Q.1 Was it a good decision to expand
the business to Cairo? What are the implications of information systems?
Answer: Yes, it was a good decision to
expand the business in Cairo. Even though it was just one year since they had
established themselves in the market, Mashaweer had two main advantages. First,
it was the first company to offer personal services and second they had gained
a very good customer base due to the flexibility in their services.
Implications of information Systems:
Due to IT, huge amount of data could be handled. This is evident
from the fact that Mashaweer team created their own customized ERP system
With IT, it was an automated process and thus error handling
Data forecasting was easy and preventive and corrective
actions could be taken easily.
Quick response time.
As they created their own IT infrastructure, they saved a lot
of money. They used the same money to improve the quality of their services.
We can analyze the above decision to
expand by SWOT analysis and Porter’s analysis as below:
1. First in the market and barrier to entry for other competitors
2. Low cost services provided with best quality
3. Self-owned company for technological help
4. Techno-savvy system with GPS tacking and PDAs for every
serviceman, ERP, API
5. Faster courier services than other courier competitors
6. Flexibility and ease of communication which increases efficiency
1. Huge investments made during the economic slowdown
2. Too much dependence on technology
1. Increasing number of working couples which can become their
clients and use their services
2. Advancements in technology making services cheaper and attracting
1. Entry of small scale firms like Wassaly
2. Competitors copying their strategies
5 FORCE MODEL
Q.2 Do you think that Mashaweer will
be able to accomplish their future strategy and sustain its market share?
Answer: The above question can be analyzed
with the help of BCG matrix as below:
Going into the next phase Mashaweer
is looking to develop an online supermarket where the customers can place
orders and get their groceries delivered to them within 30 minutes. However,
Mashaweer might face difficulties in sustaining its market if Big Players like
Amazon decide to enter the market. Mashaweer heavily relies on technology and
to reduce cost and ensure quality tries not to outsource any of the
departments. But when big players come into their potential market with heavy
investments and advanced technology things could go bad for Mashaweer. These
MNCs will enter in full force with heavy advertising, low costs (employing
economies of scale) and brand name.
Mashaweer’s call center is a
lucrative revenue stream and they are already looking to expand and provide
services to other companies. Mashaweer’s call centers uses CISCO network to
manage operations, which helps them by providing in addition to 300IP phones
the service of reporting module and a recording system. They should try to
replicate this model and expand this call center to accommodate other companies
that outsource customer service to them.
Innov8 was founded as an information
technology company to save the cost of an expensive enterprise resource
planning (ERP) system. The ERP system was connected to the PDA’s to provide
detailed instructions. Innov8 went on to become a huge success and now caters
to many different clients along with its parent company Mashaweer which now
only owns it partly.
Personal Errand Assistant
The primary source of business of
Mashaweer was the personal assistant that carried out errands of the clients
24hours a day. The unique selling proposition lied in the flexibility of
services provided by the personal assistant. As most of the people can’t afford
a full-time assistant, Mashaweer provides them the opportunity to hire a
part-time assistant. Thus, though the market share for this is high the growth
rate is low.
Windows Mobile PDA
This is the area where Mashaveer
might face some difficulty in terms of slow growth and less market share. Instead
of manufacturing a device just to use the Personal Digital Assistant (PDA).
Mashaweer should try to come up with an app that can be installed in both the
customers mobile and the employee’s mobile because with growing popularity of
smartphones people are comfortable to use it for every purpose. The customers
could keep a track on the status of the service requested, employees can get
customer’s service request on the app and the supervisors can keep track of the
subordinated through the app as well.
Q.3 Do you think in near future, the
competition between Mashaweer and Wassaly will be aggressive? Why?
Answer: No, we do not think that the
competition between Wassaly and Mashweer will be aggressive due to the following
advantages that Mashaweer has:
Strong customer base due to first mover’s advantage.
Strong and self-made IT infrastructure.
Highly qualified riders to deliver on the go and excellent
Mashaweer was already established as a good player in many
cities in Egypt whereas Wassaly was just established in Cairo.
Due to self- made infrastructure, Mashaweer could outsource
these services to other companies and earn extra revenue than Wassaly, which
did not have this advantage.