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A killer start-up in Africa
Ms. Kunthida Lapathankul 541052000
Ms. !arocha Meeyoun" 541052000#
Ms. $anida %oon&orakit 5410520011
Asst.$rof. (on"pid !irirat
)his is part of
4*0-##1 !trate"ic Mana"e'ent !ub+ect
$rince of !on"khla ,ni-ersity
Afrigator Internet (Co., Ltd.)
!tartup type/ Co'pany
)ype of this site/ !ocial 'edia a""re"ator and blo" directory
$ublicity/ 1pen to speakin" to +ournalists
2undin"/ 3nstitutional in-estor4 !elf-funded
3ndustries/ !ocial 'edia
Created by (ustin 5art'an
5ead6uarter/ Cape )o&n4 !outh Africa.
Launch in April4 200#.
,sers 42400445 7acti-e in 20089
Afri"ator &as co-found by 5art'an and Mike !topforth on April *4 200#.
5art'an had been in-ol-ed &ith the 'edia and the internet industry and &orked for
-arious &ell-kno&n national 'a"a:ines and publications as &ell as 'edia
co'panies. 5art'an 'et !topforth4 an entrepreneur4 &ho su""ested to hi' the idea
of co'in" up &ith a social 'edia a""re"ator for infor'ation related to Africa &ould be
beneficial. !topforth offered to
help. As !topforth possessed
social 'edia skills and the
business acu'en re6uired to
run a social 'edia business.
)hey beco'e partners and
decided to "o ahead &ith the
de-elop'ent of a social 'edia
a""re"ator for African ;eb
users. After de-elopin" the
site4 the duo approached Mark
2orrester4 a freelance ;eb desi"ner fro' London4 to desi"n the Afri"ator lo"o. After
so'e ti'e4 !tiaan $retorius4 a freelance ;eb de-eloper4 +oined the'. )he social
'edia a""re"ator calls <Afri"ator= &as launched in April 200# and its na'e &as
deri-ed fro' the &ords AFRIcan blo" a""reGATOR.
Lar"est social 'edia a""re"ator and blo" directory in Africa4 built specifically
for African consu'ers to publish and use content on the ;eb.
)o pro-ide social 'edia tools and technolo"y to publish and consu'e content
on the &eb by user-friendly tools and interface &hich 'ade surfin" easier.
;hat the co'pany does?
Ad-ertisin" based &ith so'e of the top !outh Africa brands sponsorin"
sections on the site. Afri"ator is the lar"est social 'edia a""re"ator and blo"
directory in Africa.
Afri"ator on Mobile app
A blo" ad-ertisin" net&ork &hich allo&ed ad-ertisers to tar"et their ads
across top blo"s in !outh Africa. 3t connected ad-ertisers &ith blo""ers and -ice
A 'icro-blo""in" site4 launch in May 200A. @aterpeeps connected Afri"ator
users to"ether throu"h short updates and co''unity interaction 3t is AfricaBs
ans&er to )&itter. 3t helped the -astly "ro&in" co''unity of Africa to connect &ith
)he bi""est co'petitor of Afri"ator &as <Amatomu=
A'ato'u is a blo" search en"ine and article a""re"ator4 focusin" on blo"s
published in !outh Africa. 3t &as founded by local &eb entrepreneurs Matthe&
%uckland and >incent Maher in March 200#4 &hile &orkin" for one of the countryCs
lar"est ne&s &ebsites the Mail D @uardian 1nline.
A'ato'u forced us to i'pro-e our product4 and as a result4 both ser-ices
Ee'o"raphics in this case refers to inco'e of African ha-e i'pact on
Afri"ator. 2ro' references4
GDP of Africa is 2.5% of the total GDP of the world in
2008 and to be estimated as 2.3% of the world GDP in 2009. 2ro' )able 33
<@eo"raphic Location of Afri"ator users=. Most Afri"ator users are in !outh Africa.
!outh Africa also has hi"hest @E$ a'on" African continent. %riefly4 Most of African
still ha-e -ery lo& inco'e to buy technolo"y e6uip'ent for &eb-bro&sin" 'ust be
threats for Afri"ator.
