Table of of Contents Contents Executive Summary
iv
1. Introduction 1.1 Origin of of the the Report 1.2 Objective of of the the Report 1.3 Scope of of the the Report 1.4 Research Methodology 1.5 Limitations 1.6 Report Preview
5 5 5 6 6 6 7
2. Theoretical Background 2.1 E‐ Commerce 2.2 History of of E E‐ Commerce 2.3 Types of of E E‐ Commerce 2.4 Benefits of of E E‐ Commerce 2.5 The Impact of of E E‐ Commerce
8 8 9 11 13 14
3. Review of of Some Some E‐ Commerce Website of of Bangladesh Bangladesh
15
4. Strategic Groups and Value Proposition
55
5. Analysis of of E E – Commerce Industry of of Bangladesh Bangladesh 5.1 Overview of of e e‐Commerce in Bangladesh 5.2 Existing Situation and Potential of of E E‐Commerce industry 5.3 Industry SWOT Analysis 5.4 Porter’s Five Force Model of of E E‐Commerce Industry 5.5 Major Constraints to E‐Commerce Industry in Bangladesh
60 60 61 63 65 67
6. Recommendations
68
7. Conclusion
69
8. Reference
70
Executive Summary The Internet has opened up a new horizon for trade and commerce, namely electronic commerce (e‐commerce). E‐commerce entails the use of the Internet in the marketing, identification, payment and delivery of goods of goods and services.
Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet. It covers a range of different types of businesses, of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the of the Internet to emerge.
Slowly but surely, Bangladesh is also stepping in to the arena of e of e‐ commerce. This report here deals with the total e commerce industry of Bangladesh. of Bangladesh.
A brief review of 13 different websites of different strategic groups is done. And based on the results and with the help of secondary of secondary sources, a bird’s eye view of the of the industry is determined. The strength, weakness, threat and opportunity of the arena are shown. The report ends with some short, medium and long term recommendations that should be undertaken to improve the overall functioning of the of the e commerce industry of Bangladesh. of Bangladesh.
Here, on this report, APA format is used to quote text and information from both print and electronic sources.
1. Introduction The Internet has created a new economic ecosystem, the e‐commerce marketplace, and it has become the virtual main street of the world. Providing a quick and convenient way of exchanging goods and services both regionally and globally, e‐commerce has boomed. Today, e‐commerce has grown into a huge industry all over world. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate. In the near future the boundaries between "conventional" and "electronic" commerce will become increasingly blurred as more and more businesses move sections of their of their operations onto the Internet. This report focuses on the e commerce industry of Bangladesh. of Bangladesh. 1.1 Origin of the of the Report
The main purpose of the of the study is to fulfill the requirements of Strategic of Strategic Management (MGT480) as the part of our of our BBA program bearing 3 credits. As the students of Strategic of Strategic management, we were assigned by our course instructor Mr. Mohammad Sajjad Hossain to involve in this study. The course MGT 480 as well as this report helps a student to get necessary knowledge which is very useful for the students of business of business background. 1.2 Objective of the of the Report Broad Objective Broad Objective
The main objective of this term paper is to get the practical insight and the analysis of the e commerce industry of Bangladesh. of Bangladesh. Specific Objective •
To identify the SWOT analysis of e of e commerce industry
•
To apply Porter’s five force model on e commerce industry
•
To find out bottlenecks and recommend solutions to them
5|Page
1.3 Scope of the of the Report
E commerce websites and the relative fields were the scope of the of the study 1.4 Research Methodology
The research is basically both exploratory and conclusive in nature. In the first place, an analysis of the e commerce site was undertaken. Secondly, a session with different consumers of the websites was held. Based on the data given by them, analysis was done. Finally with the help of secondary data, the report is completed. Primary data Primary data
1. Information on website 2. Interview with customers Secondary Data Secondary Data
1. Articles published on internet 2. Newspapers
1.5 Limitations •
Time constraints were one of the of the most important factors that imposed restrictions on conducting the study extensively.
•
Scarcity of Secondary of Secondary Data
•
Limitation of Scope of Scope was another important point that was faced during execution of the study.
•
Privacy or reluctance to disclose confidential data was another important problem.
•
Cost constraints.
•
Lack of experience of experience of the of the group members.
6|Page
1.6 Report Preview
The report has been divided into five parts. The first part is dedicated to the theoretical aspects of E of E commerce. The definition, its types, benefits and impacts are listed. Second part entails the review of 12 e commerce websites of Bangladesh. The 12 websites represent different sectors of e of e commerce. Third part consist the strategic grouping of the websites. Here, the difference of value propositions of different of different groups is also discussed. Fourth part dictates the analysis of total of total e commerce industry of Bangladesh. of Bangladesh. Here, the present scenario, porters five force model is included. Last part is dedicated to the conclusion and the recommendations we derived from doing the entire research.
7|Page
2. Theoretical Background 2.1 E‐ Commerce
E‐commerce or electronic commerce is the conduct of a financial transactions by electronic means. With the huge success of commerce on the Internet, e‐commerce usually refers to shopping at online stores on the World Wide Web, also known as e‐commerce Web sites. Electronic commerce or ecommerce is a term for any type of business, or commercial transaction, that involves the transfer of information across the Internet. It covers a range of different types of businesses, of businesses, from consumer based retail sites, through auction or music sites, to business exchanges trading goods and services between corporations. It is currently one of the most important aspects of the of the Internet to emerge. Ecommerce allows consumers to electronically exchange goods and services with no barriers of time or distance. Electronic commerce has expanded rapidly over the past five years and is predicted to continue at this rate, or even accelerate. In the near future the boundaries between "conventional" and "electronic" commerce will become increasingly blurred as more and more businesses move sections of their of their operations onto the Internet. Electronic commerce generates competition, revenue and profit. It also creates flows of goods of goods and services and hence traffic. Subsequently, it can act as an incentive for investors to finance locally available infrastructures, connectivity and bandwidth. However, before this virtuous circle’ can be initiated, the ‘magic triangle’ ‐‐ access, trust and know‐how – an essential precondition for the start‐up and expansion of electronic of electronic commerce, must be firmly established between both the public and the private partners involved. This magic triangle can only be set in place if it if it receives the full and active support from the various stakeholders.
8|Page
2.2 History of E of E‐ Commerce
The brief history brief history of E of E‐ Commerce is presented below. •
In 1950s companies began to use computers to store and process internal transaction records.
•
By 1960s businesses that engaged large volume of transaction had began exchanging transaction information on punched card.
•
In 1968 Transportation Data Co‐ordination Committee (TDCC) was formed by some companies.
•
In 1979 ANSI (American National Standards Institute) chattered a new committee to develop uniform EDI (Electron Data Interchange).
•
In 1979: Online shopping was invented in the UK by Michael Aldrich.
•
In 1982: Minitel was introduced nationwide in France by France Telecom and used for online ordering.
•
In 1984: World's first recorded B2C online home shopper. Mrs Jane Snowball uses the Gateshead SIS/Tesco system to buy groceries.
•
In 1987: Swreg begins to provide software and shareware authors means to sell their products online through an electronic Merchant account.
•
In 1990: Tim Berners‐Lee writes the first web browser, WorldWideWeb, using a NeXT computer.
9|Page
•
In 1992: J.H. Snider and Terra Ziporyn publish Future Shop: How New Technologies Will Change the Way We Shop and What We Buy. St. Martin's Press. ISBN 0312063598.
•
In 1994: Netscape releases the Navigator browser in October under the code name Mozilla. Pizza Hut offers pizza ordering on its Web page. The first online bank opens. Attempts to offer flower delivery and magazine subscriptions online. Adult materials also become commercially available, as do cars and bikes. Netscape 1.0 is introduced in late 1994 SSL encryption that made transactions secure.
•
In 1995: Jeff Bezos launches Amazon.com and the first commercial‐free 24 hour, internet‐only radio stations, Radio HK and NetRadio start broadcasting. Dell and Cisco begin to aggressively use Internet for commercial transactions. eBay is founded by computer programmer Pierre Omidyar as AuctionWeb.
•
In 1999: Business.com sold for US $7.5 million to eCompanies, which was purchased in 1997 for US $149,000. The peer‐to‐peer filesharing software Napster launches. ATG Stores launches to sell decorative items for the home online.
•
In 2004: DHgate.com, China's first online b2b transaction platform, is established, forcing other b2b sites to move away from the "yellow pages" model.
•
In 2011: US eCommerce and Online Retail sales projected to reach $197 billion, an increase of 12 of 12 percent over 2010. Quidsi.com, parent company of Diapers.com, of Diapers.com, acquired by Amazon.com for $500 million in cash plus $45 million in debt and other obligations. GSI Commerce, a company specializing in creating, developing and running online shopping sites for brick and mortar businesses, acquired by eBay for $2.4 billion.
