Report on DARAZ Bangladesh

Course: EMB 690, Sec-01

Semester: Summer 2019

Prepared for Prepared by

M. Nazmul Amin, PhD Mustafa Jamal Yousuf, ID 1815176090

Adjunct Professor Md. Robiul Islam Sarkar, ID 1815269090
MBA & EMBA Program
North South University

Date of Submission: 10 September, 2019

 LETTER OF TRANSMITTAL
10 August, 2019

To

M. Nazmul Amin, PhD

Adjunct Professor
Department of MBA & EMBA Programs
North South University.

Subject: Submission of a report on DARAZ Bangladesh

Dear Sir,

We are pleased to submit the group report as a partial fulfillment of EMB690: Strategic

Management Course. We have tried our best to portray the most accurate information within the

timeframe. This case has provided us the opportunity to relate strategic management related

concepts with the real-world practices. If we had not got the opportunity to go through report on

DARAZ Bangladesh, we would never be able to understand the real-world strategic phenomenon

that a company can experience in its’ lifetime.

In this regard, we have tried to above and beyond to complete this report maintaining the quality

as per your expectation. It would be really grateful, if you find this report useful and informative

and we hope you will appreciate our effort.

Sincerely,

-----------------------------
Mustafa Jamal Yousuf

-----------------------------
Md. Robiul Islam Sarkar

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 ACKNOWLEDGEMENT

First of all, we would like to express our gratitude to Almighty Allah for giving us the strength

and knowledge to successfully complete this project within due time.

We are really thankful to our Faculty Advisor M. NAZMUL AMIN, PhD, Adjunct Professor,

Department of MBA & EMBA Programs, North South University, for his direction, constant and

spontaneous support, efficient supervision and constructive suggestions. It would have been

extremely exhausting to prepare this report up to this mark, without his valuable assistance. We

consider this case as an amazing opportunity for creating a platform to gather knowledge and

valuable facts regarding Strategic Management.

Acknowledgement must go to all the group members, whose persistent patience and amazing

capacity of creative work, and long hours made the project both possible and successful under the

pressure of knocking deadline.

NAME: SIGNATURE

Mustafa Jamal Yousuf ……………………….

Md. Robiul Islam Sarkar ……………………….

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 EXECUTIVE SUMMARY

DARAZ Bangladesh is the pioneer of E-commerce industry in Bangladesh who has brought a new

era in the electronic shopping trend. It has opened so many opportunities for business along with

new trend for the customers. Despite of having a lot of external environmental factors forcing

downward, DARAZ is continuously growing its market share throughout the country. Porter’s five

forces analysis gave a positive indication of doing business in this sector. While doing internal

analysis, we found that the main strength of DARAZ is its collaboration with Alibaba. Its main

weakness is huge overhead costings. DARAZ has huge opportunity in Bangladesh because it’s the

blooming industry of the country. It has threats from other competitors too. The main core

competency of DARAZ is availability of all kinds of products. It has a very effective corporate

strategy to grab the maximum market share and it is implementing all these strategies very

successfully to build up the brand. Among the CSR policies of DARAZ, campus workshop and

future leadership training programs are mentionable. To maintain the top position in the

ecommerce industries of Bangladesh DARAZ should pay more attention to its product quality,

delivery and after sales service.

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 TABLE OF CONTENTS

INTRODUCTION........................................................................................................................................... 7
Major Players .......................................................................................................................................... 9
History of DARAZ .................................................................................................................................. 10
Fig 1: Logo of DARAZ ......................................................................................................................... 10
Vision .................................................................................................................................................... 10
Mission.................................................................................................................................................. 10
Objective ............................................................................................................................................... 11
EXTERNAL ANALYSIS ................................................................................................................................. 13
MACRO ENVIRONMENTAL ANALYSIS .................................................................................................... 13
Political Factors ................................................................................................................................. 13
Economic Factors .............................................................................................................................. 13
Social Factors .................................................................................................................................... 14
Technological Factors........................................................................................................................ 14
Environmental Factors ...................................................................................................................... 15
Legal Factors ..................................................................................................................................... 15
PORTER’S FIVE FORCES ANALYSIS ......................................................................................................... 16
• Bargaining power of suppliers ................................................................................................... 16
• Threat of substitute products ................................................................................................... 16
• Bargaining power of buyers ...................................................................................................... 16
• Threat of new entrants ............................................................................................................. 16
• Competitive Rivalry ................................................................................................................... 17
Fig 2: DARAZ Porter 5 Forces ............................................................................................................ 17
INTERNAL ANALYSIS .................................................................................................................................. 19
SWOT ANALYSIS .................................................................................................................................... 19
Fig 3: SWOT Analysis ......................................................................................................................... 19
Strengths ........................................................................................................................................... 19
Weakness .......................................................................................................................................... 20
Opportunity ...................................................................................................................................... 20
Threat ............................................................................................................................................... 21
CORE COMPETENCIES ........................................................................................................................... 22
COMPETITIVE STRATEGY AND IMPLEMENTATION .................................................................................... 23

