Lecture 1 Case study PDF

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Founded in 2006 and led by CEO Ruslan Kogan, Kogan Technologies is a Melbourne-based, Australian-owned consumer electronics online retailer that sells products from Asian manufacturers to consumers in Australia and the UK. Starting with zero external capital, Kogan Technologies has grown to a A$250 million business, becoming the fastest growing business in Australia. In 2013, Kogan Technologies was listed as one of the top 20 Australian online retailers. At this pace, and with global expansion plans, Kogan Technologies are expected to overtake long-established leading Australian consumer retailers such as Harvey Norman. In addition to the strong entrepreneurial sense that characterises its CEO, Kogan Technologies’ success is also attributed to the innovative ways in which the advantages offered by the internet have been capitalised. These advantages include availability of and access to inexpensive internet and related technologies, and reduced financial barriers and reliance on brick and mortar for starting up and developing Kogan Technologies. In an interview with InTheBlack’s Mark PhillipsRuslan Kogan argues that information technologies offered enormous efficiencies in relation to business intelligence systems, targeted marketing, email marketing and administration (e.g. paperless office). By adopting advanced analytics (e.g. using Google and Google Adwords to search the number of times key words are searched for), Kogan Technologies can determine the types of products that are in demand. Subsequently, they use internet to cut out middle men in supply chains, including agents, importers, wholesalers and retailers. In doing so, Kogan Technologies have created efficiencies in business processes that have enabled products to be sourced directly to Australian and UK customers inexpensively from leading manufacturers in Asia such as Samsung and LG. leveraging the power of internet technologies for implementing their targeted marketing strategies, Kogan Technologies are using viral marketing and online reviews which contributes to their positioning in the market . Kogan use analyse the collected data, use the information provided by the transactions, and determine the spread of sales of items and consequently demandable products and mange their inventory according to specific seasons. Additionally, Kogan Technologies are harnessing the power of internet technologies to create and build the Kogan community which includes individuals that have opted in because they feel connected to the Kogan brand Using email marketing, members of the Kogan community are engaged in a two-way conversation with the company. That is, they are the first to learn about upcoming specials and new products while also offering feedback to Kogan Technologies in relation to existing products, services and business practices, offering a cost-effective market research tool which has both enhanced the loyalty of existing customers and interest by prospective customers to become part of this community.

In addition to the strong entrepreneurial sense that characterizes its CEO, what are the reasons of Kogan Technologies’ success?...