Reflective Report On A Business Engagement With Tigmoo Company
Introduction
This reflective report is based on a business engagement with Tigmoo. com which is Zambia’s leading Online Shopping platform to analyse its competitive advantage the cost and value in the Ecommerce environment it’s accessing from. That one hand this report also focuses on how Porter’s Five Force analysis can be used to analyse the competitive environment in which Tigmoo operates, followed by reflection and conclusion. During the interview with the Operational Head of Tigmoo. com Mr. Niikoney it was understood that due to the rapid advancement in technology, companies involved in E-Commerce business is also growing as people have access to goods and services at their own comfort. Online shopping is a method of buying goods and services through the internet than going to a traditional store. There is a global increase of online shopping because it is more convenient. In 2006 it was estimated that sales of over $20 billion during holiday season was made through online shopping.
Business background
TIGMOO is an online shopping platform for easy purchase of goods at your own comfort through their website. Tigmoo has two sections; Tigmoo. com which is the online platform which provides vast products and Tigmoo Shop and Ship where you can order from other online platforms and tigmoo would ship it into the country and have it delivered. It also consists of an IT sector which is still developing; it focuses in providing IT solutions to private sector companies. The entity was setup in Ghana in 2014 then developed into Zambian market as a franchise being the one and only fully established online shopping website in Zambia with a flat rate across the country providing free delivery. Mission: “Tigmoo is out there with a mission of creating a secure, customer friendly and efficient online buying platform that promises to make shopping hassle free. We make all possible efforts to keep the prices to that competitive level so that the buying process ends up being pocket-friendly for our customers. ” Vision: “Our vision is to be recognized globally as a safe, secure and customer centric online shopping platform that sells genuine goods meeting customer expectations and attaining sustainable growth. ”
Business engagement
According to Michael Porter argument; competitive advantage is a function where the customer is provided a greater value compared to the rivals and provide unique services at low cost (The Economist, August 4, 2008). To gain a strong competitive advantage over rivals a business should have a target market and consider the PESTEL factors, how the political, economic, social and other factors affect the business. According to Michael Porter (1985), competitive advantage can also be achieved by taking measures on cost by being a cost leader in that market as this will enhance value to customers and the business itself. E-Commerce is not only buying and selling of goods and services via the internet but all electronical transactions fall under E-commerce. Competitive advantage of a certain industry can be analysed by using Porter’s Five Force as a tool and use this to understand the strength, weakness, opportunity and threat of the organisation.
Findings
Porter’s Five Force is a framework that was developed by Michael E Porter in 1975 which comprises of five components which define the competitive advantage of an organisation. According to Abhijeet Pratap’s Ecommerce industry analysis in November 11, 2017; bargaining power of suppliers is low to moderate as the rules are set by the brand and the suppliers have to follow it. In case of Tigmoo it being an emerging company in the market based on the interview with the manage, my co-managers and I understood that the supplier power is high as they are still establishing in the market. It is also argued by Abhijeet that the bargaining power of buyers is high due to the low switching cost customers can get the same goods and services from e-retailers or physical retailers if the price is the same. In the case of Tigmoo it can safely be said that the buyer power is low as it being the only fully established online company in the Zambia. It was further quoted by the researcher that due to the setup of e-retailers and physical retailers the threat of substitutes are high, but in case of Tigmoo it was understood that the threat is relevantly low as they are not many e-retailers in the country rather physical retailers who price their products high to incur cost. A further emphasis was made on the threat of new entrants which is low as the set up cost is high in the industry and the competitive rivalry is also high. But in Tigmoo’s case the competitive rivalry is low as the upcoming online business are still building their base and due to political and economic instability in the country is bringing about difficulties in establishing the company and also factor of technology affects the developing nation. On a global level it is understood that the competition for Tigmoo is high. “A significant bottleneck facing developing countries are costs associated with ICT products and services which remain high for most consumers. Another key constraint for inclusive e-commerce in developing countries is the general lack of consumer trust and confidence in electronic commerce platforms, especially those that border on security concerns” says Brian Lingela. Hence it is to be noted that strong development in legal systems around E-business and room for technological development will give a boost in the economy the business is operating in.
Reflection
Tigmoo holds a strong competitive advantage as it provides flat rate to all class of the market with a flat rate across the country with free delivery within a delivery period of 24-48 hours in any part of the country with Cash on Delivery option. During the business engagement with the manager, he stated that the company reduces its cost tremendously because they are in partnership with Mercury Logistics who do the delivery for the throughout the country and also to further minimise cost they buy goods in bulk from the suppliers as they get discounts. Saying that, during the engagement my co-managers and I suggested to the manager that they can further maximise their cost by buying goods from the local market for supply rather than importing and also by setting up retail shops as physical retailers take opportunity of distance to charge high price to cover up the cost of import and transportation of goods. That being the business engagement gave an insight on how tigmoo adds value to its customers. Customers value the low price on products compared to other retailers and the delivery period. Value can be further maximised by providing a vast range of products and stretching its tentacles into other sectors of technology development which will give Tigmoo a strong brand name.
Conclusion
In this fast growing digital world to achieve a strong competitive advantage in global market of E-Commerce the local government should bring about legal systems that support this kind of trade as well as invest more in technological advancement and educate and give surety and gain trust of the locals to use these means of trade as it will be a trend setter in everyone’s life making their everyday activity easy at their own comfort. Emphasising on that upcoming firms in the local market should also give a kick start in the IT sector and advertise the benefits of this mode of trade. E-Commerce brings about connectivity from nations all around the globe and free trade between countries. If these measures are taken into consideration any company in the industry can gain strong competitive advantage.
