Table of Contents

Introduction:.............................................................................................................................................................2
Vision Statement:.....................................................................................................................................................2
Mission Statement:...................................................................................................................................................2
Products or SOPs:....................................................................................................................................................2
Business Model:.......................................................................................................................................................3
Market Place:...........................................................................................................................................................3
Click & Mortar:....................................................................................................................................................4
Daraz.pk Organogram:.............................................................................................................................................4
Purchase Life-cycle:.................................................................................................................................................5
Porter’s Five Forces Model:.....................................................................................................................................5
Supply Chain Management:.....................................................................................................................................7
E-Commerce Platform:............................................................................................................................................8
IT Use for E- Business Application:........................................................................................................................8
Internet:................................................................................................................................................................8
Extranet:...............................................................................................................................................................9
Intranet:................................................................................................................................................................9
The Web Technology and Software Applications:..................................................................................................9
Facilitate Collaboration:.......................................................................................................................................9
Available at Any Time at Any Place:..................................................................................................................9
Link to Variety of Media:....................................................................................................................................9
E-Business Application Services:........................................................................................................................9
Enterprise resource planning (ERP):..................................................................................................................10
Customer Relationship Management:....................................................................................................................10

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Introduction:
Daraz.pk is the one of the biggest e-commerce web-base in Pakistan. Daraz.pk doing its
operations in Pakistan, Sri Lanka, Bangladesh and Myanmar. Daraz.pk is the number one
destination for online shopping and product search in the country. It has marked its territory
and has defined its goals to be the leading one-stop shopping destination for all lifestyle
needs.
It was founded in 2012 by a German venture capital company, Rocket Internet. Daraz Group
operates e-commerce platforms and logistics services in Pakistan, Bangladesh, Nepal, Sri
Lanka and Myanmar. In May 2018, Daraz Group was acquired by the Chinese e-commerce
company Alibaba Group. 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.

Vision Statement:
We want to provide variety of products to our customer at best cheapest price we can gave to
their door steps within a blink of eye. And want to be the most selling market place in
Pakistan, where people will get every possible product from industrial engineering to home
decorative.

Mission Statement:
Our mission is to be the Pakistan’s best customer-oriented company which is providing all
the products online and delivering at their door step.

Products or SOPs:
The products and the SOPs at Daraz.pk are the following:
 Smartphones
 TVs, Audio theaters and video accessories

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 Home Appliances
 Computers
 Gaming console

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  Cameras
 Sporting goods
 Men’s Fashion
 Women’s fashion
 Cosmetics
 Home and living

Business Model:
Business to Consumers

Market Place:
Daraz is in the business of providing services to facilitate Ecommerce via its online
marketplace at Daraz - a platform that enables Customers and Sellers to transact online. The
Seller wishes to sell Products on the online marketplace platform provided by Daraz. Daraz
offers multiple services to facilitate sales via its online platform.

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Click & Mortar:
Initially, Daraz.pk only had an online existence but with time Daraz opened up several
physical stores. Now Daraz falls in the category of Click and mortar.

Daraz.pk Organogram:
E-commerce organogram is very different than many other companies. As many things are
managed through online and software’s, a lot of process is automated. Here is the
organogram of Daraz.pk:

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Purchase Life-cycle:
There is the following procedure though which a person can buy or order at Daraz.pk:
 Customer will add to cart the things he or she wants to buy.
 Customer has to fill up the form of their home address and the payment method (Easy paisa, credit card or
cash on delivery).
 Customer will get the confirmation call from Daraz.pk.
 The agent at Daraz.pk will use Order Management System.
 (OMS) to process the order.
 Customer will get their order in 5 business days.

