case study :Mashaweer

1.What kinds of applications are described in this case? What business functions do they support?

In this case, they started their own IT company, Innov8 (innovate), where they created a customized Enterprise Resource Planning (ERP) system, which they then connected to their customized PDAs (Personal Digital Assistants) through a cloud computing system that was made by LinkDotNet and Mobinil. Each rider receives tasks one at a time on the PDA, which also includes a GPS to provide detailed directions. The GPS monitors the rider’s location.

2.What are the benefits from equipping their riders with PDAs?

Windows Mobile PDAs were used for viewing and updating orders on the move. Each PDA is paired to a Bluetooth mobile printer for printing receipts. The printer is also equipped with a swipe card reader module so that it can be used in the future for credit card payment collection, and for promotion cards.

3.Was it a good decision to expand the business to Cairo? What are the implications of information Systems?

Yes, we think it is a good decision to expand the business to Cairo. When Mashaweer was first introduced in Egypt, it captured 100 percent of market share for such a service, because it was the first and only company of its nature. However, the market was not aware or used to such a service, so it started growing slowly in Alexandria until people grasped the idea and got accustomed to the fact that there is a company that can take your errands. In contrast, when the company started operating in Cairo, it grew as surprisingly fast pace.
Another factor that is expected to facilitate working conditions and reduce costs is the technological advances that occur every day. They planned to enter Cairo with full force so that there would be a high barrier of entry for any competitor they decided that their competitive advantage would have to be in investing in technology. Mashaweer heavily depends on technological tools, and would benefit from the advancements and price reductions that continuously take place. As a result, Mashaweer’s total costs will decrease, enabling it to decrease its prices and further improve its quality to become even more convenient for a large number of people.

4. Do you think that Mashaweer will be able to accomplish their future strategy and sustain its market share?

Mashaweer will be able to accomplish their future strategy and sustain its market share because of their infrastructures as follow:

a) Mashaweer Market: Mashaweer is an online supermarket that will enable people to do their grocery shopping through Mashaweer’s website and get it delivered by its representatives within 30 minutes of placing the order. This will be made possible by having access to a large number of super markets around Cairo and Alexandria, so that representatives can pick the order from the closest outlet and deliver it to the customer as quickly as possible.  All products will be displayed on the website. Mashaweer is hoping to reach an average of 4000 orders daily in return for a delivery charge of 5 Egyptian pounds per order.


b) Call Centre:Mashaweer’s call center is expected to make up an important revenue stream for the company in the near future, as the company starts introducing marketing campaigns. In addition, Mashaweer is planning to expand its call center to   include other companies other than Mashaweer.


c) Geographical Expansion:Using the technology they have invested in building their infrastructure, Mashaweer now has the potential to easily enter and penetrate other markets in different regions as a very low initiation cost. They plan to expand to other regions within Egypt, in addition to expanding to other countries within the Middle East. In October 2013 they will open their first franchise in Beirut, Lebanon. They are also looking to expand to several countries in the Gulf.

Q5: Do you think in near future, the competition between Mashaweer and Wassaly will be aggressive? Why?

The competition between Mashaweer and Wassaly will be not aggressive.  As Mashaweer is the only company of its kind in Egypt that operates on this business scale. However, there is a company called Wassaly that was established in Cairo after Mashaweer’s success in Alexandria. This company operates on a much smaller scale. Their indirect competitors include other courier services (e.g DHL, UPS, TNT and FedEx). However, they have positioned themselves as the flexible courier in contrast to the couriers available in the market today; they offer same day delivery rather than next day delivery. Mashaweer has several other advantages that make it very hard for others to compete:

 1.         Database of thousands of loyal clients
2.         Self-investment is manageable
3.         Highly qualified and carefully selected riders due to the high        salaries compared to the delivery sector in the Egypt.
4.         Various revenue streams.
5.         Being the owner of the IT Company Innov8 fosters technology integration in Mashaweer.

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