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Chaldal Case Study: Implementation of MIS

Article  in  SSRN Electronic Journal · August 2022

DOI: 10.2139/ssrn.4209363

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Chaldal
A comprehensive case of a company that is pushing the boundaries to develop new
trends, capitalizing on the new online eco-system of Bangladesh

Author: Md. Mahbubur Rahman

Undergraduate Student
Department of Organization Strategy & Leadership
University of Dhaka

ABSTRACT

As one of the pioneers in Bangladesh's online food retail industry, Chaldal altered the perception
of what is achievable via innovation and technology. The company complicated its operations by
constructing its own infrastructure for inventory management and partnering with small retailers.
In contrast to standard eCommerce platforms that provide identical services globally, Chaldal
transformed the supply chain of Agri-based products to maximise efficiencies. Besides, in order
to optimize the value of grocery shopping for clients, the company reduced both time and cost.
The supply chain and operational assessment indicate that Chaldal has integrated MIS into its
core. From order placement through payment, and product acquisition to delivery, Chaldal's
proprietary software enabled it to achieve an optimum degree of client satisfaction.

Keywords Chaldal, MIS, TAM, Online Food Retail Industry, Supply Chain
Management, operation management

Word and page count 5108 Words & 20 Pages (Introduction to Conclusion)

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LIST OF FIGURES

Figure 1: GDP of Bangladesh Source: weform.org (2019) ............................................................ 5

Figure 2: Internet Users 2 ............................................................................................................... 6
Figure 3: Mobile Subscriber Dynamics .......................................................................................... 6
Figure 4: Internet Users .................................................................................................................. 6
Figure 5: Chaldal Supply chain....................................................................................................... 9
Figure 6: Departments of Chaldal ................................................................................................. 12
Figure 7: Components of Chaldal's Business ............................................................................... 12

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TABLE OF CONTENTS

Introduction ..................................................................................................................................... 1

About Chaldal.com ......................................................................................................................... 4

Macro-environmental Factors ......................................................................................................... 5

Political Factors .......................................................................................................................... 5

Economic Factors........................................................................................................................ 5

Social Factors .............................................................................................................................. 6

Technological Factors ................................................................................................................. 6

Legal and Environmental Factors ............................................................................................... 7

Barriers to technology-based business (E-commerce) .................................................................... 8

Common Barriers ........................................................................................................................ 8

Technological Barriers ................................................................................................................ 8

The Supply chain and MIS ............................................................................................................. 9

The Operation and ICT ................................................................................................................. 11

Challenges regarding MIS implementation (TAM Model) .......................................................... 14

Perceived ease of use ................................................................................................................ 14

Perceive Usefulness .................................................................................................................. 14

Intention to use .......................................................................................................................... 14

Overcoming the challenges ....................................................................................................... 15

Industry Competition .................................................................................................................... 16

Competition Strategy (Generic Framework) ............................................................................ 17

Strategic Contribution of MIS ...................................................................................................... 19

Conclusion .................................................................................................................................... 20

References ..................................................................................................................................... 21

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INTRODUCTION

According to multiple start-up evaluator organizations, Chaldal.com is one of the top ten
promising new ventures (started after 2010). Chaldal is a complex organization that maintains a
completely different business model from the traditional eCommerce platforms (i.e., Amazon
and Daraz). To facilitate the business operation of the organization and to increase overall
efficiencies, Chaldal developed a suit of businesses under its umbrella. For example, it has the
Chaldal Vegetable Network, with the help of improved connectivity throughout the country,
made the firms more accessible to the retailers and vice versa (Gazi, 2016; Islam, 2022; Rabbani,
2019). However, this improved connectivity, enabled especially through the internet, was the
sole reason for the conception of the business and the backbone of it. Due to its ability to
integrate technology and innovation into daily life, Chaldal has already been acknowledged as
one of the most innovative organizations in Bangladesh (Chowdhury et al., 2022). On the
surface, Chaldal utilizes internet technologies to serve the customers and connect with different
stakeholders. Beneath the simple apps and websites, Chaldal has a robust Management
Information System (MIS) that enabled it to grow rapidly and capture a sustainable market
position. This report primarily focuses on compiling different aspects of MIS that Chaldal has to
incorporate. Both academic and business lenses have been applied to the existing literature to
gain a more in-depth understanding of the critical relation between MIS and the Business
Environment. Moreover, the TAM model has been applied to identify different challenges
associated with the adoption of new technologies within the organization and provide
technological connectivity to different stakeholders.