Country F of ,sers
!outh Africa #.#
)able 33 <@eo"raphic Location of Afri"ator ,sers=
fro' Case1 Afrigator: A iller start!"# in Africa
2. !ocial forces
$ifest%le is eIpressed in both &ork and leisure beha-ior patterns and 7on an
indi-idual basis9 in acti-ities4 attitudes4 interests4 opinions4 -alues4 and allocation of
inco'e. 3t also reflects peopleCs self i'a"e or self conceptJ the &ay they see
the'sel-es and belie-e they are seen by the others.
Lifestyles in each African country are different fro' each other. H-en in one
country also ha-e the differences bet&een their citi:ens.
&raditional African c"lt"re
has become s%non%mo"s with r"ral #o'ert% and s"bsistence farming. Eifferently in
!outh Africa4 a specific political D socio-econo'ic en-iron'ent present in urban
en-iron'ents. )he difference eItre'ely hi"h bet&een the rich and the poor. 3n !outh
Africa4 there are 'any rich people and 'any poor people. )hese "roup of people
ha-e different lifestyle because of the differences in inco'e.
3nternet users lifestyles are need ne&s update4 co''unicate4 sharin"
eIperiences and pictures. )hey use 3nternet to searchin" for a 'ap or dri-in"
directions4 lookin" for infor'ation on a hobby or interest4 use instant 'essa"in"4 and
listen to 'usic4 checkin" the &eather4 share files4 and "ettin" ne&s. 2ro'
(haracteristics of )nternet *sers <More than half of 3nternet users 754F9 li-e in
suburbs4 0F li-e in cities4 and 1*F li-e in rural areas= then it 'eans 'ost internet
users are urban and suburban "roup.
3n fact4 %asis of African society is a"ricultural society and 'ost African are
poor. !o "roup of 3nternet users in Africa are -ery s'all4 co'pared to the percenta"e
of the &hole continent.
$icture 1 / 3nternet users in 2010 as a percenta"e of a countryBs population
. $olitical4 le"al4 and re"ulatory factors
3ssuesB "o-ernin" the ad'inistration of the colonial le"acy in Africa is one of
the 'a+or obstacles to the de-elop'ent of African countries. %ecause of Huropean
colonial rule and apartheid oppression has reduced the -alue of hu'an sla-ery to the
Africans. %eco'e lack of eIpertise. %y "uidin" about the de-elop'ent fro' the ;est
after independent4 African faced 'any proble's &ith liabilities.
Africa is the poorest continent. )hey need the de-elop'ent of sciences.
Eespite the ad-ances in todayBs &orld is ur"in" the people and "o-ern'ents of
-arious countries to up"rade and eIpand the study to the pace of chan"e in the
&orld. 5o&e-er4 the shorta"e of hu'an resources and the poor econo'y in Africa is
a 'a+or obstacle in the de-elop'ent of education. 3n poor countries4 literacy rate of
the population is lo&4 such as Hthiopia4 Mali4 and Gi"er. At the sa'e ti'e in the
.epublic of !outh Africa and )an:ania4 econo'ic conditions are 6uite &ell. )hey
ha-e literacy rate up to *0 percent and 85 percent.
Hducation is the foundation of understandin" technolo"y. 5o&e-er4 'ost
African education still lo&. )his 'akes de-elop'ent so difficult.
4. Gatural Hn-iron'ent
Africa is a continent that has the &orldBs second lar"est continentJ Africa has
a characteristic feature of the @ulf coast4 lar"e and dented. Africa areas ha-e desert4
'ountain4 -alley4 plains4 and hi"hlands that difficult to access the area.
(haracteristics of )nternet *sers <More than half of 3nternet users
754F9 li-e in suburbs4 0F li-e in cities4 and 1*F li-e in rural areas.= %ut 'ost of
areas in Africa are rural area. H-en a nu'ber of pro+ects ha-e been started that ai'
at brin"in" 'ore band&idth eIpand to all Africa continent4 in order to cut do&n costs
for both operators and end users. )he rural area still hard to eIpand band&idth o-er
the entire continent.
