Πµå E BUSINESS

MIS 207 TERM PROJECT REPORT

ORGANIZATION: “PATHAO”
TO: ADYEL KHAN
Lecturer, Department of Management,
North South University
MIS 207 TERM PROJECT REPORT
ORGANIZATION: “PATHAO”
TO: ADYEL KHAN
Lecturer, Department of Management,
North South University
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SEMESTER: FALL 2022

SECTION: 01

TEAM MEMBERS:

Rayan Rashik 2012823030

Foujia Nosrat 2111358630

Jubair Ahmed 1812634030

Al Forhad 1811595630
Nafiz Nihal 2111768630

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TABLE OF CONTENT

E-business in organization 4
Introduction Error! Bookmark not defined.
“Mission” and “Vision” 5
Business Model Canvas of Pathao 5
Range of products and services: 6
Customer segment: Error! Bookmark not defined.
Critical business process: 7
Drivers of e-business adoption in Pathao: 7

Marketplace Analysis 9
Three Key Competitors 9
Pathao Revenue Model 9
Value Proposition 10

E-Business platform 11
E-Business Software 11
Network Technologies 12
Web Technologies Error! Bookmark not defined.
Web Content Management Strategy 13

Digital strategy for e-business 15

E-channel structure 15
E-business strategy and how it supports vision and mission 17
SWOT analysis 17
Competitive threats 19

E-business Security 20

Conclusion 23

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E-business in organization

Introduction

Pathao, which roughly translates to "send," was introduced in Bangladesh in 2015, it became the
country's first app-based online motorcycle ride service. It is the only business in Bangladesh that
offers residents of Dhaka both logistics and transportation services. Students and people who need
rides to and from their offices are the first to use the ride service. Although Pathao faces intense
competition from foreign players in the market, such as Uber, the company has an advantage over
its rivals because its two-wheel vehicles can navigate Bangladeshi cities' congested traffic jams more
effectively than their four-wheeled rivals.y taking the time to carefully set up its operational activities
and develop a workforce of vetted employees, Pathao has capitalized on this advantage. Pathao has
received positive feedback in its early stages thanks to its capacity to guarantee quick ride services
and its polite and dependable customer service. Pathao, a startup, is a business that embraces
dynamism and is constantly changing. The business wants to broaden its network to cover the entire
country of Bangladesh and diversify its product offerings. Pathao is a large and expanding technology
startup in Bangladesh that is supported by numerous foreign investors. It has developed mobile
apps, websites, and logistics solution providers based primarily on tangible solutions to counter the
country's biggest infrastructural affair. They have grown into one of the most significant and efficient
e-commerce delivery companies in the country, expanding into the food delivery and ride-hailing
transportation sectors. It operates in three cities in Bangladesh: Dhaka, Chittagong, and Sylhet, as
well as in Kathmandu, Nepal. Their transportation costs and other services that are very affordable
and can be obtained anytime . They make offers and communicate with customers and businesses.
Pathao offers the best deals to customers and provides quick service. They make money by providing
a service. Pathao focuses on the customers who request their services. There are numerous
competitors, including Uber, Obhai, and Shahoz.Pathao offers a variety of services, including Pathao
Parcel, Pathao Rides, and Pathao Food. Provides customers with high promotional offers such as 50%
off every ride and, on occasion, free parcel delivery to business individuals. Mr. Hussain Elius, Shifat
Adnan, and Fahim Saleh founded the company.

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“Mission” and “Vision”

“With a hope to accelerate the establishment of digital Bangladesh, Pathao provides an app based
solution through ride sharing, food delivery and e-commerce logistics services. By harnessing the
power of technology, Pathao aims to provide all services in one platform.”

Business Model Canvas of Pathao

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Range of products and services:

Pathao provides logistics and transportation services so currently don't sell any product its offers
ranges of services which are as followers:

Pathao Bike- on demand bike service from app or website just on a few clicks.

Pathao Cars- on demand bike service from app or website just on a few clicks.

Pathao Food- Food delivery services from restaurant to doorstep.

Pathao Parcel- on demand service where you can send your product/document to the destination by
requesting from the app.

