In this blog post, let’s decode the business model of Justdial and learn about how Justdial makes money.
In today’s technology-driven era, Justdial has become a one-stop solution for numerous customers seeking information about various products and services. With its extensive database, Justdial caters to a vast range of industries, connecting millions of users with local businesses. This blog post delves into the fascinating story of Justdial and examines its business model using Alexander Osterwalder’s Business Model Canvas. We will start by introducing the company, its founders, and its origin story, followed by an in-depth analysis of its unique business model.
Justdial: The Company and its Founders
Justdial, an Indian-based search services company, was founded in 1996 by V.S.S Mani. Having graduated with a Bachelor of Commerce degree, Mani’s entrepreneurial journey began with a vision to provide comprehensive information about products and services to consumers. With limited resources, Mani persevered and laid the foundation for Justdial, which has now become an integral part of the lives of many Indians.
Justdial started as a telephone-based local search service, allowing people to call and inquire about various businesses in their vicinity. With the advent of the internet, Justdial transitioned to an online platform, making its services accessible to a broader audience. Today, Justdial offers a wide array of services through its website, mobile app, and telephone services, ranging from local search to e-commerce, and catering to a diverse user base.
The Origin Story: Why and How Justdial Was Started
V.S.S Mani’s journey towards founding Justdial began with an incident in the early 1990s. While working for a yellow pages company, Mani noticed a critical gap in the market. Traditional yellow pages directories were cumbersome and not user-friendly, limiting their practicality for consumers. Mani envisioned a platform that could provide users with the information they needed instantly and efficiently.
Despite facing financial constraints and initial skepticism, Mani’s determination never wavered. He set up a small office with just four employees, and Justdial was born. Initially, the company focused solely on offering local search services through a dedicated telephone line. Mani’s perseverance paid off, and the company steadily gained traction among users.
As the internet revolution unfolded, Mani recognized the potential for Justdial to expand its services. The company transformed its business model, transitioning from a telephone-based service to an online platform. Justdial’s website and mobile app enabled the company to reach millions of users and offer a wide range of services.
Dissecting Justdial’s Business Model using Alexander Osterwalder’s Business Model Canvas
Alexander Osterwalder’s Business Model Canvas is a strategic management tool that helps businesses visualize, design, and innovate their business models. The canvas comprises nine building blocks that cover various aspects of a business model, including customer segments, value proposition, channels, customer relationships, revenue streams, key resources, key activities, key partnerships, and cost structure. In the following sections, we will analyze Justdial’s business model using this framework.
- Customer Segments
Justdial caters to two primary customer segments:
a. Users: The company primarily targets individuals seeking information about various products and services in their locality. Users can access Justdial’s platform through various channels, such as its website, mobile app, or telephone services.
b. Businesses: Justdial’s second customer segment comprises local businesses that want to promote their products and services. By listing their businesses on Justdial’s platform, these businesses can increase their visibility and attract potential customers.
- Value Proposition
Justdial’s value proposition revolves around providing comprehensive, reliable, and easily accessible information about products and services to its users. The company offers several key benefits:
a. Convenience: Justdial offers a user-friendly interface across multiple platforms, making it easy for users to find the information they need quickly and efficiently.
b. Comprehensive Database: Justdial’s extensive database covers a wide range of industries, ensuring that users can find relevant information for almost any product or service they are looking for.
c. Personalization: Justdial’s platform offers personalized recommendations based on user preferences and search history, enhancing the overall user experience.
d. Multiple Channels: Users can access Justdial’s services through various channels, including its website, mobile app, and telephone services, catering to a diverse user base.
e. Free Access: Justdial offers free access to its platform for users, making its services accessible to a broader audience.
For businesses, Justdial’s value proposition lies in increased visibility, customer engagement, and potential sales growth.
Justdial reaches its customers through multiple channels:
a. Website: The company’s primary channel is its website, which offers a user-friendly interface and allows users to search for information on various products and services.
b. Mobile App: Justdial’s mobile app provides users with the same features as its website, with the added convenience of accessibility on-the-go.
c. Telephone Services: For users who prefer traditional methods or lack internet access, Justdial provides telephone-based search services.
- Customer Relationships
Justdial focuses on maintaining strong customer relationships through:
a. User Support: The company offers customer support through multiple channels, including email, phone, and social media, ensuring prompt assistance.
b. Customer Feedback: Justdial encourages users to provide feedback and ratings on businesses, which helps maintain the platform’s reliability and credibility.
c. Frequent Updates: The company continually updates its database, ensuring that users always have access to the latest information.
- Revenue Streams
Justdial’s primary revenue streams include:
a. Advertising: Local businesses can pay for premium listings and advertisements on Justdial’s platform to increase their visibility and attract potential customers.
b. Lead Generation: Justdial generates revenue by providing businesses with qualified leads, connecting them with users interested in their products or services.
c. E-commerce: Justdial offers e-commerce services, enabling users to purchase products and services directly through its platform. The company earns a commission on each transaction.
- Key Resources
Justdial’s key resources include:
a. Database: The company’s extensive database is a critical resource, providing comprehensive information on various products and services.
b. Technology Infrastructure: Justdial’s website, mobile app, and telephone services require robust technology infrastructure to ensure seamless operations.
c. Skilled Workforce: Justdial’s team of skilled professionals plays a vital role in maintaining and updating the platform, as well as providing customer support.
- Key Activities
Justdial’s key activities include:
a. Database Management: The company continually updates its database to ensure users have access to the latest information.
b. Platform Development: Justdial focuses on enhancing its platform through technological advancements, ensuring an optimal user experience.
c. Marketing and Promotion: The company engages in marketing activities to promote its services and attract new users and businesses.
- Key Partnerships
Justdial partners with various stakeholders, including:
a. Local Businesses: Justdial collaborates with local businesses that list their products and services on its platform, generating revenue through advertisements and lead generation.
b. Payment Gateways: For its e-commerce services, Justdial partners with payment gateways to facilitate secure transactions.
c. Technology Providers: Justdial collaborates with technology providers to maintain and enhance its platform, ensuring seamless user experience and efficient operations.
d. Data Providers: Justdial partners with data providers to acquire accurate and up-to-date information on various products and services, ensuring the reliability of its database.
- Cost Structure
Justdial’s primary costs include:
a. Technology Infrastructure: The company incurs costs related to the maintenance and development of its website, mobile app, and telephone services.
b. Employee Salaries: Justdial’s skilled workforce is an essential component of its operations, and the company incurs costs related to salaries and benefits.
c. Marketing and Promotion: The company invests in marketing and promotional activities to attract new users and businesses, contributing to its cost structure.
d. Data Acquisition: Justdial incurs costs related to acquiring and updating its database, ensuring comprehensive and reliable information for users.
Justdial’s success story is a testament to the power of perseverance and innovation. The company’s founder, V.S.S Mani, envisioned a platform that could provide users with instant access to comprehensive information about various products and services. Despite numerous challenges, Mani’s determination led to the establishment of Justdial, which has now become an indispensable tool for millions of users in India.
Using Alexander Osterwalder’s Business Model Canvas, we have dissected Justdial’s unique business model, which revolves around providing convenience, reliability, and accessibility to its users. The company’s focus on maintaining strong customer relationships, leveraging multiple channels, and offering a diverse range of services has allowed Justdial to carve a niche in the market.
As technology continues to evolve, Justdial’s adaptability and commitment to innovation will be critical in maintaining its position as a market leader. By understanding its business model and continuously refining its strategies, Justdial can ensure sustainable growth and continue to serve as a valuable resource for users and businesses alike.