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 CORPORATE STRATEGIES ...................................................................................................................... 23
Fig 4: DARAZ signing ceremony with Mushfiqur Rahim .................................................................... 24
Fig 5: DARAZ Fatafati Sale Offer ........................................................................................................ 25
IMPLEMENTATION STRATEGY ............................................................................................................... 26
CSR POLICY ................................................................................................................................................ 27
• Campus workshop......................................................................................................................... 27
• DARAZ Future Leadership Training Program ................................................................................. 27
RECOMMENDATION AND FUTURE CHALLENGES ...................................................................................... 28
CONCLUSION ............................................................................................................................................ 30
REFERENCES.............................................................................................................................................. 31

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INTRODUCTION

E-commerce platform business which is a term for business transaction that is performed via

internet. Using e-commerce consumers can exchange goods or services electronically without any

hassle. Now a days, numerous number of companies are selling their tangible and intangible goods

through e-commerce.

E-commerce refers to any commercial transaction that happens through electronic media. There

are 6 types of e-commerce:

Business to business (B2B)

Business to consumer (B2C)

Consumer to Consumer (C2C)

Consumer to Business (C2B)

Business to Administration (B2A)

Consumer to Administration (C2A)

During 1950 companies started using computers to record and processing intestinal business

activity record. In 1960, punched card was used to perform transaction by companies which has to

maintain large volume of transaction records (Mohiuddin, 2014). In the year 1968, Transportation

Data Coordination Committee (TDCC) was formed (E-Commerce Policy Framework for

Bangladesh, 2017). To develop uniform Electronic Data Interchange (EDI) in 1979, American

National Standard Institute (ANSI) made a new committee (Mohiuddin, 2014). It was Michael

Aldrich who introduced online shopping first in 1979 for online ordering, Minitel (a french telecom

company) introduced countrywide online ordering. It was Mrs Jane Snowball who utilized the

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Gateshead Tesco framework to purchase basic supplies in 1984 which is recorded as the first

ecommerce transaction in the world’s history (Mohiuddin, 2014). Finally, by 1994 bank

transaction were performed and thus e-commerce started its journey. With the evolution of online-

based market, marketing is now progressively mixing the information technologies. Business

market is now differentiated on different set-up via electronic business. The worldwide business

is rapidly heading towards Business-to-Business (B2B) through ecommerce. Most of the

businesses are increasingly advertising their products through online and promote their goods or

services.

In Bangladesh, e-commerce business started when first payment processor vendor SSL

COMMERZ started their business in 2010. In addition, with the advancement of WIMAX

technology during that time internet speed got better and many of the online business platforms

started.

Currently e-commerce is one of the most important aspects of doing business. As a result of the

expansion of internet services, e-commerce has grown rapidly. The new shape of business structure

has been introduced by e-commerce. This paper has analyzed growth and challenges of ecommerce

in Bangladesh.

Over 90 million users browse the internet through a mobile phone. The government committed

that broadband network will be extended along with high bandwidth 2021. The political

government of Bangladesh declared Information Technology as a thirst sector, so to exploit ICT

potentials in economic development government launching different promotional activities.

