Chaldal.com-Final-report PDF

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Table of Contents Executive Summary ........................................................................................................ 2 Introduction .................................................................................................................... 3 E-business in Organization ............................................................................................. 4 Context: ....................................................................................................................... 4 Mission: ....................................................................................................................... 4 Vision: ......................................................................................................................... 4 Range of products/service: .......................................................................................... 4 E business Model: ....................................................................................................... 5 Drivers of e-business adoption in organization ........................................................... 5 Management of e-business in organization ................................................................. 5 E-business Revenue Model ............................................................................................ 6 Value proposition of the business model: ................................................................... 6 Revenue Model: .......................................................................................................... 6 Online Marketplace Structure: .................................................................................... 6 E-business platform/infrastructure ................................................................................. 7 E-business application service – ................................................................................. 7 IT Use for E- Business Application ............................................................................ 8 Digital Strategy for E-business ..................................................................................... 10 Strategy of Chaldal.com ............................................................................................ 10 E-channel structure .................................................................................................... 10 Analysis of E-Business strategy ................................................................................ 10 E-business Security....................................................................................................... 13 Five IT security risks ................................................................................................. 13 Recommendations ..................................................................................................... 14 Key Findings................................................................................................................. 15 Recommendations ........................................................................................................ 16 Conclusion .................................................................................................................... 17 References .................................................................................................................... 18

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Executive Summary This report outlines a comprehensive study on the E-business practices of Chaldal.com which is one of the leading players in the online retailing e-business scenario of Bangladesh. Chaldal started its operations in 2013 with an aim to provide grocery and daily needs solutions to the consumers by taking orders online and reaching the customer by home delivery processes. For ensuring quality service, they incorporated variety of operational systems which are based majorly on online technology. Starting from taking orders to customer relationship management and enterprise resource planning, Chaldal uses customized management software tailored to their requirements by their in house IT experts. Their revenue model is primarily based on product sales and there are no direct competitors in the market for now. Though like all online businesses they are prone to some threats, but they are resourceful enough with a combination of high profile experts to avert any barriers in their online business.

Introduction Chaldal.com is one of the largest dedicated online grocery retailers of our country. It was founded by Waseem alim, Tejas Viswanath, and Zia Ashraf in 2013. It has more than 200k subscribers and 250+ business customers across Dhaka. It provides online services like online purchase of the grocery products and also delivery services among everywhere in Dhaka city. On day one they started their business with one cycle, one delivery executive, two orders and no complaints. On their 16th day they had a van, tow delivery executives, an accountant and COO on delivery. On their 700th day of their opening they now have 22 vehicles, 100 working people and 200 orders daily. They don’t have to look back from that position and at present they have 50 covered vans, 50 motor cycles, and 250 working people, 200+ orders daily and counting. Their geographical boundary includes Dhaka city except Jatrabari, Narayangang, Tongi, Old Dhaka and some remote areas.

Requirement 1

E-business in Organization Context: Chaldal.com gives the services of ordering products using their websites which have a lot of collection of different grocery items from different brands. Customers can choose their desired items from the catalog and make order which then would be processed and after an hour or two they get delivered at free of cost

Mission: “Sell Quality Grocery at the Best Price in Dhaka.” They want to sell good and quality product through online in the whole Dhaka city. They also want to cover the whole Dhaka city under One hour delivery service.

Vision: “Save Time. Save Money.” Chaldal wants to save both the time and the money of people by online service. People can order from anywhere by using internet. It’s mainly useful for the corporate people. It will save both their time and money. 

Promises:  Customer service.  Quality Product.  Fresh Vegetables.  Low Price.

Range of products/service: They mainly sell home clearing and grocery items, bakery items, pet food and what not. They distribute their products within one hour according to their geographic location. They offer 5000+ several categories of product in 7 warehouses, they maintain a good quality product, they also take order by phone and there is also a 7 days return policy.

 Key business focus: It hopes to become the “Amazon Fresh of Dhaka”. The company, which is currently averaging 250-350 deliveries a day, plans to cover all of Dhaka before potentially expanding into other Bangladesh cities. Its goal is to give customers the experience of shopping in a big box store with a huge selection.

E business Model: Chaldal follows only two E-business models such as, 

Business to Consumer (B2C) Model: Chaldal following B2C business model sells its product directly to a customer. A customer can view products shown on the website of Chaldal. The customer can choose a product and order the same. Website will send a notification to the Chaldal via email and it will dispatch the product/goods to the customer.