Pathao Tong-on demand grocery and pharmaceuticals essential service where customers can
send product/document to the destination by requesting from the app.
services in Bangladesh's three largest cities, Dhaka, Chittagong, and Sylhet. Only the Chittagong
Metro and the Dhaka Metropolitan Region currently offer food delivery services. Additionally,
PATHAO introduced its own e-Wallet service, but it was eventually discontinued due to regulatory
issues with Bangladesh.

Customer segment:

Demographic segmentation: Gender, age, family, and socioeconomic status are among the
quantifiable population characteristics that affect it. Gender: Traditionally, men make up the
majority of Pathao Bike Ride customers, but nowadays, women also use the service. Pathao recently
introduced a food delivery service and a car ride service. This ride and food delivery system is
available to both men and women. Age: Users of Pathao are typically between the ages of 18 and 40.
The young generation people are very well known for their bike-riding services. Socio Economic
Class: The middle class has started to use Pathao services.

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Geographic Segmentation: When a company segments its market based on geography, this is
known as geographic segmentation. A market is divided into geographic segments, such as cities,
counties, regions, nations, and international regions. A market can also be divided into urban,
suburban, and rural areas. Urban areas in this nation are where Pathao service is intended to be
used. Currently serving Dhaka and Chittagong, Pathao's goal is to extend their service to other cities
in our nation.

Psychographic Segmentation: By using different personality traits, values, attitudes, interests, and
lifestyles of consumers, you can segment your market into different groups. This segmentation is
useful because it enables targeted product design and marketing activities. The primary
demographics targeted by Pathao service are students and workers.

Behavioral segmentation: To arrive on time at their destination, the average Dhaka city resident
uses Pathao rides. Users of Pathao are also cost-conscious, which is why they prefer bike rides over
CNG or car ride services.

Critical business process:

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Drivers of e-business adoption in Pathao:

Convenience of Commute: The main goal of Pathao is to simplify the commute in Dhaka, a busy
city. On a daily basis, thousands of people spend hours trying to get a ride and sitting in traffic. By
providing bike and car rides to anyone's door, Pathao has provided a solution to that issue. People
no longer even need to leave their homes to walk to the bus stop or the main street. The bike ride,
which avoids Dhaka traffic and gets people to their destination on time, is Pathao's most well-liked
service.
Pathao's tagline, "Moving Bangladesh," is justified by the convenience it provides to its users.

Smartphone Era: Nearly everyone in a large city like Dhaka is the proud owner of a smartphone. In
order to use the service, it provides, Pathao saw an opportunity and created a smartphone app.
Without the availability of smartphones, Pathao would not have been able to enter Bangladesh's e-
business market with such ease. Anyone who wishes to use the Pathao service must first log in using
the Pathao app, which requires a smartphone that is compatible with the app. The app is easy to use
and fluid. Therefore, the smartphone era can be seen as one of the primary forces behind Pathao's

adoption in e-business. Internet Revolution: The Pathao app must be connected to the internet in
order to use their services. Therefore, it is essential that the general Dhaka population has access to
the internet. Thankfully, internet access has increased and become more accessible to the general
public over the past few years. This has made it possible for app developers to produce tools and
services that will improve the lives of the general public. During this time, Pathao entered the e-
business sector and took full advantage of the internet's accessibility. As a result, this is thought to
be one of the primary factors in Pathao's e-business adoption.

Raising Employment: The number of users determines Pathos success making use of the app and
using their services. A busy person's major issue is being resolved, in fact they have given thousands
of people employment opportunities is the other side of their success story. Numerous residents of
the nation's capital city struggle with unemployment. Recently, it has become very challenging to
find a job that pays a decent salary. Pathao has been giving unemployed men who own a bike or car
the chance to put their vehicle, time, and effort to good use. Many people have quit their low-paying
jobs and joined the company as a result of its emerging.

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Marketplace Analysis

Three Key Competitors

1- Uber- Uber is a multinational company. They existed long before pathao. But pathao is the
one who introduced bike ride sharing service later uber adopted that service. Uber is the
main competitor for pathao till date.

2- Obhai- Obhai offers not only cars

and bikes but also offers CNG to the
customers. There are still some
customers who prefer CNG rather
than bikes or cars. Obhai is for them
and it is the market leader in the
CNG offering service.

3- Food Panda- FoodPanda is the direct competitor for Pathaofood. They are competing head
to head in this food delivery industry.But FoodPanda is only focused on food but pathao has
various services.

