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Teaching Note

ASTRO-VISION FUTURETECH: ENVISIONING THE FUTURE

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Joshin John and Joshy Joseph wrote this teaching note as an aid to instructors in the classroom use of the case Astro-Vision
FutureTech: Envisioning the Future, No. 9B20M155. This teaching note should not be used in any way that would prejudice the future
use of the case.

This publication may not be transmitted, photocopied, digitized, or otherwise reproduced in any form or by any means without the
permission of the copyright holder. Reproduction of this material is not covered under authorization by any reproduction rights

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organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Business School, Western
University, London, Ontario, Canada, N6G 0N1; (t) 519.661.3208; (e) cases@ivey.ca; www.iveycases.com. Our goal is to publish
materials of the highest quality; submit any errata to publishcases@ivey.ca. i1v2e5y5pubs

Copyright © 2020, Ivey Business School Foundation Version: 2020-09-08

SYNOPSIS
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It is February 2016, and Pandarath Ravindran Arjun, managing director of Astro-Vision Futuretech Private
Limited (Astro-Vision), is deliberating his company’s strategic options. Arjun has to decide on the strategic
direction of his company, particularly the business verticals, products and services, and marketing and
distribution channels he should focus on, given the business environment and the company’s competencies,
vision, mission, value propositions, and potential for future growth.
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Incorporated in 1984, Astro-Vision started as a firm providing matchmaking services for customers in Kerala,
India. Over the years, it has ventured into astrology software development, with multi-channel service
extensions through astrology practitioners, retail kiosks, matrimonial websites, mobile apps, and more. Astro-
Vision also developed in-house information technology (IT) competencies in creating software for the
banking, educational, and medical service sectors. Some of these business forays tasted success, while others
did not. In recent years, Astro-Vision has experienced phenomenal growth in the digital space. However, the
market share of Astro-Vision is still only a fraction of a per cent in the highly fragmented and unorganized
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astrology market in India. Furthermore, several imitators are mushrooming into the online space, in addition
to the existing stalwarts who are strong in certain geographies or product and customer segments.

Arjun is considering several strategic options for the company: (1) focus on selling astrology software to
astrologers, retail outlets, and personal users; (2) concentrate on providing astrology services and consultancy,
particularly in the digital medium; (3) a combination of the above two options, with greater investments in
segments with better growth potential; (4) diversify into software product development, focusing on the small
and medium-scale enterprise (SME) and business-to-consumer (B2C) segments; (5) expand into IT services,
leveraging the digital marketing and IT competencies developed in-house, and provide consulting services to
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other companies; (6) work on a combination of the above options, specifically choosing not to get into areas
where the company does not have a competitive advantage in the marketplace.

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LEARNING OBJECTIVES

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This case was written to illustrate core concepts in strategic decision-making, help students understand the core
competencies of a firm, and analyze the business environment of a very fragmented and unorganized industry.
The case presents the opportunity for students to perform a basic strengths, weaknesses, opportunities, and
threats (SWOT) analysis to assess the competencies of the firm, and a detailed industry analysis using strategy
frameworks, delineating and examining the competitive forces in play, along with their interactions. Students

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are expected to go through the process of deciding the future course of action for the firm after assessing the core
competencies of the company, its value propositions, and the business environment.

The case analyzes the disruptive forces in play, particularly the low-end and new-market footholds that are
emerging in the digital space. Whether these forces are indeed disruptive or not, and whether Astro-Vision
should choose to respond or not (and if so, how) are points to be analyzed. During this discussion, students
should deliberate on new or emerging marketing and distribution mediums and compare their channel

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strengths vis-à-vis traditional avenues. Furthermore, the case helps students understand and build upon a
resource-based view (RBV) of the firm along with theories on competitive advantage. Finally, the case
hones students’ skills in choosing between different strategic options: In which business verticals and
segments should the company be (or not be) present?

The learning objectives may be summarized as follows:

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 to understand strategic decision-making process and strategy frameworks;
 to perform SWOT analysis for a company;
 to analyze the market based on Porter’s Five Forces framework;
 to evaluate the strategic options for a company in a business environment; and
 to decide on a strategic growth plan and chart out the course of action.
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POSITION IN COURSE

This case is suitable as part of a core course in strategic management or service management in a graduate-
or executive-level course. It may also be used for a second-year elective course in marketing of services or
marketing strategy.
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RELEVANT READINGS

Materials for student preparation before the class, relevant readings related to this case, and supplementary
resources below. Since there are many concepts to be covered in this class, the instructor may ask the
students to study the relevant material mentioned in this case and come prepared for the session with case
notes based on the strategy frameworks listed in the pre-class readings.

 Michael E. Porter, “What Is Strategy?,” Harvard Business Review 74, no.6 (November–December
1996): 61–78. Available from Ivey Publishing, product no. 96608.
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 Michael E. Porter, “The Five Competitive Forces That Shape Strategy,” Harvard Business Review 86,
no. 1 (January 2008): 78–93. Available from Ivey Publishing, product no. R0801E.
 Michael E. Porter, “From Competitive Advantage to Corporate Strategy,” Harvard Business Review
65, no. 3 (May 1987): 1–21. Available from Ivey Publishing, product no. 87307.
 Ramon Casadesus-Masanell, Strategy Reading: Introduction to Strategy (Boston, MA: Harvard
Business Publishing, 2014).

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 Pankaj Ghemawat and Jan W. Rivkin, Strategy Reading: Competitive Advantage (Boston, MA: Harvard

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Business Publishing, 2014).
 David W. Pickton and Sheila Wright, “What’s SWOT in Strategic Analysis?,” Strategic Change 7, no.
2 (1998): 101–109.
 Sunil Gupta and Joseph Davin, Marketing Reading: Digital Marketing (Boston, MA: Harvard Business
Publishing, 2015).

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 Julian Dent, Distribution Channels: Understanding & Managing Channels to Market, 2nd ed. (London:
Kogan Page Publishers, 2011).
 Birger Wernerfelt, “A Resource-Based View of the Firm,” Strategic Management Journal 5, no. 2
(1984): 171–180.
 Clayton M. Christensen, Michael E. Raynor, and Rory McDonald, “What Is Disruptive Innovation?,”
Harvard Business Review 93, no. 12 (2015): 44–53. Available from Ivey Publishing, product no.
R1512B.

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CASE VIDEO SUPPLEMENT

The following video is a descriptive video about Astro-Vision and its products and services, and it includes
short interviews with multiple stakeholders, such as senior management of the company and astrologers. It
can be assigned to students along with the case, or it can be shown at the beginning of the class. The video
may only be used as part of this case study.
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“Astro-Vision,” (ver. 3/2019): https://goo.gl/G7v75K.

