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Rocket Internet Diversification Strategy

Rocket Internet aims to become the largest internet platform outside the US and China. It identifies consumer needs in unserved markets, copies proven business models, and scales up companies rapidly. Rocket's platform includes a network of companies, shared technology and processes, and infrastructure support. It creates value by transferring skills between independent business units. Rocket pursues a strategy of related diversification across e-commerce, marketplaces, financial technology and travel. It plans to grow by exploring new markets and capturing more markets by scaling up quickly to build barriers through network effects.

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219 views6 pages

Rocket Internet Diversification Strategy

Rocket Internet aims to become the largest internet platform outside the US and China. It identifies consumer needs in unserved markets, copies proven business models, and scales up companies rapidly. Rocket's platform includes a network of companies, shared technology and processes, and infrastructure support. It creates value by transferring skills between independent business units. Rocket pursues a strategy of related diversification across e-commerce, marketplaces, financial technology and travel. It plans to grow by exploring new markets and capturing more markets by scaling up quickly to build barriers through network effects.

Uploaded by

hardy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Rocket Internet

Presentation

April 21th, 2015

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 1


Introduction

“To Become the World's Largest Internet


Platform Outside the United States and China”

1. Identify Basic Consumer 2. Copy a Proven Business


3. Scale up the Company
Needs in Unserved Markets Model

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 2


Rocket‘s Platform Elements

 Leveraging on country
knowledge
 „Never making the same Rocket Network
mistake twice“
of Companies
 Learning curve effects
Infrastructure

Technology

Processes
 Proprietary technology  Proven Business Models
 Same technical platforms  Standardized Master-
Launch Process

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 3


Value Creation through Transferring Skills

Independent Businesses Infrastructural support

 Largely Autonomous (Elements of shared activities)


business units
 Office facilities

 IT support

 Marketing
Transferring
Skills
Utilize Common Skills Internal Incentive System

 Best Practice Approach  Partly based on corporate


results
 Corporate Staff as
integrators

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 4


Strategy of Related Diversification (I)

Offensive
 Leveraging existing strengths (Online + Industry Know-How)
Timing  Best practice approach to gain critical size

E-Commerce Marketplaces Financial Technology Travel

Industries

 High economies of scope on corporate level


Synergies  No shared activities (except IT and HR)

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 5


Strategy of Related Diversification (II)

 Back-end integration
Implementation  Regional based divisions
 KPI driven control mechanisms

Grow the pie – Market Failure:


 Exploring new/unserved markets

Ownership Capturing more of the pie – Market Power:


 Scaling up quickly to build entry barriers through network effects
 Back-end integration and country knowledge as leverage

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 6

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