Pathao Revenue Model

Pathao provides the necessary services in the expected ways and responds to consumers in a
lightning-quick manner to satisfy their current needs. By engaging skilled bike riders, Pathao is able
to deal with the time constraints associated with moving people and packages between locations.
And customers pay them money as a result of this. Pathao will charge a base cost of Tk 50 and a per-
kilometer fare of Tk 20. The waiting fee each minute would be Tk 2.5.

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Value Proposition

Understanding why customers will choose to do business with the firm rather of another
company and what the firm delivers that other firms do not and cannot will help us establish or
examine a firm's value proposition. Therefore, the Value Proposition for Pathao essentially asks,
"Why should we utilize Pathao?" What distinguishes Pathao's ride-sharing services from those of
other mobile apps? Customers and drivers alike will find Pathao's value proposition to be intriguing.
Customers can sign up for free, use their smartphone to request a pickup, and Pathao will find a
provider very immediately (in the best case scenario) and inform them of the projected arrival time
and cost. Riders might agree to the price.There is no need to compete with others or wait
impatiently for a cab to pass by on a street corner because you never know when that can happen.
Passengers receive value when they rapidly receive the desired rides to their location. Pathao also
gives its drivers (vendors) the option of setting up their own automobiles or renting a car, and
choosing clients according to their preferences. They can choose customers based on customer
rating profiles and may choose to travel to some regions over others.

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E-Business platform

E-Business Software

For Pathao, we have seen some software they are using for which they are running their business
quite smoothly. Basically, they are using their own app named “Pathao” and some CRM modules
such as marketing, better customer support, accounting and finance section, supply management
etc. Because of their specific app and for CRM modules they are also getting a lot of advantages.
• They have made it easy to collaborate with the customers

• Greater responsiveness towards customers

• Managing customer relationships.

They have made e-business look quite easy.

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Network Technologies

Pathao is in a collaborative relation with Bkash. There is also a specific option where the people who
are taking services from Pathao can pay the due either by cash or Bkash. The most important thing
to use the Pathao app is to have internet access. Without it nobody can use the app. Beside this,
they are also using EDI (Electronic Data Interchange) for which they are getting the upper hand to
capture the market from their competitors. Some benefits are:

• Has improved their planning and strategy

• Reduce errors

• Cut of costs

• Swift transfer of information and much less paperwork

Web Technologies

Web technologies basically means the process of different types of computers or devices
communicating with each other by using different types of markup languages.It communicates
across the web and creates or delivers web content using hypertext language. Creating a web page is
basically writing a web document in HTML. Pathao is also using different types of web technologies
and the names are given below:

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• CMS Wordpress

• Blog Wordpress

• PHP

• SQL

Web Content Management Strategy

It is basically a structured plan when an individual or a group of people are creating or publishing an
organization’s data and content. For this they are following the foundational elements:

• Serve multiple lines of business

• Consider scaling for the creation

• Collaboration

• Create and manage

• Support delivery

But just to follow the strategies are not good enough to boost up the growth, it needs a perfect
execution of the strategies. In this case, Pathao is different from other competitors. To avoid any
type of error, they are using a process which has helped them to become up to date.

Step-1: Understand the major drivers and the most desirable benefits of implementing a

management strategy.

Step-2: Set the scope for web content management strategy.

Step-3: Involve stakeholders in developing their strategy.

Step-4: Create a roadmap and execute.

Step-5: Adapt and communicate the changes to the organization.

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Though they are growing faster and getting more customers than other competitors, Pathao is
lagging behind in some cases. As they are providing different services in one app, it is not only
creating traffic but also it is creating mismanagement and slow response. To meet up these needs,
they need to take some measurements:

• Develop their app and website.

• Having more expertise.

• Gathering more man power.

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Digital strategy for e-business

E-channel structure

E-channel refers to a class of Internet-capable devices (such as mobile devices) that customers can
use to communicate with and make purchases from online retailers. As one of the largest e-business
platforms, PATHAO has a very specific type of e-channel gateway to reach its customers. Which is
the “mobile channel.” Pathao follows the B2B and B2C business models. They use the B2B model to
deal with other e-business organizations who consume their logistics service. On the other hand,
they use B2C service-providing a model to serve their customers who consume their bike, car, food,
and parcel service. Pathao has a highly interactive mobile app that works as its primary e-channel. As

shown in the diagram, Pathao uses a direct channel pathway to reach their customer. The direct
channel is the integrated Pathao mobile app.
The basic structure is quite simple, consumers request for a service through the mobile app. The
requested service is then prepared by the app without any human interaction. After the service is
being done by Pathao,another channel (such as bkash,nogod) handles the transaction between the
service provider and the consumer. This is also kind of an e-channel.