ASSIGNMENT QUESTIONS

1. What strategic options is Arjun considering pursuing? Substantiate your position.

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2. Describe the astrology market. Analyze consumption patterns and business trends.
3. What are the core competencies, competitive advantages, and value propositions of Astro-Vision?
Perform a SWOT analysis for the company.
4. Analyze the industry using a strategy framework, considering the business environment in which the
company operates.
5. Compare the traditional and emergent marketing and distribution channels. Which are the channels that
are potentially untapped?
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6. Is Astro-Vision a disruptive player in the market? Justify your position.

TEACHING PLAN

This case is designed for discussion in a 90-minute class. The details of the discussion pastures and
recommended time allotments are given below. This case is primarily intended for a strategy class, and the
basic underlying concepts rooted in this case are Porter’s strategic frameworks for analyzing market forces
and competitive advantage. However, the case is also suitable for interdisciplinary elective courses such as
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marketing strategy and service management. Concepts related to marketing and distribution channels,
digital marketing, and service innovation that are linked to these courses are embodied in this case.

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Discussion Points 90 minute class

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Introduction (Dilemma) 5 minutes
Case Video 8 minutes
Business Size-Up
 Indian Astrology: Market, Culture, and Customs 5 minutes
 Traditional versus Emerging Trends and Usage Patterns 4 minutes

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Preliminary Analysis
 Astro-Vision’s Core Competencies 5 minutes
 SWOT Analysis 5 minutes
Industry Analysis (Porter’s Five Forces)
 Competition, Pricing, and Customer Geographies 6 minutes
 Products (including Services) and Customer Segments 6 minutes
 Bargaining Power of Buyers and Suppliers 6 minutes

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 Threat of New Entrants and Substitutes 6 minutes
 Growth Areas, Marketing, and Distribution Channels 6 minutes
Disruption Frontiers & Sustaining Innovation
 Imitators in Digital Space, Aggregation 4 minutes
 Astrology, Brand Alignment, and Other Forays 5 minutes
Strategic Plan: Decision Review 8 minutes
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Case Debrief: Summary and Conclusion 5 minutes

Potential Pitfalls

One of the issues that may arise and derail the case discussion is the question of whether astrology is a
science. If such an issue arises, the instructor should hint at the strategic dilemma of the decision-maker
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and highlight to the class that the issue is not about debating the scientific basis of astrology. Instead, the
decision-maker’s dilemma is about the strategic alternatives for the astrology company presented in the
case. Second, provocative questions about why an astrology company may not foresee its own future may
occasionally arise. Again, the instructor should carefully guide the class to the intended discussion pastures.
The instructor may add that according to some schools of thought, in astrological parlance, astrologers are
forbidden to attempt to foretell their own futures. The instructor could also indicate that in some ways, it is
analogous to a doctor not treating their own illness. Further, the instructor may lead the students to the case
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points pertaining to the decision-maker’s dilemma and the subsequent discussion pastures.

ANALYSIS

1. What strategic options is Arjun considering pursuing? Substantiate your position.

Students are expected to correctly identify the main issue of the case, specifically, the dilemma over the
company’s strategic options, during this introductory question. From the first and last paragraphs of the
case, students can easily identify the following strategic options that are under consideration:
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 whether to focus on selling astrology software products to consumers

 whether to focus on selling astrology consultancy and services
 whether to focus on a combination of the first two options
 whether to venture into software product development
 whether to get into the IT consulting and services space

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The following case points are associated with the strategic dilemma: (1) the strategic expansion plans—which

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strategic options to pursue or not, (2) the marketing and distribution channels to focus on (current state versus
future potential), and (3) the strategic positioning of the company, given its value proposition. Students are
expected to briefly justify their stance on the above points prior to any ensuing detailed discussion. The dilemma
may be highlighted on the centre board if the instructor prefers to use a board plan (see Exhibit TN-1).

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Immediately after the main issue is identified by the class, the instructor may quickly move on to screening
the 10-minute case video. The case video (see Case Video Supplement) provides the gist of Astro-Vision
as a company, and its value proposition, products and services, operations, and culture. Video snippets from
decision-makers, channel partners, and practising astrologers are included in the case video, lending
perspectives from multiple stakeholders.

2. Describe the astrology market. Analyze consumption patterns and business trends.

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The objective of this discussion question is to build the context. This question immediately follows the
screening of the case video in class, enabling students to draw insights from the narrations of the consumers
of astrology, channel partners, astrologers, and company management in the case video. This information
is in addition to what is available in the main case text. The instructor may open the discussion by asking
students (eliciting a show of hands from class participants), “Have you checked your horoscope recently?”
or “How many of you have explored your star sign?”
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Students may be encouraged to share their views (including personal experiences) on cultural aspects, customs,
and astrology use in different geographies. It is likely that some of the class participants will have been
consumers of astrology for personal horoscopes, matchmaking, or other purposes in the recent past, and they
can contribute with personal anecdotes. Students may point out case facts related to cultural rituals and customs,
size of the market, and the four group classifications of consumer types. This discussion may be easily
extrapolated to an international setting, with discussion of astrology usage and practices in Oriental,
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Mesopotamian, Nordic, and Western cultural contexts, particularly in a class with international participants
offering significant diversity. Transitions and changing usage patterns vis-à-vis traditional formats of astrology
consumption, especially considering the millennial generation, may be included in this discussion pasture.

Going into the details, the instructor may probe the why, how, and what (type) of astrology consumption.
The instructor may ask participating students (especially those who raised their hands for the previous
question) about the occasion of usage (consumption) of astrology, the medium of consumption, and the
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type of astrological service or product that was consumed.

Students are expected to respond by highlighting the following reasons why people consume astrology: (1)
religious beliefs and culture; (2) rituals—matchmaking, auspicious timings for social events, moving to a
new home, launching a new business, naming newborn children, etc.; (3) personal horoscopes, gemstone
recommendations, etc.; (4) coping mechanism during difficult times, or hope for better times; and (5) fun
and entertainment, such as online gaming and following astrology columns in newspapers and magazines
for entertainment.
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Further, with regard to the medium (how) of astrology consumption, students may identify the following points:

 directly meeting (consultation) with astrologers and experts

 consuming astrological content on television, online (astrology websites or allied portals such as
matrimony and dating websites), print media (newspapers and magazines), and mobile apps
 generating horoscope reports using astrology software

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 using astrology services at retail outlets, kiosks, etc.

