SHOZADA Case Analysis

As part of his vision to expand his business empire even further, Mr. Richard Banks, one of the
wealthiest and most influential businessmen in the world, plans to establish a new and innovative business
that deals with E-commerce, which will be called “SHOZADA.” Through SHOZADA, Mr. Banks wants
to bring people together into one digital community where they can buy and sell anything under the sun,
accelerating the pace and advancement of the world through technology. Eventually, his goal is to make
SHOZADA the center of the E-commerce ecosystem, with a highly efficient system that will provide
millions with jobs, whether as employees of the company or sellers on the platform, allowing the
company to make profits as the world grows more rapidly. Part of SHOZADA’s business is providing the
packaging for the items that are sold and delivered by them. Analysing the products that usually go
through e-commerce businesses such as these, Mr. Banks wants to be ready with the following packaging
products and is looking for suggestions for the materials for each.
1. Wrap
2. Box
3. Bag

Through observing other E-Commerce companies, Mr. Banks has listed a few possible risks that
have to be considered if a new business in the industry aims to reach the level that he has envisioned. For
SHOZADA to be successful, the people behind it would have to deal with 1) the excessive packaging that
currently plagues the industry, 2) the lack of riders to meet delivery demands, and 3) the high level of
competition due to existing companies.

Because of this, before starting his new venture into E-commerce, Mr. Banks needs to look for
young minds like yours who can share their valuable insights when it comes to these three main points of
focus:
● Management of Packaging - Sustainability is highly valued by Mr. Banks. However, most
E-commerce businesses use an excessive amount of packaging, usually producing high amounts
of waste, especially plastic. Because of this, Mr. Banks wants to find a solution that will allow his
business to run with as little harm to the environment as possible, while still maintaining high
profit margins.
● Logistics Optimization - Operating in the industry requires a lot of thought into the logistics
processes, considering the need of warehouses and high capabilities in terms of delivering orders.
Because of the presence of many businesses who also utilize drivers to deliver their products,
there is a lack of riders compared to the demand that the business may face. There are also
various inefficiencies that come from the usual handling of deliveries, such as how numerous
unnecessary trips are made whenever a customer receives multiple packages through separate
deliveries, sometimes even from different drivers coming from the same warehouse and courier
 service. Because of this, the central location of the business and its suppliers, along with the staff
involved in handling the logistics, must be chosen very carefully to ensure smooth operations.
● Unique Marketing - There are many other businesses that are part of the E-commerce industry,
and the level of competition is considerably high. As a business that will be entering the market
relatively late, Mr. Banks wants to find a unique and innovative way to market the business to its
potential users, so that the company will not be drowned out by its competitors.

To further illustrate the performance of the industry at the moment Mr. Banks has also shared a
report on the current trends from a consumer and industry standpoint, to help in addressing the concerns
he has for the business. He has provided more helpful information like this although it comes with a price.

Industry Trend
Even though one of the key pain points that the E-commerce industry addresses is accessibility,
there are still multiple limitations that hinder many people from enjoying these types of services,
especially for those who live outside of the Metro Manila region. Because of this, various E-commerce
platforms continue to innovate and improve on their logistics to increase the level of accessibility that
they can provide. One of the trends that came about due to this goal is the availability of “long-distance”
delivery services for select merchants. Another would be how some restaurants use various E-commerce
platforms to sell and distribute their pre-packed and ready-to-eat food. A variation of this done on a wider
scale is the presence of online marketplaces or grocery stores on these platforms.

Consumer Profile
Yugi is a self-employed 31 year-old who runs a business of selling physical board games, card
games, and other party games online. He has been using social media websites such as Facebook and
Instagram as platforms to sell his products and courier services to deliver these products to his customers.

However, as the sole owner of the growing business, when he experiences a spike in orders, it
becomes a lot more difficult to handle. He arranges the delivery of each package personally, making it
harder for him to keep track of all of the deliveries. He has also experienced instances of losing packages
during deliveries, leading his business to suffer some losses.

He also finds that he spends more time than he would like to when using these courier services,
because he needs to bring them the packages and fill up several forms for each parcel before shipping. He
also thinks that using the courier services that pick up the packages from his home are not ideal, since he
would either have to pay a higher price for these deliveries or make the buyer shoulder the cost, possibly
driving some customers away. Right now, he is considering using other platforms that would make it
easier for him to run the business alone, while also making sure that it does not drive the costs of running
his business up.