10 | P a g e
2.3 Types of E of E‐ Commerce
E‐commerce is the process of buying of buying and selling of various of various products and services by businesses through the Internet. It deals various kind of business of business concern, from retail site of the of the consumer, which includes auction. The main focus is to concentrate on business substitutes involving goods and services between various corporations. There are primarily five types of e of e‐commerce models. A. Business to Consumer (B2C): B2C stands for Business to Consumer as the name suggests, it
is the model taking businesses and consumers interaction. Online business sells to individuals. The basic concept of this of this model is to sell the product online to the consumers. B2C or Business to Consumer has lately gained a big popularity due to simplified and accelerated way to buy products. B2c is the indirect trade between the company and consumers. It provides direct selling through online. For example: if you want to sell goods and services to customer so that anybody can purchase any products directly from supplier’s website. Directly interact with the customers is the main difference with other business model. As B2B it manages directly relationship with consumers, B2C supply chains normally deal with business that are related to the customer. B. Business to Business (B2B): B2B stands for Business to Business. It consists of largest of largest form of
Ecommerce. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. Dell deals computers and other associated accessories online but it is does not make up all those products. So, in govern to deal those products, first step is to purchases them from unlike businesses i.e. the producers of those products. C. Consumer to Consumer (C2C): C2C stands for Consumer to Consumer. Consumer‐to‐
consumer (C2C) (or citizen‐to‐citizen) electronic commerce involves the electronically facilitated transactions between consumers through some third party. A common example is the online auction, in which a consumer posts an item for sale and other consumers bid to purchase it; the 11 | P a g e
third party generally charges a flat fee or commission. The sites are only intermediaries, just there to match consumers. They do not have to check quality of the of the products being offered. It helps the online dealing of goods or services among people. Though there is no major parties needed but the parties will not fulfill the transactions without the program which is supplied by the online market dealer such as eBay. D. Peer to Peer (P2P): It is a discipline that deal itself which assists people to instantly shares
related computer files and computer sources without having to interact with central web server. Peer to Peer is sometimes unified with E‐commerce type C2C because of the same parties participating in the transaction. Though it is distinguished by the process itself. P2P is not only an E‐commerce type but also a technology that allows people to share computer files and computer resources without going through a central web server. The required software should be installed by both sides so that they can communicate on the common platform. As from the beginning this type of e‐commerce has been launched to the free usage, it has quite low revenue. It consists in mutual help of consumers. of consumers. Disadvantages: this model of transaction of transaction often entangles cyber laws. E. M‐Commerce:
M‐commerce (mobile commerce) is the buying and selling of goods and
services through wireless handheld devices such as cellular telephone and personal digital assistants (PDAs). Known as next‐generation e‐commerce, m‐commerce enables users to access the Internet without needing to find a place to plug in. It deals with conducting the transactions with the help of mobile. of mobile. The mobile device consumers can interact each other and can lead the business. Mobile Commerce involves the change of ownership or rights to utilize goods and related services. M‐Commerce refers to the use of mobile devices such as a mobile phone, a Personal digital assistantPDA, a smartphone, or other emerging mobile equipment such as dashtop mobile devices for conducting the transactions. Inside M‐commerce there are different types of transactions of transactions as well: for example the mobile device holders can contact each other and can conduct the business. M‐commerce is becoming so popular that the web design and development companies have to optimize the websites to be viewed correctly on mobile devices.
12 | P a g e
2.4 Benefits of E of E‐ Commerce
The benefits of e of e‐Commerce are many and many. Some of them of them include:
•
24X7 operations: Round the clock operation is an expensive proposition in the brick and mortar world while it is natural in the click and conquer world.
•
Global reach: The net being inherently global, reaching global customers is relatively easy on the net compared to the world of bricks of bricks
•
Cost of acquiring of acquiring serving and retaining customers: It is relatively cheaper to acquire new customers over the net. Thanks to 24 X 7 operation and its goal reach. Through innovative tools of push technology to retain customers, loyalty with minimal investments.
•
An extended enterprise is easy to build: In today
s world every enterprise is a part of
’
the connected economy; as such one needs to extend your enterprise all the way to suppliers and business partners like distributors, retailers and ultimately end customers. Internet provides an effective (often less expensive) way to extend the enterprise beyond the narrow confines of the own organization. Tools like enterprise resource planning (ERP) ,supply chain management (SCM) and customer relationship management (CRM), can easily be deployed over the net permitting amazing efficiency in time needed to market, customer loyalty, on time delivery and eventually profitability.
•
Dis‐intermediation: Using the net one can directly approach the customers and suppliers, cutting down the number of level of level sand in the process, cutting down the costs.
•
Improved customer service to r clients: It results in higher satisfaction and more sales (http://www.ecommerceeducation.com/benefits‐of ‐ecommerce.asp)
13 | P a g e
2.5 The Impact of E of E‐ Commerce
E‐commerce can transform the way products and services are created, sold and delivered to the customers. It can also change the way in which the company works with its partners. The followings are well established benefits of e of e‐commerce:
•
Improved productivity: Using e‐commerce, the time required creating, transferring and process a business transaction between trading partners is significantly reduced. Furthermore human errors like duplication of records are largely eliminated with the reduction of data entry and reentry in the process. This improvement in speed and accuracy plus the access to document and information will result in increase in productivity.
•
Cost savings: The cost savings stem from efficient communication, quicker turnaround and closer access to market.
•
Streamlined business process: Use of internet of internet and with automation of business of business process can make business more efficient
•
Better Customer service: Customer can enjoy the convenience of shopping sitting in their favorite chair.
•
Opportunities for new business: Business over the internet have global customer reach. There are endless possibilities for business to exploit and expand their customer base.
14 | P a g e
3. Review of Some of Some E‐ Commerce Website of Bangladesh of Bangladesh 3.1. Borbodhu.com
BorBodhu.Com is the service for single adults to meet each other online, operated by BorBodhu.Com, L.L.C. ("BorBodhu.Com").The goal of Borbodhu.com is to help one in the process of finding his/her perfect partner. Borbodhu.com will do everything they can to help find its customer’s the perfect match. 15 | P a g e
How it Works: The procedure for using this website is fairly easy. The user has to first register him or her database of the website. He or she has to provide the required information like name, age, physical characteristics, educational and working background etc. Then he/she has to choose a payment method ranging from taka 10000 to taka 20000. The price of the of the package varies based on the days of use. of use. Once the registration and the choice of payment of payment method is done, the user can browse through the profiles on the database. And based on the choice, he/she can take further steps.
SWOT Analysis: Strength: •
Sleek and attractive design.
•
Has collaboration and commercial alliance with Airtel.
Weakness: •
The database is not strong enough.
•
Searching method and result displays are not that much effective.
Opportunity: •
Can be the sponsor of different of different programs.
•
The market will be increased day by day, since the saturation of e of e commerce, more and more people are getting aware of online matrimony and here the main opportunity of borbodhu.com lies.
Threat:
16 | P a g e
•
Different other competitors (mobile phone companies, matchmakers, magazines) may come with lucrative offers.
3.2. Akhoni.com
Akhoni offers discounts upto 90% in Dhaka city on popular businesses like Dining, Travel, Entertainment, Movies, Spa, Healthcare services, Fitness centers, Beauty parlors and lot more .Akhoni.com is a website that brought a new horizon in the e commerce industry of 17 | P a g e
Bangladesh. Unlike the other business websites, it does not sell/ buy or act as a third party between two person. Rather this website posts some discount features to a wide range of products. The customer can use the coupons published on this website and based on the amount of discount can save lots of money while purchasing that particular product from the particular shop.
How it Works: To use the website, one customer has to go with the following steps. Step One: Sign up with Akhoni.com to get crazy discount notifications right in your email inbox. Step Two: Buy and Receive CouponTo purchase a deal, click on “View details & Buy” / “Buy Now” button. "Instant Pay" Option: Safely pay with your Visa/ MasterCard/ DBBL Nexus card and from
mobile phone through bKash. You’ll receive your coupon instantly in your email inbox and on your mobile phone through sms. "Pay on Coupon Delivery" Option: Click "Pay cash on coupon delivery" if you if you want to pay later.
This option lets you pay when you receive the coupon from our delivery men at your home or at your preferred location. There is NO additional charge for the delivery of coupon ‐ pay only for the coupon. "Collect from Akhoni.com Office" Option: You can also collect your coupon from Akhoni.com
office [8, Gulshan South Avenue, Unit ‐ S3, Gulshan ‐1, Dhaka‐1212] and pay there. Step Three: Show your coupon to the merchant at his/her outlet and enjoy the discount.
18 | P a g e
SWOT Analysis Strength:
1. A new concept in the e‐commerce industry of Bangladesh. of Bangladesh. 2. Very few or no competitor at all. Weakness:
1. Based on Dhaka city mostly. 2. The coupons given are of limited of limited merchant that means this website does not cover the entire premises of consumer of consumer choice. Opportunity:
1. Since the concept is new and lucrative, the website has a bright future throughout the country. 2. In future, this website may include the merchants of different of different other fields like FMCG, cloths, foods etc. Threat:
1. Since the market has no competitior, any day new entrants may come up with new offers. 2. Discount packages of mobile of mobile phone companies (GP Thank You) can be a threat.
