Wikimart: Building a Russian Version of Amazon

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MAN-30055 International Business Strategies Integrative Case 8 Wikimart: Building a Russian Version of Amazon (pp. 436-439) Prepared by: Goh Peg Gie Lim Lee Pang Ng Lay Yen 14021369 14021371 14021381 Company Profile Let’s do an online trade site that any stores can display their products in without spending money on advertisement until they sell them. Maxim Faldin Kamil Kurmakaev In 2008…. 1. From an industry-based view, given the fragmented, rapidly growing nature of online retail space in the Russian-speaking world, how would you characterize the competition in this industry? Porter 's five forces Bargaining power of supplier Many supplier in the industry (Yandex,2014) Many substitute of products No switching cost No barrier…show more content…
Yes Technology- 260 IT employee work as team Source: Russian Search Marketing (2014) <http://russiansearchmarketing.com/yandex-ecommerceonline-aggregator-case-study-wikimart/>. However, • When compare to Ozon, Wikimart is less competitive. • Ozon is still the dominant player for that market as it has more competitive advantages. • Morgan Stanley 's reports (up to 2013) have been proving that Ozon.ru & several other ecommerce providers are having larger market share than Wikimart. • For example, Ozon’s net sales was double of Wikimart’s net sale. Source: Yandex (2013) <https://money.yandex.ru/i/forms/ecommercejan2013.pdf>. Net sales & Average monthly traffic 342mil Ozon Wikimart 8800mil 4100mil 150mil East-West Digital News: e-commerce in Russia 1. Customer viewed Ozon as favourite place to buy online; loyalty and trust. • According Morgan Stanley research, Ozon showed the highest penetration among online shoppers (41% of respondents purchased on the site within the past 12 months), followed by Avito (21%), and Biglion (16%). 2. Offer COD (cash on delivery) service • • • The above chart showed the percentage of cash on delivery, 59% for 2009 and 58% for 2012. The percentage only decreased 1% within 3 years, which mean Russian consumer preferred cash on delivery as the primary method of payment for online shopping. Relatively the access to credit cards from 2009 to 2012, increased 12% from 20%-32%. despite the percentage showed

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