WikiMart is a Russian online marketplace operating for Russia and Russian speaking countries. Two Stanford MBA students founded the startup company was founded in 2008, their by two Stanford MBA students with the strategy to reach the young and technologically savvy and young consumers in Russian speaking countries. Twith the founders’ goal of dominating in Russia and other countries of the former Soviet Union is well on its way as WikiMart . that has evolved into a large competitor in the e-commerce industry for that part of the world. The startup company was founded in 2008 by two Stanford MBA students with the strategy to reach the technological and young consumers with the goal of dominating in Russia and other countries of the former Soviet Union. WikiMart has many competitors due to the attractive market that promisinges massive future growth; the number of internet users in Russia isare expected to increase 10% per year1. CWikiMart’s competitors include OZON, which is the oldest Russian Amazon-type online shopping site, and other sites like Groupon and KupiVip. WikiMart has many competitors due to the attractive market that promises massive future growth; internet users in Russia are expected to increase 10% per year2. WikiMart, is a privately held company with its headquarters in Moscow, and currently employs between 51-200 individuals.employees. During the year that the case was written, WikiMart was thethey were leading the e-commerce market for Russia, selling new goods at fixed prices. PTheir products sold include electronics, home appliances, apparel and other major categories. WikiMart is able to make a profits by charging retailers 1.5-3% final value fee, but in turn provides them with services such as order fulfillment, interface with the customer, accounting and legal support, and ecommerce marketing tools. As competition continues to grow, Wikimart’s The owners of the company will eventually need to decide on an exit strategy or find a way to maintain control over the market while growing the company to its full potential.
1) From an industry based view, given the fragmented rapidly growing nature of online retail space in the Russian speaking world; how would you characterize the competition in this industry?
We would characterize Wikimart’s competition can be characterized aas large in number, but unique in nature across the board. There are We say this because there are many different competitors, due to the fact that the internet it popularity and accessibility of the Internet around the everywhere in the world. However, it is hard to classifying one company as a direct competitor to Wikimart is difficult because of WikiMart’s singular their target market and vast product selection. For instance, many could argue that since Facebook contains advertisements for products and services, it is competing with Amazon. In but in reality, both sites they are both servicing different products on the internet. The misconception comes from people that thinking, since one company is on the internet and has ads for different products or services, they are trying to serve customers the same way the other company who is just an online store, like Amazon. Even though there are many known companiesy that may be termed “competitors” of for Wikimart, there y are actually really only a few true competing with a few companies in Russia. Wikimart, though similar in nature, is not trying to compete with Amazon because Wikimartthey are only trying to services the people in Russian speaking countries. Wikimart’s With that being said, the competitors they have in their industry are Ozon.ru, Groupon, and Kupi Vip. These are the three prominentmain companies that offer similar goods and cross over the same paths and services asthat Wikimart offers its customers. The case study suggests mentions some other sites,competitors such as Vkontakte, a mimic of Facebook, and , as well as Rambler, a search...
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