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Major Players

Key E-commerce platforms in Bangladesh: Major e-commerce websites operating in Bangladesh

are listed below: [1]

• www.ajkerdeal.com
• www.daraz.com
• www.pickaboo.com
• www.chaldal.com
• www.priyoshop.com
• www.bagdoom.com
• www.rokomari.com

Key logistic and distribution operators in the e-commerce market:

• Bangladesh Post office (BPO)

• Various Courier Services
• TNT

Key product categories in the E-commerce market: The products and services that now

dominate the country’s e-commerce are

• Consumer products
• Tickets (railway, domestic air).
• Hotel booking.
• Electronic products.
• Books, jobs, clothing, food items.
• Baby consumables and financial services.

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History of DARAZ

DARAZ was founded as a fashion retailer in Pakistan in 2012, but changed to a general

marketplace strategy and business model in 2015 when it also launched operations in Bangladesh

and Myanmar Launched in 2012, DARAZ is South Asia's premier online shopping marketplace

with an active presence in Pakistan, Bangladesh, Sri Lanka, Myanmar and Nepal. Supported by a

wide range of tailored marketing, data, and service solutions, DARAZ has 30,000 sellers and 500

brands and serves 5 million consumers across the region. DARAZ has more than 2.5 million

products to offer, growing at a very fast pace. [2]

Fig 1: Logo of DARAZ

Vision

For DARAZ Bangladesh the vision is- “To be the number one marketplace by offering top quality

services to all of our sellers and customers”. [3]

Mission

The mission of DARAZ is: To spread all over Bangladesh and gain highest market share in the

ecommerce sector, make all the necessities available to customers and find the best sellers

around the country to showcase their products in the DARAZ website. [3]

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Objective

There are some objectives which need to be followed in order to achieve the mission and vision.

DARAZ Bangladesh also focuses on many goals to achieve its full potential and these objectives

are:

• Ensure a great experience for the buyers while flourishing our business by working closely with

the sellers

• DARAZ will focus on gaining the market by creating loyal customers by providing the biggest

selection of different items in lowest price

• By fulfilling the orders effectively and efficiently, customer experience will be improved

• Different support services will be designed to help the sellers grow with DARAZ

• Effective recruitment, training, retention and coaching will be done to achieve the mission of

DARAZ and create valuable resources for the company

• Building an effective culture for the company where the employees get the opportunity to grow

and contribute to the company

• Along with the company, helping the growth to the e-commerce industry of Bangladesh by

setting the trend for the market

DARAZ offers a diverse assortment in categories. DARAZ is focused on providing an excellent

customer experience, ease-of-purchase, comprehensive customer care and a hassle-free shopping

and returns experience. DARAZ was acquired by Alibaba Group in May 2018.

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DARAZ has an official FB page with more than 4 million followers (DARAZ Online Shopping,

2019) People who using Facebook, can see the new offers in it. It is just like a digital marketing

policy to get more customers. There is an interesting thing that DARAZ is one of the online

marketplaces which keeps their eyes on the SEO. So, when a customer searches on Google like

“the biggest or best e-commerce sites in Bangladesh”, the name of DARAZ comes first.

Like other countries, DARAZ provides a shopping experience that is incomparable in Bangladesh.

DARAZ attempts to offer the most modish, adapted and protected online shopping experience with

a wide scope of brands such as Yellow, Noir, Symphony, The Body Shop, Huawei, Samsung,

Walton, Aranya, 6 Degree Mobile, Shada Kalo, Apple, LG, Fastrack, MAC, Nikon, Ecstasy,

Panasonic, Doors etc. are just a few of the global and local leading brands who have already set

up e-stores with DARAZ.com.bd with excellent sales reviews. (DARAZ Bangladesh Limited

Website, 2019). [4]

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EXTERNAL ANALYSIS

An External analysis is a framework or tool used by marketers to analyses and monitor the macro

environmental (external marketing environment) factors that have an impact on an organization.

MACRO ENVIRONMENTAL ANALYSIS

There are a lot of macro environmental factors which influences the ecommerce business of

Bangladesh. Here we tried to focus on those major factors which are affecting DARAZ:

Political Factors

These are about how and to what degree a legislature mediates in the economy. This can

incorporate – government strategy, political security or instability in abroad markets, foreign trade

policy, charge arrangement, labor law, environmental law, trade restrictions and so on. It is clear

from the rundown over that political variables frequently affect associations and how they work

together. Associations should have the capacity to react to the present and expected future

enactment, and modify their promoting arrangement as needs be. DARAZ is an internet based

company and they depend on people ordering through internet. But due to the recent terrorist attack

recently. Government is planning to put some restriction over internet, which in terms might

hamper DARAZ Bangladesh.