19 | P a g e
3.3. ClickBD.com
ClickBD is Bangladesh’s largest e‐commerce site. It is an online market place to buy what you want, to sell what you have and make new friends while you are at it. It is the online market place where almost anything available at real shop can be purchased at a much cheaper price.(www.clickbd.com)
20 | P a g e
How it Works:
ClickBD targets the people who trade items online. It is the place of these people where they can do it in much more secure and systematic way. People can buy and sell almost anything without visiting shopping malls or meeting random people.ClickBD offers wide range of items of items in product categories including Electronics, Cameras, Phones, Computer, CDS, DVDs, Mobiles, Fashion Accessories, Music, Real state and Travel. ClickBD also offers virtual stores alongside its classified service, providing an opportunity for users to visitan online shopping mall and do online shopping at the best price. It also introduced Click‐Card the first pre‐paid online payment card for the customers who do not have any mode of online payment. Benefits that ClickBD is providing are that people can both shop and sell both new and used products whenever they need through online. ClickBD reduces possible waste of time, money and energy one would have visiting malls to buy or looking for buyers to sell. SWOT Analysis: Strengths:
1. ClickBD’s image as the first e‐commerce portal in Bangladesh. 2. A strong and growing community of users. of users. 3. World class technology infrastructure which enables and simplifies e‐commerce for BD’s ever expanding online community. 4. Targeting people who are interested to do as well as already doing online business by launching ClickBD Online Stores. 5. Customer intimacy through considering every customer as unique individual and contributor. 6. Convenience of online of online trading. According to ClickBD over 90% of all of all listed items get sold. (www.clickbd.com) 7. Wide range of categories of categories and items. 8. Introduction of Click of Click‐Card the first pre‐paid online payment cards will add more people to its customers. 9. Safety tips are advised to the users. 21 | P a g e
10. Current promotional activity‐ Hoi Choi Offer up to 90% discount. 11. “mbazar” mobile market place jointly place jointly introduced with Airtel Bangladesh. Weaknesses:
1. Does not have a multinational company as partner as its main competitor so may miss some advantages. 2. Does not have strong media publicity as its main competitor. 3. Not many promotional activities as competitors. 4. On the website the description of products are written in small font which makes it difficult to read out for the users. Opportunities:
1. Considering ClickBD’s brand image the company can do more promotional activities to gear upits popularity to its users. 2. Expert IT team to explore further opportunities in existing and potential market. 3. Bangladesh is still not completely internet driven country. So, there is always a large portion of potential of potential target market. 4. “mbazar” is positive step but ClickBD need to work more trying to specialize in mobile market to compete with cellbazar. Threats:
1. Emerging more online market websites like Hutbazar.com, Kholabazar.com etc. 2. Cellbazar has the advantage of having of having Grameenphone as its core partner as it may have the customers of grameenphone of grameenphone which is large portion of Bangladesh’s of Bangladesh’s total population. 3. Government soon going to introduce e‐gateway cards for both banking and e‐commerce transaction which may take the market of Click of Click‐cards.
22 | P a g e
3.4. Muktobazaar.com
Muktobazaar.com is an online shopping site from where people can buy 1000 of products of their necessity. It is created on 18 February, 2008 to makes online shopping easy by allowing shoppers to shop across thousands of products from hundreds of stores and popular brands. This is an online shop for Bangladeshi gifts. People can shop the latest home furniture, sports items, toys, electronics, sharee, salwar kameez, shirts, pants, panjabi and more for women, men, baby and kids. People who live in abroad can send gifts to Bangladesh by using online shop muktobazar.com. Nearly 254,572 visitors visit muktobazar.com each month. Muktobazaar.com deliver Groceries, Flowers, Cakes, Chocolates, Sweets, Electronics, Handicrafts, apparel, Religious Frames & statues, stuffed toys, kids crockery, household products, lifestyle products and much more. They generally deliver within 24 hours after given order. They always open on Fridays for delivery products.
23 | P a g e
Procedure:
Muktobazaar.com makes order process very easy. All a person need is a Muktobazaar.com user account and a credit card or PayPal.com account or Bank Account. One can order in only 4 steps.
•
Step 1. Be a registered member ‐ Click on the "New User" button. Enter the necessary information in the fields and click on "Create Account" button. Provide the correct information to serve better.
•
Step 2. Choose desired products and add to basket‐ Choose a destination and browse through the categories. Type in the quantity of the item(s) one want to buy and then click on the "Buy" button at the bottom of the page. This will add or update items to one’s basket. One can change or update basket any time before submitting order. Items in the shopping cart are shown on the right on every page.
•
Step 3. Provide delivery date, time, location, and Gift Message‐ Once finalized the shopping basket one can go to the order process page by clicking on the "Start Order Process" button on the right. This will start the checkout process. One can still change/update basket. After that click on the "Next > Step 1" button to go to the Step 1 of the process. On this page select a delivery date and time, type in any special instructions or comments if one if one has any gift message.
•
Step 4. Pay in secure site ‐ Clicking on the "Next > Step 2" button on the "Delivery Information" page will take one to PayPal.com for providing credit card information. Fill up the form exactly as the credit card billing address and complete the payment. Order will be processed and delivered to the delivery address on the selected date 24 | P a g e
How Muktobazaar.com runs the website:
mainly they ask an amount for delivering the
product. E‐marketing is another source of financial support that they get from some organization by posting advertisement on their site. Muktobazar.com has the potential to earn $131 USD in advertisement revenue per year. SWOT Analysis Strength: •
Various products to choose from various categories.
•
Hassle free transaction where buyers can pay by using credit card
•
Home delivery within a short time.
•
Transaction can complete without going outside.
•
Many renowned brands under one roof.
•
Customer get special offer on special occasion.
Weaknesses: •
Lack of promotion of promotion of the of the website itself.
•
Poor number of advertisement; of advertisement; generating low revenue.
•
Unattractive website design; lack of creativity. of creativity.
•
Lack of understanding of understanding the target customer of Bangladesh. of Bangladesh.
Opportunity: •
People are getting more aware of e of e‐business which will increase their business in future.
•
Increasing options for consumers under sub categories.
•
People are getting more interested in online shopping by using credit card.
Threat: •
Existing organizations are trying to put more and more variation on product category.
•
Some new organizations are emerging to provide the same service.
•
Physical stores are giving more discounts on more and more buying. 25 | P a g e
3.5. Cellbazaar.com
CellBazaar is an electronic marketplace designed for individuals to buy and sell products. It is unique in that it works on four synchronized platforms: SMS (texting), WAP (wireless application protocol), Web, and IVR (interactive voice response), Business model: In developing countries, the access to the internet is not widespread.
Therefore, many consumers depend heavily on conducting business with their cell phones through a series of short messages. With no existing business firm providing consumer‐to‐ consumer cell business, CellBazaar realized an opportunity existed to change the way business was done by eliminating the intermediary. While CellBazaar’s potential target market is wide, encompassing urban, non‐urban and rural populations, it is currently focused on marketing to the rural population, particularly in its test market of Bangladesh. CellBazaar generates its revenues from data usage on all platforms and increases use of airtime of airtime minutes as consumers conduct business. The mobile phone has surpassed the computer in terms of fastest growing technology. For many users, it fulfills a wide array of needs of needs and has become an essential technology. However, as a first entrant, CellBazaar has had to face the challenges of being a market pioneer. One of 26 | P a g e
the major drawbacks being the lack of mobile of mobile literacy, which has required the company devote time and resources to “educating” consumers. A mobile‐phone‐based market such as CellBazaar is likely to do well, and early numbers bear this out. According to CellBazaar, it had over 1.5 million users and averaged 90,000 hits a day (including page views and SMS messages) in 2009. Its registered seller base was 51,000 and its unregistered user base was thirty times that size.
How cellbazzar.com works: Using SMS, WAP technology or the Internet, buyers and sellers can
find each other at CellBazaar. A farmer can easily sell his or her products by sending simple text messages, just as a teacher can offer his or her services. Users pay only the standard SMS or GPRS charges for accessing the service, and there are no monthly or posting fees. It works on 4 synchronized platforms: SMS
SMS (Short Message Service) has been phenomenally popular since its introduction in Bangladesh. CellBazaar leverages the simple, widespread power of SMS to bring the market to your phone. By sending simple text messages to 3838, one can post items for sale, look for items to buy, and obtain current market prices of products of products or services. WAP
WAP (Wireless Application Protocol) is the next generation of mobile phone technology. 12% of all mobile sets in Bangladesh are already WAP‐enabled, and this number is growing rapidly. WAP provides an even faster experience as you browse a simple graphic menu to access the entire marketplace. WEB
WEB version shows the entire market at a glance on computer screen. Anyone with internet access can browse the market, and post items for sale. Items posted by WEB, WAP or SMS are 27 | P a g e
instantly visible to users of any platform. WEB platform also makes the local mobile‐based market available to an international audience. VOICE
Any Grameenphone user can dial 3838 and listen to the latest items on the market in Bengali. After dialing 3838, users choose from 8 categories: Jobs, Mobile Phones, Agriculture, Motorcycle, Car, Electronics, Computers, and To‐Let. Every few hours, users will hear new information through this service. Most services like CellBazaar that work over SMS operate with premium SMS‐pricing. Premium SMS refers to SMS for which users pay a premium over standard messaging costs, with the revenue shared between service provider and telecommunications operator. Some development projects pay the premium themselves rather than making users pay, but in either case, a premium is charged by telecommunications operators. SMSs sent to CellBazaar cost a user the same price as a standard SMS. GrameenPhone, CellBazaar's partner, shares a percentage of the of the messaging revenue with CellBazaar. CellBazaar also gets revenue from users that access its WAP and voice services similarly‐‐another source of revenue that m‐services do not usually access. Of course, Of course, this revenue‐sharing model would not be possible without a strong partnership with GrameenPhone, CellBazaar's only core partner. SWOT Analysis Strength: •
First one to bring the concept of mobile of mobile dealing.
•
Smart business that helps seller and buyer to met directly.
