It was a rainy evening in the city of Bangalore. Suresh Satyamurthy, CEO and founder of Tarnea Technology Solutions, sat in his makeshift office in the comfort of his home and pondered where his company, a platform business in the pharmaceutical retail industry, was heading. On the other side, over a video call, was his co-founder and CTO of the company, Madhav. The COVID-19 induced pandemic had derailed all the carefully laid plans for the year 2020. Supply chains the world over had been thrown into disarray. The pharmaceutical supply chains on which Tarnea had built its platform had also seen disruption. The industry was seeing supply-side challenges as well. Raw materials from China were not flowing into the country anymore; and in India, interstate transport movements were restricted owing to the country-wide lockdown. Distributors were facing shortages, which were driving them to overstock inventory. They were hesitant to give credit to the retailers, who were getting squeezed. This lack of capital caused some retailers to shut shop. Amidst this chaos, however, there was an opportunity for Tarnea. The COVID-19 pandemic would undoubtedly accelerate the digitization of retail. However, beyond this, there were several paths available to Tarnea to grow its business. Suresh and Madhav, weighed the options available to them. Should the company pursue geographical expansion, horizontal expansion, or continue to refine its product to meet evolving customer needs?

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Tarnea Technology Solutions: Competing in a Winner-Takes-All Market

  • R. Srinivasan

摘要

It was a rainy evening in the city of Bangalore. Suresh Satyamurthy, CEO and founder of Tarnea Technology Solutions, sat in his makeshift office in the comfort of his home and pondered where his company, a platform business in the pharmaceutical retail industry, was heading. On the other side, over a video call, was his co-founder and CTO of the company, Madhav. The COVID-19 induced pandemic had derailed all the carefully laid plans for the year 2020. Supply chains the world over had been thrown into disarray. The pharmaceutical supply chains on which Tarnea had built its platform had also seen disruption. The industry was seeing supply-side challenges as well. Raw materials from China were not flowing into the country anymore; and in India, interstate transport movements were restricted owing to the country-wide lockdown. Distributors were facing shortages, which were driving them to overstock inventory. They were hesitant to give credit to the retailers, who were getting squeezed. This lack of capital caused some retailers to shut shop. Amidst this chaos, however, there was an opportunity for Tarnea. The COVID-19 pandemic would undoubtedly accelerate the digitization of retail. However, beyond this, there were several paths available to Tarnea to grow its business. Suresh and Madhav, weighed the options available to them. Should the company pursue geographical expansion, horizontal expansion, or continue to refine its product to meet evolving customer needs?