BUSINESS MARKETING: JUALO INDONESIA (Research Paper Sample)

BUSINESS MARKETING: JUALO INDONESIA Student’s Name Professor Institution Course City (State) Date Executive Summary The C2C business model applied at Jualo presupposes interaction between parties through itself as a third player. Everything about this business model is simple in that vendors sell their products on the site and customers purchase all that they want. In this regard, C2C websites accrue gains from the commission fees that they charge for listing products paid for by the seller. The transactions are usually made through online payment system, such as escrow. It should be noted that e-commerce websites, such as Jualo only play the role of intermediaries, which would mean that they are not held liable for product quality, payment safety, or refunds. The business marketing plan presents a venture that Jualo Indonesia would be taking in Australia by creating a subsidiary, Jualo Australia. The company will still operate within the e-commerce industry under the C2C business model just like its parent entity in Indonesia. Business Marketing: Jualo Indonesia Part 1 Business Model Critical Analysis Introduction Jualo.com operates as an Indonesian e-classified website that allows its users to get or offer products and services. The start-up venture was created by Chaim Fetter in the year 2014. During the early year, the founder had only fifteen employees, who included web developers. The first team was only made up of five individuals. The company innovated the buy-sell e-classifieds idea in Indonesia by introducing escrow payments, go-search, as well as home delivery 3PL incorporations (Singh, 2019). During the early days of the year 2016, Jualo had accrued millions of monthly users and thousands of new monthly product and public listings (Singh, 2019). The business is certainly tailored towards serving the consumer market in Indonesia in the most effective way. The company is also tackling the nation’s main industry problems in the process of its operations. The story of Jualo represents a tale of a hard-working classifieds site performing well across Indonesia. The company competes aggressively with dominant players, such as OLX Indonesia despite being in a relatively early phase (Crunchbase, 2019). With that in mind, Jualo has continued to do quite well with its traffic rising steadily to more than two million users a month. Seed investments into the company have also continued to grow from ventures, such as Mountain Kejora. Jualo, now operating in the customer-to-customer (C2C) marketplace, has continued to meet the needs of the consumer market across Indonesia (Crunchbase, 2019). The site is meant to cater for users or consumers looking for new and used products around them. It focuses on the buyer based on the geo-search function whereby one has the option to purchase, sell, or offer products. By serving the Indonesian buyer in the most effective manner, the company tackles the sector’s major issues of distribution, payment solutions, as well as trust building. The ultimate goal is turn Jualo into the nation’s most trusted and user-friendly marketplace for second hand products. Jualo differentiates itself through effective positioning due to the convenience and timeliness it showcases to its customers. The company has positioned itself as distinct and one that provides a wide range of products on a single platform. Effective leadership under the new CEO, Manisha Seewal, has also enabled Jualo to remain competitive to the present day (Marketing Interactive, n. d.). The company’s management has also realized that modern marketing is transforming rapidly customers are driving anticipations. They are moving from comparing price points to seeking for personalized experiences. Jualo now relies on numbers to measure consumer reaction to different products across its platforms. There is also a realization at the company that while numbers do not lie, the understanding of such reaction relies significantly on the experiences of those interpreting or reading it (Singh, 2019). Therefore, marketers at Jualo are experts that are capable of using the numbers to support and propel their marketing effectiveness, but also stay true to the emotions that link them to each other. Critical Analysis of Business Model and Value Proposition Jualo uses the C2C business model, which means that customers can easily trade with each other on an online environment. The model encompasses different transactions occurring via the Internet in a way the individuals do not have to waste time going to brick and mortar stores (Aithal, 2016, 277). The latest studies on the consumer market have divulged that more people prefer to purchase things online. In fact, most of them have no worries or do not mind buying second-hand items. Indeed, this notion explains the rapid expansion of e-commerce websites. The company deals mostly with classifieds across Indonesia. The company assists sellers