E-Commerce - Case Study

Trimis la data: 2010-10-02 Materia: Marketing Nivel: Facultate Pagini: n/a Nota: / 10 Downloads: 1
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eMAG adventure: In 1998 Radu Apostolescu, student in the third year to a Medicine University, had the idea to made a recruitment site MyJob.ro. Six years later he sale this business to NetBridge for less then 1 mil.$. He graduate the medicine University with the maximum grads but in 2001, instead to be a surgeon, had prefer to involve into another e-business project with two associates: an IT&C virtual store.
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Behind eMAG.ro there are two companies:
- Dante International - a B2C e-commerce own by the founders(33% stocks each) which bring 60% from the eMAG profit
- eMag International - a B2B e-commerce own by the founders (30% stocks each) and Gabriel Dumitrescu (10% stacks)
The shareholders have different capital investments and unequal effective efforts participation in this e-business; the Executive Manager it is Radu Apostolescu.

Online businesses have more than doubled their profits every past year, salling products such as laptop computers, digital cameras, mobile phones and home appliances.eMAG is one of the main E-commerce stores in Romania and it has begun to eclipse more traditional IT&C retail sales.IT&C online store, set up in 2001(18 dec they recived the first command online), in 2006 had around 150 employees and their number currently topping 300 eMAG is a profitable business due to the fact that it has sustained development through its own means.

in 2002 sales revolved around 150.000 euros;
in 2003 sales revolved around 1.2 mil. euros;
in 2004 sales revolved around 3.9 mil. euros;
in 2005 sales revolved around 11.8 mil. euros;

in 2006 eMAG.ro sold IT&C products worth 35 mil. euros and net losses worth 0.45 mil. euros( according to the Finance Ministry);
in 2007 eMAG.ro held a 70% market share of trade in IT&C products and derived turnover worth 77 mil. euros;in 2008 eMAG weigh over 85% of the market and online sales are amounted to 150 mil. euros.

The increase against the similar period of last year is of above 100% and is due both to the expansion of the online market and to the introduction of new brands and product categories. The main product category eMAG sold were notebooks, photo-video devices, as well as LCD screens and TV sets, followed by multifunctionals, phones, mobile solutions and PC components. Beside IT&C, in the last year eMAg sales electronics too.

In 2008 they invest 2.5 m Euros in relocating operations:
- the new headquarter - a modern office building
structured on seven levels;
- a new logistic center (warehouse and center of
expedition ) in the west of Bucharest with facilities dedicated
to each activity.
- a new Showroom in Bucharest " eMAG.Live! Concept" thematic areas for testing products, along with dedicated spaces for self-service online, for information and orders.

In march 2009 they rebuild the program eMAG ProfitShare inspired by the very simple and clear Amazon Associates principles: dynamic tools (widget links) that take real-time products or product categories selected by the affiliate, monitoring and reporting in real time.
All these serve primarily to generate sales and maximum conversion rate.

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