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 reading books on numerology, gemology, etc.
 using astrological wearables, gemstones, rings, pendants, jewellery, etc.
 participating in gamified content online and on social media

On the question of what (type of) astrology product, services, or solutions people consume, students may

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enumerate the following alternatives: (1) software: astrology, horoscope, numerology, matchmaking, etc.;
(2) services: content (reports, predictions), software as a service (SaaS), online games, etc.; (3) consultation:
personal consulting, lifestyle, habits, etc.; and (4) solutions: rituals, gemstones, etc.

The instructor may list the student responses on a centre board (see Exhibit TN-1). In addition, the instructor
may inquire about changing business trends and transitions in astrology consumption patterns. Students may
highlight the changes from the traditional mode of consumption to modern times. They may also highlight

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the impact of technology on delivering astrological content, such as via convenience-based services or
consumption of astrology by millennials, including the gamification of astrology.

As supplementary material, the instructor may also use the note on Indian astrology provided in Exhibit
TN-2 for further illustration, if necessary. This may be particularly useful in cases where the class has many
participants who are unfamiliar with the practice of astrology in India.
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3. What are the core competencies, competitive advantages, and value propositions of Astro-
Vision? Perform a SWOT analysis for the company.

This discussion is intended as a preliminary analysis before going into a detailed industry analysis, and
here, identifying the company’s core competencies is the primary focus. In this section, students may be
probed to bring up insights about Astro-Vision’s competencies based on points in the case text and the
recently screened case video.
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For the first part, students are expected to identify the following functional competencies that are core to
the company:

 Software (product) development and IT: in-house competency in software development that has
matured over multiple iterations of software development life cycles (SDLCs) over the years.
 SaaS: Competency in content generation and distribution through a network of channel partners
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(matrimony portals, online newspapers, magazines, retail outlets, and online kiosks).
 Competency in digital marketing services: Google AdWords, search engine optimization (SEO), search
engine marketing (SEM), etc.
 Competency in product support: Dedicated in-house team.

In addition to the above functional competencies, Astro-Vision has a competitive advantage in leveraging
network effects for the following reasons: (1) the wide network of astrologers in the country includes many
who use Astro-Vision’s software for astrological calculations and personally vouch for the accuracy of
calculations completed using Astro-Vision’s software; (2) several astrologers trained by Astro-Vision in its
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annual seminars provide valuable word-of-mouth marketing through a personal (direct) medium; (3) user
referrals (snowballing effect) and client testimonies; (4) online impressions, click-throughs, and
conversions from tie-ups with leading matrimonial portals in the country and the websites of newspapers
with large national circulations; and (5) omnichannel presence; Astro-Vision is present in multiple channel
formats, including being branded by astrologers during direct consults, online channels, newspapers,
matchmaking service providers and so on.

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The company has a unique value proposition: “To give hope to customers.” It provides a positive platform

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for decision-making and does not use fear to attract customers. Although it provides personalized content
and has an omnichannel presence, Astro-Vision does not operate in the lucrative solutions space or engage
in operant conditioning, forcing customers to adopt a certain solution, nor is it in the jewellery trading and
gemstone businesses that are found in the solutions space.

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Next, a SWOT analysis of the company is performed, elucidating details about the company’s strengths,
weaknesses, opportunities, and threats in the four quadrants (see Exhibit TN-3).

4. Analyze the industry using a strategy framework, considering the business environment in
which the company operates.

After discussing the core competencies of the company and performing the SWOT analysis, the instructor

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can lead the class into this important discussion point of a strategic analysis of the industry and the market
forces in play. The class is expected to have familiarized themselves with the strategic frameworks as part
of the pre-class preparation. This is a prerequisite before stepping into strategy formulation, which comes
after covering Porter’s Five Forces model. During this discussion, it is useful to keep a record of the analysis
on the left boards (see Exhibit TN-1) while organizing the discussion around Porter’s Five Forces model:
(1) industry rivalry, (2) bargaining power of suppliers, (3) bargaining power of buyers, (4) threat of new
entrants, and (5) threat of substitutes (see Exhibit TN-4).
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Industry Rivalry: Competition, Pricing, and Customer Geographies

Although the market is very fragmented and unorganized, with no astrology firm having more than 1-per-cent
market share, the competition is intense between firms. Firms in the marketplace aspire to grow in the double
digits (see Exhibit 5), gain market share, and secure an early mover advantage in the technology space. The
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top five companies discussed in the case are in different regions, with no company having a pan-India
presence. It may be noted that none of the companies discussed in the case have a sizable footprint across the
states in India, despite astrology being embedded in the customs, rituals, and lifestyles common to the Indian
people in different regions. Astro-Vision felt that the reasons for this may include the following:

1. Although people in different regions in India follow astrology, the symbols, charts, boards, other
paraphernalia, and interpretations are different across the regions. For example, the astrological content
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of figures and symbols that is familiar to someone from Himachal Pradesh (in the north of India) is
different from that what is familiar to someone in Tamil Nadu (in the south of India). Similarly, the
language and native styles make customization necessary to penetrate into local markets.
2. A large number of people who follow astrology still use the traditional means of contacting an
astrologer. Although people may have become technology savvy, many still rely on someone who can
interpret the chart with astrological insights. This could be because of the close association of astrology
with religious rites and practices in most places (cultures). Companies have not been able to penetrate
and become influential nodes in this culturally diverse network of astrologers belonging to different
schools of practice, although some companies have been successful in leveraging the personal brands
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of a few popular astrologers.

3. India as a country is generally price-sensitive, which creates multiple segments and market niches (see
case Exhibits 2 and 4), where brands choose whether or not to be present. For example, while Astro-
Vision’s products were perceived as high-priced by segments in certain geographies, they were popular
and widely consumed in other segments that valued the company’s brand equity. The consumption of a
product despite a high price is significant, especially when the product is used in conjunction with

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important and serious life events, resulting in consumers’ greater willingness to pay for the product for

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certain occasions. There is also a possibility of comparing the prices of a traditional astrologer and that of
an online service provider such as Astro-Vision or other competitors in the online astrology service space.

Products, Services, and Customer Segments

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From the case text and case Exhibits 1, 2, 4, and 5, students can easily identify the different products and
services available in the market. One critical point to establish during the discussion is that customers are
willing to pay for products and services with a certain value proposition for special occasions. For example,
a firm believer in astrology (or someone who comes from a societal background where astrology is part of the
faith) would not mind paying a premium for the service, especially when it relates to an important life event
such as marriage. People may dabble with reading free horoscopes in newspapers and magazines, but they are
willing to pay for customized solutions, services, or consultations for important personal events. An analogy

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would be that while there may be several people from conservative backgrounds present on free social media
portals, and although those people may interact with strangers or make friends, most conservative people
prefer to sign up with a paid service when scouting for potential life partners. And some are willing to pay for
a premium service with multiple filters if it promises to lead to an enduring relationship (marriage).

