Objectives

Jumia’s main strategic goal is to be the number 1 shopping destination for Africans; however this
statement is mainly the whole organization’s strategic goals. According to Jumia’s representative,
in addition to having the aforementioned goal as a guide, their goal that is more specific to Egypt
in particular is to have the largest assortment as well as the largest vendor base relevant to their
competitors and not to mention their own branches that are located in other countries. In order
to tackle their objectives through educating their sellers in “Jumia University” which is a program
meant to train new sellers in order to ensure that they upload their own products for themselves
while creating high quality content. They also deal with the Egyptian Chamber of commerce to in
addition to increase the number of their sellers, encourage local made products. Jumia also
implemented Jumia Global which is getting Chinese sellers to sell their products on Jumia
overseas. The organization also have their yearly target of assortments set to help them reach
their goals, these are also divided into monthly targets. Moreover, Jumia has a 2 types of
customers, buyers and sellers, and they act the channel that facilitate the communication; thus,
they created two departments, Consumer Experience (CXP) and Vendor Experience (VXP), to
ensure maximum satisfaction of both parties. Furthermore, in order to keep up with the
increasing number of sellers, Jumia created a whole new department, Self-Signup Unit (SSU)
department whose main objective is to contact new sellers and walk them through applying on
the website. GM content is another department aimed at reaching their goals, the GM content
department is mainly responsible for two functions, acting as a quality control check that
ensures the quality of the sellers’ content as well as creating the content for the sellers
themselves. They also have an offline marketing department extensively dedicated to creating
brand awareness to increase the number of visits on their website.

Differentiation

Jumia employs a differentiation strategy through a plethora of approaches. Their marketing

campaigns were one of the things that their employees admired highly. Jumia’s advertising
budget far exceeds its competitors. It is able to get unprecedented access in print, media, and
radio. Jumia often runs promotions to take advantage of both local and international holidays
such as mothers’ day, Islamic Bayrams and Coptic Christmases not to mention Halloween,
catholic Christmas and others. They also aim to have lower prices than souq’s, their direct
competitors in addition to faster delivery times and a wider array of products. They also focus
extensively on user and seller experience; jumia developed their own backend software for
sellers – seller center, to facilitate the process of uploading contents online for sellers and they
also go through endless, frequent developments of the website and their mobile application.
The amount of legal paperwork that they demand for the sellers to provide them with is another
differentiation factor. As a matter of fact, according to what their representatives stated, the
amount of paperwork is noncomparable with the amount that souq demands their sellers to get.
Only sellers who can guarantee that their branded products are authentic are approved to sell
on jumia, thus they demand their sellers to provide them with whatever proves the quality and

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 authenticity of their products, pay a guarantee check in advance as well as official paperwork to
ensure consumer protection.

Corruption

According to transparency International, Egypt scored 34 points out of 100 on the Corruption
Perception Index, indicating serious levels of public sector corruption. Transparency
International also ranked Egypt the 108th out of 176 countries assessed for corruption.
Nevertheless, problems due to bureaucracy and high levels of corruption make even
much difficult for most industries, however is even more difficult for industries that rely
heavily on governmental regulations and approvals to carry out their business. Jumia is
one of the organizations that are tremendously impacted by these disparities. As of
2016, global Edge revealed that imports of global goods and services in Egypt account
for 19.6% of its total GDP. Therefore, products placed on Jumia’s website used to be
mostly imported; and due to the high levels of corruption, uncertainty of whether the
products come on time or are delayed or even disapproved it creates a great deal of
uncertainty. In addition, the fact that Jumia heavily relies on dealing with a large array of
sellers and buyers, they are obligated to get numerous approvals from public sectors –
for instance, ensuring that beauty products are safe for consumers to use or that food
products are safe for people to consumer- in order to carry out their business. Thus,
corruption acts as a significant hindering factor to the company. The management at
Jumia Egypt decided to implement a new division named Jumia Local in efforts of
counteracting the negative effects of the corruption and bureaucracy that they encounter
during importing goods. Jumia Local is a completely separate category on their website
that is solely dedicated for Egyptian made products, which also acts as an
encouragement of locally produced goods.

Quality of Life

As of this month, December 2017, Numbeo revealed that the Quality of Life Index of
Egypt is 80.80, which is, according to their website is moderate. The Quality of Life Index
estimates the overall quality of life taking into account the Purchasing Power Index,
Safety Index, Health Care Index, Climate Index, Cost of Living Index, Property Price to
Income Index, traffic commute time index and pollution index. Purchasing power index is
20.45 which according to Numbeo are very low; such a low score has a great impact on
companies who are heavily dependent on consumers’ purchasing power. If sellers on
Jumia decided to increase their prices - for example to counteract the effect of the
devaluation of the Egyptian pound and cover their expenses that they are incurred to
pass their imported products through customs as well as money they pay to public
sector employees to rush their shipments – the customer base of Jumia will decrease
since a lot of people will not afford to buy the products. Moreover, Traffic Commute Time
Index is another element of Quality of Life Index that has a negative impact on Jumia.
Traffic Commute Time Index measures the time consumed in traffic, on which Egypt
scores 46.80 which is considered to be high, and is a major contributor of the problems
that Jumia’s customers encounter regarding order delays.

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 Economic Inequality

It is a widely held belief that the perceived gulf between the rich and the poor in Egypt was one
of the main contributors that provoked Egyptians to revolt on the 25 th of January. This was one
of the main reasons that the World Bank decided to conduct an extensive study on the economic
inequality within Egypt. According to the World Bank, the overall Gini for Egypt is 31.8 as of
2015. The Income Gini coefficient measures the deviation of the distribution of income among
individuals within a particular country. Moreover, according to CAPMAS, the national poverty
line of Egypt has significantly increased between the years 2013 and 2015, from 3,900 L.E
annually (2013) to an income of 5,800 (2015) annually. Statistics also show that 27.8% of the
Egyptian population is currently living under the national poverty line. In comparison to urban
areas, poverty is predominant in rural Egypt as 69% of the total population is under the poverty
line. Furthermore, CAPMAS reported that the average annual income of Egyptian households
was 30,400 L.E as of 2013. However, there appears to be a massive discrepancy between the rich
and the poor since households living in urban areas in Egypt had an average annual income of
35,000 L.E. while their counterparts living in the rural areas of Egypt earn an average annual
income of 36,840 L.E. In efforts of fighting poverty and hunger, Jumia works with different
charitable organizations such as Misr El Kheir Foundation, Dar Al Orman Association as well as
the Egyptian Food Bank. They offer allow the aforementioned NGOs to sell their products on
their website without charging them any commission whatsoever.

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