Chaldal Business Development Plan

Executive Summary:

Chaldal is one of the leading e-commerce grocery service provider across Dhaka, Bangladesh. This report is made to know about the position and strength it holds as of now.

Going through the report, all the key points about who are the strength for Chaldal and how Chaldal can improve their business staying as e-commerce. All the major strategy that might help the organization is also discussed.

In these assignment, suggestions about some strategies are spoken off. Chaldal may, take supply upon their hand, make pricing of goods cheaper, decrease delivery time. The best suggestion for Chaldal will be to expand their business.

Introduction:

This report is done on an e-commerce business organization known as Chaldal. They are grocery service provider. In this report, two things were strategized to find out how, the company, Chaldal could improve on their business and where the strength lies in position and competition wise. The two strategies that were used are:

1. Porter’s Five Forces: The five forces include competition, supplier strength, customer power, the potential for new companies joining the industry, and the threat of substitute products.

1. Ansoff’s Matrix: A strategic planning tool that helps to provide a framework to executives, senior managers, and marketers devise strategies for future development.

Company Profile:

Chaldal.com is an online shop located in Dhaka, Bangladesh. It is a service rooted on the thinking that shopping for necessities should not be a problem. At Chaldal, it is believed that time is valuable to our fellow Dhaka residents, and that they should not have to waste hours in traffic, bad weather and wait in line just to buy basic necessities like eggs! This is why Chaldal delivers everything needed right at your door-step and at no or less additional cost. Chaldal is a work in progress, and they hope to get better over time. They are firm believers in using technology to improve Bangladesh society, and we will continue to invest all their effort in pushing the boundaries of technology in this country.

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Porter’s Five Forces:

Porter’s five forces is a very powerful tool to figure out where the true strength lies for the organization. This is helpful because it will help Chaldal to understand both the strength of your current competitive position and the strength of a position Chaldal is considering moving into.

1. Supplier Power:

Chaldal has a very huge source of suppliers in their arsenal. They sometimes have products which cannot be found in normal retail shops or supermarket. Chaldal holds their own inventory and dispatches according to buyers need. They also get their supplies in daily basis.

Suppliers power is high. Without supply and correct price Chaldal will crumble. Supplier will have the power to bargain for price and if does not come to an agreeable term with Chaldal, supplier will move on to distribute their product elsewhere. Chaldal does not only require consumer goods, many other retail shops are also in line with Chaldal.

Chaldal should buy it from the source and make a supply for their own. Chaldal can also use their own private transportation to get their supply working. Very early morning gather supply and by 10am start their distribution.

1. Buyer Power:

As an e-commerce business, Chaldal holds a very large customer range as it is in the world-wide-web. It gives access to many types and categories of citizen’s. it can also be said that Chaldal holds a very significant control over buyers because they ensure that, the price they are offering is less than from the retail shop buyers usually buy it from. Plus, they get a home delivery for free if they order above 200 takas.

Buyer power is low but will have a choice and type of product to choose from. As an e-commerce business, Chaldal does not give buyers the right to bargain for price. Nor does the buyer have the right to check the product quality or expire date.

Chaldal may give links of other shops with their shop, so that it helps buyer to know that, low price is always ensured by Chaldal. When dispatching order, Chaldal should also make sure that product must have at least 3 months of expire date.

1. Competitive Rivalry:

There are very less e-commerce supermarkets in Bangladesh. Meena Bazar and Agora has recently introduced themselves in the market but is lacking the quality and product pricing for buyers. Therefore, suppliers have less power and Chaldal is holding a massive strength over this e-commerce business.

Competitive rivalry is low as there are no solid grounded e-commerce supermarket in Bangladesh yet, rather than Chaldal. Few physical supermarket companies are trying to come to e-commerce but people do like to buy it from their physical shops rather than website.

Chaldal should not build over confidence by thinking they are the only one in this business line. They should maintain a good moral value with their customers. Build some dedicated customers and do a survey with them for improvements.

1. Threat of Substitution:

People can always go to local bazaar and buy the grocery. In society, local bazaars are dirty and pricing is very fluctuated. So, buyers might get carried away by thinking Chaldal is best for grocery shopping as price and quality is very sustainable.

The possibility for threat of substitution is moderate because now a day many supermarkets with local bazaar are growing around the local colonies. People don’t need to go much far away to buy grocery or vegetables or fruits or meat or fish.

Chaldal should decrease their delivery time and freshness of the product as sometimes, people also do fail to get fresh product from any local bazaar.

1. Threat of New Entry:

Chaldal is upgrading and expanding its range as we speak but new competitors like Shwapno might have an advantage over Chaldal. Shwapno has physical supermarket and is in the supermarket business before Chaldal. Still Chaldal holds a super strong foundation in the         e-commerce business.