Rediff - Will it Survive the Dotcom Bust?

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:			Price:
Case Code	:	BSTR010	For delivery in electronic format: Rs. 200; For delivery through courier (within India): Rs. 200 + Rs. 25 for Shipping & Handling Charges Themes Differentiation
Case Length	:	7 Pages
Period	:	1995 - 2001
Pub. Date	:	2002
Teaching Note	:	Available
Organization	:	Rediff
Industry	:	Media and Entertainment
Countries	:	India

Abstract:

The case deals with the strategy adopted by Rediff to be a successful dotcom company. In the early 2000, when most of the dotcoms shut shops, Rediff was chalking out a new business model to increase its revenues. Rediff realised that revenues from advertising were going down because of the market slowdown. Therefore, it had to look for alternative sources of revenue. Rediff targeted the lucrative NRI segment in the US. Under the new business model, Rediff hoped to generate 75% of its revenue from the NRIs. The case is aimed at students of MBA/ PGDBA course as part of the Business Strategy curriculum. From the case, students will understand how Rediff became a successful dotcom company. Though Rediff was a dotcom company, it carried out its business like any other brick and mortar company incorporating all the elements required to be successful.

Rediff's model was customer centric and that is one of the reasons for its success. Students are also expected to understand the strategy behind Rediff's new revenue model. From the case students can also discuss the areas where Rediff has to focus keeping in mind the competition from other successful dotcoms. At the end of the case discussion, students could analyze the failure of most of the dotcoms and the success of few.