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“Daraz Bangladesh” Abstract

Daraz Bangladesh is an online business platform. This case highlights the positioning statements of Daraz Bangladesh are best price in Bangladesh, convenient shopping, best Service in Bangladesh. There was many questions about Daraz Rocket Internet. Daraz Bangladesh was introduced into the country by Rocket Internet and referred as parent company of Daraz Bangladesh. Rocket Internet is a German Internet company headquartered in Berlin. The company manufactures online start-up companies and claims shareholdings in different models of internet retail businesses. The case discusses the business model of rocket internet is known as a start-up studio or a venture developer. Rocket internet intends to work outside the US and China.

Learning Outcomes 

E Business Revenue Model.

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E-Business Application Service.

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Entry focus of Daraz Bangladesh.

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Micro- environment and Macro-environment Analysis.

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Micro-environment Analysis.

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Opportunities, threats & competitor of Daraz.

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Creativity and business idea on Daraz.

Introduction: Daraz, an e-business platform which is one of the business of venture capital company Rocket Internet. It is acquired by Alibaba. Daraz has been operating in Bangladesh since September 2013. Daraz Bangladesh Limited is also providing B2C selling. Daraz serves 460 million people with 60% of the population in South Asia region. It has dream to be the biggest ecommerce market place outside of US.

Company Overview: Daraz is a business to customer (B2C) model’s venture of Rocket. It officially started its journey in 2015. For Bangladeshi people, it was the first time when a venture introduced this model, which seemed similar to Amazon. Daraz was the 4th e-commerce site in Bangladesh beside Click BD, Ekhanei and OLX. It started its journey with brands like; Yellow, Noir, Symphony, The Body Shop, Huawei, Samsung, Walton, Aranya, 6 Degree Mobile, ShadaKalo, Apple, LG, Fastrack, MAC, Nikon, Ecstacy, Panasonic, Doors. Now it has all the renowned brands in its website and a huge number of sellers. It has been quickly developing and griping the number one position in this business sectors. Daraz Bangladesh has a youthful, energetic and entrepreneurial group of employees. They are eager to convey creative web ideas to the fast changing Bangladeshi market. Presently Daraz is focused in growing its business exercises in Bangladesh. Bangladesh is a growing nation with huge prospects of development. It is an excellent place to invest assets into. Regardless, the world is propelling but Bangladesh seems to be tolerating its conditions for what it has. However, a change seems to be coming our way as businesses are planning to go the online world and this is increasing productivity. Most of the business divisions are being benefitted by this. Moreover, in perspective of the changes and development which the websites offer, another portion has created, "online business". Online business or electronic exchange isn't just another thought as it has been with us for the last few decades. It was quite recently the beginning of e-trade and now it has become available everywhere in the world. With

the help of globalization and increasing development is our country, e-commerce is getting a whole new market to operate on. Daraz Bangladesh is an online business which operates as a marketplace. It is a shopping center which provides people with various options, for example: fashion items for man-ladies and children, sports and gaming items, home and lining products etc. Daraz allows its customer to welcome amazing shopping experiences with their demand sent directly to their doorstep. They are persistently stretching out their extent to consolidate the latest gadgets, styles and products. Bangladesh has enormous number of people who pull in a considerable measure of vendors to offer their things. However, still a large part of our population is unaware of the online shopping options and need to be trained on using it. A gigantic section of people have no idea with respect to the utilization of web and this has become a challenge for the online businesses. Although the government is trying to ensure internet access all though out Bangladesh, there is still a long way to go. However, the best part is with this access the online community is also growing bit by bit.

E-Business in Daraz: Despite having wide range of services, Daraz doesn’t have any services related to event management which is actually shocking. To tap in this growing business, Daraz has been planning to put its step ahead. It has plan to help people to find convenient solution in terms of event management partner. In order to have strong position in market it needs to develop service according to demands and promote services in a convenient manner. Mission: To take over all the clients is the Mission of Daraz. To accomplish this mission, Daraz gives many attractive offers to the clients. So, customers become happy getting many offers and buy products with lowest prices.

The missions are

To provide an enjoyable shopping experience for Consumers and to grow together with our Sellers

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It will continue building a vast loyal customer base by having the broadest selection of products, unbeatable prices, 100% reliable fulfillment and relentless focus on customer experience.

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For its’ Sellers, it will continue to provide a differentiated value-added service to support scalability, growth and integrated business solutions.

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Daraz Bangladesh will achieve the mission by focusing on their core values and hiring, coaching and retaining the best people in the industry through a strong company culture.

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Daraz Bangladesh is committed to a strong ESG program and creating long-term growth and job opportunities in all of our markets by pioneering the e-commerce development.

Vision: The vision of Daraz Bangladesh is to be a leader in the ecommerce industry providing best products with lowest prices. The Vision statement of Daraz is “To be the most reliable marketplace and offering the best services to our customers: Consumers and sellers”

Objectives: Daraz wants to provide the best quality products at the most competitive price. Daraz believes to introduce the latest and demanding products for its customers. The objectives of Daraz Bangladesh are to reach everywhere in Bangladesh to grab the most market share, provide every necessary product to its consumers and include most significant brands and sellers in Bangladesh.

