply chain is a network of companies, people, activities, data, and resources that facilitate the movement of goods and services from supplier to consumer. The supply chain processes natural resources, raw materials, and components into a completed product supplied to the ultimate consumer. In addition, used goods may re-enter the distribution network at any point where residual value is recyclable in advanced supply chain systems. Thus, value chains are connected through supply chains.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.