Economic Factors

Economic factors have a noteworthy impact on how an organization does business and also how

profitable they are. Factors include – economic growth, interest rates, exchange rates, inflation,

disposable income of customers and businesses and so on. These factors can be further broken

down into macro-economic and micro-economic factors.

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Macro-economic factors deal with the management of demand in any given economy.

Governments use interest rate control, taxation policy and government expenditure as their main

mechanisms they use for this. Micro-economic factors are all about the way people spend their

incomes. This has a large impact on B2C organizations in particular. Bangladesh is a developing

country, here the per capita earning is low. So DARAZ’s pricing should be done accordingly. [5]

Social Factors

Social Factors are the areas that involve the common belief and attitudes of the population. These

factors include – population growth, age distribution, career attitudes, social belief and so on.

These factors are of particular interest as they have a direct effect on how marketers understand

customers and what drives them.

People in our country has this belief that online business isn’t trustworthy. If this belief can be

changed, then DARAZ would capture more market share from new customers.

Technological Factors

We all know how fast the technological landscape changes and how this impacts the way we

market our products. This is the age of smartphone, and most of DARAZ’s target market uses one.

So DARAZ is focusing on mobile advertising to capture the market.

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Environmental Factors

Environmental factors include ecological and environmental aspects such as weather, climate, and

climate change, which may especially affect industries such as tourism, farming, and insurance.

But since DARAZ an internet base company, so environment doesn’t affect it much.

Legal Factors

Legal factors include discrimination law, consumer law, antitrust law, employment law, and health

and safety law. These factors can affect how a company operates, its costs, and the demand for its

products. Since Bangladesh is a developing country, government are very lenient towards these

online businesses. It’s not being affected by the law in any bad way.

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PORTER’S FIVE FORCES ANALYSIS

Porter's Five Forces is a simple but powerful tool for understanding the competitiveness of your

business environment, and for identifying your strategy's potential profitability.

• Bargaining power of suppliers

For a globally renowned ecommerce company, a guaranteed supply chain of best quality materials

is inevitable. And there are lot of supplier available which make the bargaining power of supplier’s

low.

• Threat of substitute products

Substitute products can be a reason for any company’s demise. Threat of substitute product is high

as various ecommerce company can be considered as substitute product. In response, DARAZ

come up with various offers with experience supported by principles and core values. They tried

their best to be non-substitutable in their consumer’s mind.

• Bargaining power of buyers

As there are plethora of online shop available for the consumers to choose from, the bargaining

power of them is relatively high. Therefore, an intense competition is seen between local company.

They had been conducting business for years. Their knowledge about the market, unique sense of

local taste and affordable pricing make them competitive in this arena. In response, DARAZ

intelligently adopt Bangladeshi taste and culture within choices.

• Threat of new entrants

Severe bureaucratic infrastructure made it difficult for the new comers to hit on the market. As a

result, the threat of new entrants is low. DARAZ is one of the leading online stores. Time

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estimating to reach that point for a new entrant. This is also a fact that failure of new entrants

will demotivate the business players to get involve in a new market.

• Competitive Rivalry

There are number of players in the e commerce industry in Bangladesh, which indicates intense

competition. Moreover, the position in all the other forces also indicates the same. So, it can be

said that the rivalry in the market is relatively high, which made the industry attractive. DARAZ

being a major player successfully captured these issues.

Fig 2: DARAZ Porter 5 Forces

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PORTER'S GENERIC STRATEGY OF DARAZ

• New supplier entries fall under cost leadership strategy.

• Good deals with no extra charges rather than just shipment cost

• Shipment charge is really cost efficient

• Imported products are less costly compared to many market places

• Comes with many cheaper alternatives

• Free shipment on special conditions

• Sponsored by some companies, offers their products in lower cost than actual.