•
Various Options for sellers and buyers.
•
Powerful media by which one can buy and sell necessary products within a very short time. 28 | P a g e
•
Wide customer range with frequent visits.
•
Attractive web design.
•
Partnership with the largest telecom company.
•
Promote a very large number of products. of products.
Weaknesses: •
Lack of awareness about the site; very small number of people from rural area know about activities of the of the organization.
•
Lack of awareness of awareness in total population of Bangladesh. of Bangladesh.
•
As a pioneer they have not created enough space on people’s mind
•
No place for giving education to the rural people who badly need it.
Opportunities: •
People are getting more aware of e of e business which will increase their business in future.
•
People are liking the idea of having of having no middleman inside their dealings
Threats: •
Lack of understanding of the general consumer of Bangladesh i.e. non familiar to do business online.
•
People do not feel secure in dealing on line.
•
Some new companies are emerging with this same business concept.
29 | P a g e
3.6.Ajkerdeal.com:
It is a website featuring discounts to the modern customers, alluring them to purchase a coupon to get a fast action hot deal. Ajkerdeal offers discounts up to 90% in our city on popular businesses like Dining, Travel, Entertainment, Movies, Spa, Healthcare services, Fitness centers, Beauty parlors and lot more. AjkerDeal.com is a leading deal and discounts site in Bangladesh where customer can find all exciting deals and special offers of the of the country in one place. From their featured Daily Deals, buyer will be able to buy online the coupon on their desired shops and stores. They feature only one merchant at a time in each market to bring the maximum result for merchants. As a merchant one can either feature his\her products and services at their Daily Deals or post a special offer at their Hot Discount or Ongoing Discount section.
They are strategic marketing partner, creating online promotions that deliver tangible result for businesses. Their aim is to help local businesses finding and keeping more customers while bringing delight in shopping for their visitors. Their visitors are coming to this site everyday and telling others to visit here because they not 30 | P a g e
only find mind‐boggling deals from their Merchants but also find all discounts and deal news of the city in a single place. Their dedicated team is making sure to bring all the deals and discount news of the of the city in one place at ajkerdeal.com so that their visitors don't need to look for different news paper, flyer or TV ad to look for their desired deals and offers. Below is a screenshot of the of the popular website: How it works (from customers point of view): of view):
They have divided the whole process into 3 steps. Step One: Beginning
1. Choosing desired deal in website.
2. Click on 'Buy Coupon' to purchase desired deal.
3. If one If one is a new user then, they have to sign up to get mind blowing deals right at their email address through Ajkerdeal’s free email service.
4. If one If one is an existing user, they have to use their email address and password to sign in to their ajkerdeal account.
Step Two: Buy Coupons
1. Select number of coupons of coupons one wants to purchase.
2. Choosing payment method.
3. Following instructions based on one’s chosen payment method.
31 | P a g e
Step Three: Convert coupon
1. One has to go to the merchant and show his\hers coupon to avail the deal.
2. (Where applicable) One has to show the token or voucher of merchant of merchant along with their Ajkerdeal coupon while availing the deal.
3. (Where applicable) If the If the coupon price pays a partial payment then one has to pay the rest amount to the merchant to avail the deal.
Extra:
1. One can get access to more live and exciting deals simply by clicking at 'more live deals'.
2. If one If one wants to get discount related information, then he\she is supposed to check out their 'hot discounts' section which brings you detail information about discounts from a vast range of merchants. How it works (from manufacturer’s point of view): of view):
If a If a business wants to expand their customer base, wants maximum exposure then the owners must love AjkerDeal.com
Services for merchants at AjkerDeal.com
A. Daily Deals If one is looking for promoting his\her products or services with maximum exposure in a cost effective way and with fact based results then nothing is better than Daily Deal.
32 | P a g e
Promotional strategy: To ensure the maximum exposure of merchants they only promote one merchant at a time in each market. This strategy delivers the highest attention for a particular merchant.
Promotional tools: With traditional promotional tools like T.V, Radio or Billboard no one can never exactly say that how many people from target audience will be reached. But the contemporary promotional tools that Ajkerdeal uses to promote a daily deal gives the exact number of potential of potential customers one will be able to reach.
Web promotion: Ajkerdeal will promote offer at www.ajkerdeal.com home page for 7 days which includes a day or two prime spot at home page. With carefully chosen images and luring description of manufacturer’s of manufacturer’s offer businesses get the opportunity to become a show stopper.
Email marketing: To take 'maximum exposure' in a higher level Ajkerdeal emails your offer. With 200,000 plus email addresses in database AjkerDeal creates a window for businesses to reach the unreached
BDJOBS banner: On each and every category pages of bdjobs.com of bdjobs.com (the largest online job online job market in Bangladesh with 80,000+ daily visitors) Ajkerdeal promotes offer through a banner long like an airport runway.
SMS Marketing: ajkerdeal has a rich collection of cell of cell numbers of visitors of visitors who have subscribed in AjkerDeal.com. AjkerDeal.com sends SMS to those numbers whenever a merchant promotes an offer. Structuring the deal: ajkerdeal team will help structuring the deal to optimize on performance, expectation and service limitation. They will also help crafting a compelling write‐up and selecting best visual images for customer’s deal.
33 | P a g e
B. Hot Discounts At their 'Hot Discounts' section, customers can promote general discount/offer information with the logo of business and image of product/service in an effective way at a very nominal fee.
C. Ongoing Discounts Customers can promote their offer in those 'classified ads' sections in newspapers. But being placed with loads of other of other irrelevant ads with limited space, the chance of receiving of receiving message by the right customer is pretty low. At AjkerDeal.com Ongoing Discount section customers can promote their offer free of cost of cost with great space and under categories that are relevant to your product/service. SWOT Analysis: Strength:
•
Smart business tactics
•
Various Options for consumers
•
Powerful promotional tool for businesses to increase sales.
•
Wide consumer range with frequent visits
•
Very eye catching design of website; of website; simple yet elegant.
Weakness:
•
Lack of promotion of promotion of the of the website itself.
•
Process of getting of getting coupons could have been easier.
•
Small number of variations of variations in their service i.e. they promote a very small number of products
34 | P a g e
Opportunity:
•
People are getting more awrare of e of e business which will increase their business in future.
•
Widespreding the business beyond Dhaka.
Threat:
•
Lack of understanding of understanding of the of the general consumer of Bangladesh of Bangladesh i.e. non familiar to do business online.
•
Not everyone is looking for a discount everytime they go to buy stuff.
3.7.Hutbazar.com
Hutbazar.com, a sister concern of Right of Right IT Corporation, pioneered online comparison shopping and today is one of the fastest growing shopping destinations for a comprehensive set of products from thousands of trusted stores from across the Web. With a singular focus on shopping, Hutbazar.com offers shoppers easy‐to‐use search tools, engaging content and time saving navigation. 35 | P a g e
The website is dedicated for customers to buy products online. All they have to do is choose from the wide range of variety products made available by the website, choose their desired products and place an order. It will be soon that they will receive their product at their door step. How it works (from the customers point of view): of view):
Hutbazar allows the customers to choose from a wide range of products. The categories are: Beauty & Fragrances, Books & Magazines, CDs & DVDs, Clothing & Accessories, Computers & Softwares, Electronics, Fish, Meat & Egg, Flowers & Gifts ,Foods , Fruits ,Groceries & Vegetables ,Handicrafts, Health & Fitness, Home & Garden, Kids & Babies, Live & Pet, Office Stationeries, Sports etc. The customers will look for their desired products online. They will have to register first ofcourse. They will paste the shipping address. The payment will be made by credit card. After a specific time, their desired product will reach their doorstep made possible by the team of hutbazar.The modern customers who are smart enough to use the technology to utilize their valuable time and not wasting it can find themselves drawn to the service of this website because they wont have to set foot outside their home to get products of their of their desire. Gone are days when people had to travel miles to get what they wanted; businesses like hutbazar identified the needs of customers of customers and gave them delight. How it works (from the manufacturers point of view): of view):
Hutbazar is a portal which has linked various renowned brands at one place. For example one is able to order two different types of pizza made by pizza hut and dominos from the website without going there. The opportunity to choose from these mega stores or brands by a single click is very amusing because hypothetically one had to go miles to hit all the stores from where they have ordered if one if one had to go on foot. But instead they have the opportunity to choose all the brands from their home. What hutbazar does is keep their profit for being the middleman of the deal. They have to be paid by credit card. Their charges differ for person to person for the matter of distance. of distance. 36 | P a g e
SWOT Analysis: Strength: •
Various products to choose from
•
Hassle free transaction where buyers dont have to go outside
•
Home delivery
•
Strong network in the whole country.
•
Many renowned brands under one roof.
Weakness: •
Lack of promotion of promotion of the of the website itself.
•
They dont have many options to choose from under the sub categories for example the cds they are trying to sell are 3/4 years old and they lack the latest products.
•
Unattractive website design;lack of creativity. of creativity.
Opportunity: •
People are getting more awrare of e‐business which will increase their business in future.
•
Increasing options for consumers under sub categories.
Threat: •
Lack of understanding of the general consumer of Bangladesh i.e. non familiar to do business online.
•
Other organizations providing the same service.
•
Physical stores where people can see the product before purchase.
