Contents

Executive Summary:..............................................................................................................................3
Introduction...........................................................................................................................................4
E-Business of Daraz.com.bd...................................................................................................................4
Context:.............................................................................................................................................4
Mission..............................................................................................................................................4
Vision.................................................................................................................................................5
Range of service................................................................................................................................5
Define and describe e-business model:..............................................................................................6
Drivers of e-business adoption in organization:.................................................................................7
E-business revenue model.....................................................................................................................7
Value proposition:.............................................................................................................................7
Revenue model of the organization:..................................................................................................7
Online marketplace structure:...........................................................................................................7
Market segment:...............................................................................................................................7
Revenue generating strategy:...........................................................................................................8
Marketplace structure:......................................................................................................................8
E-business platform/infrastructure........................................................................................................8
E-business application services:.........................................................................................................9
Enterprise resource planning (ERP):..................................................................................................9
CRM:.................................................................................................................................................9
Customer touch point:.....................................................................................................................10
Data stores and data mining:..........................................................................................................10
CRM analysis:..................................................................................................................................10
Supply Chain Management:............................................................................................................10
IT use for e-business application:....................................................................................................11
Intranet:..........................................................................................................................................11
Extranet:..........................................................................................................................................11
Internet:..........................................................................................................................................11
The web technology and software applications:.............................................................................12
Web content management strategy:.................................................................................................12
Digital Strategy for E-Business.............................................................................................................14

pg. 1
 E-Business Strategy:........................................................................................................................14
Fatafati Friday Offer:.......................................................................................................................14
Daraz App Code:..............................................................................................................................15
Cash Back Offer:..............................................................................................................................15
Analysis of E-Business Strategy:......................................................................................................15
Competitive Threat:.........................................................................................................................16
E-Business Security..............................................................................................................................16
Five IT Security Risk:........................................................................................................................16
Two risks which cause severe damage:...........................................................................................17
Suggestions for security management:...........................................................................................17
Conclusion:..........................................................................................................................................18
References:..........................................................................................................................................18

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Executive Summary:

Daraz.com.bd is the first internet based shopping mall style e-commerce platform
which brings the latest local and international goods to Bangladeshi consumer’s doorstep in
the year 2015. It follows the same e-business model of amazon.com where consumer can buy
their desire product from wide range of product categories. Daraz was found back in 2012 by
German venture capital company, Rocket Internet. Daraz expands with 350 to 400% growth
rate within short period of time. Apart from Bangladesh, Daraz.com is available in Sri Lanka,
Pakistan, Nepal and Myanmar. Among these countries, Daraz.com.pk (Pakistan) is most
successful one. In May 2018, Daraz Group was acquired by the biggest Chinese e-commerce
company Alibaba Group. Now Daraz is conducted its operation under Alibaba with same
brand name.

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Introduction

Daraz offers the Bangladeshi consumers a true online shopping experience which was
new in 2015 and created a hype in the market. Daraz is a platform where sellers can sell their
product through its website in exchange of a percent margin thus Daraz portray a B2C online
marketplace. Daraz has set a standard e-business platform where thousands of entrepreneurs
and physical stores found a unique opportunity to sell their product.

E-Business of Daraz.com.bd

Context:
E-commerce is the process of buy and selling products and services electronically on
the Internet that brought a major changes in the traditional business system. Daraz.com.bd is
fully depended on online technologies like mobile internet and new features like cash on
delivery, home delivery, return policy, secure and flexible payment systems

Launched in 2012, Daraz is South Asia's premier online shopping marketplace with an
active presence in Pakistan, Bangladesh, Sri Lanka, Myanmar and Nepal.The main and only
shareholder of Daraz.com.bd is Alibaba. Daraz.com.bd benefits the customers by offering
products at low prices through various discount offers.

Mission
 To provide an enjoyable shopping experience for Consumers and to grow together with our
Sellers

 It will continue building a vast loyal customer base by having the broadest selection of
products, unbeatable prices, 100% reliable fulfilment and relentless focus on customer
experience.

 For its’ Sellers, it will continue to provide a differentiated value-added services to support
scalability, growth and integrated business solutions.

 Daraz Bangladesh will achieve the mission by focusing on their core values and hiring,
coaching and retaining the best people in the industry through a strong company culture.