For Astro-Vision, an important challenge is identifying which segments it must enter (and maybe expand
aggressively) and which it must refrain from entering (even though it could be a potential goldmine). There
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are also segments that are theoretical in the product matrix. For example, it can be noted in case Exhibit 4
that astrologers who are customers (and partners) of Astro-Vision subscribe to content (service) and
purchase software, but they are not Astro-Vision’s clients for astrological consultations or in the astrological
solutions space. In order to cater to this segment, Astro-Vision conducts seminars as part of learning and
development initiatives to help astrologers understand and interpret the software and content provided by
Astro-Vision’s software, and these do not focus on consulting services for astrologers regarding astrology-
related problems. Similarly, in line with Astro-Vision’s value systems (see case Exhibit 8), the company
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does not indulge in operant conditioning and use fear as a motivating factor to attract customers. It does not
associate with the trading of gems or jewels as part of astrological solutions. It only provides gemstone
recommendations based on a person’s horoscope details, and the client can choose whether or not to
purchase those gemstones from external vendors.

The personal customer segment1 is an area where most of Astro-Vision’s competitors are present. This can be
seen from case Exhibit 4, which can be read in conjunction with case Exhibit 5 (company revenues). For
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companies with high growth rates2 (double digits), there has been a spike in revenues from the services
segment in recent years, particularly in the online medium. Companies have been engaging customers directly
through desktops, and more often through mobile gadgets, which is an area that has seen tremendous growth
in India over the last decade. Although the profit margins in this area are not exorbitantly high, they are higher
than those of competitors who are not focused on the service segment. Furthermore, for the companies with

1
Internet Archive, “Parashara's Light 7.0 - Parashara Light Vedic Astrology Software - by Parashara Software Pvt. Ltd.,” Internet Archive,
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October 26, 2015, accessed December 2, 2015, https://web.archive.org/web/20151026140432/http://www.parasharasoftware.com/

Parashara-Light/Parashara-Light.asp; Internet Archive, “Horoscope 2016,” Internet Archive, October 26, 2015, accessed December 2,
2015, https://web.archive.org/web/20151121065015/http://www.astrosage.com:80/horoscope/yearlyhoroscope.asp;
Internet Archive, “Aries - Daily Aries Horoscope, Aries Love Horoscope, Ganeshaspeaks.com,” Internet Archive, November 27, 2015,
accessed December 2, 2015, https://web.archive.org/web/20151127143158/http://www.ganeshaspeaks.com/aries.action;
Internet Archive, “Zodiac Predictions”, Internet Archive, December 11, 2015, accessed December 15, 2015,
https://web.archive.org/web/20151211183825/http://www.futurepointindia.com/en/rashifal.
2
Ojas Softech Private Limited, “Balance Sheet and Profit and Loss Statement (Filed-21 October 2016),” TWS Systems Private
Limited (Tofler), accessed January 13, 2017, www.tofler.in/ojas-softech-private-limited/company/U72300UP2008PTC035886.

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the highest compounded annual growth rates,3 the primary contributors to increasing revenues have been from

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the services segment, including advertising. It is noteworthy that the solutions segment is also very attractive,
although companies like Astro-Vision have not entered this space.

According to Astro-Vision, SaaS has become popular among personal users who may not be able to afford
the high upfront cost of purchasing software. Additionally, personal users may also prefer to receive the
interpretation that is available as a service or consultation through an astrologer or directly from the

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astrology company. In this context, it may be worthwhile to point out that, according to Astro-Vision, end
consumers view retail kiosks as mediators for astrological services; while consumers are increasingly
convenience driven, they would prefer to approach an astrologer or the source company for interpretation
rather than a retail outlet, where there may not be anyone who has much knowledge of astrology.
Additionally, astrology companies may consider retail outlets to be cost centres, incurring rent and other
ongoing expenses, and these companies would, therefore, prefer to piggyback on established kiosks that
are set up using a SaaS model only. This is in line with similar trends in the marketplace, where e-commerce

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players are gaining market share in retailing areas that were once the domain of brick-and-mortar stores.
Also, integrated omnichannel retailing based on a click-to-mortar model is gaining traction, where
companies with an online-only presence (websites, portals, and online communities) establish iconic
physical outlets (e.g., the Apple Store and, more recently, Amazon Go).4

Bargaining Power of Buyers and Suppliers

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Students may realize that buyers and suppliers are essentially the same actors in the sense that consumers
provide inputs (date of birth, time of birth, place of birth, and gender) for astrological calculations and then
consume the output. However, it is essential to delineate the mediating mechanisms in place. Traditionally,
astrological consulting and services were provided primarily by astrologers, and consumers relied on their
expertise and interpretive skills in the subject of astrology. But with the coming of age—and increasing
adoption—of technology, there have been changes in use patterns.
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According to Astro-Vision, some changes may be observed in the customer–service provider dyad with the
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advent of technology:

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Ibid.
4
David S. Evans and Richard Schmalensee, “The Best Retailers Combine Bricks and Clicks,” Harvard Business Review,
Product # H02X2A-PDF-ENG (May, 2016).

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 Astrologers have purchased (or subscribed to) software (or services) for the ease of calculation and

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presentation of results. However, many consumers continue to prefer and rely on the personal
interpretation of an astrologer.
 There is an emerging and rapidly growing segment (particularly among millennials) who prefer to
source the content directly, cutting out the intermediaries (channel partners). This behaviour may be
convenience driven and based on the understanding that computer-based calculations might be as good

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as, if not superior to, manual calculations. This assumes that service qualifiers are met: the content and
presentation in the digital medium are impressive, easy to understand, and interpreted in a manner
palatable to the user. In that case, the consumer prefers to connect directly with Astro-Vision.