37 | P a g e
3.8. Sonar Marketplace
About The Website: In 2001 Mamunur Rashid Sonar Being an entrepreneur, he realized that there must be a more efficient way for merchants to place their offers in front of customers. Sonarcourier.net is the first step for making his dream come true. Now, backed by a half decade development, the original vision has evolved into an extremely robust multi‐ merchant marketplace where customers can shop from thousands of brands and hundreds of stores using our SonarMarketplace.com
SonarMarketplace is a multi‐merchant marketplace, from well‐known name brands to lesser‐ known but equally high quality specialty retailers
organized for convenience in finding, 38 | P a g e
comparing and buying items for the home, family, work, friends and personal needs and interests. We exhibit items from our merchants for secured transactions, so all personal data submitted by our shoppers are protected. Additionally, SonarMarketplace merchants must undergo and meet specific criteria prior to inclusion. As a result, our customers receive nothing but a top‐notch comparison shopping Web site. We believe that a shopping venue that provides convenience and ease of use, lots of choices and great prices, safety and security, trusted brands and hard‐to‐find products and a personalized experience is compelling. And SonarMarketplace.com delivers all that.
How it Works: SonarMarketplace is dedicated to providing shoppers with a hassle‐free and informative shopping experience. With SonarMarketplace, shoppers can choose from two methods of search. The first method of search is quite direct. Shoppers start by entering the name of the item they wish to find into the search box located at the left top of every page. This will retrieve a list of products sold by SonarMarketplace merchants and/or other online stores. Shoppers can further explore their options by clicking on the results page listings.
A second SonarMarketplace searching method is to browse by category. With this method, shoppers begin by selecting a preferred category. This will present them with a list of stores, each offering its own category index. Every selection on the category index leads to a comparison grid. Shoppers use this grid to compare similar items from the same store, typically based on price. By clicking on an item, shoppers can obtain additional product information. Both the comparison grid and the product details pages further facilitate the comparison shopping process and help shoppers make educated purchase decisions.
If necessary, shoppers can easily retrieve answers to their questions about SonarMarketplace by referring to the handy FAQ page. Links to these
helpful resources are available in the
Shopper's Corner section of every of every results page.
39 | P a g e
SWOT Analysis of Sonar of Sonar Marketplace: Strength: •
Assistance of Sonar of Sonar Courier Service
•
In built “Merchant” service
Weakness: •
Relatively small collection of items of items
•
Not that much attractive looking website
Opportunity: •
Has much incentive to go for niche segments (suburban Bangladesh)
•
Since it has a merchant service option, it can have a potential market in future
Threat: •
Has not the ability to withstand the attack of veterans of veterans like clickbd, cell bazaar etc.
•
New entrants may come up with lucrative websites and bundle of offers of offers
40 | P a g e
3.9. PROTHOM ALO JOBS
As a leading job leading job portal in the country through the state of art of art technology and prompt customer care to facilitate relationship between jobseekers and employers, at the same time bringing seminars, job fairs, training sessions for the overall envelopment of the job market in Bangladesh. Prothom‐alojobs.com has the mission to connect the job seekers directly with employers by shortening the job seeker's employment search and lowering the employer's cost per hire, through the application of pioneering of pioneering technology. Our site allows job allows job seekers to find and apply for jobs with the leading companies of the country. Employers are able to advertise on profession‐specific categories to leverage focused advertising in finding qualified candidates for employment. We aim to provide cost‐effective employment advertising to companies. Moreover, prothom‐alojobs.com offers seminars, training sessions, job market awareness 41 | P a g e
programs and job fairs to provide full knowledge about the current career market among the jobseekers and the employers. Our site is also committed to build a rich career resource center to set the best guidelines for the aspiring job aspiring job seekers, thus helping them to become productive and skilled workforce as well as responsible citizens of our of our nation. 1. How it works Top categorizes depict in which sector job sector job vacancy are there. Such as accounting, management, HRM, marketing, engineering, garments, textiles, health care etc. So when a job seeker enter into the website, he can choose his preferably job sector. From here, he can also find out in which sector what numbers of jobs of jobs are available. It is quite helpful for the job seekers as they can find out which sector are offering the most numbers of jobs. of jobs. So the job seekers can make guess that which sectors job sectors job demand are in peak form. JOB SEEKERS In the Job Seekers section, the web site ask the job the job seekers to submit their resume by that the web site give them mail if any if any related job related job is available in the market. In the forum, we usually get to know the any news announcement, career related article, career related discussion, technology and others. In the career resource center, a job seekers can able to learn how to write a CV, preparing the cover letter, interview tips and training. Professional excellence refers to skills and knowledge attained for both personal development and career development. Professional development encompasses different type of facilities of facilities learning opportunities, ranging from college degrees to formal coursework, conferences and informal learning opportunities situated in practice. Hence, we at prothom‐alojobs arranging training, seminars, workshops & other professional development programs on different subjects. The main motto is to buff up as well enhancing the strength & skills of naïve of naïve & experienced seekers or personnel’s.
42 | P a g e
EMPLOYERS In this section, employers can post the vacancy if they have any in their company. By that the website posts the vacancy in their home page so the job seekers can be benefited with that. Employers are too benefited from that by saving their time for potential candidates. EXCLUSIVE ZONE GRAD ZONE : it’s vision is to become the largest portal of fresh graduates. They truly believe
that they are the next generation of professionals coming to the job market. Like ProthomAlo, Prothom‐Alojobs is also driven by certain values and assumes that this as a prime responsibility to provide the next generation of professionals a platform from where they could establish their
career
network.
The grad zone is designed and developed to build a bridge between the Employers and the Fresh Graduates who have just completed their university degree. Moreover, as member of grad zone, institutions will have their own area in the site where they would be able to promote their programs and at the same time students of that respective university would be able to register and upload their CV. Therefore, companies would be able to select, sort out and directly contact to the fresh graduates from their concern institution through grad zone. RECRUITER ZONE: Using this account recruiter can post their job advertisement, receive online application, view, edit and delete posted jobs posted jobs and more exclusive features. Moreover, it also provides themselves all the benefits like; posting new jobs (Eng/Ban), view posted job, short listed CV, applied CV cart as well a direct access to the CV Bank. PESHA POROMORSHO: Here the successful professionals give advises to the candidates who looking for a job or who are confused about their career goal. Basically they share their own experiences through that the job the job seekers can learn the lesson. 43 | P a g e
VIRTUAL JOB FAIR Here Prothom‐Alo Jobs is preparing future events for job seekers so that they can access the best career opportunity available. SWOT ANALYSIS
potential job seekers to find out their desired jobs Strength: They are helping large amount of potential job in the market. This web site is viewed by large amount of potential job seekers every day. Its brand name well established in the mind of us as it is related to the name of prothomalo newspaper. Apart from giving the news of any of any vacancy of jobs, jobs, it also offers some others parts such as writing skill of a of a resume, preparation for the Interview etc. It also offers training for the potential job potential job seekers. Weekness: sometimes the job the job seekers submit their CV for particular post but no response was there for a long time. Though have the event named virtual job virtual job fair but it is not run on frequent basis. Opportunity: as it is right now the most favorable job search engine for the job seekers, so
earning money with the help of advertisement of advertisement is good way. Threat: as it is an attractive market, so lots of new entrants are coming which will ultimately
increase the competition. Already there are 10 job 10 job search web sites are available, they are also giving a tough competition.
44 | P a g e
3.10. Bdjobs.com
Bdjobs.com Ltd. is the first and leading career management site in the country. Eight young business and IT professional backed by strong command over e‐business and in‐depth understanding of the needs of job of job seekers and employers in the country’s context started this venture on July 2000. The vision of the company is to try bringing Internet technology in the mainstream business and economic life of the of the society. Their web‐site aims to explore maximum benefits of the of the Internet. They believe their service will help the job seekers manage their career more efficiently. This site will also help employers solve many of the problems associated with traditional recruiting methods and allow them to save time and money.
45 | P a g e
Right after its launching, the site has been able to attract the Internet users in the country. The site regularly updates Job Information (on average more than 1800 valid job valid job news are placed at any point of time of time at the site), provides facility to the job the job seekers for posting resume and online application. The site has also been able to get good response from a large number of organizations in the country who use online job advertisement facility, online CV bank access and online application receiving and processing facility of www.bdjobs.com. of www.bdjobs.com. Till now, more than employers in the country have recruited more than 150,000 professionals at different levels for their organizations through Bdjobs.com service. Current Status:
•
Till now, more than 2500 employers in the country have recruited more than 35,000 pro fe‐ssionals at different levels for their organizations through Bdjobs.com service.
•
Unique Daily Visitors is 14,000 (on average)
•
Monthly Page View: 800,000 (0.8 million)
•
Number of Resumes of Resumes posted on the site: 140,000+
•
Number of Corporate of Corporate Accounts: 2,500+
How it works:
•
Define candidate profile according to need
•
Advertise at BDjobs.com
•
Receive applications
•
Short‐list & contact
•
Take interview
•
Select best 3‐10 candidates for final selection.
46 | P a g e
SWOT Analysis: Strengths:
•
Man power and skilled management.
•
Huge collection of jobs jobs of different of different categories.
•
Brand Image (Max click rate recorded in Bdjobs server in November 2006) (Source: BDjobs.com) (More than 150 Thousand + visitors hit jobsA1.com hit jobsA1.com every day, which is the highest among the 28 job 28 job based web portals in Bangladesh.) (Source: The Daily Star – Star – 6/8/2005)
Weaknesses:
•
Bdjobs.com does not believe to have any weakness. But since it’s a web based company and they cannot reach the areas where internet service is not available. Over confidence can be a weak point too.