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 Daraz Bangladesh is committed to a strong ESG program and creating long-term growth
and job opportunities in all of our markets by pioneering the e-commerce development.

Vision
“To be the most reliable marketplace and offering the best services to our customers:
Consumers and sellers”

Range of service

Daraz offers a range of products like

1. Fashion products

2. Phones & Tablets

3. Sports & Travel

4. TV, Audio & Camera

5. Computing and Gaming

6. Home & Living

7. Baby, Kids and Toys

8. Beauty & Health

9. Appliances

10. Grocery items.

Daraz mostly operates as a B2C business but also offers some B2B services from time
to time for a limited period. Their key business focus is to maintain number one position in
the e-commerce industry of Bangladesh by following cost leadership strategy.

Define and describe e-business model:

Daraz does not produce any products. Daraz has contacts of more than 3000 sellers in
Dhaka of different products. Whenever a customer places an order through Daraz’s website, a
team called first mile or Dex (Daraz Express) receives the order placement and then another
team called VO (Vendor Operations) contacts the seller of the product, informing the seller of

pg. 5
the order. The receiving team receives the product from the seller. The receiving team then
sorts the products area wise then it goes to the network team. The network team then send the
product through courier service such as sundarban courier if the order was placed from
outside of Dhaka. If the order was placed inside Dhaka then Daraz has its own delievery team
that delivers the products inside Dhaka. Their main business actors are seller and customer.
Sellers benefitted by selling their products daraz’s website and for that daraz charge a
percentage (10%-12%) to their seller which is considered as their revenue. The customers are
benefitted by getting products in their door within a short time. Customers also get discount
from darazi in different time periods.

Drivers of e-business adoption in organization:

Daraz.com.bd choose e-commerce as e-commerce business is a booming trend all
over the world. People buy products and services from online and it is increasing day by day.
Another reason is e-commerce business needs less capital than traditional business and don’t
need any physical outlet. That’s why they adopt to e-commerce.

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E-business revenue model
Value proposition:
Daraz.com.bd creates value for the consumers by offering diverse ranges of new and
unique products through a well-organized fast website and cash on delivery facility. They also
provide different discount offers for the customer, 7 days return policy as well as safe and
secure shopping environment in online.

Revenue model of the organization:

The main source of revenue of Daraz.com.bd is selling products through their website
and a very small portion comes from selling advertising. Normally, they increase their sells
through social media marketing like Facebook marketing, Instagram marketing etc. They try
to gain traffic from social media to their website. Another way to boost up their sells is
intensive promotion like 03 taka deal offer, 11 taka deal offer to the consumers. Recently, the
launch their own apps to boost their sales by offering special discounts to the apps users.

Online marketplace structure:

Daraz.com.bd belongs to click online marketplace structure. Customers purchase their
products through their website by clicking in the product.

Market segment:
Their main focus is only who are leaving in Dhaka and leading a busy life. Besides
that, Daraz.com.bd is slowly starting to target the customers outside of Dhaka. They divided
their market into different segments:

Demographic Segments:

They have different categories products for men, women and children. They
differentiated their products by income level and social class (section A and B) to attract as
much customers as possible.

Psychographic Segments:

In this segmentation they segment based on the lifestyles and personality of the
customers. Like: Gaming accessories, Sports and Fitness, Travel and outdoor.

Geographic Segments:

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 They are mainly focused on Dhaka based customer. Most orders are also come from
Dhaka.

Revenue generating strategy:

Pricing strategy:

Although price is set by sellers but daraz.com.bd provides discounts on those products
to attract customers. They reduce their marketing cost and spend this amount on discount.
Besides that they negotiate with their sellers and motivate them to give discounts for bulk
amount sells.

Product strategy:

They display their products in the website based on product categories and reviews of
seller. During the discount period they highlighted their discount products in the website.

Marketplace structure:
Daraz.com.bd is a joint venture of Rocket Internet and GMBH which is situated in
Germany. They are the largest venture incubator outside USA and China. They establish
themselves as an intermediary between seller and customer.