Business to Business (B2B) Model: Chaldal also following B2B business model sells its product to an intermediate buyer who then sells the product to the final customer. As an example, a wholesaler places an order from a chaldal's website and after receiving the consignment, sells the end product to final customer who comes to buy the product at wholesaler's retail outlet.

Drivers of e-business adoption in organization When Chaldal consider implementing E-Business they need to understand that there are many factors steering the adoption the E-Business model. Adoption is the process during which an enterprise becomes capable of transacting electronically. The drivers of the adoption of EBusiness model are perceived benefits, external pressure, perceived cost and organizational readiness. The drivers emerge from the internal and external business environments of Chaldal and have different effects on decision making.

Management of e-business in organization E-Commerce has changed the way the world buys and sells goods and services. In order to manage Chaldal, the management has to face many difficulties and challenges like evolving

with emerging technologies, attracting and retaining customers, keeping watch on competitor moves, E-Business security, E-Business laws, taxation etc. The management has to take care of these challenges very carefully.

Requirement 2

E-business Revenue Model Value proposition of the business model: Chaldal is one of a kind since started its journey in the country. As Dhaka is one of the densest cities in the world, people have to lose so much time in traffic jam and on the congested road. In that case, Chaladal.com can help getting the products without wasting so much time at our doorstep which makes it a unique value proposition in terms of e-business.

Revenue Model: Chaldal.com follows Sales Based Revenue Model which is Web Catalog Revenue Model. The web catalog revenue model is essentially an electronic version of the traditional catalog based retail revenue model. Chaldal earns its revenue only by selling their products. There is no other way of earning revenue except this.

Online Marketplace Structure:  Characteristics of product and service: Chaldal is an online based retail store. They mainly sell home clearing, grocery items, bakery items and pet food.  Market Segment: Chaldal mainly segmented their market to those who are corporate job holders and the persons who has less time for shopping daily grosser items.  Revenue generating strategy: It earns their revenue only by selling their products. There is no other way of earning revenue except selling own products.

 Market Place Structure: Chaldal at present is one of the biggest online retail stores in the country. Their main office is in Uttara, but they also have some other offices and stores in Banani, Rajarbag, Gulshan and Bashundhara.

Requirement 3

E-business platform/infrastructure E-business application service – Enterprise Resource Planning In Chaldal.com, they use customized integrated ERP by which they manage their inventory, supply chain, internal operations and delivery. In their business, they need to deal with a lot of perishable grocery items. So, it is very much essential for them to track the expiry of the items and replace them. So, for managing these operations, their customized ERP is designed to predict the necessity of the products beforehand and let the executives know about the procurement necessity and the vendor options. And, whenever an order is being placed, after getting verified from the operations team and central coordination, the job order gets automatically updated in the delivery team’s mobile application. In this way, Chaldal’s enterprise resources are being managed.

Customer Relationship Management In Chaldal, CRM systems are designed to compile information on customers across different channels -- or points of contact between the customer and the company which includes their company website, telephone, direct mail, email and social media. Chaldal’s CRM systems can also give customer-facing staff detailed information on customers' personal information, purchase history, buying preferences and concerns. So, with this information, they consistently

contact the customer on their new offerings through telephone, email and automated text messaging.

Android and IOS based Application For customers – For taking orders from the customers, Chaldal had developed their customer oriented ordering application for android and ios platforms. Any potential customer can download the application and log in with their user information to avail their service.  For delivery/picking team – Chaldal also uses a different mobile application based on android which is only used by its delivery team. Whenever an order in being placed at Chaldal’s ordering database, after necessary verification from the operations team, the job order gets updated in the application database and the job is allocated to the right personal working in the delivery team automatically.

IT Use for E- Business Application Internet In Chaldal, they do not use any intranet or extranet protocol for internal and external communication. For all modes of communication, they use the internet and all of their business applications and software are designed on the basis of internet communication protocol. Starting from placing an order to updating inventory and notifying delivery team, each and every aspect of communication is conducted using the internet protocol.

Web Technology Web 2.0 Web 2.0 describes a set of Internet technologies. By using Web 2.0 technology, Chaldal makes its web-based applications fast and dynamic, and they behave much like software applications installed on desktop computers. For example, all of their online applications such as websites

and databases are interactive and offer two way communications which increases the web responsiveness from the customers and the company side as well.

Electronic Transfer of Payments – In Chaldal, they accept all kinds of debit and credit cards starting from visa to DBBL Nexus. On the other hand, they also allow cash on delivery which is majorly convenient for the people in Bangladesh. Surprisingly, though PayPal is not that much popular in Bangladesh, still Chaldal has a provision of payment through PayPal. This is because they also get orders and payments from foreign countries to make delivery within Bangladesh. They manage these payment systems online by coordinating with the respective banks when a payment is made by using a card.