5. )echnolo"ical factors
1bstacles to the accessibility of 3nternet ser-ices in Africa include "enerally
lo& le-els of co'puter literacy in the population4 poor infrastructures4 and hi"h costs
of 3nternet ser-ices. $o&er a-ailability is also scarce4 &ith -ast rural areas that are
not connected to po&er "rids as &ell as fre6uent black-outs in 'a+or urban areas
As a conse6uence of the scarce o-erall band&idth pro-ided by cable
connections4 a lar"e section of 3nternet traffic in Africa "oes throu"h eIpensi-e
satellite links. 3n "eneral4 thus4 the cost of 3nternet access 7and e-en 'ore so
broadband access9 is unaffordable by 'ost of the population. Accordin" to the
Kenyan 3!$s association4 hi"h costs are also a conse6uence of the sub+ection of
African 3!$s to Huropean 3!$s and the lack of a clear international re"ulation of inter-
3!$ cost partition
2ro' research infor'ation about
)nternet in Africa4 3nternet penetration here
is not as hi"h as it should be4 because of the hi"h cost of broadband and a lack of
infrastructure. ;ith a population of around 50 'illion people4 the country had +ust
8.5 'illion acti-e 3nternet users in 2011. )hat is up fro' *.8 'illion in the pre-ious
*. @lobal forces
)he continuin" "ro&th of the 'iddle class in key African 'arkets pro-ides the
pri-ate sector &ith "ro&in" opportunities. 3n response to the "ro&in" aspirations and
increasin" spendin" po&er of the consu'ers in Africa4 the presence of international
retailers is on the rise. %eca'e the interest of forei"ners &ith Africa increased.
#. @eneral econo'ic conditions
After an initial rebound fro' the 200A &orld econo'ic crisis4 AfricaBs econo'y
&as under'ined in the year 2011 by the Arab uprisin"s. )he continentBs "ro&th fell
back fro' 5F in 2010 to .4F in 2011. ;ith the reco-ery of Gorth African econo'ies
and sustained i'pro-e'ent in other re"ions4 "ro&th across the continent is eIpected
to accelerate to 4.5F in 2012 and 4.8F in 201. !hort-ter' proble's for the &orld
econo'y re'ain as Hurope confronts its debt crisis. Co''odity prices -- crucial for
Africa -- ha-e declined fro' their peak due to &eaker de'and and increased supply4
and so'e could fall further. %ut prices are eIpected to re'ain at le-els fa-orable for
;orld econo'y is do&nturn for no&. 3t is the si"nificant i'pact on ad-ertisin"
inco'e of Afri"ator.
!. Fie-Force" Mode# of Com$etition
- 5ost ser-er
- Custo'er &ho' buy
ad-ertisin" on Ad"ator
- ;eb users
- Hntry barriers are lo&
A substitute product is a product that appears to be different4 but can satisfy
the sa'e need as another product. 2or Afri"ator4 the substitute products are
tele-ision4 ne&spaper4 and 'a"a:ine4 etc.
!ubstitute product is stron"er. @ood substitute are readily a-ailable or ne&
ones are e'er"in" such as ne&spaper and 'a"a:ine both are already a-ailable.
$eople 'ay chan"e to read ne&s fro' ne&spaper or 'a"a:ine or &atch tele-ision
instead of follo&in" Afri"ator.
A MbuyerM or 'erchandiser is a person &ho purchases finished "oods4
typically for resale4 for a fir'4 "o-ern'ent4 or or"ani:ation. %uyer po&er refers to the
ability of custo'ers of the industry to influence the price and ter's of purchase. 2or
&ebsite in this case4 buyers 'ean custo'er &ho' buy ad-ertisin" Ad"ator.
%uyer bar"ainin" po&er is stron"er. %uyer 'ay buy ad-ertisin" fro' other
&ebsite that si'ilar to our &ebsite by considerin" fro' price.
Hntrant 'ean a person &ho enters a co'petition or contestJ co'petitor. 2or
this case 'ean ne& co'er social 'edia a""re"ator. Hntry threats are stron"er
because entry barriers are lo&. 3tBs not hard to co'pete on a le-el playin" field4 ne&
co'er &ho' had hi"h skills and see the opportunities of doin" social 'edia
a""re"ator can co'petin" in the industry.
!upplier 'eans so'eone &hose business is to supply a particular ser-ice or
co''odity. 2or Afri"ator suppliers 'ean ;eb hosts 7co'panies that pro-ide space
on a ser-er o&ned or leased for use by clients4 as &ell as
pro-idin" 3nternet connecti-ity4 typically in a data center9.
!uppliers bar"ainin" po&er is &eaker. Afri"ator 'ay chan"e host fro' the
ser-er to the ne& ser-er that is better because there are so 'any &eb hostin"
.i-als 'ay race to differentiate their products by offerin" better perfor'ance
features or hi"her 6uality or i'pro-ed custo'er ser-ice or co'petiti-e prices. 2or
eIa'pleJ A'ato'u 'ay add ne& feature that introduce the neIt-"eneration products
and cut their ad-ertise price on their &eb site.