Porter’s Five Forces Model:

Bargaining Power of Supplier-Low:

The term 'suppliers' comprises all sources for inputs that are needed in order to provide goods
or services. The suppliers of Daraz.pk are in fact the manufacturers that are members of its
selling pages. For every category of products, there are a large number of suppliers available
to Daraz.pk. Due to Daraz.pk doesn’t charge any membership fees for suppliers. There is no

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switching cost for suppliers for Daraz.pk. Overall, the bargaining power of suppliers against
Daraz.pk is low.
Bargaining Power of Customer- Medium:
Similarly, the bargaining power of customers determines how much customers can impose
pressure on margins and volumes. The customers of products from Daraz.pk are both
individual customers as well as businesses across the Pakistan. Due to moderate prices, wide
variety, and a strong distribution network that Daraz.pk offers. Most buyers do not have a
choice to switch. They will have to buy at higher prices if they switch. Although there is no
switching cost but the huge market of the scale of Daraz.pk will be tough for them to find in
Pakistan. But recently, specialized online marketplaces have started emerging that are
focusing on the particular segments and being successful in grabbing market share.
Thus, the bargaining power of buyers is medium against Daraz.pk.
Threats of New Entrants-Low:
The competition in an industry will be the higher, the easier it is for other companies to enter
this industry. Setting up a smaller and more focused e-commerce is not difficult. However,
setting up online market as large as Daraz.pk requires initial large investments and strong
distribution channel across Pakistan. Online stores require advanced technologies to be
installed to be up and running all the time and support a large number of online
users simultaneously. Being a market leader Daraz.pk have earned a strong reputation. Thus,
the threat of new entrants is low for Daraz.pk.
Threat of Substitutes-High:
There are a number of substitutes for Daraz.pk. The largest being the physical retail stores
that are offering low price goods. Secondly, a number of suppliers are now directly shipping
to customers. Suppliers are also selling through social websites. Many company have also
setup their own retail websites offering the same prices as Daraz.pk, saving the cost of
commissions they pay to Daraz.pk.
Competitive Rivalry between Existing Players-High:
Competitive rivalry is a very strong force that can push a company to change its strategy and
remake its decisions. Daraz.pk faces severe competition from its rivals. They include variety
of online sites within and outside Pakistan for example Daraz.com and ebay.com both are
its competitors. Even within nation online store like yayvo.com, keenu.com, mycart.pk etc.
can also give a tough competition. Therefore, the competitive rivalry is high for Daraz.pk.

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Supply Chain Management:
Supply Chain Management (SCM) is the process which is responsible from placing an order
to fulfilling it. This process links the manufacturers, retailers and customers through a virtual
platform or directly. The prime objective of SCM is to movement of the product from
manufacturers to customers. Managing the supply chain is one of the vital section of the
business on which the total process of the business depends Daraz.pk has several suppliers
for its mall business. Most often they directly approach to supplier to make contract or deal.
Daraz.com basically has three ways to deal with suppliers:
Pick-up:
In this way Daraz.com make a contract with its supplier for a certain volumes of product to
be displayed on their websites. When the customers ordered those products, Daraz
will informed the supplier and the supplier will deliver their own product. For this service
dares will charge some commissions.
Drop-off:
Drop-off is almost similar like Pick-up. But in here the product of supplier’s temporality
stayed on the Daraz ware house and its Daraz who deliver its supplier product. For this
Daraz charge certain delivery fee.
Consignment:
Consignment is where Daraz buys a bulk of product from its supplier and then resale it to the
end user. Most of the products that they buy in bulk are: soap, shampoo, lipsticks, and
dishwashers etc.
Warehousing:
Daraz operates 4 major warehouses in Karachi, Lahore and Islamabad. For fastest delivery
and quality assurance, they always keep the top 30% selling products in their warehouses and
the product is shipped from one of their warehouses.
Technology:
Their technology allows them to monitor price inflation and irregularity instantly. Sellers
that falsely increase prices are strictly penalized or delisted. Their App is designed so that
Sellers that offer the best prices, best customer service levels, and fastest delivery
automatically get the most visibility on their App.

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Delivery:
Daraz deliver their products by Daraz Express. Daraz Express is their premium shipping
service that delivers products across Pakistan in the blink of an eye. Daraz Express is
available for all customers on eligible items at no extra cost. The proposed aim is to give
customers the quality they have been wanting within the time span promised. Daraz Express
operates on a guarantee of delivery within 24 hours inside Karachi. Daraz Express in an
astounding initiative taken by Daraz.pk to create more convenience for its customers.