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INTERNAL ANALYSIS

There are a lot of internal factors affecting ecommerce businesses in Bangladesh. Here we tried

to focus on some of the major factors which has direct effect on DARAZ:

SWOT ANALYSIS
The business environment can be analyzed with different tools. One of them is SWOT analysis. It

works with four different types of environment. They are the Strength, Weakness, Opportunity and

Threats of an organization.

Fig 3: SWOT Analysis

Strengths

• Better website among competitors: DARAZ Bangladesh has better website among competitors

like pickaboo.com, clickbd.com and bagdoom.com

• All brand new products: Selling all brand new products here. DARAZ Bangladesh do not sell any

second hand or refurbished goods.

• Deals with renowned brands: DARAZ Bangladesh is very popular for coming up with deals from

various renowned brands like Samsung, Bata, Apex.

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• Brand warranty: A lot of brands offer authorized warranty to customer who buys from DARAZ

Bangladesh.

• Fast delivery: Delivery among customer all over the country within three days.

• Strong collaboration among departments: DARAZ Bangladesh has a very strong collaboration

among departments. Like delivery to content department they communicate fast and solve

problems.

• Easy and free register: It is free and easy for seller to register with DARAZ Bangladesh.

• Delivery in whole Bangladesh: DARAZ Bangladesh delivery their product all over Bangladesh

no matter in cities or villages.

Weakness

• High turnover rate: The turnover rate in DARAZ Bangladesh is high due lower chance of career

development and small pay scale.

• Low brand recognition: A lot of people are not aware of the brand named DARAZ Bangladesh.

They mostly know bikroy.com or ekhanei.com

• No refund on specific products: In some products like books, some clothing they do not offer

refund.

• DARAZ is only focusing on online marketing. The company should focus on some ATL

marketing and BTL advertising.

Opportunity

● Emerging online market: The online market in our country is still an emerging market with a lot

of potentially.

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● Take order from outside Bangladesh: DARAZ Bangladesh can take order directly from outside

Bangladesh and delivery them to a destination inside Bangladesh like UpoharBD.com

● Gift delivery service: DARAZ Bangladesh can also take gift deliveries orders like cakes or cards

or flowers. ● Emergency delivery: They are currently not offering emergency delivery service like

same day delivery but they can since there is a demand of it.

Threat

● Upcoming native competitors: Upcoming native competitors can be a big threat. As a lot

competitors are coming up.

● International giants: International giants like Amazon or EBay can come to our market and take

over it if DARAZ Bangladesh cannot make a strong position in the market.

● Political instability: Bangladesh is a country with unstable political history. So political incident

can harm the business in times.

● Lower internet availability: As a third world country internet is not yet widely available

everywhere in our country so DARAZ Bangladesh is still out of reach of a lot of potential market.

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CORE COMPETENCIES

For a business to run smoothly one need to look at various things. An organization need to forecast

its profitability, have to decide on what kind of resources to use. For this reason it is very much

important to get advantage over its competitors through the core competencies. Here we are

focusing on the core competencies of DARAZ:

1. Chinese business giant Alibaba has expanded its e-commerce empire into South Asia after

it acquired Daraz in an undisclosed deal. Getting products and support directly from

Alibaba is the main core competency of DARAZ. [6]

2. DARAZ has a team of around 400 people. This big team can handle huge demand and

supply without any extra pressure.

3. As they source their products directly from the manufacturer, so they can offer the cheapest

price for most of their products.

4. As they can source products from Alibaba vendors, so they can offer the rare products

which other ecommerce business owners can’t even imagine.

5. DARAZ has the maximum number of products and offerings comparing to other

ecommerce sites.

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COMPETITIVE STRATEGY AND IMPLEMENTATION

DARAZ is successfully applying its corporate strategies to gain the maximum market share. We

analyzed how it is implementing its strategies, here we focus on these:

CORPORATE STRATEGIES

According to co-founder Sumeet Singh, one of DARAZ's aims is to become the biggest online

market in Bangladesh. “We are choosy in terms of what kind of products and sellers we bring

onboard. What makes DARAZ different from everything else here is that we are a curated market

place,” he said, during a sit down with Lifestyle at their head office. “We are also very committed

to providing the most convenience and also the best available deals and prices,” he added. It is one

of a kind in the sense that they are indeed providing amazing deals on their website for a whole

array of products from electronics to accessories to clothing products.