%. &'OT Ana#("i"
o Afri"ator ha-e creati-e ne& features and "ood blo" directory
o Afri"ator ha-e inno-ati-e idea fro' staff to create ne& features
o CH1s ha-e hi"h eIperiences such as 5art'an 7eIperience in
&ebsite desi"n4 'ulti'edia4 and print 'edia94 !topforth 7social
'edia skills and business acu'en94 2orrester 7;eb desi"ner94 and
o @ood partnership that supportin" the' to hi"her than the others .%y
inte"ratin" &ith Afri"ator4 24.co' blo""ers are no& eIposed to a
-ery different audience than before. 3n addition these blo""ers are
no& able to "et detailed stats about their blo" &hich is so'ethin"
that &as not possible prior to this 'o-e. Afri"ator had M35 $rint
Africa 7$ty9 Ltd as partners that helped take Afri"ator to the neIt
o )heir tar"et are niche and s'all "roup of people in Africa
o )his &ebsite contain only African content that is out of focus fro'
people around the &orld
o Go 'oney capital to eIpand the fir'
o Mobile social net&orkin" &as "ro&in" in Africa as 'obile social
net&orkin" &as "ro&in" Africa4 Afri"ator decided to launch a 'obile
for' for its sites. Afri"ator released its first 'obile -ersion call the
Afri"ator Mobile and then an opti'i:ed -ersion of Afri"ator for the
App 3$hone and i$od )ouch &as launched
o Lo& internet penetration4 internet broadband connecti-ity
o !ocio-econo'ic proble's in African continent
o Lo&-education and lan"ua"e barriers
Afri"ator ha-e 'any proble's fro' the co'petitors and a si"nificant i'pact
fro' Africa proble'sJ econo'ic proble's4 lo& 3nternet penetration4 infrastructural
proble's4 lan"ua"e barriers4 inade6uate resources4 and li'ited broadband
connecti-ity. 3n neIt 5 to 10 years4 Afri"ator should chan"e their strate"y to suit the
Lar"est social 'edia a""re"ator of the African as a center of kno&led"e.
1. )o pro-ide 'obile application platfor' for Android platfor' and ;indo&s
'obile platfor' &ithin years
2. HIpand tar"et custo'er to Hurope4 Mid-Hast and Asia &ithin years
1ur co'pany &ill use "ro&th strate"ies by
1. Create Afri"ator application for Android and ;indo&s 'obile platfor'
2. 5a-e alliance in Hurope4 Mid-Hast and Asia
1. Attract custo'ers and outco'pete ri-als -ia i'pro-ed product4 create
better features and beco'e the first 'obile social 'edia a""re"ator for
2. %uild co'petiti-ely -aluable partnerships and strate"ic alliances &ith
1. .DE4 technolo"y4 product desi"n strate"y
.esearch on tar"et custo'ers about for'at on 'obile to satisfy
custo'ers in Hurope4 Mid-Hast and Asia.
2. $roduction !trate"y
@i-e a chance for pro"ra''er or "a'e de-eloper to create pro"ra' 0
"a'es and sell it for usin" in Afri"ator for 2.HH. Make i'pro-e'ents and
add ne& features to ser-e our custo'er needs such as add chat features.
. !ales4 'arketin"4 and distribution strate"y
Make an alliance in other country around the &orld to "et their
consu'er as our consu'er such as in )hailand4 'er"in" &ith pantip.co'
7one of the fa'ous &eb site in )hailand and also ha-e 'any blo""ers here9
then pantip.co' users &ill ha-e Afri"ator at the sa'e ti'e.
@i-e the ca'pai"n for all -enders to "et free ad-ertisin" on Ad"ator
for trial and do ad-ertisin" to the other &ebsite &hich is popular in each
country to "ain 'ore custo'ers fro' another country.
4. 2inance !trate"y
2ind ne& in-estor in stock 'arket to "ain 'ore capital.
5. 5u'an .esources !trate"y
.ecruit hi"h eIperience staff &ho' ha-e concept as sa'e as
1. List of African countries by @E$ 7no'inal9
2. ;hat is Lifestyle?
. Culture of Africa
4. Characteristics of 3nternet ,sers
5. 3nternet in Africa
*. !outh Africa la"s behind &ith 3nternet Access
#. %usiness .eport