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E-business strategy and how it supports vision and mission

The mission Pathao stated is "make transportation as reliable as running water, everywhere, for
everyone.” And Pathao vision is “a smart city, where people and things move around efficiently and
seamlessly. No getting stuck in traffic, no excessively waiting at a red light. No need to think about
how you're going to get to that meeting across town or get that last item on your shopping list in
time for dinner.”
Pathao started its business back in 2015. Since then their major strategy is to attract more people to
their service over the internet. The value proposition is maintained and customers keep coming
back. For a sustainable business, pathao is completely focused on its mobile app from where
customers get the value they offer. Another strategy they follow to cope up with the market is
widely marketing their brand and product over various platforms. Such as Facebook, Google, etc. So
their strategy in simple words is attracting more people through the internet and giving them value
through their mobile app. They already have successfully applied to their business and they are
fulfilling their vision and mission more day by day by following these e-business strategies.

SWOT analysis

The SWOT analysis of Pathao will show us the core of Pathao e-business strategy. What are their
strengths, weaknesses, opportunities, and threats?

STRENGTHS

Brand Equity: Pathao is a well-known brand with a presence in more than three cities nationwide.
Low Fixed Investment: Since Pathao is an aggregator, it doesn't need a large fixed investment,
making it simpler for Pathao to expand its network of cities.
satisfaction: Customer satisfaction has always been a top priority for Pathao. Phatao is aware that it
operates in a very competitive market that is entirely customer-driven.

Dynamic Pricing strategy:The dynamic pricing technique used by Patha is based on the demand-
supply economics principle. Price increases as demand rises. Both the business and the drivers gain
from this. Drivers make a solid living during both peak and off-peak hours.

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WEAKNESS

Highly Reliant on Human Resources: Since drivers serve as the company's public face, their
interactions with customers have a significant impact on the company's reputation. Despite the fact
that the drivers are given rigorous restrictions, this scenario is mostly beyond our control.

Highly reliant on the internet: For Pathao to grow and thrive in Dhaka city, the availability of the
internet is essential. As a result, it has issues in emerging and developing nations where the internet
is slow or unreliable.

Only targets tech-savvy people: Low levels of digital literacy in poor countries mean that only people
who are digitally savvy can use programs like Pathao.
Low entry barriers: Pathao operates in a sector with very low entry barriers, which means it will
encounter competition on several fronts. Ubar and others are already giving Pathao severe
competition.

OPPORTUNITIES

Dissatisfaction with the unorganized market: Customers' dissatisfaction with the unorganized bike
market gives Pathao a chance to profit from customer dissatisfaction. One of the primary factors
contributing to Pathao's success is this.

Increasing internet penetration: Increased smartphone use has made it possible for technology-
based applications like Pathao to expand their services to additional cities and broaden their
geographic reach as a result of the government's efforts to digitize Bangladesh.

Poor government transport: In markets like Dhaka and Chittagong where there is overpopulation
and people are tired of using public transport.

Special transport: Pathao can offer specialized transportation services, such as paid ambulances or
urgent and emergency cars for transportation operations.
THREATS

Government rules are ambiguous: Bike aggregators and government regulators mostly argue over
their legal standing and whether they should be recognized as IT companies or traditional taxi
services.

Customer retention and brand switching: Pathao finds it more challenging to keep consumers and
drivers as competition increases.

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Low margins profit: Pathao helps the drivers to get a high number of daily rides but it does not have
a high-profit margin for the drivers and thus they can easily be swayed away.

Competitive threats

Though the path is well established up until now, it has some major threats from competitors and
the government.
Strong competitors: As the market barriers are low, competitors like Uber, Sohoj have also started to
capture the market. They are competing with price, service and a variety of value propositions. For
this reason, pathao is losing more competitive advantages than ever.
Drawbacks of service: Various types of flaws in service are making pathao suffer as an organization.
Such as many of the pathao drivers don't have licenses, for which accidents are happening
frequently. Therefore, Pathao is losing its market. On the other hand, their competitors are focusing
on those problems and evolving slowly by solving those problems. Such as,Uber follows more strict
policy in terms of license and other paperwork. Which is giving uber a competitive advance, but
giving pathao a competitive threat.

