MARKET FORCES

Market Issues • Customer heading towards online shopping, especially in the COVID-19 pandemic people are less
able to go out and shop for themselves.
• Shifting of consumer shopping behavior: increased sales in pharmaceutical, sanitary, hygiene
products, groceries, decreased sales in non-essentials such as fashion, electronics.

Market segments • Mass market

• Strong potential in millennials / tech savvy people
• Potential barriers in older generation & rural areas

Needs and demands • Safe and trustworthy shopping, including originality guarantee, price transparency, payment safety,
and safe delivery.
• Increased demands of safe & speedy delivery.

Switching costs • Easy for customer to switch to other e-commerce platforms (Shoppee, Lazada, Blibli).
• Main reasons to switch: price comparison, promotions / cashbacks, free delivery

Revenue attractiveness • Tokopedia does not control the prices of items sold – the seller does.
• Tokopedia gets revenue from Top Ads (ads from the seller), Power Merchant / Gold Merchant
subscription, and service fee (1% from product sold).
• More sellers  more buyers  even more sellers  revenue.

Global Market Conditions
Capital Markets
Commodities and Other Resources
Economic Infrastructure
MACROECONOMIC FORCES
• Tokopedia accelerates digital economic equality in Indonesia. With the presence of Tokopedia, it
impacted to the availability of employment as as a result of an increasement in the turnover of
buying and selling transactions in Indonesia.
• Tokopedia business activities in Indonesia will give a contribution to the increasement of Indonesia’s
GDP
• Tokopedia as a unicorn company can issue IPO to get additional capital from the market
• With the public listed securities, Tokopedia will potentially have lower credit risk which mean lower
interest than before knowing the Bank can see the financial condition in public.
• The government provides tax incentives through the issuance of government regulations last
amended in Government Regulation no. 56 of 2015 concerning Amendments to Government
Regulation Number 77 of 2013 concerning Reduction of Income Tax Rates for Domestic Taxpayers in
the Form of Public Companies.
• Tokopedia has provided high standards to determine the quality of human resources in business
development. So this will impacted to the competition within professional workforce, especially
those that have speciality in technology.
• The image of Tokopedia becomes a benchmark for educational institutions regarding the needs of
the industry in the future, so that the curriculum prepared by the institution continues to be
developed according to industry needs.
• With the continued incremental in buying and selling activities generated by Tokopedia throughout
Indonesia, the government is triggered to acknowledge of needs for infrastructure in remote areas.
 INDUSTRY FORCES
Competitors  other e-commerce products that offer a variety of products as a marketplace such as
shopee, blibli, etc.
 Most of the e-commerce sector is sellers and buyers who offer products and buy.
 

   e commerce from abroad like alibaba, oxl, rakuten.inc, Qoo10

  Which customers are they focused on ?
New Entrants  Two interdependent customer segments (buyers & sellers)
 This segment include consumers and businnesses in different combinations
 What competitive advantage or disadvantage do they have ?
Advantage :
 Free shipping using the Super Saver Shipping sign
 lots of promos and discounts, ease of payment
 affiliated with trusted local shopping sites
 choice of language and local currency exchange rates for money conversion