A management information system (MIS) is a computerised database of financial data that is

organised and geared to deliver periodic reporting on a company's activities (Alavi & Carlson,
1992). The bulk of the time, the system generates basic reports on subjects that are rather
narrowly focused. MIS provides managers with feedback on the performance of their teams,
allowing upper management to exert more effective control over the organisation. MIS compares
"actual" data to "planned" data as well as results from the prior year to obtain an accurate
depiction of how well goals are being met (Majchrzak & Markus, 2012). The MIS is used to
collect information on the departments and functions of the organisation. Some data are collected

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automatically from the computerised checkout counters, while others are entered manually at
regular intervals. Other reports can be generated using the built-in query languages, whereas
regular reports can be preprogrammed and run on a schedule or upon request. Other reports,
however, are only accessible via the query languages embedded into the system. Personal
computers at each manager's workstation that are connected via a local area network (LAN) to
MIS enable managers to monitor progress through the use of the system's display capabilities
(Bernasconi-Osterwalder & Mann, 2014). There are numerous creative ways to show statistics
about the recent performance of business operations. To manage its operation more efficiently
and effectively, Chaldal has implemented MIS within its core right from the beginning of its
formation.

According to the Technology Acceptance Model (TAM), an individual's inclination to utilise

novel tools is influenced by the perceived ease of use and the perceived utility of a new piece of
technology (Chtourou & Souiden, 2010). Although the TAM has been criticised, it remains a
useful overall framework and is consistent with the findings of various research examining the
elements that influence the likelihood of older people to accept new technology (Hsu & Chang,
2013). Chaldal, while innovating ways to deliver products and increase the supply chain
efficiencies, pushed several new technologies to the food retail and agricultural sectors of
Bangladesh. The challenges that have arisen for the organization primarily were primarily routed
with the issues associated with technology adoption. Therefore, using this model allowed the
author of this report to systematically format and present the theoretical findings (Muchran &
Ahmar, 2019).

This report has been back by secondary research. Multiple case studies, news reports and
interviews with the founders have been published. These public data have been utilized to
compile different aspects of MIS and the business model of Chaldal.

As a growing economy, the importance of businesses like Chaldal is undoubtedly significant for
Bangladesh. Bangladesh while preparing for graduation as a developing county, also trying to
change its primary focus from a production-based economy to a service-based economy.
Historically, this type of transaction is also common. Moreover, to sustain and support the
development of a nation, this transaction is crucial. Studying businesses like Chaldal will allow
academicians and business management-related professionals to integrate and understand

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synchronized and self-sustaining MIS systems for greater effectiveness and efficiencies. The
application of MIS in countries like Bangladesh is huge and this report is aiming at providing a
comprehensive picture of a successful business that capitalized on MIS and utilized it as a
primary source of market leverage and the building block of competitive advantage. In the
following section, the objective of this report has been presented.

The objectives of the report are to understand

1. the factors underpinned the development of the business concept behind Chaldal
2. the environmental factors and trends going against or in favour of the success.
3. the technological barriers behind the implementation of efficiencies in the company
4. the implementations of ICT in the supply chain of Chaldal
5. how does the company overcome or is overcoming the challenges imposed by
technological limitations
6. the reason why the company is successful
7. the way Chaldal is competing with the current and potential competitors
8. the strategic contributions of ICT in Chaldal