trade new and used commodities in over 300 categories (Crunchbase, 2019). Jualo handles cars, motorcycles, fashion, job advertisements, electronics, and property. Through these activities, the company facilitated transactions of above US$1 billion in 2008 (Cordon, 2019). Indeed, such a huge amount explains how much C2C business model has assisted Jualo to expand to the big company it is today. The value proposition at Jualo is quite effective in the sense that it has enabled the company to continue accruing huge traffic over its site to the present day. Being an e-commerce business, Jualo has positioned itself as a company that offers a wide array of product categories and convenience on the part of the seller and the buyer (Crunchbase, 2019). A successful company is one that realizes that its value proposition is the reason that customers buy its products or services. In this regard, it is possible to have more than one value proposition since each consumer segment may derive value from diverse aspects of the offerings (Aithal, 2016, 278). Jualo is able to get its value proposition from various aspects of its products including the return policies, availability, monitoring of product content, and industry knowledge among other aspects. Through these, it has been able to get competitive advantage over other rivals, such as OLX Indonesia. Ethical Issues Ethics is an important part of business since it encompasses the moral values that are to be followed in conducting operations in an entity. Novel forms of e-commerce that enhance new business functions have many benefits but also bring along certain risks associated with ethical issues. In the same way, Jualo should be worried about some of the ethical issues that occur within the industry where it operates its business. One of the ethical issues that Jualo can be worried about is web tracking. E-business tend to draw information about how visitors utilize a site through the log files. In this case, the analysis of log files can be interpreted to mean turning data into application service or having software that has the capacity to retrieved relevant information. E-commerce entities track personal movement by using software and cookie scrutiny (Aithal, 2016, 279). Such programs using cookies tend to bring out privacy concerns. The tracking history is usually located on one’s personal computer and any moment that one revisits a website then the computer knows. The ethical issue arises in the sense that e-commerce businesses would have to safeguard customer information from being mishandled or accessed by unauthorized parties that may use it for fraudulent activities. The other ethical issue that Jualo grapples with is fraud on the Internet. There have been cases on e-commerce platforms whereby consumers defraud merchants and vice versa (Al-Alawi et al., 2020, 154). Internet fraud along with its increasing sophistication have expanded faster in the present day. In this regard, there are a lot of chances of crime being committed over the Internet whenever buyers and sellers do not see or know each other. E-commerce fraud emerged with the rapid increase in website popularity (Al-Alawi et al., 2020, 155). The swindlers are usually very active mostly ready to defraud vulnerable clients. In fact, the presence of e-mails and pop up ads have provided a leeway for financial criminals to have the accessibility to many individuals (Aithal, 2016, 279). Indeed, this is a critical matter that Jualo would have to deal with to make sure that its site users are safe from cyber criminals that are here to defraud them. Part 2 Introduction The new business venture by Jualo will be to open its subsidiary in Australia under the name ‘Jualo Australia’. Just like other e-commerce businesses in Australia including eBay Australia and Woolworths, Jualo Australia will be in the same industry as it is doing in Indonesia. A subsidiary refers to a company that is controlled and at least majority owned by another. In this case, Jualo Australia would be under the ownership of Jualo Indonesia as the parent company. Jualo Australia will be completely owned by Jualo Indonesia. The move to Australia will enable Jualo create new vendors, thus be able to increase its market share away from Indonesia. The rationale for choosing Australia is that e-commerce has continued to thrive as a business in the country. In fact, statistics divulge that eight out of ten people in Australia shop online. Moreover, as of February 2019, it was reported that 80.8% of individuals across the nation shopped online. Australia is still one of the most connected countries globally with approximately 46% of its population and 37% of the total households having access to the Internet (Parliament of Australia, n. d.). Moreover, small entities are going online at a high rate. Indeed, it is anticipated that the new Jualo Australia would work effectively in serving this wide customer portfolio on its online platform. Jualo Australi...