MAN-30055 International Business
Integrative Case 8
Wikimart: Building a Russian Version of Amazon (pp. 436-439)
Goh Peg Gie
Lim Lee Pang
Ng Lay Yen
Let’s do an online trade site that any stores can display their products in without spending money on advertisement until they sell them.
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
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/>.
• 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
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
2. Offer COD (cash on delivery) service
The above chart showed the percentage of cash on delivery, 59% for 2009 and 58% for
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