Opportunities: Unlimited as Bdjobs.com states. Threats: •
The competitors bdjobs.com has been facing these days are the other job other job seeking sites like prothom‐alojobs.com, jobsbangla.com alojobs.com, jobsbangla.com,, Jobstreet.com etc.
•
There is another possibility like if the if the major companies come up with their career an d job segment in their own site like GrameenPhone, people are not likely to go for the services provided by the Bdjobs.com or such job such job seeking sites.
•
It has been reported that the site Bdjobs.com the first and Largest Job Site in Bangladesh has been hacked. So, hacking is a threat to Bdjobs.com.
47 | P a g e
3.11. BoroMela.com
BoroMela.com is country`s largest e‐commerce site for SMEs founded in 2009. BoroMela.com is a Bangladeshi E‐commerce Site ‐ Buy and sell books, electronics, cars, digital cameras, and everything else on boromela.com, Bangladesh's online marketplace. Sign up and begin to buy and sell free or fixed price ‐ almost anything on boromela.com
How it works:
BoroMela.com is an e‐commerce site for both business and Individual buyers and sellers. Here buyers and sellers meet together virtually and transact products/ services between them. There are seven main product/ service in the categories; these are Book, Computer, Electronics, Car and Motorcycles, Movie music games, Real state and Mobile. Clicking on Add to Cart and follow all the steps until they click on Place Order. Once finished, they will get the email 48 | P a g e
notification. By taking the printout of the notification to the seller to get their product and if they are considering buying this product from the site, that option is also available. If they If they want to take the benefit of receiving the product by mail, you need to deposit the payment to BoroMela.com selected bank. Clicking on Add to Cart and follow all the steps until they click on Place Order. Once finished, they will get the email notification with a detail instruction on how
to deposit their payment. BoroMela will ship the product to Courier Service within one business day of receiving of receiving the deposit. For “Contact Seller” option, the product can only be purchased by contacting the seller through phone or email. Please directly contact the seller through phone or email.
SWOT Analysis: Strength: •
Business type (e‐commerce business)
•
Both business sellers and individual sellers can sell their products in BoroMela. So, BoroMela is able to pull many sellers and buyers toward it.
•
Web page design ( it makes easier for interest parties to get information or sell or buy products. example: Product Category). This site has a good Page rank(3/10) (source: web state domain)
•
Share experience feature: BoroMela Review is a place where people can share their experience or opinion about a product, a book, place of attraction, a restaurant, and many more you liked or disliked the most. By sharing their best or worst experience they can help other customers to take informed decision. This feature creates interest to both seller and buyer.
49 | P a g e
Weakness: •
Boromela.com has global alexa traffic rank of 1,010,081, this rank means that this website gets few visitors. This site is relatively popular among users in the Bangladesh. It gets 88.7% from Bangladesh. This site is estimated worth $2,777USD. (source: web state domain)
Opportunity: •
Due to online base business system the company has huge business opportunity. People get a wide range of products choice with less physical effort which also reduces time and money efforts and that creates interest to people.
•
Internet users in Bangladesh are increasing day by day. As a result, the potential customers are also increasing day by day.
Threats: •
Competition is increasing, now BoroMela is facing competition from others like Cellbazar.com.
•
Many other companies may come in this business in future.
50 | P a g e
3. 12. JobsA1.com
JobsA1 is the one of the largest job site in Bangladesh and also the institute to provide high standard career building courses. JobsA1.com is one of the of the leading job leading job portals in Bangladesh. It is one of the of the top browsed websites in Bangladesh according to Alexa ranking. JobsA1 targets educated, qualified and career oriented people who are looking for suitable jobs suitable jobs and need counselling in career related matters. Educated and career oriented jobseekers look for permanent and trusted source to browse job information and career alternatives. They value the jobsite the jobsite where they can find all types of job job offers from both national and international companies in one place. Besides, jobseekers Besides, jobseekers also go for courses that would help them to build their career related knowledge and skills as today’s job market is a competitive one. JobsA1 offers job advertising of 24 categories, both full time and part time jobs for jobseekers. The 51 | P a g e
company posts both national and international jobs. Alongside the job offers the company offers 9 types of career of career building certified courses. JobsA1 also provide tuitions as well as tutors to people who are looking for. Benefits the jobseekers get from the website is that they can search job offers anywhere, anytime from a single website. They don’t need to browse several newspapers or go to several locations to post or drop CVs. While they search or apply for a job offer they don’t need to be concerned about fraudulent as JobsA1 makes sure to avoid these kinds of possibilities. Jobseekers also get the opportunities to enrol in some important career building courses and get to build for the competition of the of the today’s job today’s job market. Among three types of value proposition JobsA1 concentrates on operational excellence. The website has a very rich selection of job of job offers from well –known organizations both national and international. It also shows result for both full and per time jobs. JobsA1 helps parents to find suitable and qualified tutors for their children as well as tuitions for students. It has now 160,000+ resumes of Bangladeshi of Bangladeshi jobseekers. jobseekers. It is available to both employers and jobseekers through simple process of posting job advertisement and apply to job offers respectively. Its simple 2 step process to post resumes and get desired job offers has minimized jobseekers time and energy to look for a job. JobsA1 provides employers with e‐recruitment system to hire great people in short time. JobsA1 also shows high level of customer intimacy through providing up to date information about job offers and career development. The company also help jobseekers to apply for suitable jobs suitable jobs by category, location, experience etc. JobsA1 also works to make jobseekers make jobseekers more skilled and qualified to compete in today’s job market by providing career building courses. These courses may add new qualification to one’s resume or open door to a new career path.
52 | P a g e
SWOT Analysis: Strengths: •
Brand image as one of the of the largest job largest job site in Bangladesh.
•
Expert IT professionals with education qualification and experience with database programming, systems integration, website design and development and networking through LAN/WAN, dial up network access connectivity.(www.jobsa1.com)
•
The company has its own training division for HRD in the IT sector.
•
Latest in‐house equipment facilities , resources and project management skills, the company has the capability to undertake large ‘Turn‐key' software development project, information needs, design development and implementation of distribution data environment comprising of heterogeneous of heterogeneous hardware.
•
Have latest technology and expertise.
•
One of the of the top browsed job browsed job portals. (Alexa ranking)
•
There always have been jobseekers in BD who need right direction and information regarding careers.
•
Partnership with Channel I allows JobsA1 to broadcast its promotional ads round the clock.(http://www.southasiabiz. clock.(http://www.southasiabiz.com/2007/01/bangladesh_jo com/2007/01/bangladesh_jobsa1com_and_sear bsa1com_and_searc.html) c.html)
•
The portal has versatile search facilities for the users.
•
Contains some useful links of some of some websites related to BD instead of random of random ads.
•
Career development courses are offered alongside the job. the job.
Weaknesses: •
Organizational structure and operations lack of business based knowledge to compete with the rivals.
53 | P a g e
•
Website design standard need more improvement if compare to the main rival bdjobs.com.
•
Need stronger managerial team to take business level decision.
•
Doesn’t have company mission, vision as one company should have to set a target to run a business.
Opportunities: •
To cover overall Bangladesh, the company needs to expand the market from Dhaka to major districts and towers.
•
Jobseekers may look for career counselling which JobsA1 can offer online through online conversation media.
•
The company can provide every user with individual profile where they can describe and add info about their career plans and goals. This will help JobsA1 to find jobseekers more specified needs and way to aid those needs.
•
Still many jobseekers need grooming to be able to compete, act in the corporate world. JobsA1 can offer grooming alongside other courses.
Threats: •
Considering BD’s economic condition and unemployment challenges JobsA1 sure has a lot to think about.
•
Bdjobs is well‐organized and a strong competitor of JobsA1. of JobsA1.
•
JobsA1 is trying to enter into the market in Chittagong where educational qualification of students may not be at the same level as students in Dhaka. Because of the imbalance of Bangladeshi educational system as well as private and public education system. So the company may need new strategies to deal with this market. Same goes for other districts in Bangladesh.
54 | P a g e
4. Strategic Groups and Value Proposition After the analysis made on the 13 websites, it was revealed that some websites have almost identical target market and identical services. That means they have both resource similarity and market commonality. So based on the similarities, the 13 websites were subdivided into 6 broader categories. Their value propositions are discussed below.
1. Business to Consumer Websites: These are some websites they are selling products to
customers. Among the 13 websites, Boromela.com, Hutbazar.com and muktobazaar.com fall under this strategic group. These websites sell products of different line and categories to the customers. Without the hassle of going of going outside and searching through the brick and mortar shops, these websites give the consumers freedom to choose between several products by sitting in front of their computer. An array of convenient payment method exists and the delivery system is also flexible. So, to reduce valuable time and hassle consumer usually purchase items from these sites. Strategic Failures: Strategic Failures: •
They failed to promote their website in a way that no other website name should come to customer mind.
•
Fail to position uniquely on customer mind.
•
Some of their of their domain name failed to attract consumer.
•
Unattractive web site design fails to bring people on their page.
•
Their e‐marketing strategy is unattractive; they do not find customer, customer need to put afford to find them.
Suggestions: •
These web sites should more and more focus on their promotional activities.
•
They should redesign their web page to attract more customers.
