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IMPROVEMENT
JABONG.COM
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Table of Contents
1.
Introduction:................................................................................................. 2
1.1 Industry Analysis:........................................................................................... 2
1.1.1 Porters Five Forces analysis on the e-Retail (e-tail) Industry for Jabong.com:......4
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1. Introduction:
1.1 Industry Analysis:
The technology and telecom boom initiated by Late Prime Minister Rajeev Gandhi and
promoted by the successive governments at the center has placed our country at the edge of
a technological revolution. The salient features of the e-commerce business are as follows:
The Indian e-commerce as a sector is gearing up for a big push in the near future. Growing
at CAGR 55%, it is turning out to be a major attraction for many entrepreneurs as well as
established business house.
The enablers of such an extraordinary growth are detailed as follows:
Internet Penetration : With increasing disposable income and reduced cost of internet
access through low cost internet access and economically priced computers and internet
enabled hand held devices India witnessed 137 Million users accessing internet in 2012
which grew to around 200 mn in 2013-2014 expected to hit 300million users by 2015.
Though the number in itself is impressive, what makes the Indian story worth investing in
is that the 137mn users is just 9% of the total Indian population of 1.25 Billion people and
only 17% of the 800mn adults in the country.
Disposable Income: Being the third largest economy in the world at more than $ 5 Trillion
does have a trickle-down effect on the PPP per Capita. Expected to grow at 5.1% annually,
the increase in income is enabling the consumers to engage in non-discretionary
purchasing. As per the report on Indian e-commerce segment by Ernst & Young, this
growth is expected to sustain till at least 2025.
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What encourages e-commerces cause in India apart from the aforementioned statistics is
Figure 2 : e-commerce in India An Overview
the rise of many successful e-commerce ventures starting with Shaadi.com and the Indian
Railways online ticket reservation portal IRCTC.co.in with the IRCTC website always
overloaded with excess number of users accessing the website during peak hours.
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Keeping these indicators in mind, Jabong.com was conceptualized and launched. The
online venture started from scratch with a steep learning curve during which the managers
sought out other avenues of generating revenues through partner marketplaces where
Jabong.com sold its products.
1.1.1 Porters Five Forces analysis on the e-Retail (e-tail) Industry for
Jabong.com:
The Porters five forces model was proposed by Michael Porter in the year 1985 to describe
the forces that affect profitability of a business and the margin that can be gained. The
stronger the forces the lower the margins, hence profitability.
The five forces are:
Competition
Suppliers bargain power
Customers Bargain Power
Threat of a new entrant.
Threat of substitutes
Each of the forces will be analyzed for the e-tailing segment in Indian retail market.
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Competition:
The threat from competition is very high for Jabong.com. Initially though there were not
many e-tailing stores selling electrical appliances and accessories, lately we have seen well
established e-tailers like Flipkart and Amazon (recently forayed into Indian market) also
have started selling into the same category as Jabong.com aspires to lead in the future.
This threat needs to be contained.
Suppliers bargain power:
The saying Customer is the King is no longer a clich when the e-commerce industry is
being referred to. Due to the high level of information dissemination through search
engines like Google.com, if the customer does not like the product and / or prices in a
particular e-tailing website, they simply need to move on to another website and try their
products.
Thus the e-tailing merchants try to retain the customers with the widest variety of products
at the best possible prices.
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Threat of substitutes:
Substitutes can be categorized as any of the following two:
Moving to other retail formats like Brick & Mortar or Brick & Click: Though customers have
become used to purchasing things online, though there is still some reservation in buying big ticket
items like large television panels, ACs etc... This is where the B&M stores are preferred choice of
the customers.
Non-Conventional formats like the Brick & Click formats as professed by Dell wherein the
customer experiences the product in a Dell Store and orders the same online are also present in the
market.
It has been observed that the customers trust level has increased as compared to the past. Now
iPhones and small panels are being ordered by the customers which indicates reduced threat from
substitute formats.
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2.1 Introduction:
The reverse logistics management is the part of the Jabong.com operations that handle
customer initiated communications regarding pick up of the delivered product from the
customer location. The pickup can be initiated because of multiple reasons like.
2.2 Participants:
Operations Team:
Customer Service Team:
Warehouse Team:
Sales & Merchandising Team (S&M Team):
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Conclusion
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References
http://www.visual-paradigm.com/