BAHRIA UNIVERSITY (KARACHI CAMPUS)

Midterm Assessment Assignment Spring 2020

Course Title: E-Commerce Course Code: MIS 460
Class:BBA-6 (A) Morning
Course Instructor: Farooq Riaz
Submission:31st May 2020 Max Marks: 15
Student’s Name: Muhammad.Hammad Reg. No: 02-111172-
147

Assignment Guidelines by the Teacher(s)

 Assignment Submission: Computer Typed /

 Answer all questions in the given sequence.
 Identical and plagiarized answers will be marked zero!
 Generic answers are not acceptable and will be marked zero!

DISCUSSION QUESTIONS

Answer the following questions concisely and precisely within the spaces provided.
(1 * 03 = 03 Marks)

A. Facebook’s success can be credited to Web 2.0 technologies, network effects and
their Application Programming Interfaces (APIs). However as recent events have
proven that these three are also a ‘double-edged sword’ for Facebook. Discuss.

Web2.0
Web 2.0 is the expression use to describe of websites and applications that allow anyone
to create and share online facts and details. Web application that creates the content by
individual origin.

Network effect.
Facebook have created many business opportunities through its huge network. It provides
all resource for marketing while these benefits have disadvantage there is no durability
like some time other user can disrespect your content.

APIs
It provides public information to applications relate to public activities but many users
complain about privacy issues.

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B. Tech giants focus on creating digital ecosystems with high switching costs for
users. Apple and Amazon have used supplier-dependent models in the music and
books industry respectively to do the same for users. How have they achieved the
same in the case of musicians and authors?

If the authors and musician work with these big names, they will have the following
advantages:

 It will cut the flow of intermediaries like sponsors.

 They will earn larger profits after spending low commissions.
 It will provide the best suitable and non-negotiable price of their work.
 It will give a large platform without consuming time for marketing and searching.

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C. Unlike Google Search that uses data collected about users to give personalized organic
search results and user interest-based ads, DuckDuckGo is unable to provide personalized
organic results or ads according to user interests since it doesn’t collect user data. Discuss
the pros and cons of both approaches.

Pros of Duckduckgo

1) This search engine provides privacy to their users of outline searches.

2) No search advertising is made of your results.

Cons of DuckDuckGo.

1) Less features like MS-office, map etc.

2) Less convenient for checking the past searches.

Pros of Google

1) It provides the whole Ms-office platform to make documents.

2) It also provides social and business interaction through email / account.

Cons of Google

1) It shares your data to other users for tracking their customers and their internets.

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Answer the following questions after carefully reading and analyzing the case
studies mentioned. Use examples and diagrams wherever appropriate.

Question 1 – Online Content & Media

Answer all parts of Question 1 after reading and analyzing the case studies:

 Netflix Inc. - The Mouse Strikes Back

 Disney and 21st Century Fox - Reshaping Disney's Strategy for the Digital Age

These cases are accessible here:

https://www.dropbox.com/sh/6uxbes7lhhnurkk/AADM_9RnOcTxtGvCE5S5Cdoya?dl=0

a) Why does it make sense for Disney to launch its own streaming service, Disney+?
(1 Mark)

b) Discuss what Disney+ should do in each of the following cases: (1 Mark)

i. Develop original content or acquire content
ii. Keep content exclusive or license it to other services

c) How can Netflix compete with Disney+? What are its sources of sustainable
competitive advantages? (1 Mark)

d) What are network effects in Netflix’s business model? How can they be leveraged
to improve its value proposition? (1 Mark)

Part a

Truly, its well to dispatch its own administration on the grounds that from last not many a
years ago with the appearance of streaming channels like (Netflix, amazon) has declined
its digital television membership. These gushing channels are accessible on all gadgets
and client can get to anyplace, whenever which is increasingly advantageous rather than
television membership. Proposals spilling administration channel give season all scenes,
you don't need to sit tight for next scene.

Part b

i. Disney+ ought to create unique substance to contend. As Netflix is driving the

market as a result of its unique substance and even Disney+ was making unique
contributions in 2016 which made them media giant

ii. Disney+ should keep the substance restrictive with membership of having multi
month free preliminary which will expand income and attention to their clients.

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Part c

To compete with Disney+, the Netflix should only deal with the original content as
content is the king and people prefer fresh content over the other streaming, which is
done through the data of viewers and watching list of subscribers. In 2017, they spent 6
billion for original content. Even in this covid-19 breakdown, it has acquired a large
number of users to spend their quarantine by providing original content.