Regarding mediating mechanisms and changes in channels strengths, as well as switching the costs of
buyers and suppliers, the following case points are pertinent:

1. Consumers can switch between astrology service providers (such as Astro-Vision) if one fails in any

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of the following service qualifier criteria: accessible and friendly language, ease of use, ease of
payment, pricing levels for a range or type of content, and neat and easy to comprehend format and
presentation. It is unlikely that satisfied Astro-Vision clients who receive customized services will
renege for free generic content from another medium, such as, for instance, a newspaper or magazine.
For serious customers who want detailed content, Astro-Vision offers a “freemium” model, which
includes a base version of the customized service provided free of charge, while detailed customized
content must be paid for. Astro-Vision believed that consumers who regularly or periodically visit an
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astrologer continue to visit the same person, in part due to the personal connection. This could change
if there is a major fallacy or multiple failed predictions on important issues. It may be noted that some
consumers also seek the services of more than one astrologer to get second opinions, particularly on
matters of significance to them.
2. According to Astro-Vision, general retail outlets (kiosks) did not fare well, even under a SaaS model, as
can be seen in the case. The servicescape of a general retail outlet is very different and perceived as below
tC

the standard of expectations of an average consumer. However, it may have been different if the outlet
were designed as an astrology clinic as an alternative to the retail outlet, where the consumer has two
options. A convenience-driven customer can visit a virtual outlet (online) and make payment over the
Internet for the services or content, whereas a customer driven by a personal connection and the
authenticity of service delivery would have the option to visit an astrologer. Also, the widespread
ownership of computers and mobile phones might have made the kiosk option unattractive to customers.
3. Regarding the brand–partner dyad, while Astro-Vision provides tools and detailed astrological
No

calculations to astrologers, it would not want to challenge the authority of astrologers and/or their
interpretations in any way. At the same time, Astro-Vision leverages a very influential network of
astrologers to promote its products and services by conducting seminars and conferences. On their part,
astrologers use Astro-Vision’s products and services to simplify their processes, and they endorse the
brand for the accuracy of its calculations. Astrologers who buy Astro-Vision’s software products are
generally locked in for a few years, until they upgrade or decide to switch software. However, given the
nature of the core product—astrological knowledge that remains unchanged over time—upgrading seems
to be unlikely. Pay-per-use (SaaS) is more expensive for astrologers in the long run, especially if they
have a large clientele. Additionally, astrologers are not locked into Astro-Vision’s astrology engine based
Do

on the SaaS model and could potentially defect if another brand matched or offered superior terms on
service criteria. Online partners co-create business with Astro-Vision on shared revenue/profit or
advertising models. Astro-Vision’s brand equity and popularity in specific segments are important
considerations for channel partners, which makes it difficult to displace Astro-Vision in those segments,
unless another competitor with comparable brand equity and service parameters competes on price points.

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Threat of New Entrants

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Setting up a website and starting an online astrology service portal to compete in the rapidly growing digital
space may sound easy, but it is easier said than done. There are several reasons for this: (1) The original
ancient astrology texts could be difficult to trace and not easily accessible in contemporary languages. It
would be an extremely difficult task to translate these ancient texts into a programmable form. Based on

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Astro-Vision’s experience, these program codes were developed over several years, which it holds the
rights to as intellectual property, and hence, the code is not easily replicable. (2) Given an intent to enter
this space, a company with ample cash reserves or backed by a major fund may buy out a smaller player
with these capabilities and scale up. But even in these cases, the astrology market differentiates brands with
superior competencies in the accuracy of calculations over all others. Furthermore, a major tech company
with competencies in IT or database management may not want to enter into the astrology space because
of the risk of dilution of their brand and focus, and would instead prefer a neutral (or pro-science) image.
For many people, astrology is not considered scientific and often has the image of being a pseudoscience.

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IT companies, who are otherwise developing programs based on scientific methods and theories, may face
an image conflict here. (3) For the same reasons of focus and differentiation, Astro-Vision, a brand that is
perceived (as intended by the company) as an astrology company, has found it difficult to make inroads
into other business forays and compete with established IT companies. But as an astrology company, it has
been successful in connecting with astrology networks and astrology-related marketing and distribution
channels. Along the same line of argument, companies with IT competencies, which are perceived as
neutral, may find it difficult to penetrate astrological networks, and even if it were possible, many IT
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companies operating in international markets may not want to gamble a carefully crafted brand image by
becoming tied to astrology and its pseudoscientific image.

Threat of Substitutes

Before embarking on a discussion about the threat of substitutes, it may be a good idea to enumerate some
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of the needs that are fulfilled for people by astrology service providers (or astrologers):

 offers a coping mechanism (to survive difficult times)

 services provided align with belief systems of followers of astrology and contribute towards social
identity and conformity to traditional practices such as astrological matchmaking
 reduces anxiety and provides guidance for preparing for (and making decisions about) the future

No

offers entertainment and fun

Now the class should try to identify substitutes that could displace astrological products, consultancy, and
services based on relevant case points and considering technological, scientific, or social developments that
have taken place.

From the case, students will easily recognize that the advancement of science and scientific awareness,
along with the development of a scientific temperament in people (characterized by traits of questioning,
observation, testing, predictive validity, repeatability, etc.) may become both a threat and a viable
Do

alternative to astrology. In particular, atheists and agnostics are likely to attack astrology as superstition or
pseudoscience. Additionally, mental health professionals (such as psychologists, counsellors, and
psychiatrists) are aligned with a scientific paradigm and promote their system of practice as a better
alternative to astrology as a coping mechanism.

Charismatic gurus (who may also be astrologers) and other self-proclaimed teachers, particularly in markets
where they exercise significant personal influence and network control, could promote themselves as

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authentic and better alternatives (substitutes) to an astrology company. This is, in part, leveraging a general

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human sentiment to believe or place the image of a human (in this case, the charismatic gurus) in positions
of authority/worship vis-à-vis an efficient machine algorithm or a company that develops such programs.
Such developments are possible when conflicting incentives surface (or are latent) in the network of channel
partners and astrology companies.

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Other forms of astrology (Chinese, Mayan, Hellenistic, etc.) can also emerge as substitutes and hence are
possible threats to Astro-Vision. The segment of users who consume astrology purely for entertainment and
fun could consider other substitutes that offer a high-level adrenaline rush (due to a fear factor), have an
element of suspense, are uncontrollable, and include an element of submission. Adventure games built on
augmented reality or virtual reality platforms, particularly those built on mythical stories, can become an
attractive substitute for users in this category.

The power of prediction with astrology may be challenged by the advancement of artificial intelligence and

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machine learning systems. These systems take in a host of parameters relevant to the case in context (input).
In comparison, astrology software uses limited inputs (date of birth, time of birth, place of birth, and gender)
in predicting the future. For example, in the case of a prediction about a person’s health, the predictive
analytics employed by health care systems can challenge predictions made using astrology software.

5. Compare the traditional and emergent marketing and distribution channels. Which are the
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channels that are potentially untapped?

From the section in the case entitled “Business Environment, Trends, and Astrology Usage,” it may be
observed that the traditional channel of astrology, where the consumer visited the astrologer at an office, is
quite different from modern times. With the advent of technology, astrology products were initially used
primarily to speed up calculations. However, the servitization of business has altered the landscape of
marketing and distribution. Many mobile-savvy users, especially millennials, consume astrology as a
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service, and the growth potential in the digital medium is rising. This is evident by comparing the revenue
growth of the companies with existing and emerging marketing and distribution channels.

