Friday, 26 February 2016

Mashaweer Case study

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

As Mashaweer planned to expand their services 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.
a)       Enterprise Resource Planning (ERP)
ERP systems are integrated enterprise-wide standard information systems that automate all aspect of an organization’s business process. An ERP systems that enables a company to manage the efficient use of its resources. Among the most important ERP attributes are the ability to:
-          Automated and integrated the majority of an organization’s business process including production planning, cozy and development, sales and marketing, manufacturing, inventory management and shipping payment.
-          Share common date and practices across the entire enterprise.
-          Produce and assess information in real time environment.
At first Mashaweer wanted to get ERP system but the cost is too high. Due to that reason, they started their own information technology company, Innov8 (innovate), where they created a customized 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.
b)       CISCO
To reduce cost and ensure quality, Mashaweer does not rely on outsourcing in any of its stages as long as it can do the work with the same or better quality. For example, Mashaweer’s in house capabilities is its call center. The company investing in an innovative contact center and using CISCO, which supports up to 3001P phones, a reporting module and a recording system made it much easier for Mashaweer to track its received calls and work on any problem that might face its customer service agents. Mashaweer call center is expected to make up an important revenue stream for the company as their sales and marketing strategy.
c)       Mashaweer’s Server
One of the software developed by Innov8 is Mashaweer Server. It is a centralized application that manages the following elements:
§  Orders (placement, editing, pricing, review, tracking & reports)
§  Routes management and optimization
§  Clients (management, reports, discounts)
§  Packages tracking
§  Contracts
§  Call center
§  Satellite offices
§  Representatives
§  Cash transactions and expenses tracking for representatives and satellite offices
§  Asset tracking of vehicles, PDAs and mobile printers
§  Management reports
d)       Application Programmer’s Interface (API)
API is a method of integrating Mashaweer ordering system with third parties. This allows third parties to automate their delivery system and integrate Mashaweer into their existing CRM/ dispatching systems, opening a wide opportunity for business expansion.

What are the benefits from equipping their riders with PDAs?

PDA is a mobile device that functions as a personal information manager. The Mashaweer PDA application is installed on each representative PDA and manages the following elements:
§  Order items progress tracking
§  Collection of order fees and other costs, against a printed invoice
§  Package handling (barcode scanning and destinations)
§  Messaging
§  Cash and expenses tracking
§  Synchronizing data periodically and at the beginning of each shift
Mashaweer invested in PDAs to enable the operation process to be monitored accurately since is provides date like GPS tracking to track each order and the location or stage the messenger is located. Through this technology, Mashaweer decreases the amount of errors due to the fact that the messenger is tied to an automated process where he receives his tasks through the PDA handled.
Question 3
Was it a good decision to expand the business to Cairo? What are the implications of information systems?
Yes, it was 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 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. There are several factors are expected to affect the target market and make it easier for Mashaweer to penetrate it aggressively.
At the beginning, people’s assumption is that using Mashaweer is too luxurious and costly. When they use it for the first couple of times, this perception changes and they begin to rely on this convenient service. As more people get accustomed with the service, it creates a cultural change that significantly affects the demand on the service.
Another factor that is expected to facilitate working conditions and reduce costs is the technological advances that occur every day. 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 larger number of people.

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

Mashaweer’s future strategy are as follows:
         i.            Mashaweer market – Mashaweer is an online supermarket that will enable people to do their grocery shopping through Mashaweer’s website and get it delivery by its representatives within 30 minutes of placing the order. This will be made possible by having access to a large number of supermarkets 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.
        ii.            Call center – 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.
      iii.            Geographical Expansion – Using the technology they have invested in building their infrastructure, Mashaweer now has potential to easily enter and penetrate other markets in different regions at 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 in the Gulf. The challenge with geographical expansion into other locations is that it’s a costly process to fully capture the market. However, Mashaweer has already proven that is possible to expand into other regions through Egypt with their 2011 expansion from Alexandria to Cario. The suggestion to this strategy would be to expand throughout Egypt and the Middle East with full force to fully capture the Egyptian and Middle Eastern market. Mashaweer need to plan strong strategy to facing local competitors.
These three strategies have the potential to success and will be able to accomplish their future strategy and sustain its market share if these strategies to be implemented and executed correctly.

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

No, because Mashaweer is the only company of its kind in Egypt that operates on this scale. However, there is a company called Wassaly that was established in Cario 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 complete:
·         Database of thousands of loyal clients
·         Self-investment in manageable
·         Highly qualified and carefully selected riders due to the high salaries compared to the delivery sector in the Egypt
·         Various revenue streams
·         Being the owner of the IT company Innov8 fosters technology integration in Mashaweer

Mashaweer also has several unique selling propositions. The main two aspects are being the first in the market and the only of its kind. Also the most important differentiator is the flexibility of their service, which addresses all of their customer’s needs and requests.


1 comment:

  1. This material has helped me very well.

    ReplyDelete