•
More discount opportunities should be given to the customer to retain them. 55 | P a g e
•
They should attract more firms so that they can increase their revenue through web advertising.
2. Consumer to Consumer to Consumer Websites: Consumer Websites: These are some websites they work as facilitators
between two parties. Among the 13 websites, Clickbd.com and Cellbaazar.com fall into the consumer to consumer strategic group category. These websites work as a middleman. They work as the facilitator between buyer and seller. When one customer wants to sell his/her used or newly purchased merchandise, he/she posts advertisement on the website and the user can find the necessary information by browsing through the categories. These websites helped the customers a great deal since it is a tiresome work for the customers to find out their required second hand product without the help of websites like Clickbd or Cellbazaar.com.
Strategic Failures: Strategic Failures: •
They deal with fraud related issues by advising customers with safety tips in its website. However, the strategy fails to do so because still there been found some fake ads floating on the site which needs continuous monitoring.
•
They provide every user with unlimited access to post ads. This strategy sometimes backfire as it sometimes sent someone’s urgent ad to 2nd or 3rd page within few minutes after posting because of excess of excess flow of ads. of ads.
Suggestions: •
Should maintain acceptable level of media of media publicity.
•
Should introduce monitoring system to avoid fake ads.
•
Should implement rules regarding limitation of posting of posting ads per day for each user.
•
Do competitor analysis for the company’s two new services‐ Click‐Card and mbazar.
•
Should analyze existing and potential market to identify their changing needs and responses.
56 | P a g e
•
Should involve in more promotional activities to keep communication with the customers.
3. Jobs Website: A relatively new concept in the E commerce industry of Bangladesh is Jobs
website. Among the 13 websites, Prothomalo.com, Bdjobs.com and JobsA1.com fall under this category.
The traditional concept of searching jobs is no more in use today. The jobs website paved all the bumpy ways of finding of finding a job. These websites collect information about the latest openings and vacancies of different of different organizations. One user registers her on the websites and can apply directly by sending CV or by filling an electronic form. Thus he/she may the desired job. Some firms today use these websites to post their vacancies. The users can also register them on the database of these of these websites and can get notifications about their desired jobs. desired jobs. Strategic Failures: Strategic Failures: . •
They offer many career development courses, however, it fails to provide adequate career counselling and grooming to the jobseekers so that they can face competitive corporate world
•
People still has the inertia to rely on electronic media to submit their valuable and confidential data. These websites have failed to remove the individual reluctance.
Suggestions: •
Need to build strong managerial team with business level knowledge and skills.
•
Need to analyse its competitors frequently.
•
Need analyse new market before entering.
•
Need strategies regarding promotional activities.
•
Need to emphasize on career counselling and grooming.
•
Need to set company mission, vision and corresponding strategies.
•
Need to rewrite ‘About us’ section to base on business point of view. of view.
57 | P a g e
4. Discount Websites: These websites provide discount to the customers. Akhoni.com and
Ajkerdeal.com are the two members of this of this strategic group. These websites provide discounts to some favorite restaurants, shops and other services. The customer purchases the coupon and get significant discount on those stores. Strategic Failures: Strategic Failures: •
Small number of variations in their service i.e. they promote a very small number of products.
•
The scope of these of these websites is very minimal. Consumers can get discount on the Dhaka city only. So the dwellers of suburban of suburban areas would not get benefit from these websites.
Suggestions: •
The field of giving of giving discount should be broadened
•
Communicating the discounts offers to the customers is also required
•
Should elaborate their business to metropolitan cities like Chittagong, Khulna, Razshahi etc.
5. Merchant Website: Merchant Website: Sonarmarketplace.com is the website that falls in this strategic group.
This may be overlapped with any other b2c website. However, there are some differences. SonarMarketplace is a multi‐merchant marketplace, from well‐known name brands to lesser‐ known but equally high quality specialty retailers organized for convenience in finding, comparing and buying items for the home, family, work, friends and personal needs and interests. It urges the merchants for secured transactions, so all personal data submitted by shoppers are protected. Additionally, SonarMarketplace merchants must undergo and meet specific criteria prior to inclusion. As a result, the customers receive nothing but a top‐notch comparison shopping Web site.
58 | P a g e
Strategic Failures: Strategic Failures: •
Sonar marketplace has failed to attract the customer. That’s why the daily hit is below average and so is the selling rate. The basic reasons for the failure are not undertaking ample marketing communication program and not developing a lucrative website.
•
To flourish in this industry, they have to undertake massive communication program and let people know their point of difference. of difference.
Suggestions: •
The concept of Merchant of Merchant website has to be made popular in Bangladesh.
•
They should attract bigger and renowned merchants as well.
6. Matrimonial Website: Matrimonial Website: Borbodhu.com is the website that falls under this strategic group.
The match making or matrimonial websites help one person to get his/her life partner. This is a relatively new concept in Bangladesh. Here, interested candidates post their photo, bio data and interest on the database of the sites. The information are stored and maintained confidentially. One user searches through the registration and thus gets the perfect match for him or her.
Strategic Failures: Strategic Failures: •
The most common problem with this kind of websites is lack of privacy. Most of the customers, especially women are reluctant to give their personal information. So, maintaining privacy is vital.
•
The service to the gold, silver and diamond customers should be differentiated.
•
The website should categorize its database list based on geographic segments.
•
The people of Bangladesh are still skeptic about the integrity of online matrimony. Breaking the inertia and misbelieves of people of people is necessary.
59 | P a g e
•
Credit card is not that much popular in Bangladesh, especially in the rural or suburban areas. So an alternative method of payment of payment should be enabled.
•
The websites pay little budget on communication. They should commute themselves to the target consumers through different communication channel.
Suggestions: •
The privacy of the of the websites should be increased.
•
Steps should be taken to restrict the fake IDs.
5. Analysis of E of E – Commerce Industry of Bangladesh of Bangladesh 5.1 Overview of e of e‐Commerce in Bangladesh
The three dimensions of e‐commerce are Business‐to‐Consumers (B2C), Business‐to‐Business (B2B) and Business‐to‐Government (B2G). B2C e‐commerce is unlikely to be of much of much use in the near future in Bangladesh because of low per capita income, a weak infrastructural and legal environment, lack of trust of trust between business and consumers. B2C for cross border trade is also limited by the factors suggested for the domestic front. In addition, non‐availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance even for small value and quantity items will discourage B2C.
The B2B application already exists in the export sector of Bangladesh, especially in the Ready Made Garments (RMG) industry. RMG has the lion’s share of the of the export earnings in Bangladesh. The RMG sector has begun to use the Internet, and its dependence on ecommerce is likely to grow in the coming years. The Internet would enable them to seek information about potential buyers as well as raw material suppliers. Similarly the practice of posting of posting a website by individual producers has begun. However, if Bangladeshi producers are unable to accommodate
60 | P a g e
electronic transfer of payment and other facets of e‐commerce, the business opportunity will move on to countries that have developed such systems.
B2G e‐commerce is possible in Bangladesh, but on a limited scale at this stage. The government is a major buyer of goods and services from the private sector. Typically, the government procures goods and services by inviting tenders. The availability of the RFP and other relevant documents on‐line provides an alternate choice. Transactions involving information collection, obtaining various governmental forms, registering activities can also be conducted on‐line. This will reduce time costs, corruption and the necessity of going through lengthy bureaucratic procedures as well as increasing transparency.
5.2 The Existing Situation and Potential of E of E‐Commerce industry of Bangladesh of Bangladesh
Internet services are presently available in Bangladesh. Its usage for e‐commerce by the Bangladeshi producers to export as well as to access inputs will be dependent on their willingness and ability to use this medium as well as that of the of the buyers of final of final products and the sellers of intermediate of intermediate goods and services.
Business‐to‐Consumer (B2C) Consumer (B2C) Scenarios
Business‐to‐Consumer (B2C) e‐commerce is unlikely to be of much of much use in the foreseeable future in Bangladesh. At the domestic level, low per capita income, limited infrastructural facilities (e.g. low tele density), weak legal environment (inadequate contract laws, poor implementation and enforcement), and lack of trust of trust and confidence between business and consumers are going to hinder B2C. In the backdrop of such limitations, the low wage economy, with high levels of unemployment and underemployment, will continue to rely on the physical presence of buyers of buyers and sellers during a transaction in most cases. B2C for cross border trade is inhibited by the factors suggested for the domestic front. In addition, non‐availability of international credit cards, foreign currency remittance restrictions, delays and informal payments at customs clearance even for small value and quantity items will discourage B2C. 61 | P a g e
Business‐to‐Business (B2B) Scenarios
As mentioned before, the Business to Business (B2B) scenario prevails in Bangladesh to a very limited extent. The B2B scenario exists mostly in the export sector, especially in the Ready Made Garments (RMG) industry. RMG has the lion’s share of the of the export earnings in Bangladesh, accounting for 75 percent of total exports. The current value of annual exports of the RMG sector is close to $4.35 billion. The RMG sector has begun to use the Internet, and its dependence on e‐commerce is likely to grow significantly in the coming years.
