BMA21B1 Exam Case Study PDF

Takealot: South Africa’s E-Commerce Revolution South Africa is a land rich in stories of entrepreneurial success, but few are as compelling as that of Takealot, the country’s leading e-commerce retailer. In 2011, two entrepreneurs, Kim Reid, and Tiger Global Management, launched Takealot, intendi...

Takealot: South Africa’s E-Commerce Revolution South Africa is a land rich in stories of entrepreneurial success, but few are as compelling as that of Takealot, the country’s leading e-commerce retailer. In 2011, two entrepreneurs, Kim Reid, and Tiger Global Management, launched Takealot, intending to revolutionize the South African e-commerce market. At that time, e-commerce was a relatively nascent industry in the country. However, with strategic planning and a relentless focus on customer satisfaction, Takealot soon emerged as a leader in this burgeoning field. Takealot’s rise to the top can be attributed to a combination of strategic foresight and business acumen. Recognising the potential for e-commerce growth in South Africa, the company invested heavily in infrastructure and logistics. In doing so, it ensured an efficient, reliable, and fast service, which greatly appealed to consumers. Since its inception, the company has rapidly expanded its operations, establishing warehouses in major South African cities and expanding its product offerings to encompass a wide variety of categories including electronics, lifestyle products, media, gaming and fashion. Despite its success, Takealot’s journey has not been without its share of hurdles. From logistical obstacles to consumer trust issues regarding online shopping, Takealot had to address multiple challenges. However, its commitment to customer satisfaction and consistent delivery of quality products have been instrumental in overcoming these obstacles. In an interview with Business Day in 2019, Co-founder Willem Van Biljon stated, “Scaling up operations while maintaining quality service was a significant challenge. But our team’s dedication and adaptability helped us successfully navigate this path”. Innovation has been at the heart of Takealot’s approach since its inception. From offering a diverse range of products to integrating user-friendly features on its website and app, the company continuously seeks ways to improve customer experience. Through adoption of digital technologies and its management of information systems. It is important to note that strategic small incremental changes undertaken by Takealot from its inception until now have transformed over time. The webmasters have designed their website with the following in mind: Above-the-fold content (they make sure that all the important bits are always visible without scrolling an inch) Easy navigation header to find what you are looking for Not too many Commodity Trading Advisors (CTA’s) – (a prompt on a website that asks users to perform a specific action like signing up for a newsletter, Page 5 of 13Final Summative Assessment A Memorandum BMA21B1 downloading a demo or buying a product) - (Flooding your page with too many CTA’s could drop conversion rates) CTA’s are all different colours and really pop out from the brand colours. Look at “Daily Deals” and “Shop Now” Internal Banner Promos (They don’t run AdSense on their store, and so should no other ecommerce store, run your own internal promos) Seamless checkout process. (All distractions disappear as soon as you enter the checkout process allowing for less opportunity for abandoners.) Takealot’s website is built on React.js. They have all the regular apps/tools running to track and manage their analytics. Their advertising platforms on Tiktok, Facebook and Google Anaytics tracker suggest they are running Meta, Tiktok and Google Ads, including Linkedin which is no surprise at all. These digital technologies enable Takealot to collect vast amounts of data to further understand and target the market. Some of the data obtained observed that the average engagement time is between 7 and 12 minutes where users navigate an average of 6 pages per session. This indicates that users will find Takealot’s user index easy and aligns with users who are researching a product and eventually make a purchase. It shouldn’t surprise you that the majority of the traffic are millennials and Gen X, followed by Gen Z taking third. This data highlights the benefits of ecommerce and online purchases and reinforces that Takelaot entered the market at a crucial time in internet and marketing. According to SEMRush, Takealot holds the majority of the traffic in South Africa, competing against Makro, Amazon, Pricecheck, Clicks and Checkers. These insights help Takealot’s strategic efforts in streamlining its supply chain management, from selecting and sourcing major suppliers to its 3rd party marketplace. Takealot does so through automation and enabling suppliers and buyers to access some its IT assets. For example, sellers adjust supply levels based on demand data available from the company’s online retail website. Also, buyers can track order and communicate with suppliers through data available from Takealot’s website. Focus is on optimal inventory ordering and holding. Takealot addresses this strategic decision area through finished goods inventory using just-in-time inventory management in some area. For example, in JIT inventory management, some goods that arrive at the company’s fulfilment centres are immediately shipped to fulfil customer’s orders. Takealot holds other goods as part of its finished goods inventory. In addition, to ensure optimal inventory ordering and holding, warehousing employees are trained to maximise the speed of order fulfilment through mobile computers linked to a central computer database. In this way, Takealot’s operations management optimises its online retail inventory size to minimise costs while satisfying market demand through its warehouse activities. The standardisation of Takealot’s operational activities has allowed the company to offer its services in a consistent manner across all markets. It is important to understand Takealot emphasises on creating a strong brand equity by offering the best possible service in the online retail sector. The company realises the fact that its business model is not unique and can be imitated by other companies, which is why they seek to create their differentiation by creating a strong brand image, which cannot be imitated in any way. Takealot’s triumph over South Africa’s intricate logistics network is a testament to the power of strategy and innovation in the e-commerce realm. A prime case in point was their revolutionary approach to dealing with the complexities and limitations of South Africa’s existing delivery infrastructure. The geography and diversity of South Africa’s population have always posed significant logistical challenges, especially for businesses trying to reach customers located in remote and rural areas. In the face of such obstacles, Takealot did not shy away; instead, they saw an opportunity. To effectively reach its vast consumer base, Takealot made a significant investment in building its own robust logistics infrastructure. They established strategically located warehouses and distribution centres across the country, effectively bypassing the reliance on external logistics companies. This network of warehouses served as hubs for products to be dispatched, significantly reducing delivery times and ensuring goods reached customers in excellent condition. Takealot’s influence extends far beyond its operations. It has played a pivotal role in shaping South Africa’s e-commerce landscape, instilling consumer confidence in online shopping, and paving the way for other e-commerce businesses to flourish. Today, Takealot stands as a shining beacon in the South African e-commerce industry. However, it shows no signs of slowing down. Its plans include further expanding its product range, enhancing its delivery systems, and exploring new technological advancements to enhance its services. Speaking to TechCentral, Julie-Anne Walsh, CMO, shared, “We’re always exploring new ways to make online shopping more accessible. Plans include further expansion of our delivery network and continually diversifying our product range”. Takealot: South Africa's E-commerce Revolution - Africa Nova News https://adignite.co.za/takealot-marketing-strategy-2023-a-case-study/ https://www.newsletter.illinois.mx3a.com/vo/image_X25AUNVg.html?&utm_source=X2 5A_danUNV& utm_medium=X25A_danUNV&utm_campaign=X25A_danUNV https://www.itweb.co.za/article/inside-takealots-upgraded-warehouse-and- distribution- centre/dgp45MaGlOdvX9l8