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ABOUT CHALDAL.COM

Chaldal.com is a digital firm with its headquarters in Dhaka, Bangladesh that provides a grocery
delivery service. Customers who opt to buy from the comfort of their own homes through the
internet will enjoy a comparable shopping experience to that of traditional department stores
with physical locations. Chaldal began its journey in 2013 with the motto "Save Money, Save
Time" and the intention of relieving customers of the burden of searching for the right products
among a wide selection of merchants. One of the company's key goals was to simplify the
purchasing process for end-users. The objective of Chaldal was to reduce the amount of time and
money his consumers spent on food shopping. Chaldal uses words such as "Let us take care of
your groceries while you shop for Noboborsho" as part of their sales and marketing strategy. The
more than 4000 unique goods in the Chaldal catalogue represent the efforts of more than 500
different manufacturers. This business, which manages six warehouses in the Dhaka region, has
received funding from Y Combinator. By utilising a cloud-hosted warehouse and order
fulfilment system, clients may monitor what is currently available at any given time. Typically,
customers will place their orders one to two days before the desired delivery date. However,
there is now an option for a shipping method that can complete delivery within a few hours after
a purchase is made. This method is known as "one-day shipping." The option was not available
until relatively recently (Gazi, 2016; Islam, 2022). Chaldal's objective is to assure the availability
of a high-quality supply of diverse agri-products and daily necessities. The products should be of
an extraordinarily high grade. It believes that costs must not be prohibitive for the majority of
individuals. The delivery service is anticipated to be among the fastest in the nation. The comfort
of the clients must be a top priority. The objective of Chaldal is to assure the availability of a
variety of high-quality foods. The products should be of an extraordinarily high grade. Costs
must not be prohibitive for the majority of individuals. The delivery service is anticipated to be
among the fastest in the nation. The convenience of the customers must be ensured. Chaldal
follows a "Business to Consumer" business model. For it, both a website and an app are
available. A user of the website or app must first register or login before selecting items from the
several categories. The user receives a phone call from Chaldal to confirm previously provided
information about the purchase. Cash on delivery, cashier's checks, debit cards, and credit cards
are all acceptable methods of payment (Islam, 2022; Rabbani, 2019).

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MACRO-ENVIRONMENTAL FACTORS

Bangladesh as a poor and underdeveloped country witnessed most of its positive changes after
the commencement of the twenty-first century. Since 2000, the horizon of businesses and
possibilities has expanded dramatically. In the following section, the PESTLE framework has
been used to summarize the changes that occurred during the period 2000 to 2022 in Bangladesh
that led businesses like Chaldal.com to form, grow, and capture a market position.

POLITICAL FACTORS

Ignoring the first decile of the twenty-first century, the political context of Bangladesh is mostly
stable. The lack of changes in the ruling people allowed the businesses to nurture non-volatility
and growth. The stable political environment also allowed the economy to grow at a steady pace.
Besides, being a father of all the other environmental factors, the politics of Bangladesh played
an important role to shape the spending and income pattern of the population (Khondoker, 2022;
Sayed, 2022).

ECONOMIC FACTORS

Figure 1: GDP of Bangladesh Source: weform.org (2019)

According to a report published by Weform.org in 2019, from 2007 to 2017, the economic
growth rate of Bangladesh was on average 6 per cent which is higher than almost all of the

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developing countries including India, Pakistan, and Sri Lanka. The economic expansions mostly
fuelled the enhancement of the standard of living of the people of Bangladesh. The economic
growth made the life of people busies and engaged more people in economic activities. Hence,
the utility of the added convenience provided by Chaldal.com got a higher rate of acceptance and
is perceived as the most logical choice for grocery and commodity shopping (Chowdhury et al.,
2022; Islam, 2022).

SOCIAL FACTORS

Due to the growth in the economy, and increased income level, the standard of living of the
people of Bangladesh has increased dramatically from the year 2000 to 2022. This enhancement
in the standard of living pushed the acceptance of eCommerce platforms that provided added
utility in the shopping experience. Besides, during this time, more families have become nuclear
having all the adult people in the family working outside. This shift in family and work-life
structure has also opened a market gap for organizations like Chaldal (Rafa, 2021; Soroni, Bari,
& Khan, 2021).

TECHNOLOGICAL FACTORS

Figure 4: Internet Users

Figure 2: Internet Users 2

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Figure 3: Mobile Subscriber Dynamics

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Bangladesh, since the early twenty-first century, has witnessed rapid adoption of mobile phone
and internet technologies. With the increased access to the internet, the population of Bangladesh
gained the ability to enjoy online-based services including social media, content sharing and
eCommerce. All the technology-based business organizations in Bangladesh had capitalized on
this rapid growth of internet and cell phone users. The conception of Chaldal.com happened due
to this shift in technological factors (Chowdhury et al., 2022; Rahman, 2020; Sayed, 2022).