The deals are about to get even sweeter since they recently announced that, in collaboration with

their other offices in Pakistan and Myanmar, DARAZ will have a massive sale starting on

December 4 in their South Asian markets. The sale - called Fatafati Friday - is set to host huge

deals and discounts exclusive only to DARAZ. “We adopted the Black Friday concept from the

west and applied it to our market in Africa and it was a huge success. So this year, we think that

it'll blow up here. We are running a lot of campaigns to provide the customer with discounts.

Companies like Samsung and Symphony will be giving away huge discounts on our website and

fashion items will also be available up to 70 percent off. We want to create a huge impact and

make this the biggest e-commerce sales event in the country,” said Sumeet Singh.

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Despite their drastic rise to the top in the e-commerce industry, DARAZ continues to face

challenges that they have had to work hard to overcome. Initially, one of their main challenges

was deliveries. At the time, Bangladesh did not have a cash-on-delivery concept so cash collection

in itself was a big challenge. To eliminate this problem, DARAZ introduced Easy pay way to their

website so that customers could pay online and also set up their own logistics network in Dhaka.

Also, to ensure that all deliveries are on time during the Fatafati sale, DARAZ has multiplied their

delivery capacity by ten. Another big challenge that DARAZ faces is changing the habit of the

customers and getting them to trust and buy online. Since this is still a relatively new concept in

Bangladesh, DARAZ sought the help of the former captain and local hero, Mushfiqur Rahim, to

gain the trust of the local public.

Fig 4: DARAZ signing ceremony with Mushfiqur Rahim

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It is clear that DARAZ is here to stay. Their office centres around a huge room with benches where

all their employees sit together on their laptops and work side by side. It is very interactive and

emits a Silicon Valley vibe. Coupled with an excellent customer service section and a foosball

lounge where the employees can let off some steam, DARAZ seems to have captured the perfect

work environment.

DARAZ is also working hard to ensure that their customers get the best quality products. Because

of the Fatafati sale, their fashion manager flew in from Paris to oversee the fashion aspects of the

sale. “I am here to get an overview of what's going on. We have a global overview of what the

main trends in fashion are and we plan to incorporate that with our knowledge of the local markets

to ensure that we offer the latest in fashion and style.

DARAZ is already one of the giants of e-commerce and with the addition of Fatafati Friday, they

are set to make waves and host the biggest sale in Bangladesh ever. So, if you are looking for

spicy deals on the best products that are available here, definitely go check out DARAZ and be

sure to join them in the coming Friday for the sale of the century! You can be sure that we here

at Lifestyle will be glued to our monitors, ready to push that Add to Cart button. [7]

Fig 5: DARAZ Fatafati Sale Offer

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IMPLEMENTATION STRATEGY

DARAZ Bangladesh Ltd. is mainly an ecommerce site. As a result they focus mainly on the

online marketing to boost up their sells. Some of the mediums that they use for online marketing

are discussed below:

• DARAZ Bangladesh Ltd. uses the social media websites for their online marketing.

• They runs a Facebook page where they give regular updates on their products and

upcoming campaigns.

• DARAZ Bangladesh Ltd. uses Twitter for their online marketing.

• They gives advertisements on the YouTube.

• DARAZ Bangladesh Ltd. gives advertisements on different websites all the time. If any

• visitor clicks on that advertisements they will directly go to the webpage of DARAZ

Bangladesh Ltd.

Even though the online marketing is overtaking the field of Offline marketing nowadays, the

offline marketing still did not lose its ground. DARAZ Bangladesh Ltd. also does offline

marketing. Some of the mediums that they use for offline marketing are discussed below:

• Advertisement on the daily newspapers.

• Participating in different types of fairs.

• Locating banners of DARAZ Bangladesh Ltd. in different markets during their Fatafati

• Friday campaign.

• Giving vouchers to its consumer to get discounts in different restaurants.

• They give discounts cards to its consumers during their Fatafati Friday campaign. So

• that they gets discounts from some selected Brands.