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E-business Security
Five IT security risk that can negatively impact E-business are as follows:

1. Malicious Code (Viruses/ Spyware/ Trojan horse/ Worms)

Malicious software programs caused the largest number of Cyber Attacks. Malicious software
is hidden computer programs that are secretly installed on a business's computer. It can
cause internal damage to a computer network (delete files), as well as it can be used to steal
passwords or unlock security software to make it easy for a hacker to steal information.
Criminals use these types of programs for financial gain. So it's a very alarming concern for
any business organization.

2. Unsecured Wireless Internet Networks

Nowadays the use of wireless internet networks is very common. Though wireless internet
networks provide businesses an opportunity to spread and build a strong network with few
infrastructures, there are security risks that need to be addressed. To steal customer
information, and even proprietary information, hackers and fraudsters can enter businesses'
computer systems if it is an open wireless Internet network. It can be used to gain access to
usernames, passwords, and other sensitive data over an open Wi-Fi network. One secure Wi-
Fi network with robust login credentials and encryption. So, business firms need to be very
conscious about it as they have a large number of customers and their information.

3. Disgruntled Employee Threat

If there is any insider or a disgruntled employee, it can be more dangerous. According to
business policy, insiders may have direct access to company's confidential data. As a result,
they can easily steal and sell it to the competitor, or even delete it permanently, causing
irreparable damage. a business entity should take all the necessary steps to prevent an
insider or disgruntled employee to stop further damages. Internal attacks are one of the
biggest threats facing data and systems.

4. Stolen or lost Devices

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Stolen or lost laptops or mobile devices are one of the most common ways businesses lose
important data. It might lead a company to contact all their customers, because their
financial or personal data might have been lost or stolen, which can result in much higher
losses due to loss of consumer confidence, damaged reputation and even legal liability.

5. Spear Phishing
Spear Phishing is the attempt to obtain sensitive information such as usernames, passwords,
and credit card details (and, indirectly, money), often for malicious reasons, by disguising as a
trustworthy entity in an electronic communication. Phishing is typically carried out by e-mail
spoofing or instant messaging, and it often directs users to enter personal information at a
fake website, the look and feel of which are almost identical to the legitimate one.

Security management (both technical and managerial) which can prevent or manage
these risks:
Firstly, to reduce the risk of these types of information security threats caused by viruses or worms,
companies should install subscription based antivirus and anti malware software on all their systems
and networked devices and keep that software up to date. Secondly, organizations must train their
employees not to download attachments or click on links in emails from unknown senders and to
avoid downloading free software from untrusted websites. Users should also be very careful when
they use file sharing services and they shouldn't click on ads, especially ads from unfamiliar brands
and websites.

Because malware strategies are constantly evolving, companies must make their anti-virus protocols
strong. To protect your site against security threats to your e-business, consider installing a firewall
to monitor activity and store as little sensitive information on the site as possible. A business firm
should educate and train its employees against it with mock phishing sessions. All risks can be
prevented by Keeping all systems updated with the latest security patches and updates. Encryption
of all sensitive company information is necessary. A rule should be made to Require encryption for
employees that are telecommuting.

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These are some of the basic measures that can help to stay safe and keep data secure when dealing
online. One should follow the above measurements regularly to keep unwanted virus or malware
outside the boundary of the system.

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Conclusion

In this project we learned and talked about how the E-commerce marketplace is increasingly
growing in the region. Few local e-business platforms offer specialized sale of delivery services, for
example we mentioned FoodPanda, Pathao Parcel etc. Also, services like Bkash helped us with this
new idea of going cashless. We also mentioned e-business giants like Uber, Pathao, Obhai. Those
services are growing at a serious pace in this smartphone era. Also, technologies like CRM modules
help those companies to monitor and maintain their quality services. Network technology such as
Bkash, Nogod which collaborates with most of the e-business companies in the region made
business transactions very simple. E-commerce platforms promote cross-boundary business
activities and business expansion. However, there are also some IT security risks that can negatively
impact E-business and hamper the service. Those risks can be reduced through awareness and
proper training of their employees. Companies also should take every precaution in order to ensure
their consumer’s safety and security.

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