E-Commerce Platform:
E-Procurement:
Daraz uses manual ways of procurement. They can shift from manual procurement method to
E-Procurement. This will benefit them by reducing cost, quick access to information,
maintaining better supplier customer relation and by having tighter control over purchasing
process.
E-Contract:
Daraz uses E-Contracts technology to make contracts with its suppliers with the method of
digital signature to make the process efficient and time saving.
E-Invoicing:
Daraz uses E-Invoicing method to monitor transactional documents between customers and
suppliers. These documents include invoices, purchase orders, debit notes, credit notes etc.
E-Fulfillment:
Daraz.pk can alter the way of purchase and provides ease in the ordering journey for the
customer to maximize the value.

IT Use for E- Business Application:

Internet:
Daraz is an online business organization so there is no doubt that internet connection is most
important thing for its business. Like many other companies it has its own server to run its
website. Daraz is fully internet based business. Most often it interacts with its customer and
supplier through internet. Daraz has its own Facebook page, twitter to broad its internet
world.

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Extranet:
Daraz warehouses and offices are located in different places across the country. To connect
with other offices and its headquarter Daraz use extranet connection. Extranet also help to
connect with its supplier and consumer. The extranet is used by LAN along with fiber optic
cable. Through extranet Daraz can transfer its information about inventory, financial data and
market data to its other offices and its suppliers.

Intranet:
To foster communication among the employees Daraz also use intranet within the
organization. Intranet software like Microsoft SharePoint helps the employees of the
organization to work efficiently while continuously communicating with each other. Some of
the employee also use share it or blue tooth connection to transfer small files.

The Web Technology and Software Applications:

Daraz.pk has used web 2.0 technologies which allow its website to be more flexible and user
friendly among the consumers.

Facilitate Collaboration:
Web 2.0 technology not only allows the users of daraz.com to obtain information from the
webpage but also able to send message and purchase items from the website. It has given
more flexibility to end users.

Available at Any Time at Any Place:

Because of web.2 technologies daraz.com is available at any time at any place. A customer
can access to the web page of daraz.com at anytime from anywhere and purchase the desire
item.

Link to Variety of Media:

Through web 2.0 technology daraz.com was able to create a link to its website to other social
network like Facebook, twitter and Instagram. People can find its contact information and
link of Facebook page by entering into the website.
E-Business Application Services:
Daraz.pk is providing a large online business platform for its suppliers and consumers. It
uses several applications and soft- wares to manage its inventory, contact with suppliers and
to keep relationship with its customers.

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Enterprise Resource Planning (ERP):
Daraz.com basically use oracle E-business software application in most of its operation such
as for its finance and portfolio management activities. To integrate all of the software
including CRM and SCM. Daraz.pk use oracle Enterprise Resource Planning Cloud as an
enterprise resource planning software.
 It makes daily operation more flexible and less time consuming. It makes inventory
management more efficient.
 It helps to make effective relationship with suppliers and consumer. It helps to create a
more relevant financial data and ensure better portfolio management.
Customer Relationship Management:
In an online business there is little direct interaction between customers and the business
organization. That’s why online business like Daraz.pk needs different types of software to
keep track of their customer activity and maintain relationship with them. Daraz.com is
always concern about their customer satisfaction. So CRM activity of Daraz.pk is explained
below:
Customer Touch Point:
Customers can easily communicate with daraz.com by visiting their websites. In their website
there is contact information given including their phone number, Email address and their
face book page. Customers can also send their message via messenger and they are very
responsive.
Data Stores and Data Mining:
To keep information of customers they use Microsoft access which is very popular software
to record and retrieve data. Microsoft access helps them to record data about a customer
order. They can also retrieve data about customer order any time through Microsoft access.
CRM Analysis:
To track and analyze customer activity daraz.com use Google analytics. Goggle analytics is
software developed by Google it tracks and provide reports about particular websites traffic.
By Google analytics, Daraz can know how often a customer visits their website and how long
they stayed on the websites. They can also know which web page or shop is performing
poor through Google analytics and based on that they can focus on the shop which is
performing well and formulate their strategy. Google analytics is a free of charge; it also
takes charge for additional features.

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