E‐commerce through the Internet is poised to be an effective business tool for the RMG exporters. The Internet would enable them to seek information about potential buyers as well as raw material suppliers. Similarly the practice of posting of posting a website by individual producers has begun. Opening a website is a step towards the right direction. Also, the adherence of Bangladeshi firms to quality, labor and environmental standards (e.g. ISO 9000, QS 9000) can also be shared and highlighted through the Internet technology. Following the withdrawal of the quota system and the GSP in 2005, the RMG sector will inevitably become more competitive. As expected delivery time decreases, considering alternative payment mechanisms becomes imperative.
The effective use of e‐commerce both for placing orders, purchasing raw materials and for quick and efficient payment would be the necessary ingredients for any country to enhance its ability to deliver early. Necessary infrastructural, legal and regulatory reforms will be essential to avail of the of the ecommerce technology in dealing with the international market place. Access to the market depends on the buyers and sellers’ willingness and ability to market through mediums that are mutually cost effective, reliable, and replicable. A foreign buyer, say in the readymade garments sector, expresses a preference to use e‐commerce for its purchases, thereby circumventing the Letter of Credit of Credit (L/C) mechanism to place an order.
62 | P a g e
5.3 Industry SWOT Analysis
Strength: •
•
•
•
•
•
•
•
•
24 hrs a day, 7 days in a week business in operation. Customers can do their shopping or others comfortably by sitting at office, home or in bedroom. The products reach to customers directly from the producers at a lower price than the market value. It is fast and effective. By visiting different websites one can within a short time can compare the price and buy on the best deal. Advertising product is cost effective for SME in compare with conventional offline system. Low staff cost. staff cost. Financial transaction through electronic fund transfer is very fast and can be done from any part of the of the world. Can be started with very low investment.
Weakness: •
There is no direct interaction between the customer and the seller. Therefore, the scope of convincing of convincing the customer does not exist.
•
Many times, we prefer to buy the product by reaching personally to the market rather than purchasing through Internet.
•
Sometimes, transportation cost increases the product cost.
63 | P a g e
•
No. of potential customers who can buy through Internet is still not enough. Small businesses can appear to be large companies on the Internet. Customers have no way of gauge the business’ actual level of man power and resources (For example, ajkerdeal.com). This leads to customers that demand the same level of service from business with 1‐2 employees as they would from industry giants like akhoni.com.
Opportunities: •
Everyday number of Internet of Internet users is increasing in a rapid way.
•
People of tomorrow of tomorrow will feel more comfortable to buy products through Internet only.
•
Big companies are already entering in this field so; they are making people habitual and confident about marketing through Internet at the cost of the of the companies.
•
Adding an e‐commerce component to a business allows the company to sell their products to a global market.
Threats: •
Dishonest persons entering in this field which damage the confidence and faith of common people on marketing through Internet.
•
Future innovation of different business firms could have an adverse effect on e‐ commerce businesses.
•
Some consumers prefer not to give any personal information out over the Internet because of fears that the information will be misused, lead to spam email or identity fraud
•
Future Government legislation (imposing more tax) would have an adverse effect on e commerce industry.
64 | P a g e
5.4 Porter’s Five Force Model of E of E‐Commerce Industry
Porters five forces model can be applied in the e commerce arena of Bangladesh. of Bangladesh.
A. Bargaining Power of Suppliers of Suppliers (Low)
Human resource is the main supplier in the e‐commerce market. They need a website to be created by someone or buy a solution package. Therefore, in this technological age, the bargaining power of these suppliers, i.e. programmers, are very low because they can outsource to all around the world. The other supplier to the e‐commerce market is the host who provides the space for the websites on the Internet. There are thousands of hosts who provide the spaces, and they are not concentrated, therefore, each website do not have to stick with the same host. Consequently, hosts normally charge a competitive price.
65 | P a g e
B. Bargaining Power of Buyers of Buyers (Moderate)
In the Internet market, the environment would be the same as the brick and motor stores. However, the customers have high bargaining power because they can choose any shop on the Internet worldwide. Also, they can substitute the place for transaction to the offline market as well. For example, in the websites like Clickbd and Cellbazaar, often the buyer exert their bargaining power.
C. Threat of New of New Entrants (High)
Since the e‐commerce market has no entry barriers from the government or technological perspective, it is very attractive for other firms to enter into this market. Also, the nature of business itself does itself does not have any cost, so it is hard to achieve or realize the economies of scale. of scale. As we know, the technology is improving every second or even minute, which means people can create a website in five minutes. Therefore, the threat of new of new entrants is very high.
D. Threat of Substitutes of Substitutes (Low)
There is no technology that can substitute the Internet so far in the market. Even, analog signal that use to send the television signal or radio signal are not the main threat. The main substitute that exists is the brick and motor store, which they change or move their place to be on the Internet. Therefore, the e‐commerce industry has low threat of substitutions. of substitutions.
E. Rivalry among Firms (Low)
The rivalry intensity in Bangladesh can be classified as very low, as we can see that there are only few firms that are generating revenues, there are many opportunities due to the few competitors in the market. The amount of the firms is still insufficient when we compare with the population or the Internet users in Thailand. Also, when we think about the e‐commerce market, we have to think more globally because the consumers are everywhere all around the world. Since there is not much competitions in the strategic group (one is leader and others are follower; like Clickbd, Akhoni.com, Bdjobs are the market leader) , the rivalry among firms are still low.
66 | P a g e
5.5 Major Constraints to E‐Commerce Industry in Bangladesh
This paper highlights various constraints to commerce and trade in general and ecommerce in particular. Many of these constraints are endemic across the business sector and demands major reforms through strong political commitment and an ability to implement policy changes. A list of specific constraints to e‐commerce that policy makers can address in the short and medium term is summarized below.
•
Too few telephone connections.
•
Absence of a of a strong independent regulatory body for the telecommunication sector.
•
Absence of encryption of encryption law that precludes acceptance of digital of digital signature.
•
Strong dependence of Letter of Letter of Credit of Credit to conduct international transactions.
•
Non‐issuance of international of international credit cards for cross border transactions.
•
Interest rate ceiling on export loans.
67 | P a g e
6. Recommendations •
Bangladesh Telecommunications Regulatory Commission (BTRC) should be established independent of the of the government control.
•
Voice over Internet Protocol (VoIP) and private international gateway for voice and data should be allowed.
•
The number of telephone lines should be increased to encourage private providers to come into this sector.
•
Greater competition among the Internet Service Providers (ISPs) should be promoted and new ISPs should be encouraged to come into business.
•
To improve banking mechanism, Bangladesh government should compel the banking sectors to automate their operation and going online by a specific period. The control of foreign exchange should be liberalized gradually, and easier issuance of International Credit Cards should be allowed, banks should take effective steps here.
•
Political commitment to improve governance and institutional strength is essential for successful application of e of e‐commerce.
•
Business associations and organizations should be made aware of the benefits of e commerce. BGMEA can play a significant role in this.
The control of foreign of foreign exchange should be liberalized gradually, and issuance of International of International Credit Cards should be allowed.
68 | P a g e
7. Conclusion Despite being a poor country, selected segments of the Bangladeshi business community has embraced technology with reasonable success. The Facsimile in the 1980’s and mobile telephones in the 1990’s popularized modern technology in the mass market. Personal computers and the Internet are also emerging as day‐to‐day business tools. These positive indicators are favoring the prospects of e of e‐commerce in Bangladesh.
Bangladesh has been stepping into the arena of e‐commerce. A key reason why e‐commerce, especially the business‐to‐business segment, is growing so quickly is its significant impact on costs associated with inventories, sales execution, procurement, intangibles like banking, and distribution costs.
Although, compared to the modern world, the e commerce industry of Bangladesh is still a stab, the future is bright. E‐commerce in Bangladesh has the potential to be the application that ushers in the large productivity gains. Achieving these gains is therefore contingent on a number of factors, of factors, including access to e‐commerce systems and the needed skills.
So, we hope that by the effective steps taken by government and third party sources, the people will be skilled enough to achieve the knowhow of e business and the firms should be given enough privileges to flourish even more. The e commerce industry of Bangladesh has to go a long way in future.
69 | P a g e
8. Reference Electronic References
1. Benefits
Of
Ecommerce:
(http://www.ecommerceeducation.com/benefits‐of ‐
ecommerce.asp) 2. E commerce type: http://www.alt‐team.com/e‐commerce‐types.html 3. The Five Different Types of E of E‐Commerce: (http://www.designzzz.com/the‐five‐different‐ types‐of ‐e‐commerce/) 4. E commerce: (http://www.networksolutions.com (http://www.networksolutions.com/education/what /education/what‐is‐ecommerce/) 5. The role of E of E commerce: (http://www.wikinvest.com/concept/E‐Commerce) 6. Press Release". TechCrunch: (http://techcrunch.com/2011/03/28/ebay‐to‐acquire‐gsi‐ commerce‐for‐2‐4‐billion//) 7. Online
Today,
The
Electronic
Mall".
CIS/CompuServe
nostalgia:
(http://www.gsbrown.org/compuserve/electronic‐mall‐1984‐04/)
Text References:
1. Janice Reynolds , The Complete E‐Commerce Book, Second Edition CMP; 2 edition (April 13, 2004) 2. Diane Wang: Rounding up the "Ant" Heroes". Sino Foreign Management. Retrieved 2011‐09‐03 3. Najmul Hossain, E‐Commerce in Bangladesh: Status, Potential and Constraints, December 2000 4. McConnell International, WITSA, 2000. Risk E Risk E ‐Business: Seizing the Opportunity of Opportunity of Global Global E ‐Readiness
70 | P a g e