LEGAL AND ENVIRONMENTAL FACTORS

The government of Bangladesh 2010 has taken multiple initiatives to foster entrepreneurship in
the country. Special benefits like tax redemption to businesses based on technologies have also
been enacted. Besides, the government ease the formation of venture capitalists and startup
incubators. Chaldal.com has also been a part of Y Combinator, a famous incubator and startup
acceleration company based in the USA, since its inception. In short, the legal factors of
Bangladesh were mostly positive for the businesses like Chaldal.com to form, operate and
innovate (Chowdhury et al., 2022; Sayed, 2022).

The environmental law in Bangladesh is not strong enough to affect technology-based

businesses. Despite radical shifts and the adoption of environmental policies suggested by the
United Nations, the environmental law remained friendly for the businesses like Chaldal (Islam,
2022; Khondoker, 2022).

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BARRIERS TO TECHNOLOGY-BASED BUSINESS (E-COMMERCE)

For technology-based businesses like eCommerce platforms, barriers are common worldwide.
Some commonly mentioned barriers in the literature that are relevant for Chaldal.com have been
mentioned in the following section.

COMMON BARRIERS

1. Data security (especially personal and traceable information like mobile phone number
and address).
2. Trust regarding the product quality among the customers and perceived risk of not getting
the product shown.
3. Lack of robust and rigorous business model
4. Lack of technology supportive national culture
5. High cost of server management and issues in the data delivery (consistent internet
connection)
6. Lack of domestic human resources.

TECHNOLOGICAL BARRIERS

The following is a summary of some of the most significant technical obstacles that e-commerce
must face today.

1. There are no quality, security, or dependability standards that have been agreed upon on a
global scale.
2. The telecoms industry is experiencing a bandwidth shortage, which is particularly
problematic for the development of mobile commerce.
3. Hypertext Markup Language (HTML), Javascript, database connectivity, and database
integration are just a few of the software development technologies that have been
developed.
4. Internet and electronic commerce that utilises parts of the existing applications and
databases, especially legacy applications, and databases.
5. In addition to the servers that are utilised for networks, web-specific servers are also
required.

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 6. Internet access is expensive, inconvenient, and time-intensive to maintain.
7. Automated warehouses are necessary for major online merchants to effectively finish the
order fulfilment process.

Chaldal faced all the aforementioned barriers. But the organization with innovation and
implementation of MIS has overcome almost all the barriers. In the following section, how the
organization has solved these issues and challenges in its supply chain and operations is
discussed.

THE SUPPLY CHAIN AND MIS

Figure 5: Chaldal Supply chain

The components of Chaldal’s supply chain have been mentioned in figure 4. The primary focus
of the supply chain is the customer. To enhance the delivery capabilities and speed, Chaldal has
integrated both warehousing and third-party distributor method. Small individual retailers act as
third-party distributors who are engaged through a robust MIS. The MIS also allows the
customers to know about the availability of the inventory through the APP and Website interface
(Islam, 2022).

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Regarding the online marketplace aspect of the business, customer demand is the single most
important item to consider. The more demand Chaldal generates, the more effective it will be
able to bargain with its suppliers, have a greater impact on the supply chain, and modify its
operations. As a result, Chaldal serves the function of an aggregator. It achieves this by
collecting demand through its customer-facing online marketplace, which enables it to establish
more fruitful relationships with its many suppliers (Rabbani, 2019).

The micro-warehouses have already been proved to be an important determinant of the success
of eCommerce platforms. Chaldal will profit from any effort or initiative that enables the
company to aggregate demand. Regarding this specific problem, the Chaldal Vegetable Network
serves an indispensable function. This is achieved by increasing demand from smallholder
retailers, which ultimately leads to an increase in Chaldal's influence within the vegetable supply
chain. Chaldal is in a better position to amass a greater number of demands as a result of her
work with the WFP in the Rohingya refugee camp. All of these companies are now connected to
the demand aggregate due to Chaldal's increased control over the supply chain and leverage to
provide superior customer service. This connection contributes to the perpetuation of the cycle of
prosperity into the foreseeable future. Logistics that allow Chaldal to deliver items straight to
customers' residences or places of work. In all respects, these three enterprises are recognised as
a single entity (Gazi, 2016).