E-business platform/infrastructure
In the era of digitalization, Daraza.com.bd has one of the biggest E-commerce
platform through which it connects a huge number of buyers and seller in a single digital
platform. Daraz.com.bd is a mall-style e-commerce shopping site which hasn’t any own
product rather they are working as an intermediary between buyer and seller. In the physical
shopping mall, customers can visit different shops and buy different things. Exactly like that
Daraz.com.bd is an online shopping mall where customers can visit different shops to buy
their desire product. So now customers don’t need to go any physical shopping mall, they can
buy their desire products just with in a minutes by visiting daraz’s website.

E-business application services:

Draz.com.bd is an online e-commerce shopping site which is providing a platform to
its suppliers and buyers for that it has to use several soft-wares, applications to manage its
inventory, contact with supplier and relation with customers. As a web-based business
software use is a crucial part of its business. So they were disagree to disclose some

pg. 8
 important name of their software those they use for their business purposes. But they have
told the name of few soft-wares name which they use to do their day to day operation.

Enterprise resource planning (ERP):

Currently Daraz.com.bd is using oracle e-business software application to run its
operation and resource planning like finance and portfolio analysis and management. To
make a connection between all others software including CRM, SCM as well as data mining
it uses oracle enterprise resource planning cloud. ERP makes daraz’s work simple in the
following ways:

 Makes day to day operation more flexible and less time consuming.
 Makes inventory management more efficient
 Helps to maintain good relationship with suppliers and consumer
 Helps to create a more accurate financial data and ensure better portfolio management

CRM:
In the online business world there is a very little direct interaction between customers
and the business organization. For that organizations need different types of software to keep
the track of their customer activity and maintain a effective relationship with them.
Daraz.com is always proactive about their customer satisfaction. THE CRM activity of
Sindabad.com is given below:

For customer relationship management, they have an IR team who uses the Salesforce
CRM soft-ware. The CRM software’s features include sales forecasting, collaboration,
contact management, and reporting. The utilization of the CRM system helps Sindabad.com
to track all sales activity including past and future customers. This information provides
insights for Daraz.com.bd to act on higher potential customers. CRM systems provide
insights to customer information and decisions. Information such as social media, emails, and
client data helps Sindabad.com to understand the customer needs and leverage potential
sales.

Customer touch point:

Customers can easily communicate with Sindabad.com by visiting their websites,

official Facebook page. In their website customer will get their contact information like

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 phone number, mail address, head office address. Customer also can contact through
Facebook messenger and they are very active in replaying.

Data stores and data mining:

To keep the record of customer’s information they use Microsoft access which is
secure to save and retrieve customer data. For data mining they use SPSS Modeller which
help them to find out the pattern, structure and relation to forecasting their sales, to take
promotional decision as well as to design their website home page based on which product
customers buy most, which types of product customer prefer to see in home page.

CRM analysis:
CRM analysis helps companies to connect with customers. For analyse the customer
activity Sindabad.com use Google analytics analysis tool. It helps them to track and provides
reports about particular websites traffic. It also provides information how frequently a
customer visit their website and how much time they stay on the website. Sindabad.com can
also know which web page or shop is performing good or bad. Based on that they can change
current strategy and formulate new strategy.

Supply Chain Management:

Sindabad.com has multiples suppliers. For supply chain management Sindabad.com uses
an Order Management System Software (OMS) software. The OMS or order management
system software encompass of these modules:

 Product information (descriptions, attributes, locations, quantities)

 Inventory available to promise (ATP) and sourcing
 Vendors, purchasing, and receiving
 Marketing (catalogs, promotions, pricing)
 Customers and prospects
 Order entry and customer service (including returns and refunds)
 Financial processing (credit cards, billing, payment on account)
 Order processing (selection, printing, picking, packing, shipping)

The order management system provides Sindabad.com one centralized place to manage
orders from all sales channels. Centralizing this in one system is critical to delivering a

pg. 10
superior customer experience by providing order status, on-time deliveries and meeting
customer expectations for buy, fulfil and return anywhere.

IT use for e-business application:

As Sindabad.com is an online shopping portal for that it uses both intranet and
extranet apart Internet. Their specific functions are given below:-

Intranet:
Intranet is a private network that is contained within an enterprise. It consists of many
interlinked local area networks and also use leased lines in the wide area network. The
intranet includes connections through one or more gateway computers to the outside Internet.
The main purpose of the intranet is to share the company information and computing
resources among employees. The intranet is also used to facilitate working in groups and for
teleconferences.