Part d

Indirect Network Effect: Netflix network effects is based on subscription. And

subscription is based on content quality the more the original content the more is the
subscription/users.

Direct Network Effect: Through social media and friends circle, there is a huge impact
on network effect. As the product allows subscribers to know what their friends are
watching and also what trending now to be watched.

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Question 2 – Online Retailing
Answer all parts of Question 2 after reading and analyzing the case studies:

 BigBasket.com - Redefining the Business Model

 Grab.in - Enabling Hyperlocal

These cases are accessible here:

https://www.dropbox.com/sh/i8ine40t9ljsgze/AADhRnmIwZkaAwVceSwA1vQ3a?dl=0

a) Using BigBasket.com and Grab.in as examples discuss the strengths and

weaknesses of both inventory-based and hyperlocal business online grocery
retailing (2 Marks)

b) How should Grab.in grow? Discuss the pros and cons of each of the possible
ways they can grow: (1 Mark)

i. Go denser by covering more businesses within existing cities

ii. Go broader by going into more towns and cities

c) Should BigBasket.com continue with the inventory-based model? Justify your

choice with reasons. (1 Mark)

Part a

Strengths of Big Basket:

 It has wide range of products on which they offer huge discounts to the customer.
In short, a cost effective option for customers.

 It helps its customers through convenience of providing on time delivery at the

door step.

Weakness of Big Basket:

 It gives 24 hours waiting to its customers which is less preferable after having
retailers in their area.

 It offers home delivery to its customers after achieving it order price limit. Which
makes them lose a customer.
.

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Strengths of Grab in.

 Benefit of having little operational cost as it is based on the driver service and
customer satisfaction.

 The drivers have the access of choosing a part time job.

Weakness of Grab In.

 Very poor management of records of drivers and the services provided by them to
the customers.

 Very poor feedback from drivers and government.

Part b

i. Operating within the existing cities they work with benefits of having the full-
known demand analysis, buying power, legal formalities, and extend the sources
of income. Whereas they even have the disadvantages of getting restricted market,
limited awareness, and stagnant growth.

ii. If they're going to experiencing a lot of town and cities they're going to relish the
advantages of attracting new customers with completely different mindset and
beliefs, discounting opportunities from suppliers, increasing market share. On the
opposite hand, it'll consequences of large amount of investment, locus of control,
professional team.

Part c

Inventory based model.

Yes, they should use the inventory based model as the main competitive every
grocery store is to have all products available when there is a need to your customers.
Because one rejection affects the customer’s loyalty for next time.

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 iii. Question 3 – Online Marketplaces / Multisided Platforms
Answer all parts of Question 3 after reading and analyzing the case studies:

 Flipkart (A) - Transitioning to a Marketplace Model

 The Entrepreneur's Dilemma - Alibaba Tencent and Amazon as e-Commerce
Platforms

These cases are accessible here:

https://www.dropbox.com/sh/wvhq8oueio4nmzu/AABMh1gXMdEE_YFupXWAZRzya?
dl=0

a) Is Flipkart’s decision to become marketplace the right decision? Discuss.

(1 Mark)

b) Which services provided by TMall were the most crucial for Karz? How did the
change in policies create challenges for Karz? (1 Mark)

c) If you were the manager of Karz would you move to other online platforms? How
would you choose the right e-commerce platform for Karz? (2 Marks)

Part a

Yes, it was the decision in the following way.

1) They do have to deal with the customer. The deal will be done between the
buyer and the seller.

2) Through online shopping, they increased their brand awareness which resulted
in a large amount of visitors.

Part b

Services by T-Mall for Karz.

1) Marketing and promotion

2) Gold coin
3) Data tracer for searched keywords.
4) Helps in providing after sales service.

Challenges for karz.

If the T-Mall made changes in their policies due to competition then karz will
have major effect of not obtaining special benefits, having financial difficulty etc.
which will result in crises even hard for surviving.

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Part c
Choosing shop.qq on basis of following reasons:
 On Shop.QQ 741.7 million registered users, among whom 300 million
were active users.
 In 2011 Shop.QQ enjoyed the traffic flow of about 15.78 million per day.
Shop.QQ continuously made progress by providing facilities to store
sellers, 30 tools for firm’s infrastructure outbound logistics, marketing and
sales and customer management.

 When T-Mall announce new policy Shop.QQ sees an opportunity and

promise to offer highly valuable marketing resources to registered stores.

 Shop.QQ provide attractive bonus to stores base on their business

performance and service quality.

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