Micro-warehouses have been constructed across the cities by Chaldal to decrease delivery times,
improve the efficiency of logistical operations, and save costs. In many ways, it is a hyper-local
approach that enables the company to deliver products to clients in a shorter amount of time,
which is vital for any delivery operation. This is one of the model's key advantages. In terms of
revenue and customers, Chaldal's marketplace activities have experienced phenomenal
development in recent years. Within the bounds of the Chaldal world, the micro-warehouse
responsible for making the Chaldal marketplace conceivable is seen as a separate and unique
entity. The company believes that it will be able to generate a profit with its micro-warehouse
concept if it is exempted from paying for the technology. Shortly, the company thinks that small
warehouses will play an essential role in the sector (Islam, 2022).

Chaldal Vegetable Network (CDVN) is the second-most important element of the business,
following Chaldal itself. In no manner is the functioning of CDVN tied or associated with that of

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Chaldal's marketplace. The main purpose of the network is business-to-business transactions and
wholesale sales.

Because CDVN can build direct relationships between farmers and retailers, the entire supply
chain is boosted, which benefits all stakeholders, including farmers, retailers, and customers. To
achieve this, the company acquires fresh items from local farmers and then distributes them to
other independent stores. In doing so, it improves merchants' lifestyles and returns options,
increases the likelihood that farmers will receive a fair price, and ensures traceability across the
entire supply chain. This assures that customers will receive a high-quality product at a price that
is consistent with the standards they have set for themselves.

The Chaldal Vegetable Network is an intriguing model alternative for Chaldal to contemplate.
Chaldal Vegetable Network may view Chaldal as a customer because of Chaldal purchases
veggies from CDVN. Chaldal, on the other hand, is in no way a CDVN customer. Chaldal has
had a significantly easier time getting started in the vegetable supply chain market as a result.
Second, Chaldal has been able to establish partnerships with smallholder retailers as a result.
These connections have enabled the corporation to create a substantial new revenue stream and
expand its influence over the food supply chain. The fact that Chaldal made it possible for
smallholder merchants to keep their transaction data opened the way for the company to develop
a new business line. The new business aspect on which we are concentrating is money. Long-
term, Chaldal will be able to undertake trials with this data and will make more advances in the
creation of new items (Gazi, 2016; Islam, 2022; Rabbani, 2019).

THE OPERATION AND ICT

Chaldal.com, for maintaining its operation had departmentalized the operations. Figure 6 depicts
the departments of the organization. Each day, Chaldal's regional distribution centre is
responsible for many deliveries to distributors. The website Chaldal.com is designed to be
disseminated in multiple ways.

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 Figure 6: Departments of Chaldal

There are two ways to order placement procedures for the customers. They may either place
orders online or call us to do so. To confirm online orders, representatives of customer service
will contact the customers through phone calls. After the order has been placed and verified, the
picking department will gather the items from the warehouse and deliver them to quality control
for inspection. Quality control ensures product hygiene. After completing the initial check, the
logistics team does a second check to ensure that all product delivery conditions have been met
and then ships the product within an hour. Lastly, the customer service team at chaldal.com
validates receipt of all products and the overall experience (Gazi, 2016).

Chaldal has managed to implement MIS within the organization in such a way that it connects all
the departments and parties simultaneously. The MIS synchronize the whole process that has
maximized the operational efficiency of the organization.

The whole business of Chaldal can be summarized in three components. The components are
mentioned in figure 7.

Figure 7: Components of Chaldal's Business

Consumer interest is a crucial factor in the success of the online grocery store. As the market for
Chaldal's products becomes more competitive, the firm will be in a better position to negotiate
favourable terms with its suppliers, make the required modifications to its supply chain, and

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exert a greater amount of influence. Chaldal aggregates. It can achieve this by collecting demand
via the customer-facing online marketplace that it manages. Because of this, it can engage
suppliers more effectively.

Online marketplaces frequently offer microwave houses as an additional service. Chaldal can
make income from any activity that boosts demand for its products. Chaldal Vegetable
Network's involvement is here. The demand from smallholder retailers enhances Chaldal's
prominence in the vegetable supply chain, hence expanding the company's influence inside the
chain. Chaldal is collaborating with the WFP in the Rohingya refugee camp to prepare a list of
additional demands. The fact that each of these enterprises is connected to the demand aggregate
provides Chaldal with better control over the supply chain and additional leverage to provide
superior service to each of their respective customer bases. Included in Chaldal's logistics
services are delivery services that travel from residence to residence. The merger will result in
the formation of three separate corporations (Islam, 2022).