Web Content Management Strategy – For web content management, Chaldal has its own in house content management team (CMT) who regularly updates their website and application contents. Whenever, stocks, prices or offers are changed, the CMT members log into the system base and change the following information from the back end user interface. The overall master control of the content management system is only authorized to a few personal namely CEO, Head of IT and VP of IT Services and Online Communication.

Requirement 4

Digital Strategy for E-business Strategy of Chaldal.com ChalDal is an online based grocery shop. They sell grocery products via online. They don’t do business in any sort of retail shop, so they don’t have any corporate strategy. The main objective of ChalDal is to sell grocery to consumer. To sell throughout Dhaka they have set some strategies to run their business. First of all they take orders online from customers. They deliver the products within 1 hour. They are trying to give their customers have their products in convenient time so that they will regain customer satisfaction. If they don’t have a product of consumer’s interest they try to put that thing in their inventory.

E-channel structure They are mainly focusing normal structure of E-Business. They are giving pictures of product and through online consumer are posting their desired products. After receiving the orders they are delivering their products within one hour.

Analysis of E-Business strategy SWOT analysis  Strength Resources: ChalDal has resources with which they are able to meet up their customer needs. Delivery limit is maximum 1 hour which makes them efficient and dedicated. To deliver the products they have 20 cover vans and 50 motorcycles. Different initiative: There are many online shops where grocery items are sold. But chaldal is only focusing on grocery items. For this unique thing people who only want to find grocery items will find here very easily.

 Weakness Lack of availability: ChalDal covering most of areas in Dhaka city but they are missing some parts where people are now interested in online shopping like Old Dhaka, Narayangaj, Jatrabari etc. Lack of distribution channel: As they don’t have any physical store, they have to do business from their main office. It also might take longer time to deliver the products. Lack of advertising campaign: Chal-Dal is not using as much advertising or marketing campaign to promote the brand.

 Opportunity Online grocery: They have opportunity and also capability to become no.1 online grocery shop in Dhaka. People now-a-days are involved more with internet. So they should let the people know that they exist. They have an opportunity to get a large portion of market share in corporate market.

 Threats Competitor: They have competitors who have physical store as well as online store. It gives them an edge. They can deliver the items very easily by locating the address of their customer. They can send the items quickly from the nearest store of that particular shop. They are losing market share there. Another threat is jam of Dhaka city.

Competitive Threats Chaldal has started its business recently. They have competitors in physical market which can turn their business in online market also. Recently famous physical supermarkets like meena bazaar, unimart has started their online business. They have a lot of capital so if they try to capture online market they can do it very easily which can be a big threat because they are renowned brands in market and people shop from there once in a month at least. To prevent them from getting great response Chaldal needs to create greater response in consumers mind. They need to provide better services. If they are providing better service by being online shop than having physical store people will tend to buy product from them. In corporate market Fresh is doing very good. They have contacts with many companies. They provide grocery to many manufacturing company as well as corporate house. To capture corporate market ChalDal needs to have a very good reputation in consumer market. After getting hold to consumer market they can also get a good market share in corporate market. In addition to traditional retailers, Chaldal’s competitors include Direct Fresh and Meena bazaar. Direct Fresh, however, sells organic produce and other premium food, while Meena bazaar is run by a brick and mortar retailer whose mother company is Gemcon group.

Requirement 5

E-business Security Five IT security risks Denial of Service (DOS) attacks- Server starts sending DOS messages to authorized users when a hacker floods the website with large amount of useless traffic which exceeds the server's capacity to process. As a result, system information becomes unavailable to authorized users.

Spoofing- When someone inserts spurious information into the system by making it appear as if it is from a legitimate party, uses fake email addresses or masquerades some identity, it is called spoofing. So, spoofing emails could be sent to customers from Chaldal to get personal information.

Applets- Viruses replicate and spread to other files, worms spread from computer to computer while Trojan horses do something other than expected or claimed. So, Chaldal is always in threat for applets. Password Replication- The businesses that use their own online servers for data management, they manage separate accounts for employees to get logged in.

Wireless and Mobile Security- Many businesses use wireless Internet connections and mobile devices to access the Web. Wireless networks present a security hazard, since outside users can attempt to connect to a wireless network, allowing them to potentially eavesdrop on communications.

From those identified risks two which most likely t...