ONDC: REIMAGINING DIGITAL COMMERCE IN INDIA
CASE STUDY SOLUTION
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SYNOPSIS
Open Network for Digital Commerce (ONDC) is envisaged as a platform that will bring about the
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democratization of digital commerce in India. This interoperable network intends to overcome limitations of
the platform-centric model of e-commerce. By design, ONDC is inclusive and provides various offerings to
all network participants. With an ambitious target of incorporating 1.2 million sellers and 900 million buyers
and achieving a gross merchandising value of US$48 billion2 within five years, ONDC aims to propel the e-
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commerce penetration level to 25 per cent in India—generating attention and excitement alike. The network
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is still evolving; it has undergone alpha and beta testing and is now live in select cities in India. This case
examines the impact the government-backed network has had on the broader e-commerce market structure as
the network has gained traction, applies the tenets of blue ocean strategy to the network, and adopts a forward-
looking approach to examine possible outcomes pertaining to the mass adoption of ONDC.
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OBJECTIVES
• Understand the meaning and functioning of ONDC.
• Examine the e-commerce industry through the lens of Michael Porter’s five forces model.
• Understand the strategy of platform businesses.
• Apply scenario-planning tools.
• Understand the tenets of blue ocean strategy.
The Case Solution Starts From page 5
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ASSIGNMENT QUESTIONS
1. What is ONDC? Discuss the elements of ONDC’s business model.
2. Examine the impact of ONDC on the broader e-commerce landscape in India through the lens of
Michael Porter’s five forces model.
3. How is ONDC a potential game-changer? What tasks would ONDC have to perform to establish itself
as the go-to e-commerce network?
4. What are the possible outcomes that ONDC is likely to experience in the future? Outline the strategic
measures available to ONDC in these scenarios.
5. What is a “blue ocean”? Is ONDC potentially a case of a blue ocean?
The Case Solution Starts From page 5
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2. Examine the impact of ONDC on the broader e-commerce landscape in India through the lens
of Michael Porter’s five forces model.
Michael Porter’s five forces model is a useful tool for gauging the structure and attractiveness of a given
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industry. The following sections outline each of the five forces of the model.
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Rivalry among Existing Players
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Choosing not to operate on a platform-centric model, ONDC has the objective of democratizing the larger
e-commerce marketplace in India. Digitally excluded businesses will get the opportunity to join ONDC and
So
be on a level playing field with the big, tech-savvy players. The micro-, small-, and medium-sized
enterprises and the previously digitally excluded kirana stores, in India will get the chance to leverage the
power of e-commerce and showcase their offerings to target audiences. This is likely to reduce entry
barriers, intensify competition, drive innovation, and improve market offerings.
Threat of New Entrants
ONDC is an initiative of the Government of India. It is a project that potentially can serve the whole
The Case Solution Starts From page 5
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pl
m
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5. What is a “blue ocean”? Is ONDC potentially a case of a blue ocean?
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A blue ocean creates a “market space where demand is created rather than fought over.” By creating this
uncontested market, it eliminates the competition’s dominance in the marketplace.
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The following sections describe how the tenets of blue ocean strategy may be applied to ONDC to assess
whether it is a case of a blue ocean.
So
Creating an Uncontested Market Space
ONDC aims to overcome the limitations of network-driven e-commerce. It is an open-source, interoperable
network that aims to facilitate tech-enabled local commerce across segments, including groceries, food, and
transportation. This platform-centric approach is a pioneering attempt by government-backed ONDC to
The Case Solution Starts From page 5
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Open Network for Digital Commerce (ONDC) is envisaged as a platform that will bring about the
Sa
democratization of digital commerce in India. This interoperable network intends to overcome limitations of
the platform-centric model of e-commerce. By design, ONDC is inclusive and provides various offerings to
all network participants. With an ambitious target of incorporating 1.2 million sellers and 900 million buyers
and achieving a gross merchandising value of US$48 billion2 within five years, ONDC aims to propel the e-
n
commerce penetration level to 25 per cent in India—generating attention and excitement alike. The network
tio
is still evolving; it has undergone alpha and beta testing and is now live in select cities in India. This case
examines the impact the government-backed network has had on the broader e-commerce market structure as
the network has gained traction, applies the tenets of blue ocean strategy to the network, and adopts a forward-
looking approach to examine possible outcomes pertaining to the mass adoption of ONDC.
lu
So
OBJECTIVES
• Understand the meaning and functioning of ONDC.
• Examine the e-commerce industry through the lens of Michael Porter’s five forces model.
• Understand the strategy of platform businesses.
• Apply scenario-planning tools.
• Understand the tenets of blue ocean strategy.
The Case Solution Starts From page 5
, e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What is ONDC? Discuss the elements of ONDC’s business model.
2. Examine the impact of ONDC on the broader e-commerce landscape in India through the lens of
Michael Porter’s five forces model.
3. How is ONDC a potential game-changer? What tasks would ONDC have to perform to establish itself
as the go-to e-commerce network?
4. What are the possible outcomes that ONDC is likely to experience in the future? Outline the strategic
measures available to ONDC in these scenarios.
5. What is a “blue ocean”? Is ONDC potentially a case of a blue ocean?
The Case Solution Starts From page 5
, e
pl
m
Sa
2. Examine the impact of ONDC on the broader e-commerce landscape in India through the lens
of Michael Porter’s five forces model.
Michael Porter’s five forces model is a useful tool for gauging the structure and attractiveness of a given
n
industry. The following sections outline each of the five forces of the model.
tio
Rivalry among Existing Players
lu
Choosing not to operate on a platform-centric model, ONDC has the objective of democratizing the larger
e-commerce marketplace in India. Digitally excluded businesses will get the opportunity to join ONDC and
So
be on a level playing field with the big, tech-savvy players. The micro-, small-, and medium-sized
enterprises and the previously digitally excluded kirana stores, in India will get the chance to leverage the
power of e-commerce and showcase their offerings to target audiences. This is likely to reduce entry
barriers, intensify competition, drive innovation, and improve market offerings.
Threat of New Entrants
ONDC is an initiative of the Government of India. It is a project that potentially can serve the whole
The Case Solution Starts From page 5
, e
pl
m
Sa
5. What is a “blue ocean”? Is ONDC potentially a case of a blue ocean?
n
tio
A blue ocean creates a “market space where demand is created rather than fought over.” By creating this
uncontested market, it eliminates the competition’s dominance in the marketplace.
lu
The following sections describe how the tenets of blue ocean strategy may be applied to ONDC to assess
whether it is a case of a blue ocean.
So
Creating an Uncontested Market Space
ONDC aims to overcome the limitations of network-driven e-commerce. It is an open-source, interoperable
network that aims to facilitate tech-enabled local commerce across segments, including groceries, food, and
transportation. This platform-centric approach is a pioneering attempt by government-backed ONDC to
The Case Solution Starts From page 5