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CHALLENGES REGARDING MIS IMPLEMENTATION (TAM MODEL)

The TAM model is the most frequently used model to identify the issues and challenges related
to the adoption of any new technology. In the following section, the TAM model has been used
to structuralize the challenges regarding the implementation of MIS, from the organization’s
internal perspective.

PERCEIVED EASE OF USE

As mentioned before, the MIS developed and used by Chaldal is relatively new. It integrates
multiple parties or stakeholders within its supply chain and operations that were previously not
accustomed to technologies like mobile phones and the Internet. Through the Chaldal Vegetable
Delivery Network, the organizations connected farmers, small retailers and distributors, regional
warehouses, and hundreds of micro-warehouses. The rate of adoption suggests that the parties
found it easy enough to use daily. However, no studies have been conducted on the network of
Chaldal to quantify the impact of perceived ease of use in the adoption of the MIS developed by
Chaldal.

PERCEIVE USEFULNESS

The MIS developed and used by Chaldal connected or linked the supply with demand. With the
customer-level interface (i.e., website and mobile application) the organization can identify the
demands. While ordering the customers have been provided with an opportunity to select the
delivery time. This crucial information enables organizations to handle the demands more
efficiently. The parties especially the external ones get most of the benefit from monitoring
customer demand. The interconnected system of Chaldal is apparently useful for managing the
whole organization.

INTENTION TO USE

As mentioned in the previous sections, the MIS developed by Chaldal provides monetary
benefits to all the parties and the organization. Therefore, the logical consequence supports the
wide acceptance and usage of the system. CDVN successfully aligned the farmers, micro-
warehouses, and small retailers. The boom in the adoption of mobile phone and internet
technologies made the adoption possible, feasible, and rapid for the organization.

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OVERCOMING THE CHALLENGES

All the challenges mentioned in the Barriers chapter regarding technologies have been overcome
by Chaldal with MIS. The organization utilized website and app data security through SSL. The
quality control department has been integrated with the system with rapid monitoring
capabilities. The website and apps have been developed using multiple frameworks like Laravel
and C++ allowing it to integrate robust services and dynamic features within them. To confirm
orders, internal call centres have been connected directly at the core of the MIS. Besides
delivering the orders, preventing frauds, and maintaining delivery service-related qualities, a
delivery network has been developed and connected through MIS. The organization used cloud
computing technologies to minimize the cost of server maintenance for ensuring flexibility and
scalability. Cloud computing technology provided an additional layer of physical security to the
data of the customers and associated parties (Rabbani, 2019).

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INDUSTRY COMPETITION

For summarizing the findings regarding the industry competition. Porter’s Five forces model has
been used. In the following section, the current position and context of Chaldal have been
presented.

1. The threat of New Entrants in the Industry (High): This factor

impacts how difficult it is to break into the industry. If a business is
profitable and has few obstacles to entry, then competition will be intense
in that area. New competitors are a significant risk in this industry since
existing products are easily replicated, customer loyalty is low, the cost of
switching is minimal, and government regulation is light.
2. The threat of Substitutes (high): This force is especially dangerous
when customers can rapidly identify substitute products with attractive
prices or greater quality and when the costs of switching are cheap. In
contrast to switching from driving a car to riding a bike, the cost of
switching from coffee to tea is zero. This market is extremely vulnerable
to competition from similar markets. The best alternative is found in
traditional retail outlets. On that channel, customers make purchases.
They will revert to their previous position if their expectations are not
met.
3. Bargaining power of the buyers (high): Buyers in strong bargaining
positions (Chaldal also sells to corporate buyers) may put pressure on
industry manufacturers to cut prices or enhance product quality. Prices
that are lower result in lesser revenues for producers, whereas products of
a higher quality result in greater manufacturing expenses. Both have the
effect of decreasing producer incomes. In this industry, buyers have
strong negotiating power because all of the products are the same, there is
a low level of customer loyalty, there is a large availability of
replacements, and prices are sensitive.
4. Bargaining power of the suppliers (low): If a supplier has great
bargaining power, they can sell buyers raw materials that are either of a

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 higher price or a worse quality. This has an impact on profitability
because purchasing firms are forced to pay a higher price for
commodities. The suppliers in this business have very little negotiating
leverage because of factors such as backward integration, the high number
of other suppliers in the market, the fact that their products are all the
same, and the relatively low cost of switching.
5. Rivalry among the existing competitors (Moderately low): This factor
is what decides whether or not a sector will be profitable and how
competitive it will be. When companies in an industry are forced to
compete aggressively with one another for market share, the result is
decreased profitability. This business has a relatively low level of rivalry
because its various competitors are of varying sizes, there are few
obstacles to entry, the market is expanding, and customer awareness is
low.