E Business Revenue Model Revenue Model: The Revenue Model will be Notice based. There will be advertisements appeared within the site which show target advertisements which will make income. But, the most income will come from the charge to be taken for arranging and overseeing the event. Other than that, extra promotions may be shown at the location of the occasion on the off chance that the client needs to which is able cut a few taken a toll of his claim and will make extra benefits. Market-Segment: The trade will be basically centered on individuals who are capable at utilizing online shopping interfacing and are sharp to organize occasions. Common individuals can have a birthday party, though understudies and graduated class can organize a get-together or so. Fundamentally, everybody ought to organize a few kind of occasions sometime in the not so distant future. So, focusing on all urban taught individuals with center to upper center salary and get to to innovation will be our target advertise. Revenue Generating Strategy: Daraz will offer two sorts of administrations. One will permit lower cost but the authorization to show advertisements within the occasion from third parties. Other will let the client have an arrange free occasion with an additional cost. As overseeing the strategies online diminishes taken a toll, fetched will be less and that’s the methodologies which Daraz will utilize to make income. Marketplace Structure: It'll be an idealize competition with thousands of other firms competing with Daraz, but Daraz will get an advantage for making it online. The necessaries will be brought to the area and occasion will be set up appropriately.

E-Business Application Service: Seller Center: It may be a module by which we'll incorporate our person thing, bundle things, charge cost on our location and bargain with our online client. At that point once more we refresh up the data, and break down distinctive sorts of capacity and circumstance. CRM: To preserve great connection with client, our CRM (Client Relationship Administration) bunch will infer a few modules like "Zen Work range, LMS, Zoho" programming. All of this will keep up a strong relationship and thrust offer to the clients. SCM: To maximize client esteem and accomplish an economical competitive advantage our SCM bunch will take after diverse procedures and do supply chain exercises. WOMS: Warehouse and Order Management Service will primarily set by the exercises gather and not entirely client advantage gather as well. It'll offer assistance to preserve stock stock, ignore orders, ignore conveyance center (both single and different), drop provide etc. Delivery Module: It will help us to track vehicles, requests and packages and overlook inbound. This module will also use by our fund group for gathering day by day basis reports. OMS: We will actually use our own special OMS to process a productive request administration framework. Apart from that we use various IT systems like Google BI software, SEO tools etc. for marketing and data analysis

Entry focus of Daraz Bangladesh The positioning statements of Daraz Bangladesh are best price in Bangladesh, convenient shopping, best Service in Bangladesh, 100% authenticity, genuine and branded product. Daraz offers to its customer ‘the same for less’. They have the same product as a physical shop, any retailer center or competitor website, yet they offer comparatively lower price. It is a big deal to most of their consumers. The price is different from other online shops. They have some unique brand partnership with many Brands/ company, so they are able to give big discounts up to 73%. They have a good image because they are international ventures and they have enough experience.

However, Daraz Bangladesh is a young 3 years old venture but growing rapidly only for its positioning strategy. Also it does not have such strong loyal customer, since gauging a Customer Lifetime Value also requires enough amount of time to properly assess the potential and benefits form a customer. Discount voucher on damaged goods, Debit/Credit Cards facilitates, sending product to the any corner of the country, information structure, maintaining transparency has put them in a position where it leads the E-commerce industry throughout the country. Micro- environment and Macro-environment Analysis Macro environment is the condition that exists in the economy in general, as opposed to in a specific area or district. When all is said in done, the large scale environment incorporates slants in total national output (GDP), swelling, business, spending, and money related and financial arrangement. Microenvironment nearby factors that influence a company's capability to serve its consumers, such as the corporation itself, suppliers, marketing mediators, consumer markets and the community. Micro environment factors are factors close to commerce that have a straight impact on its business operations and accomplishment. A marketing department works in a business domain that is affected by components outer to the association and thusly outside its ability to control. These variables are either "macro environmental" or "micro environmental" strengths. Macro environmental components are enveloping. They incorporate such ideas as socioeconomics, financial matters, social and social variables, political and legitimate elements, innovation and the regular habitat. Micro environmental powers are those that are particular and individual. For example- clients, makers, showcasing mediators, open elements and the organization itself. Micro-environment Analysis Alike Daraz Bangladesh has the marketing plan aim to attract and retain customers through products that meets their "wants and needs" and excellent customer service. A customer may be an individual or household, an organization that purchases a product for use in the production of other products but Daraz Bangladesh always taken care of both the parties equally . This customer factor of a marketing microenvironment can be further divided into business and institutional customers and state, city and municipal governments’ customers. Employees employing staff with relevant skills and experience is essential and Daraz Bangladesh always put emphasize on that. This process begins at recruitment stage and continues throughout an employee's employment via

ongoing training and promotion opportunities. As training and development play a critical role in achieving a competitive edge; especially in service sector marketing therefore Daraz follow the whole process carefully.

