Wikimart: Building a Russian Version of Amazon
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 stop supplier to enter
Low
Yandex, 2014. Success stories. Available at : <https://direct.yandex.com/story/wikimart/>
Bargaining Power of Customers
Product is undifferentiated
Switching is relatively simple
Customers are price-sensitive
HIGH
7
Threat of New Entrants high initial investments and fixed costs
Supplier loyal to existing retailer-trust.
Cost advantage
Low
Threat of Substitutes
Groupon and KupiVip- Discount based Cheaper.
Switching costs- low (loyalty point)
No direct service to customer
HIGH
9
Competitive Rivalry between Existing
Players
Many players about the same size
Players have similar strategies. product dedifferentiate-price competition.
Large scale of loyal supplier.
HIGH
2. Why was Wikimart able to secure financing during its early stage of growth? Put differently, if you were an angel investor or private equity investor, what special qualities of Wikimart would attract you?
Four Aspects from the Entrepreneurial Strategies
1. Growth
Survived based on organic traffic for the first year of operation.
Search optimization - traffic grew by 20% per week and received additional investments and continued to develop.
Was able to identify the resources in hand and outsource sector which
Wikimart was
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 stop supplier to enter
Low
Yandex, 2014. Success stories. Available at : <https://direct.yandex.com/story/wikimart/>
Bargaining Power of Customers
Product is undifferentiated
Switching is relatively simple
Customers are price-sensitive
HIGH
7
Threat of New Entrants high initial investments and fixed costs
Supplier loyal to existing retailer-trust.
Cost advantage
Low
Threat of Substitutes
Groupon and KupiVip- Discount based Cheaper.
Switching costs- low (loyalty point)
No direct service to customer
HIGH
9
Competitive Rivalry between Existing
Players
Many players about the same size
Players have similar strategies. product dedifferentiate-price competition.
Large scale of loyal supplier.
HIGH
2. Why was Wikimart able to secure financing during its early stage of growth? Put differently, if you were an angel investor or private equity investor, what special qualities of Wikimart would attract you?
Four Aspects from the Entrepreneurial Strategies
1. Growth
Survived based on organic traffic for the first year of operation.
Search optimization - traffic grew by 20% per week and received additional investments and continued to develop.
Was able to identify the resources in hand and outsource sector which
Wikimart was
References: • East-West Digital News, 2015: e-commerce in Russia. Yandex, 2013. https://money.yandex.ru/i/forms/ecommercejan2013.pdf Wikimart and the Russian Ecommerce highlights (2014) Interfax (2014) <http://interfax.com/newsinf.asp?id=485930>. Russian Search Marketing (2014) <http://russiansearchmarketing.com/yandexecommerce-online-aggregator-case-study-wikimart/>. EWDN (2014) <http://www.ewdn.com/2014/05/16/wikimart-co-founder-maximfaldin-western-investors-are-still-in-the-game-for-russian-e-commerce/>.