Introduction

Resource Based View

Projections of Enter Vs Continue
As global freelancer market is growing at 14%, so we have assumed that Indian freelancer market is also growing at the same rate. We have calculated the
projected market size for India and US both for the next 5 years.
Market Projection for 5 years in billion USD Total freelancer in Indian and US is 63 million. They
Current have 60,000+ freelancer. So, we are assuming that
market size Year 1 Year 2 Year 3 Year 4 Year 5
they have 0.088% of global market share by
Global market for freelancers 2500000000 2850000000 3249000000 3703860000 4222400400 4813536456
workforce. But they play on high margin, So are
Indian market for freelancers 1000000000 1140000000 1299600000 1481544000 1688960160 1925414582
assuming that they have 0.15% of total market share
Out of total Indian available market, we are assuming that they are not operating in research & by revenue. We are also assuming that they have the
academia and others. So available market for FLEXING IT in India is 81% of total market. They want same market share in India.
to tap into 14% of others market where non-management-related skills in domains such as Design
and Technology lies. FLEXING IT Market VS India’s Total Market

Available Market for FLEXING IT in India in billion USD 12.00% 10.72%

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 10.00%

Market size for current 6.27% 9.74%
8.00%
strategy 810000000 923400000 1052676000 1200050640 1368057730 1559585812
Market size for diversified 6.00% 3.16%
section 140000000 159600000 181944000 207416160 236454422 269558042 5.69%
4.00% 1.22%

• We are also assuming that if they proceed with the diversification strategy then they will 2.00%
0.13%
0.47%
2.87%
capture the market share of 0.088% of the respective market in first year and they will grow at 0.00%
1.34%
0.12% 0.43%
the same rate as their current strategy Current Year Year 1 Year 2 Year 3 Year 4 Year 5
• Revenue of FLEXING IT has grown at 500% year on year. As the company will mature, its growth
rate will also decrease. We have assume that the growth rate will decrease by a factor of .75 Current strategy With Diversification
Pros Cons of both strategies
Current Strategy Diversified Strategy

Pros:
Cons Cons Cons
Analysis of Exit Strategy
Recommendations
 The potential benefit of entering into non-management skill related projects is low (1% increased revenue compared to status
quo). There is risk associated with changing the brand positioning of FlexingIt from high end quality provider to niche market
with narrow scope services. Moreover, if it enters the market and exits after 2 years, the market share will get hurt and will be
even less compared to continuing with current strategy.

 FlexingIt should continue to focus on management related projects with high end service until the non-management market
grows. If the non-management market grows in future then the option of acquiring a small firm that provide non-management
service to clients should be explored.

 As FlexingIt’s core competency lies with providing high quality service to its clients while clients also value deep skills and
expertise. This deep skills and expertise come with more work experience. FlexingIt should not change their percentage of
freelancer less than 5 years of work experience.

 The explorer and performers can be rotated among the client as per the requirement. If demand of explorer and performers for a
particular domain experience increases then more explorer and performers of that professionals experience can be on-boarded
and less from other domain experience. This will also help them to keep the high margin as the median and 75th percentile of fee
for early leader, mature leader and master are much higher than explorer and performers .