Assignment

Submitted to:
MOHAMMAD TOHIDUL ISLAM MIYA
Assistant Professor
School of Business & Economics
United International University

Course Title: E-Business

Course ID: MGT 3225

Submitted by:

Rezwan Ahmed

ID: 111173036
Company Background (Daraz)
Daraz is an online store that provides branded products for men and women across clothing,
footwear, apparel, jewelry, and accessories. The Company hosts a wide assortment of consumer
electronics, fashion and beauty products, alongside a rapidly growing miscellany of general
merchandise. 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. Daraz is the leading online
marketplace in South Asia, empowering tens of thousands of sellers to connect with millions of
customers. Daraz provides immediate and easy access to 10 million products in more than 100+
categories and delivers more than 2 million packages every month to all corners of its countries.
Daraz is a mall, a marketplace and a community for its customers. It is also a university for
entrepreneurs, and every month it educates more than 5,000 new sellers on e-commerce
operations.
To overcome the logistics challenge in its markets, Daraz has built its own logistics company
specifically designed for e-commerce operations - Daraz Express (known as DEX) - to raise the
standards for the industry. Daraz is also helping existing and new logistics providers digitize.
In 2018, Daraz was acquired by Alibaba Group, and is proud to carry its part of the mission to
'make it easy to do business anywhere in the era of the digital economy'. As part of the Alibaba
ecosystem, Daraz is leveraging Alibaba’s global leadership and experience in technology, online
commerce, mobile payments and logistics to drive growth in its markets.
Unique Features of E-commerce Technologies
There are eight unique features of E-commerce. Here is the application of Daraz and explanation
of best application by online retailer business.

Ubiquity: As Daraz is available in 5 countries it provides E-Commerce solution to the

customers and gives their presence to every where within the country through their
website. Customers can purchase products without going anywhere to physical stores or outlet
of the company and they can make purchase from their desktop or mobile only. Daraz offers
product of many companies and brand in a single platform which help them to reach to their
prospects and customer can also get their needs fulfilled.

Richness: Advertisement and promotional activity is important to any business. Daraz can
deliver the advertisement and promotional activity to the customer through the internet very
effectively. The advertisement helps to sell product to the mass and that influence the
customer to a great extent.

Global Reach : Daraz allows business transaction on the global boundaries more easily
reachable and more effective with respect to traditional business. The total number of
customer Daraz has more than any company could get if they would have sold in a
physical outlet. As any product being sold on daraz can have potential buyer in Pakistan as well
as in Bangladesh too which increases the number of customer as well as the market share of the
product too.

Interactivity: Daraz selling activity or mode of selling is two way communications as both
customer and seller can express themselves in a same platform as well. Customers get what
they want to purchase and seller sells what they manufacture to satisfy the customers
need and demand. Daraz tries to engage a consumer in a same way similar to face to face
experience in virtual world.

Prepayment Offer: If you want to grab some sure cash, you should go for the prepayment
method at daraz for buying goods. Prepayment gives you a particular cash back percentage as
your payment gateway’s offered promotion. Through Pre-Payment, customers can get an extra
discount.

Wheel of fortune: Test your luck with the Wheel of Fortune feature. Spin the wheel from
your Daraz app to assess the limit of your luck. Various types of amazing gifts are waiting for
you.
Happy Hour: For limited time slots, you can unveil some heavyweight vouchers. Visit the
Happy Shopping campaign page to know the detailed time slot and voucher value.

Shake Shake: Win exciting vouchers by shaking your mobile phone- this is the feature that
‘Shake Shake’ offers. Open your Daraz app, wait for the Daraz appears, shake your phone and
win amazing vouchers to lower the price- it is that simple.
Business Model Analysis
Daraz acts as a trustee between Seller and Customer (Marketplace Model) instead of buying
products and selling them to customers (Retail Model). Thousands of Sellers (screened by Daraz)
list their products on the portal. Daraz drives a hundred thousand prospects every day to its
Website and Mobile Application.

1. Value Proposition:
A value proposition refers to the value a company promises to deliver to customers should they choose to
buy their product. The proposition is an easy-to-understand reason why a customer should buy a product
or service from that particular business. A value proposition should clearly explain how a product fills a
need, communicate the specifics of its added benefit, and state the reason why it's better than similar
products on the market.

Daraz value proposition are-

Largest Assortment:
Daraz Bangladesh Ltd. has almost 1 lac unique products, which is the largest assortment an e-
commerce platform has in Bangladesh.