For effective communication among the employees Sindabad.com Intranet software

like Microsoft SharePoint which helps the employees to be more productive, time efficient
and also helps to keep a continuous communication among various departments.

Extranet:
As Sindabad.com suppliers and customers are located at different places of the
country that’s why they use extranet. The extranet is used by LAN along with fiber optic
cable. Through the extranet Sindabad.com exchange information regarding products,
quantity, size etc. with suppliers as well as with customers.

Internet:
Without internet where we can’t spend a day there for an online business organization
like daraz.com.bd it is unthinkable to conduct their business. Like others big companies it
also has its own server to run its website. Sindabad.com is an online business where there is
no alternative of internet. It has official Facebook page, website to increase its virtual world.
According to Bangladesh Telecommunication Regulatory Commission (BTRC), there are 80
million internet users in Bangladesh. So we can see the importance of internet to catch the big
portion of customers and rocket internet has unlocked the opportunity for Sindabad.com to
serve its customers as well as expand its customer base within a short time via the internet.

pg. 11
The web technology and software applications:
Sindabad.com is one of the modern and innovative web business which use web 2.0
technologies to allow its seller and buyer to interact with one another, provides multiple
payment system and shopping cart facilities. Web 2.0 technologies help to make the website
more flexible and user friendly to users.

Advantages of using web 2.0 technologies:

a) Collaboration:

Besides providing information web 2.0 also allows customer to send message and
purchase products from the website. It also providing a new shopping experience for the end
users.

b) Availability:

Web 2.0 technology helps daraz.com.bd to available at any time at any place.
Customers can browse their website at any time form anywhere to purchase products.

c) Media:

By using web 2.0 technology daraz.com.bd maintain a link to its website to other
social network like Facebook, twitter and Instagram. Customer can find their contact
information and Facebook page link, Instagram page link from the contact option of their
website.

Web content management strategy:

Sindabad.com is one of the most popular B2B online shopping site in Bangladesh.
Large number of people daily purchase lots of product from their website shops and a huge
number of supplier deliver those products to Sinbada’s customer. For that they have to keep
update their web content on a regular basis focusing on customer as well as suppliers
preference. The team who manage this content is called Team D-force. They look after the
supplier’s updated picture, resolution, product description. They approve the supplier’s
product update on the website.

They are using JavaScript as their programing language and HTML5 as their mark-up
language. They have different image file formats. Most commonly suppliers used PNG, JPG,
and SVG to upload their products picture.

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 To ensure their website speed they use Ngnix web server and CloudFlare web hosting
besides that they don’t allow HD or Full HD picture in their site. As their big chunk of
customer browse their site from mobile device that’s why they are very concern about their
website’s responsiveness. They have both desktop view and mobile view option in their
website which provides a convenient user system for different device user.

Desktop View of Daraz.com.bd

Mobile view of Daraz.com.bd

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Digital Strategy for E-Business

E-Business Strategy:

Strategies are the blue print to accomplish company’s goal. Every company must have
different strategies to reach its goal. As Daraz is online based business they have some unique
strategies to satisfy its customers. Daraz does not spend too much in Television, Radio and
other sources to promote its brand like other company. In order to promotion, it creates hype
in the market by offering different offers. They are:

Fatafati Friday Offer:

The best exposer daraz.com.bd got from the campaign Fatafati Friday which was
introduced for the first time. On that occasion daraz gave huge discount on various product.
In this way daraz created hype and reach its targeted audience.

Daraz App Code:

By using Daraz App Code anyone can get 500tk discount on his daraz order. But the
discount will be eligible when the minimum spending is 2000. The code will be valid only for
the first-time order.

Cash Back Offer:

If someone buys from daraz and pay through bKash, then the consumers will get 20%
cash back. Both companies get exposer by this exchange.