Macro-environment Analysis Economic factors affect the purchasing power of potential customers and the firm's cost of capital. Such examples of economic factors are economic situation of country, economy trends, economic growth, interest rate, exchange rate of money, inflation rate, unemployment policy of government, stages of business cycle and import/ export ratio. A market boom, recession, or growing inflation problem can all change the way an organization plans for the future and operates in the present. Bangladesh is a developing country and here the per capita earning is low. So Daraz’s pricing should be done accordingly. Technological Forces Technological forces or factors could be said to be the most pervasive in the environment. Technology refers to the application of knowledge base which science provides. It is a well-established fact that information and communication technology has revolutionized business operations. Bangladesh is not that much technologically advance therefore Daraz Bangladesh need to do some research and development activity like automation, technology incentive rate of technological change, innovative products and services, energy use and cost, government spending, global communication, technology access, licensing and patents etc to be first in the race. Daraz is an internet based company and they depend on people ordering through internet. But due to the recent terrorist attack recently. Government is planning to put some restriction over internet, which in terms might hamper Daraz Bangladesh.

Leadership challenges for management In every job, there are challenges to overcome and working in the operations department of DARAZ is no different. Daraz has a unique environment as the company needs to take care of both the seller and buyer needs. Thus, for many changes both sides need to be considered. The biggest challenge of management was to find the perfect packaging solution which had 3 factories. These are: protective, cost effective and low waste. The packaging had to protect the products from damage while minimizing the cost and having lower waste. Keeping all of these points in mind,

extensive research had to be done tests had to be conducted to ensure the proper solution. Again, customers mostly have a lot of queries. It was difficult to be quick at giving information about the diverse number of product. It was one of the biggest challenge for Daraz. Also, when customers are impatient or angry dealing with them politely and with ease is very challenging. Resolving issues while coordinating with other departments can be challenges too. Because not always appears to be co-operative and sometimes information are not provided properly. Hence, misunderstanding may occur too.

Opportunities: The inquiries you ought to posture are "What new advancements can enable me to develop my business and achieve a preferred position over my rivals?" and "Where are my rivals powerless. Online business changes each day. New innovations and highlights have helped make everything fair with conventional retailers. For example, enhancements to shopping basket programming have made a faster, smoother, more client well-disposed shopping background. Live visit has upgraded web based business client administration, blunting the customary retailer advantage. Utilizing Big Data investigation could be an open door for web based business organizations to all the more likely comprehend client inclinations. Internet based life locales give free or ease advancements. Be that as it may, it's dependent upon the online vendor to remain current and receive new highlight. Daraz.com.bd is as of now number one online commercial center of Bangladesh. So they simply need to safeguard their position. Rests of all are the adherents. So Daraz will consistently get the bit of leeway then others. They are as of now few stages ahead from others. Bangladesh is a developing business sector. Web based shopping is simply begun here. It will sprout inside a couple of years, so it's likewise an incredible chance.

●Rising on the web advertise: The online market in our nation is as yet a rising advertise with a great deal of possibly. ● Take request from outside Bangladesh: Daraz Bangladesh can take request legitimately from outside Bangladesh and conveyance them to a goal inside Bangladesh like UpoharBD.com

● Gift conveyance administration: Daraz Bangladesh can likewise take blessing conveyances requests like cakes or cards or blooms. ● Emergency conveyance: They are right now not offering crisis conveyance administration like same day conveyance yet they can since there is an interest of it.

Threats: You should always be looking for broad industry shifts that might affect your growth. These include legal and regulatory changes. For instance, legislation currently before Congress might force all Internet sellers to collect sales tax. Low barriers to entry are a constant threat in ecommerce. It’s easy to set up an ecommerce business, even in a garage. People can sell items via Facebook or eBay without setting up their own websites.Big e commerce merchants such as Amazon can always undercut smaller sellers on price .

● Upcoming local contenders: Upcoming local contenders can be a major risk.

As a great deal contenders are coming up.

● International monsters: International goliaths like Amazon or EBay can go to our

market and assume control over it if Daraz Bangladesh can't make a solid position in the market.

● Political insecurity: Bangladesh is a nation with unsteady political history. So political episode can hurt the business in times. ● Lower web accessibility: As an underdeveloped nation web isn't yet broadly accessible wherever in our nation so Daraz Bangladesh is still far from a ton of potential market. ●Threat of new participants: As the web based business is in the rising pattern, there are bunches of contender organizations rising giving comparable administrations as Daraz. ●Traditional shopping propensity: Being where the way of life of internet shopping is still new and not all that well known is a noteworthy risk for Daraz. ●Consumer discernment: The clients are have trust issues with regards to web based shopping as despite everything they esteem those item which they can see, contact, feel and check by and by. ●Threat of aberrant challenge: There is likewise a backhanded challenge from the disconnected stores which are not really an approved stores or organizations but rather giving comparable offices like Daraz on online stage. ●Increased client mindfulness:

The clients utilizing internet business are very much educated and modern where the general population are progressively mindful abou...