100% Authenticity:
Only the genuine and branded products are sold at Daraz. There are no used or duplicate
products. Therefore, you can relax and order from daraz.com.bd with the surety of receiving
authentic products.

Variety of Products:
Daraz hosts variety of products ranging from toiletries, furniture, kid’s products, fashion
products, books & stationeries to mobile phones, televisions, electronic goods and home
appliances on one platform. Basically, you can get everything you need from this one e-
commerce site.

Fast Delivery: Daraz delivers its products all over Bangladesh within the shortest possible time.
Inside Dhaka it takes 2 to 5 days to deliver and outside Dhaka, delivery takes 4 to 8 days.

Customer Protection: Daraz online shop has a strong privacy policy to ensure your safety and
security. You can browse through the website without providing any personal information. The
information you provide while purchasing a product, will be protected as long as there is no
Government intervention. You can get your refund through Daraz voucher, bank deposit, return
to debit/credit card or bKash.
2. Revenue Model:

A revenue model is how a business makes money. It is a conceptual structure that states and explains the
revenue earning strategy of the business. It includes the product and service of value, the revenue
generation techniques, the revenue sources, and the target consumer of the product offered.
The sellers with interest to work with Daraz first settle on a concurrence on Daraz business
strategy and commission. Commission varies depending on the product’s category. At the point
when a client arranges any item from a specific merchant through Daraz gateway then the dealer
packs the item and sends it to Daraz center point or Wearhouse close to him. It is advised to the
merchants to make the dealer arrangement documents Daraz commission of Daraz clients needs
to Sell 16 requested item prepared to deliver inside 24 hours (at most extreme 48 hours) so daraz
can make the conveyance complete inside a brief timeframe to guarantee quicker conveyance. At
the point when Daraz gets the arranged item from seller, at that point Daraz sends it to the client
either with its own conveyance man or through outsider coordinations. When client gets the item
close by, they create the installment through one or the other money down or they can likewise
make the installment legitimately through "Bkash" while making the request. The client likewise
needs to shoulder the conveyance charge and the conveyance man takes it from the client when
the item is conveyed to the client. When the item is conveyed to the client then Daraz takes the
concurred decided commission from the selling cost and sends the leftover part of the cash to the
merchant's financial balance. This is how Daraz is doing business in the market.

3. Market Opportunity: We know that market opportunity refers to the scope and space where the
company wants to operate from which it wants to avail all the financial opportunities. We know that
Daraz is online market place retail and it operates its business all over the place of the market. It is not a
highly concentrated market. This website and app includes all type of products and categories, so the
whole online market place is its field of operation and it generates all the revenues from here.Still now
Daraz Bangladesh is the number one leading company with direct and indirect competitors. E-commerce
is flourishing in Bangladesh as people are getting access to internet easily and people are getting more
comfortable in shopping online due to lack of time, cost and energy. That brings a huge opportunity or
scope for e-commerce.
Though there is some fact that should be surveyed and analyzed before starting business in the
ecommerce platform. These factors are here-
Availability and type of products
Competitors
Regulatory trends
Target market
Available online tools
4. Competitive Environment:

Time is very necessary and precious. People want to make the best use of their moment in this
competitive world. Time is regarded to be cash after all. With the accessibility of the quick and
inexpensive internet, individuals in Bangladesh are gradually creating a culture of using the internet as
part of their daily lives. People save time and effort with a few clicks, from paying bills to ordering things
from apps or website. With this shift in the day to day lives of the people, online shops are gradually
becoming more familiar and popular. Online platform provide us with data about Bangladesh’s top and
finest online shopping location so you can have a nice shopping experience online. Besides Daraz.com
There 23 online businesses that are considered to be the direct and indirect competitors of Daraz
according to their business pattern. Direct competitors are those that are doing business in the same that
Daraz is doing and indirect competitors that are doing business on specific products or in different ways.

Direct competitors Indirect competitors

Ajkerdeal.com Bikroy.com
Bagdoom.com Rokomari.com
PriyoShop.com Chaldal.com
Othoba.com Sheba.xyz

5. Competitive Advantage:

Daraz is the leading online platform in Bangladesh with the mother company above its head. It is also the
first biggest online company that is conducting business in the market. Some competitive advantages are
giving it the edge to be the number one in the market. Those advantages are described as follows-

1. First mover advantage: Daraz is a multinational business. After Daraz arrived in Bangladesh the
trend of online shopping started and people started shopping from Daraz. As a result, Daraz got the first
mover advantage, and it has also got access to different resources.

2. Technological advantage: Daraz operates its business with detail information and uses their business
friendly. Sellers can list their products very easily and can manage their products, orders and finance.
Customers can search and order various products very easily that they want to buy by searching product’s
name, seller’s shop and also by searching category wise.