Website traffic data5 (refer to page 7 of the case) shows that more website hits do not necessarily convert
to sales revenue6 (see case Exhibit 5). This is because optimization of customer devices (mobile phones or
desktop computers) for connecting to partner websites (white-hat SEO versus black-hat SEO) may be
necessary for the overall effectiveness and for converting a potential user into a customer. This highlights
No

the potential of digital marketing to stimulate growth. From the relevant reading on digital marketing, one

5
Pandit Ventures Private Limited, “ganeshaspeaks.com at WI. Astrology 2020, Horoscope, Free Vedic Astrology, Online
Astrologers,” Informer Technologies, Inc., accessed December 2, 2015, https://website.informer.com/ganeshaspeaks.com;
Ojas Softech Private Limited, “astrosage.com at WI. Free Horoscope & Astrology: Kundli Software Online- Vedic Astrology,”
Informer Technologies, Inc., accessed December 2, 2015, https://website.informer.com/astrosage.com; Astro-Vision
Futuretech Private Limited, “clickastro.com at WI. #1 Solution for Astrology and Horoscope | ClickAstro,” Informer
Technologies, Inc., accessed December 2, 2015, https://website.informer.com/clickastro.com.
6
Parashara Software Private Limited, “Balance Sheet for FY ending on 31 March 2014 (Filed-13 October 2014),” TWS
Systems Private Limited (Tofler), accessed November 21, 2015, https://www.tofler.in/parashara-software-private-
Do

limited/company/U72200RJ2004PTC025183; Ojas Softech Private Limited, “Balance Sheet for FY ending on 31 March 2014
(Filed-01 December 2014),” TWS Systems Private Limited (Tofler), accessed November 21, 2015, www.tofler.in/ojas-softech-
private-limited/company/U72300UP2008PTC035886; Shri Astrology Services Private Limited, “Balance Sheet for FY ending on
31 March 2014 (Filed-31 October 2014),” TWS Systems Private Limited (Tofler), , accessed November 23,
2015, www.tofler.in/shri-astrology-services-private-limited/company/U93090GJ2010PTC061334; Pandit Ventures Private
Limited, “Balance Sheet for FY ending on 31 March 2014 (Filed-31 October 2014),” TWS Systems Private Limited (Tofler),
accessed November 21, 2015, www.tofler.in/pandit-ventures-private-limited/company/U74999GJ2007PTC052197; Future Point
Private Limited, “Balance Sheet for FY ending on 31 March 2014 (Filed-28 October 2014),” TWS Systems Private Limited (Tofler),
accessed November 21, 2015, www.tofler.in/future-point-private-limited/company/U74899DL1987PTC027603.

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can easily identify the use of SEO and SEM techniques and point out differences in paid media, owned

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media, and earned media. The effectiveness of search ads, golden triangle of search results (eyeball
movement on screen), branded keywords, cost-per-click, and attribution models (e.g., linear, time decay,
first interaction, last interaction, position based, regression based, A/B testing) for improving online brand–
customer interactions are points that can be considered to fuel growth in the digital space.

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6. Is Astro-Vision a disruptive player in the market? Justify your position.

The objective of this discussion is to put the case under the lens of the disruptive innovation theory and verify
the assumptions and applicability of this theory for this case. According to the case, there are several firms
mushrooming in the online marketplace; but does Astro-Vision possess a model of disruptive innovation?
This has to be tested within the disruptive innovation framework developed by Clayton Christenson.

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According to Christensen et al.’s article, “What Is Disruptive Innovation?,”7 it can be seen that market
entrants like Uber Technologies Inc. and Tesla, Inc. are not disruptive innovators under the application of
the framework. Similarly, it may also be noted that the iPhone was a sustaining innovator in the smartphone
market, while it was a disruptive innovator in the market of products that served as the primary access point
to the Internet, challenging the position of laptops.8

In the case of Astro-Vision, a good way to determine if the theory is applicable is to see whether the case
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checks all the boxes. According to the table in Exhibit TN-5, it is obvious that this is not the case. Astro-
Vision has neither a significantly different business model nor does it target traditionally overlooked
segments. Thus, it follows that Astro-Vision may not, per se, have the characteristics of a disruptive
innovator, although like many players in the digital space, it may be eating into the share of a market that
was traditionally the foothold of astrologers. It is perceived as having relatively higher price point
customers. Astro-Vision may also not fall under the category of a truly innovative company because there
is not a significant change in the share of company revenue from new products every few years. Although
tC

the company is not driven by a high-performance innovation engine occasionally churning out high-value
ideas that have been monetized in the market, the company has improved product and service attributes
over the years. However, this may be seen as incremental innovation, at best.

WHAT HAPPENED
No

After looking at the numbers and trends, Arjun felt that the potential growth from services was much greater
than that from the astrology software division. The reasons for this were obvious: (1) the demand for
astrology services from end consumers was much greater than the demand for astrology software; and
(2) the company had difficulty managing a field sales team for the astrology products division, while the
digital marketing division proved to be an easier channel that gave access to untapped markets.

Astro-Vision was uniquely positioned with respect to its competitors due to strong network connections
with both the astrologer community and end consumers. While further penetration into astrologer
community networks in different geographies was difficult without a better field sales team, Astro-Vision
Do

wanted to retain this segment—letting go of its relationships with astrologers was a risky strategy. However,
the main focus was on growing the astrology services division and improving operational efficiency within

7
Clayton M. Christensen, Michael E. Raynor, and Rory McDonald, “What is Disruptive Innovation?,” Harvard Business Review
93, no. 12 (2015): 44–53. Available from Ivey Publishing, product no. R1512B.
8
Ibid.

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the software products division. Astro-Vision decided to expand on the astrology software products division

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only when the sales team’s capabilities and operational efficiency improved.

In the meantime, Arun Nair, who had joined Astro-Vision as the head of portals, was elevated to the role
of chief executive officer (CEO) of the company and has become part of the senior management team and
a company shareholder. This gave Arjun the opportunity to explore the leveraging of network effects and

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two other key areas:

 Funding: The funding (venture capital/angel investor/other) of more digital marketing spend for faster
growth in the services segment. Exploring funding avenues was an important and time-consuming
activity, but with Nair taking on the CEO responsibilities, Arjun had more time for this.
 Branding: The second area was branding. Branding would help Astro-Vision establish itself as a trusted
source of astrology content, especially in a highly fragmented market. Astro-Vision started branding
activities by engaging one of the best brand consultants in India.

