Chapter 3: Business Problem Analysis and Solution

3.1 Problem Analysis:

The firm doesn’t seem to have much problems within the organization. However, some of the
problem that they are facing in the market are described below:

3.2 SWOT Analysis

Strengths:

 One of the market leader: SastoDeal holds a significant market share in Nepal's e-
commerce landscape, capitalizing on early entry and brand recognition.
 Diverse product range: It offers a vast selection of products across various
categories, catering to a wide range of customer needs and preferences including
Indian Brands like Myntra.
 Strong logistics network: SastoDeal has a great delivery network throughout
Nepal, ensuring efficient product reach even in remote areas.
 Mobile-first approach: Since must of the Nepali users on the internet are phone
users, SastoDeal prioritizes its mobile app, providing a great user experience for
online shopping.

Weaknesses:

 Heavy reliance on marketplace model: Overdependence on third-party sellers can

lead to quality control issues and inconsistent customer experiences.
 Profitability concerns: Despite high revenue, SastoDeal struggles with profitability
due to intense competition, price wars, and operational costs.
 Limited value-added services: Compared to global e-commerce giants, SastoDeal
lacks offerings like subscription services, personalized recommendations, or loyalty
programs.
 Talent acquisition and retention: Attracting and retaining skilled professionals in
Nepal's nascent tech scene poses a challenge for SastoDeal's continued growth.

Opportunities:

 Expanding beyond Nepal: SastoDeal can leverage its brand and expertise to enter
neighboring markets with similar e-commerce potential.
 Building private label brands: Developing high-quality, own-brand products can
boost profit margins and customer loyalty.
 Investing in technology: Upgrading its technological infrastructure can improve
operational efficiency, data analytics, and personalization.
  Integrating AI with e commerce: Sastodeal can integrate AI to chat with customers
and ask their requirements, thus suggest products as per the need to the customers.

Threats:

 Competition: Local and international players are entering the Nepali e-commerce
market, putting pressure on SastoDeal's market share.
 Economic instability: Inflation and fluctuating currency rates can impact consumer
spending and SastoDeal's profitability.
 Changing consumer preferences: Evolving customer expectations for
convenience, customization, and value could challenge SastoDeal's existing model.

3.3 Solutions and recommendations

Various solutions that can help Sastodeal to address the threats and weaknesses are:

 Competition: They can differentiate through superior customer service, focus on

niche markets, and leverage local partnerships to offer unique products and services.
 Economic Instability: They must implement dynamic pricing strategies, optimize
inventory management, and expand into less volatile product categories to survive in
recessing economy.
 Changing Preferences: They can continuously invest in technological upgrades to
personalize user experiences, offer flexible payment options, and prioritize
convenience through faster delivery and easy returns which can be done with the help
of artificial intelligence.
 Talent acquisition and retention: Attracting and retaining skilled professionals in
Nepal's current tech scene is a challenge for SastoDeal. They should focus on
retention of tech employees.
 Marketplace Quality Control: They must implement stricter processes for sellers
and conduct product quality checks to make sure quality products are being sold at
their platform.