If the whole market and industry market position is summarized, it can be said that Chaldal is in
a fairly weak position. However, the organization through its innovative and futuristic strategies
has built a sustainable position and rigid entry barriers in the market. In the following section, the
strategies for competing in the market taken by Chaldal have been presented.

COMPETITION STRATEGY (GENERIC FRAMEWORK)

The ways in which a company attempts to get a market advantage are outlined in its generic
strategies. Chaldal’s strategy for competing is to be the lowest-cost provider. The competitive
strategies taken by Chaldal have been mentioned in the following section.

1. Strategic Customer Target: Chaldal.com targets Dhaka citizens. Dhaka

serves as the hub of Chaldal. The cities of Chattogram, Jashore, Khulna,
Sylhet, Gazipur, Rajshahi, and Narayanganj are now all among those that
the company services. The goal of the group is to spread to all of
Bangladesh's cities.
2. Basis of Competition: Chaldal.com offers the lowest prices in the
market. The price gap between offline retail and chaldal.com is now

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 between 1% and 2%; however, the company intends to increase this to 5%
in the near future.
3. Number of Products: The organization has more than 4000 products
displayed on its mobile application and website.
4. Control over the production: The organisation is always looking for
new ways to minimise costs in order to provide the most competitive
pricing. The optimization of the supply chain is how this goal is
accomplished.
5. Operation Standard Maintenance: The corporation achieves its goal of
maintaining low costs through the utilisation of effective business
practices. Throughout the entirety of the value chain, an emphasis is
placed on efficiency. To strengthen its capabilities, the organisation
actively seeks the most qualified candidates. It is investing a significant
amount of money in technology and service.

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STRATEGIC CONTRIBUTION OF MIS

The analysis of the business model of Chaldal can result in a conclusion of the organization
being termed as a software company developing and managing management information
systems. Tejas Viswanath, one of the founders of Chaldal.com, claims that the majority of
people do not comprehend why it is vital to use technology to sell rice and dal. Software powers
the Chaldal.com website. The software monitors waste, predicts how many veggies will sell the
next day, recognises things that have been delivered, etc. Chaldal's cutting-edge routing system
reads addresses, evaluates the level of trust associated with each location, and generates delivery
routes. Chaldal.com has recently launched Chaldal Credit, an automated payment and refund
processing solution. The eligibility of customers for refunds and rebates does not require human
review. The protocol is the name of the proprietary workflow management software developed
by Chaldal.com.com. Mr Emrul is responsible for the development of the Protocol software. It is
comparable to Trello, except that all of Chaldal's priorities and tasks are deeply included within
the maximum level of possible customization. It connects and provides the ability to monitor all
the matters associated with Chaldal.com. It involves both the procurement of materials and their
dissemination.

Chaldal has gained all of its strategic competitiveness through the planned and successful
development of MIS. And MIS since its conception has been the most integral part of Chaldal as
it can be seen in both operation and supply chain management.

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CONCLUSION

Chaldal, as one of the pioneers of the online food retail industry of Bangladesh, changed the
perception regarding what is possible through innovation and technologies. The company
complexified its operation by building its own inventory management infrastructure as well as
third-party small retailers. Unlike traditional eCommerce platforms providing similar services
worldwide, Chaldal revolutionized the supply chain of Agri-based products to ensure the
maximum level of efficiencies. The company reduced both time and cost to provide the
maximum utility of grocery shopping for the customers. The analysis of the supply chain and
operations suggests that Chaldal has integrated MIS into its core. From order placement to
payment, from acquiring the products to delivering, the proprietor software of Chaldal allowed it
to general maximum level of customer satisfaction. In this report, different components of
Chaldal have been analysed to detect the implementation of MIS. Besides, the strategic position
of Chaldal in its industry has also been presented. The readers of this report are intended to
understand the full business of Chaldal along with the implementation of MIS it has done within.

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