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 Leveraging network effects: Astro-Vision started to leverage its relationships with consumers and
astrologers by building a portal called www.letsastro.com, which allowed consumers to interact with
astrologers. As part of increasing operational efficiencies, the role of seminars was evaluated, and for
a brief period, it was discontinued. It was later restarted as a paid seminar. This was a tremendous
success, and astrologers’ willingness to pay for seminars organized by Astro-Vision was promising as
the company looked toward future growth and expansion plans.
op
Astro-Vision continued to focus on expanding content services by providing new and more detailed
astrology reports. The company also expanded to new areas, including chat platforms, by providing
astrology chatbots and voice-based services on devices such as Amazon Echo and other Alexa services.
The astrology reports were also made available in more languages. The company added a sales team for
astrology services in order to augment revenue that came from the online sales funnel. These initiatives
boosted Astro-Vision’s revenues from the services segment, and the company grew.
tC
No
Do

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EXHIBIT TN-1: BOARD PLAN

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Left Boards Centre Boards Right Boards

Exhibit TN-4
DILEMMA (MAIN ISSUE)
Porter’s Five Forces

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ANALYSIS
Strategic Expansion Plans
Marketing & Distribution Channels
BPoS

Traditional vs. Digital

Business Size-Up
ToNE IR ToS Digital Marketing
Astrology Usage, Cultural Context,
Customs & Practices Disruptive vs. Sustainable

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BPoB
Innovation
Trends &Transitions

ANALYSIS

 Major Competitor Presence: Decision Review

Astro-Vision’s Core Competencies
Geographies and Customer
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and Product/Service Competitors’ Strengths & Weakness  ..................
Segments
Exhibit TN-3  ..................
 Bargaining Power Buyers &
Suppliers: Substitutes and SWOT Analysis  ..................
Switching Costs
Case Debrief
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 Channel Partners, New S W

Entrants in the Market,  ..................

Competitor Revenues and O T
Profit Margins  ..................

 Potential Growth Areas

No

Source: Created by the authors.

Do

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EXHIBIT TN-2: A NOTE ON ASTROLOGY IN INDIA

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Vedic astrology, or Hindu astrology, is the branch of astrology that studies events and their predictions in
relation to Hindu Vedic mythology. According to historians, Saint Parashara, who is known as the father of
Indian Vedic astrology, adopted the subject of astrology developed during the Babylonian Era and
combined it with Indian Vedic science to create what is known as Vedic astrology. However, some argue
that Vedic astrology was developed much earlier, even before the development of Babylonian and Western

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astrology.

Astrology describes how the motions of stars and planets in the cosmos impact and reflect on human life.
In simple terms, the past, present, and future of an individual may be described by an astrologer, based on
the movement of the stars and the planets. India, with the second-largest population in the world, has a
large number of people who believe in astrology. It is quite possiblegiven the country’s belief systems,
social norms, and cultural practicesthat in India, a large majority of people have visited an astrologer at
least once in their lifetime. Many believe that astrology is a true science and not a pseudoscience, and

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several universities in India offer various certificate and diploma courses in astrology, showing the relevance
of astrology in the Indian community.

It is a normal practice in the Indian community to write down all of the details of an individual’s life, from
their birth to their death, based on their astrological chart. This is usually done using the services of a known
astrologer. This detailed description of the person is called the Jathak. The Jathak is used as the basis for
describing or foretelling every future event of the individual. It is used to determine the marriage date, to
find an appropriate bride or bridegroom, to see whether they will make a good match or not, and more. This
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process is generally called matchmaking, which is very common in Indian society, and astrology plays a
big part in the process. In addition to this, people depend on astrologers for many other purposes, such as
making the right decision when choosing a job or selecting a job when more than one job offer has been
received at a time, when buying or selling a car or other property, which fields to choose for higher
education, and so on. Even in some interviews, employers will ask a candidate to bring their Jathak along
with their CV and other certificates. This explains the fact that even corporations consider astrological
aspects for decision-making in India. It is also common for politicians, movie stars, and professional athletes
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in India to seek astrological advice when making important decisions in life.

Until some years ago, it was the Poojaris (temple priests) and the saints who took astrology seriously as a
profession. And they were entirely in charge of this domain. But nowadays, this is no longer the case. Many
astrologers are people from high ranks of society, such as retired government officials, who learn about
astrology in detail, as a hobby, during their service, and start practising it following retirement for a post-
retirement source of income.
No

Astrologers of today are usually up-to-date with changing technologies. They often use technology, such
as astrological software or a web-enabled service, to cross-check their predictions and make their
interpretations. While some astrologers are completely dependent on software for their predictions, others
use software partially as an enabling tool or to increase the speed and accuracy of astrological calculations.

Note: CV = curriculum vitae.

Source: Created by the case writers based on company documents.
Do

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EXHIBIT TN-3: SWOT ANALYSIS

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Strengths Weaknesses
 In-house competencies in:  Lack of funding to scale up digital marketing
̶ IT and software development efforts for the astrology services segment
̶ Service content generation  Inability to leverage software development
̶ Digital marketing capabilities in other business forays (Klinic Mate,

̶ Product support
 Strong network
̶ Astrologers, experts, and practitioners
̶ Word-of-mouth referrals through users
̶ Tie-ups with online matrimony sites,
newspapers and magazines, portals
 Old and well-known brand
 Astrological content in multiple languages
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Easy Teach, BankMate, etc.)
 Inability to establish effective marketing and
distribution network for retail outlets/kiosks,
outside Kerala and the overseas market
 Managing a field sales team has been a problem
especially in working between software products
and the SaaS segment (retail kiosks)


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 Deeply rooted in traditional belief systems
 Favourable customer reviews, goodwill
Opportunities
 India, being an extremely fragmented and
unorganized market with one of the largest
number of mobile users9 in the world, the potential
for brand penetration in digital service (mobile)
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segment is huge (and untapped)
 Create platform for astrologers and consumers to
interact online, building on personal connections
 Favourable demographics (majority is the
millennial population) for expansion in technology
area: electronic gadgets, IOT (virtual assistant),
chat bots, use of AI/machine learning
tC
Translation issues: software products not made
available in foreign markets with potential
Threats
 Large number of online astrology11 portals
mushrooming in the digital space, offering low-
cost pricing models, and emergence of new end
market footholds (deviating from traditional
methods of astrology)
 Aggressive digital expansion by major
competitors12 (with high brand equity) can lead to
consolidation of the market with few major players
with early mover advantage
 Emergence of alternatives or substitutes for
astrology, e.g., psychological counselling, and

 Extending services to include allied areas
including Vastu10 (architectural-related) astrology,
Ayurveda (herbal medicines), etc.
 Expanding into other geographies (other states of
India and overseas), packaging astrology
products specifically to local cultures (feng shui,
Nordic astrology, etc.) in native languages
No
possible growth of public perception13 of astrology
as a pseudoscience
 Possibility of erosion of faith (belief) in religion and
astrology for new generations
 Risk of astrologers or channel partners being
poached by competitors, on better pricing, brand
proposition, or engagement models14

Note: IT = information technology; SaaS = software as a service; IOT = Internet of Things; AI = artificial intelligence
Source: Created by the case writers based on David W. Pickton and Sheila Wright, “What’s SWOT in Strategic Analysis?,”
Strategic Change 7, no. 2 (1998): 101–109.

