Prepared For: Prepared By:

Sheikh Morshed Jahan Mimosa Kamal

Md. Sazzad Shahriar
Professor Masum Alvi Chowdhury
Institute of Business Nowshin Sharmile
Administration Md. Irfan Ali
University of Dhaka Kazi Pushpa Ahmed
Najeeba Mohammed Altaf
Sheikh Raina Ali
Swapnil Dutta
Samiul Alim Anik
Rashik Intisar Siddiquee
Md. Moin Uddin Miazi
Online Retail Industry
MBA 61D
Prepared For: Prepared By:

Sheikh Morshed Jahan Mimosa Kamal

Md. Sazzad Shahriar
Professor Masum Alvi Chowdhury
Institute of Business Nowshin Sharmile
Administration Md. Irfan Ali
University of Dhaka Kazi Pushpa Ahmed
Najeeba Mohammed Altaf
Sheikh Raina Ali
Swapnil Dutta
Samiul Alim Anik
Rashik Intisar Siddiquee
Md. Moin Uddin Miazi
Online Retail Industry
MBA 61D
Prepared For: Prepared By:

Sheikh Morshed Jahan Mimosa Kamal

Md. Sazzad Shahriar
Professor Masum Alvi Chowdhury
Institute of Business Nowshin Sharmile
Administration Md. Irfan Ali
University of Dhaka Kazi Pushpa Ahmed
Najeeba Mohammed Altaf
Sheikh Raina Ali
Swapnil Dutta
Samiul Alim Anik
Rashik Intisar Siddiquee
Md. Moin Uddin Miazi

Online Retail Industry MBA 61D

 SARS-Cov-2
Introduction 760,000 people dead worldwide
Massive economic loss
Businesses suffered the most

E-commerce declining Online Retail

Overall e-commerce declined by 80%
Global commercial recession
Daraz, Sheba XYZ trying to enter online
Yet online retail remains strong
retail market

Chaldal Dot Com

Chaldal currently attends 5000 orders per day
Order basket grew from Tk. 1300 to Tk. 3750
 Challenges
Supply shock Demand volatility
Overdependence on a supplier Demand of same product does
or supplier group causes not remain same over time
vulnerability Example- hand sanitizer

Workplace safety
Employees, especially delivery
people are at the most risk of
exposure

Customer relationship Transparency

Ensuring contactless delivery Make sure customers have a
and sanitization to gain clear idea about the product and
customers’ confidence stock availability
 Opportunities
Demand & Categories
 Increased demand of online retail now more than ever
 New categories of essential product deliveries that were uncommon before
 Example: Medicine deliveries

New Customers
 People generally unaccustomed to e-commerce have started using it currently
 A lot of unexpected customers have been attained lately
 The industry needs to retain these customers even when COVID is over

Increased Profit
 Profit margin can be moderately increased through pricing
 People value safety over everything else
 Extra cost of service can be justified by the safety measures taken
 Introducing real time tracking will
People in BD have a general
boost confidence in the e-retail
distrust of online services
services

How it works
What it achieves
 After ordering, customers can see  Grants confidence and transparency to
where the order is picked up from customers
 Real time data regarding delivery  Gives the company first mover
progress in google map advantage
 Integration of GPS and maps  Food delivery apps already have this
 Needs investment in IT feature, but online retails like Chaldal
do not

“ Be the first, if not the best ”

Strategic implication 01:
IT investment (Real Time Order Monitoring)
 Get Keep Grow
Those who Translate new customers
“ Learn from the
previously preferred into long term customers
mistakes of others”
shopping in physical post-lockdown requires
stores over online. focusing on:
Agora vs Shwapno
• Safety
• Speed
-Agora positioned itself
• Reliability
among the wealthier
Form the basis of a new
customers.
customer segment borne
out necessity during
-Shwapno made itself
lockdown
accessible to as many as
possible regardless.

Strategic implication 02:

New Customer Segmentation
 Manage the volatility in demand.
More than 5 million Manage inventory reserves and minimize
companies, worldwide, promotional activities to manage growing
work with suppliers demand.
from the impacted
There needs to be communication of
region in China [1] current demand to trusted suppliers to
minimize the bullwhip effect and any
“Prepare for attempt at price gouging.
the future”
Travel
Restriction Contain Supply Shocks
Panic Creation of a contingency Identify suppliers in various other
Buying plan that addresses the regions and not solely depending
on a single location or supplier to
newfound vulnerabilities
buffer any disruptions in supply
resulting from the chains..
ongoing pandemic

Strategic implication 03:

Creation of contingency plan to mitigate supply shocks and demand volatility
 Safe delivery to the
customers maintaining the
COVID 19 safety protocols

“See challenges as Due to the on-spread of COVID 19. a

opportunities” long-lasting paranoia has been
settled in the back of the mind of
the customers – barring them from
freely buying products.

It is a challenge!

Providing with a feeling of safe

Making sure to provide the purchase can open up opportunities! Safe package and
employees with necessary delivery infrastructure
safety measures to guard
against COVID 19

Strategic implication 04:

Safety measures in post COVID 19 era
 Implementation of IT infrastructures and other measures taken
addressing COVID 19, are surely going to raise the costs.

Facing the overwhelming situation, the cost structure needs to be

redesigned by identifying possible avenues where costs can be reduced,
WITHOUT COMPROMISING QUALITY!

Limiting physical Enhancing online Building rapport with Cutting down layers Modifying salary structure
facilities: presence: suppliers: of middlemen as & work shifts:
Due to the To catch the attention of To avail goods from the much as possible For effective and efficient
apprehensions of the potential customers suppliers at reduced prices utilization of the human resource
customers of visiting
public places

Strategic implication 05:

Redesigning Cost Structure
 Conclusion
Identified Challenges Proposed Strategies
 Creation of contingency plan to
Supply shock mitigate supply shocks and demand
volatility

Demand volatility
 Redesigning Cost Structure

Workplace safety  Safety measures in post COVID 19 era

Customer relationship  New Customer Segmentation

 IT investment (Real Time Order

Transparency
Monitoring)
 References
[1] Anderson, H. and Onorato, A., 2020. COVID-19: Preparing Your Supply Chain In Times Of
Crisis | Publicis Sapient. [online] Publicissapient.com. Available at:
<https://www.publicissapient.com/insights/coronavirus_and_managing_the_supply_chain
_amid_a_crisis> [Accessed 13 August 2020].

[2] LightCastle Partners. 2020. COVID-19 Impact: Industries Experiencing Growth Due To The
Pandemic - Lightcastle Partners. [online] Available at:
<https://www.lightcastlebd.com/insights/2020/06/17/covid-19-impact-industries-
experiencing-growth-due-to-the-pandemic> [Accessed 15 August 2020].