3. Human resource: This is one the most important resource that an organization must have access, in
order to survive in the marketplace. An efficient and hard-working pool of employees can push an
organization to the edge and beyond. As a fast mover and being a multinational company, it already has a
big pool of efficient employees and the company is hiring many more. Also talented applicants are getting
egger to join this company as online business is booming in our country and we are hoping that most part
of the business will be online based in the near future.
4. Financial advantage: Daraz was already a multinational company before the acquisition of Alibaba
Group as it was and still is operating its business in Pakistan, Myanmar, India, Sri Lanka, and Nepal. So,
it came to Bangladesh with a huge finance. And now it has Alibaba Group as its parent company to invest
on it.

6. Market Strategy:

Market strategy involves certain things to get long term customers, survive in the business, sustain in the
business for long run and to reach to the intended goal of the organization. Those things are discussed as
follows from the perspective of Daraz-
Product: Sells branded product in the category of clothing, footwear, jewelry and accessories of
men and women.
Price: It offers product at affordable prices and also provides discounts.
Place: It brings products from different manufactures to its online portal and then delivers directly at the
door step of customers.
Promotion: It promotes through advertisement on various websites and also promotes their products by
providing some offers.

7. Organizational Development:

Organizational development is way behavioral science is applied to assist enhance people and structures
in organizations. The objective of organizational Development is to assist individuals in an organizational
context function better. Organizational Development is meant to be a purposeful and meaningful change
for the better.

Organizational Development seek to-

Improve organizational efficiency while respecting the culture and values of the organization
Maximize the ability of the staffs and assist them to increase their contribution
Monitor what happens in the organization and then carry out an invention to attempt to generate
beneficial changes.
Align human behavior with the approach, structure, process and goal of the organization.
Help encourage the values of the organization throughout the workplace

For Daraz, first of all, there is no telling that it is a very friendly culture and work environment that allows
the employees to work very comfortably and thing beyond their normal capacity. The work place of
Daraz is very flexible and open and there are tables for every department without any kind of partitions.
On the other hand, Daraz provides necessary equipment to their employees without any delay that are
necessary for works. But as Daraz in Bangladesh is comparatively a new growing company and still it is
analyzing things that need to be developed.

8. The management team:

The management team is the group of individuals that manage at the higher levels of an organization and
have day to day responsibilities for managing other individuals and maintaining responsibility for key
business functions. The management team is also generally responsible for putting together the business
strategy and ensuring the business objectives are met. The management team is held accountable by the
company’s board of directors. In case of Daraz the management team structure is flat and consists of MD,
COO, D-Force, CCO, PR-Head, CFO and HR-Head. They are the decision maker together and they
control order of command. Daraz employs 108 employees. The Daraz management team includes Kiran
Faruqi (Global Chief Financial Officer Daraz Group), Ayesha Khan (Regional Crm Manager - Cxp), and
Almira Naz (Head of Corporate Social Responsibility)

Industry Structure of (Daraz) as influence by E-commerce

Industry structure examination speaks to the idea of the major parts in an industry, nature of the substitute
items, the boundaries to passage and the overall strength of shoppers and providers. To examine the
business structure of Daraz we will depict these things later on. To begin with, we should view the
diagram of the business structure investigation that we will relate those with Daraz.
Firm Value Chain of (Daraz):
Value chain refers to the set of activities performed by an organization or an industry to transform raw
materials into final goods or services.

Value chain involves 5 steps where the suppliers supply the raw materials to the manufacturers. Then
manufacturers manufacture the products. The products then carried away by the distribution channels to
various retailers. Finally, the customers buy their intended products from the retailers. In the first 4 stages
before reaching the final buyer, the products are added with values in each stage. That is why it is called
the firm’s value chain.

E-commerce and firm (Daraz) value chain.

Growth Strategy as adopted (Daraz):
Daraz.pk revamped its website by upgrading features of design, navigation and back-end systems
support as a part of their expansion plan in Pakistan, a statement issued by the online retailer said
The upgrade version comes as Daraz.pk shifts its focus from being only a fashion and apparel
retailer to a portal that offers a different range of lifestyle products to consumers.
The revamped Daraz.pk will benefit the users as it offers display of high-resolution product
images, detailed product specifications and descriptions, easier checkout and ordering processes
and an advanced delivery tracking function. “Customers will benefit from a virtually unlimited
number of products that can now be displayed on Daraz.pk,” the statement said adding that the
website was also accessible to mobile users.

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