9
Shashi Tharoor, The Elephant, the Tiger, and the Cell Phone: Reflections on India, The Emerging 21st-Century Power (New
Delhi: Penguin Books India, 2007): 15.
10
T. Birtchnell, “Vastu Compliance: The Gentrification of India’s Sacred Spaces and the Mobilities of Ideas,” Journal of Ethnic
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and Migration Studies 42, no. 14 (2016), 23452359.

11
Amanda Hess, “How Astrology Took Over the Internet,” The New York Times, January 1, 2018, accessed June 27, 2015,
www.nytimes.com/2018/01/01/arts/how-astrology-took-over-the-internet.html.
12
Ojas Softech Private Limited, “‘AstroSage Kundli’ App Crosses 10 Million Downloads,” accessed June 27, 2020,
www.astrosage.com/magazine/astrosage-kundli-app-crosses-10-million-downloads.asp.
13
Ibid.
14
Shilpa Elizabeth, “Startups Add Astrology, Palmistry Services as Demands Pour in from Youngsters,” The Economic Times,
August 30, 2016, accessed June 27, 2020, https://economictimes.indiatimes.com/small-biz/startups/startups-add-astrology-
palmistry-services-as-demands-pour-in-from-youngsters/articleshow/53921635.cms?from=mdr.

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EXHIBIT TN-4: INDUSTRY ANALYSIS (PORTER’S FIVE FORCES)

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Threat of New Entrants Threat of Substitutes
– Original asstrological texts are not easily – The prevalent needs or uses driving the use

accesible; to develop the code organically is
difficult for new entrants; companies with
sufficient funding could enter the market
inorganically by buying out smaller firms
– Major tech companies with IT competencies
are less likely to be associated with astrology,
which often has a non-scientific connotation,
due to the possibility of brand dilution
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of astrology can possibly be substituted with
the following alternatives: (a) psychologists,
counsellors, and psychiatrists can provide
alternatives to astrology as a coping
mechanism during difficult times; (b) the
scientific community that promotes modern
alternatives are challenging traditional belief
systems and social norms; (c) influential gurus
may challenge the authenticity of astrology;

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– Several astrology networks are already
locked into existing brands through long-term
contracts and service agreements, which may
be difficult to break, given the network effects
in play
(d) alternative astrology types (Mayan,
Chinese, etc.); (e) artificial
intelligence/machine learning systems
harnessing the power of predictive analytics;
and (f) adventure games and online platforms
that can substitute for entertainment and fun

Industry Rivalry
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–Geographies
–Customer Segments
–Pricing and Positioning
–Products and Services
–Network Partners
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Bargaining Power of Buyers

Bargaining Power of Suppliers
– Influential networks of astrologers could
claim the sole authority of interpreting
astrological concepts and content, establishing
a mandatory mediating mechanism
– Influential astrologers could build their own
No
– Ease of use authenticity and pricing factors
related to the astrology company providing the
products/services
– Convenience-driven consumers may want to
cut out intermediaries and prefer high-quality
content presented well in various formats

IT systems for the astrology community,

challenging the brand positioning of
companies.
– Bargaining power on commissions for
channel partners (astrologers, kiosks, etc.) in
the SaaS model, where, unlike software
products, there is no lock-in
– Ease of payment at company–supplier
interface points
Do
– Customers driven by trust in the astrologer–
client relationship dyad may emphasize
mediation through personal connections with
astrologers, particuarly for interpretation
– Ease of payment at the company–buyer
interface points, including interfaces through
channel partners

Source: Created by the case writers based on Michael E. Porter, “The Five Competitive Forces That Shape Strategy,” Harvard
Business Review 86, no. 1 (January 2008): 78–93. Available from Ivey Publishing, product no. R0801E; Catlin Welsh, “Co-
Star accuses Google of ‘Anti-astrology Prejudice’ after Play Store Pulls Horoscope App,” Mashable, February 6, 2020,
accessed June 27, 2020, https://mashable.com/article/co-star-pulled-android-accuses-google-anti-astrology/; Astrology and
Science, “The Case For and Against Astrology,” accessed June 27, 2020, www.astrology-and-science.com/u-case2.htm; Tom
Delbanco, “Leeches, Spiders, and Astrology: Predilections and Predictions,” JAMA 280, no. 18 (1998): 15601562.

This Teaching Note is authorized for use only by JOSHY JOSEPH, Indian Institute of Management - Kozhikode until Jun 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.
 Page 19 8B20M155

t
EXHIBIT TN-5: ASTRO-VISION: A DISRUPTIVE INNOVATOR?

os
Astro-Vision as Disruptive Innovator: Checklist
Improving products and services over time that
1. Uses a process of disruption 
incumbents (astrologers) generally ignore
2. Builds business models that are very Business model is different from astrologers, but
?
different from those of incumbents similar to that of competitors in the digital space

3. Targets traditionally overlooked
segments and gains a foothold by
delivering better functionality for products
and services (frequently) at lower prices
4. “Disrupt or be disrupted?” Is disruption
occurring in the market? Should
rP
– Digital segment overlooked by most astrologers
– Functionality: Convenience-driven, deliver many
types of reports (short/detailed) with good accuracy
?
– Astro-Vision products are generally high-priced,
but it recently introduced freemium models, wherein
a base version with limited functionalities is free
– Digital players at lower price points eating into
? markets outside traditional astrology (e.g., gamified

yo
incumbents (Astro-Vision) respond? content popular among millennials)

Source: Created by the case writers based on Clayton M. Christensen, Michael E. Raynor, and Rory McDonald, “What Is
Disruptive Innovation?,” Harvard Business Review 93, no. 12 (2015): 44–53. Available from Ivey Publishing, product no.
R1512B.
op
tC
No
Do

This Teaching Note is authorized for use only by JOSHY JOSEPH, Indian Institute of Management - Kozhikode until Jun 2021. Copying or posting is an infringement of copyright.
Permissions@hbsp.harvard.edu or 617.783.7860.