Abstract
This case study focuses on the Zoho Corporation's unique path in the Indian IT sector with the CEO Sridhar Vembu at the helm of affairs from company headquarters in rural Tamil Nadu. The case investigates Zoho's unconventional journey to becoming a major worldwide SaaS provider in India's evolving IT/ITES sector. Zoho's unusual business model is discussed in detail emphasising the key features of vertical integration, R&D funding and rural talent nurturing and development. The case also covers Zoho's product portfolio in relation to industry leaders, illustrating the company's unique operational and business model with the foundational beliefs and first principles. Zoho's "blue ocean" strategy is outlined and the readers are left with an inquisitive question by means of financial analysis and strategic assessment: Should Zoho concentrate on geographical expansion (scale) or diversification into new sectors (scope)? This decision point provides excellent ground for debating the viability of alternative company models and growth plans in the technology sector. A background note is provided that tracks the evolution of the Indian IT industry before and after the liberalisation of the Indian economy and examines how mobile revolution, internet penetration and the rise of SaaS have influenced the Indian IT/ITES sector.
Additional Information
| Product Type | Case |
|---|---|
| Reference No. | STR0492 |
| Title | Zoho Corp: Value Driven Business Model |
| Pages | 26 |
| Published on | Jul 25, 2025 |
| Year of Event | 2025 |
| Authors | Narayanaswami, Sundaravalli ; |
| Area | Strategy (STR) |
| Discipline | Innovation and Entrepreneurship, International Business, IT and Systems, Strategic Management |
| Sector | Manufacturing |
| Learning Objective | 1. Evaluate how macroeconomic changes and industry evolution influence firm strategy and adaptation. 2. Analyse the effectiveness of unconventional business models that challenge traditional industry practices. 3. Assess the strategic trade-offs between geographical expansion and product/service diversification in technology firms. 4. Understand the role of core values and organisational culture in shaping sustainable competitive advantages. 5. Examine the viability of rural talent development as a strategic resource in the technology sector. 6. Evaluate the sustainability of self-funded growth models in the SaaS industry. 7. Analyse how firms can create competitive advantages through vertical integration and R&D investment in the technology sector. |
| Keywords | Organisational Philosophy; Rural Development and R&D; Leadership; Blue Ocean Strategy |
| Country | India |
| State | Tamil Nadu |
| City | Tenkasi |
| Access | For All |
My Cart
You have no items
in your shopping cart.