These are just some of the different business strategies and promotional offers that
Daraz offers from time to time. Overall, Daraz uses different kinds of discount offers and has
a cost leadership policy to gain competitive advantage in the market.

pg. 14
Analysis of E-Business Strategy:

-Number one online shopping -Lengthy delivery system

platform
-Strong customer and supplier
base
- Convenient payment system
- Diverse product categories
-Less control on suppliers
-Focusing only on digital
marketing
-Poor after sales service

-Rapid growth of ecommerce -Increasing amount of online

Industry retailer
-Increasing amount of Internet -Lack of cyber security
user
-Emerging of fast third party
delivery system

Competitive Threat:
Daraz’s main competitors in the e-commerce industry are Picakboo, Kiksha, bagdoom
othoba and Priyoshop. They are responding to those competitive threats by improving their
delivery system, after sales service, return policy, pricing strategy and product selection. They
are always concern about their competitor. Their competitor threat is rokomary.com as they
are also selling books like daraz. Another emerging competitive threat will be if amazon.com
comes in Bangladesh market as a competitor of daraz.

E-Business Security
Five IT Security Risk:
Malware:

pg. 15
 Malware is one kind of virus, which might start running anytime in any electronic
devices by clicking randomly or searching randomly on web. Hackers create it to steal
personal information or to block down any web site.

Phishing:

Phishing is a way to trap people, like catching fish in a big river with a fishhook. In
phishing process, hacker gives false messages and some links to follow and if we follow them
it will automatically push us in a trap. Example: One might get a message to informing him
that he got a lottery and to proceed on and for that they need some personal information and
need to follow some mentioned links.

Third-party entry:

Cybercriminals use this route to make a distraction in the network. Their main target
is attack the major network through third-party entry points.

Customer data hacks:

It is a common problem now a days for e-commerce business. Hackers hack the
customer’s data by phishing techniques and sell those data in the underground market.

DDoS:

DDoS is distributed denial of services. Hackers use this software to slow down or
block any websites in between doing their regular ongoing works. For example: If I have a
bad relationship with any online store, I will send a load of requests to that side. For that that
side will show waiting 1000 customers to enter. That will slow down or block their site for a
temporary time.

Two risks which cause severe damage:

Phishing:
Phishing is a way to make people curious about any information getting and
then make them fall in a trap. In below, we got these points from a webpage called
“Panda”.

The harmful effects of phishing:

pg. 16
1. Theft of identity and users’ confidential details. This could result in financial losses
for users and even prevent them from accessing their own account.

2. Loss of productivity.
3. Excessive resource consumption on corporate networks (bandwidth, saturated email
system)
Signs of a DoS Attack:
US-CERT (United States Computer Emergency Readiness Team ) stated some
indicators of DOS attacks
o Degradation in network performance.
o An inability to reach a particular website.
o Difficulty accessing a website
o A higher than usual volume of spam email

Suggestions for security management:

Server Security:

We need to go for that web hosting company which can make ensured at their
best about security of server. That server must have CDN, SSL certificates and that
hosting company also needs to have plans for protecting our server from another
environment with other website.

Antivirus and anti-malware software:

Usage of such software can enhance security. Because there are one of the
famous ways to protect devices from dangerous virus.

Spam blocker:

Spam can slow down any process. It can be a problem for blogging and genetic
contact. To keep spam away from our websites, we need to use Akismet plug-in.

SSL Certificates:
SSL Certificates were option in the previous years. But now it is required to be used
or suggested to be used because it gives additional layer of encryption to the transaction.

pg. 17
Conclusion:
It was really a great experience to work with Daraz and we have learned a lot from it.
In the report we presented Daraz’s products, services, e-business model, and its target market.
We also have discussed the competitive environment and have done a SWOT analysis of
Daraz. We have learned what type of software Daraz uses and their functions. We have
analyzed, explained and gave solutions to the various types of security threats that Daraz
faces.

References:
How Daraz BD has revolutionized purchasing habits. (2017, September 25). Retrieved
December 10, 2017, from https://www.daraz.com.bd/blog/2017/09/13/daraz-bd-
revolutionizes-online-shopping-habits/

An inner look at e-commerce giant: Daraz. (2015, November 23). Retrieved December 10,
2017, from http://www.thedailystar.net/lifestyle/check-it-out/inner-look-e-commerce-
giant-daraz-176806

Pakistan's first FMCG e-commerce solution with daraz.pk. (n.d.). Retrieved December 10,
2017, from https://www.unilever.pk/news/press-releases/2014/unilever-launches-
pakistans-first-fmcg-ecommerce-solution-withdaraz-pk.html

pg. 18