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CSR POLICY

DARAZ.com.bd, a leading online retailer teamed up with their brand ambassador Mushfiqur

Rahim, Test Captain of BD cricket team and implemented an initiative of #DARAZCares. This

was carried out in association with ActionAid Bangladesh to support their project, the Happy

Homes- Centres for the deprived and underprivileged girls of Dhaka city.

As a tribute to International Women’s day, ActionAid helped DARAZ host a program at their

premises with 30 marginalized girls out of 150 of ‘Happy Homes’, a home supported by ActionAid

Bangladesh which works for the improvement of the largest e-commerce DARAZ is not only

selling products to the customers but also, they try to contribute in the society. As the part of the

CSR, DARAZ takes many initiatives. These are briefly Explained below:

• Campus workshop

DARAZ is doing workshops in the different universities. Basically, these workshops are based

on the Corporate cultures. So, it helps to the students to prepare themselves for the corporate

world.

• DARAZ Future Leadership Training Program

DARAZ tries to make some leaders from our society. So, DARAZ organizes a program for

students of universities where they have to solve some case studies with different issues. On

the basis of good ideas, the team of students win that competition. It helps them to know about

the corporate world. It also helps them to be a leader in their life. [8]

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RECOMMENDATION AND FUTURE CHALLENGES

In this competitive market, it is important for companies to outperform other companies and also

set a standard which is not easily affected by any new ventures. So far, the finding recommends

that if a big and well reputed company establishes in Bangladesh, there is a very thin possibility

for DARAZ to stop sales drop. To have a sustainable future, DARAZ need to create loyal and

happy customer base. The factors which are working as barriers for DARAZ’s growth and

sustainability and the recommended solutions are:

• Firstly, they need to ensure their product quality. Even if they have lower number of sellers

but the product quality is good customer will shop from them longer and will not switch to

other e-commerce sites easily. So, their products must be of good quality, matching their

company goal.

• As they do not have their own delivery team, they are struggling to deliver faster or

emergency deliveries. As this company has grown bigger with time. It is high time for them

to create a strong personal delivery team and better follow-up teams to ensure timely

deliveries. Customer buy from online to save their time. If that purpose is not served it

becomes pointless for them to shop from DARAZ.

• After complaining and returning default product, if customers will get prompt service and

the mistakes are alternate effectively there is high chance that they will repurchase. Most

importantly, they will think that company cares about their problem and always willing to

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 fulfill their need. They will feel valued and will stay with the company. And later will have

positive feedback.

• While choosing the pricing strategy, company must keep in mind that their price matches

the current market prices. Price must be competitive enough to influence customers to

purchase product from DARAZ. If the price is high, there should be a valid reasoning of

it. Such as a good quality product may have higher price. But then again, the quality of the

product must be ensured.

• Many customers has complained that they are unsatisfied with customer service. That

means they are not available, follow-ups are not done properly, replies are not as prompt

as expected and they do not have enough information about products or the process to reply

promptly about them. As I am a customer service agent, from my own experience I can say

that enough information about the products are not provided. And product status is often

not provided promptly from the outbound team of DARAZ supply chain. So the service is

delayed. A huge number of calls and queries are received every day. So, the number agents

should be increased to ensure effective and prompt service from the department.

• Another way of sustaining the customer base is offering unique products and offers. Offers

must be one of a kind. So that customer will only think of shopping from DARAZ as there

is no alternative as such.

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 • Lastly to save its sales drop if big companies start their operation in Bangladesh will be

good ties with their sellers and distribution channels (Delivery associates). And customer’s

reliability on the brand. For them ensuring high quality s3ervice is a must.

CONCLUSION

DARAZ Bangladesh Ltd. still has a great chance in the market to develop and acquire the
maximum share of the market. From the very beginning, the company had faced many challenges
and difficulties to reach today’s position. From a very small unit, it is a giant organization today.
The companies in the e-commerce industry should concentrate on quality product and quality
service to take this industry towards further success. The Bangladesh government should also be
considerable and cooperative to help the businesses flourish. As DARAZ Bangladesh Ltd is
decentralized organization and core values are cherished by everyone within the organization,
operating in dynamic situation is easier than it seems. Every department works hard and the
efficient workforce with advanced technological infrastructure will make DARAZ Bangladesh to
maintain the top position in the Bangladesh E-commerce industry.

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