Core competency

As Rocket Internet is an online based business unlike most of the product oriented businesses it
does not need to have Location economies and export economies. But it uses the other core
competencies.
Learning Effects:
Rocket Internet is using the learning effects for the training of its high level employees. These
high level employees are going to different enterprizes of Rocket Inter in all over the world and
learning the facts and operations of business and other things related to their business.

Leverage Subsidiary Skills:

Rocket Internet Managers should have the humility to recognize that valuable skills that lead to
competencies can arise anywhere within the firms global network, not just at the corporate
center. They established an incentive system that encourages local employees to acquire new
skills-(most challenging part, risky & might not add value). Managers have a process for
identifying when valuable new skills have been created in a subsidiary. They act as facilitators,
helping transfer valuable skills within the firm.

Pressure for cost reduction & local responsiveness

Rocket Internet is an online based market place. It is operating business in many countries of the
world in the Western, Middle Eastern and Eastern countries. They set up different offices in the
locality. It helps them to operate business easily. In case of their business they need to focus on
the cost of the product and also in local responsiveness. They are trying to sell all types of goods
in a cheaper price also they are selling the goods which are having the demand in the countries.
They have the pressure to keep the price low as there are other online shops like Bikroy.com,
Ekhanei, OLX.com and some new entrants like: Priyoshop, Bajimat, iferry.com etc. and if they

sell in a lower price, the customers will move to them . It is is a huge challenge for Kaymu
(Rocket Internet). On the other hand they are selling the goods which have the local demand and
produced in the local market as well as imported. So, the local responsive ness in in a medium
level.

International Business Strategy

Generally there are four International Business strategies.

a)
b)
c)
d)

Global Standardization Strategy

Transnational Strategy
Localization Strategy
International Strategy

Different MNCs or other companies follow strategies among these.

Rocket Internet an internet based company that has been building online companies since 1999
and has created over 100 market leading companies in 50+ countries. It is operating its business
in Asia Pacific region, Africa, Latin America, Middle East. It is has established a global online
market in those operating countries. Rocket Internet offers online food, car, shoes, fashion and
beauty, household, furniture, electronic equipment, real estate selling at doorstep.
This company is doing business in many countries but their products or types of business are
same everywhere. Their products are standardized but they do business in different names in
different names around the globe. They are following the Transnational Strategy. This type of
strategy indicates that pressure of cost reduction is high and as well as it is less responsive to
locality. They are using the same software for online selling but using different names in
different regions. They have low cost products in Bangladesh so that the people here can afford.
Many products are from China so that it can be affordable. So, it has a mixed approach to locally
responsiveness. Another attribute of transnational strategy is tend to raise profitability and profit
growth by value creations-by simultaneously achieving low costs & differentiate product
offerings. This company tries to reach people at low cost. As it is an online market place, so it
consumers do not need to go to the shop and it is saving the cost of the consumers. As it is an
online shop, it does not need a physical shop and also does not need to employ a huge amount of
people to look after the shop and sell physically. So, here also the cost goes down. The main
reason the Kyamu, Lamudi, Carmudi need to keep in mind that their competitors are building
stronger day by day. They have the pressure to keep the price low as there are other online shops
like Bikroy.com, Ekhanei, OLX.com and some new entrants like: Priyoshop, Bajimat, iferry.com
etc. and if they sell in a lower price, the customers will move to them . It is is a huge challenge

for Kaymu (Rocket Internet). So, the company is becoming successful in cost reduction as there
is a pressure of cost reduction. And low cost helps to get maximum market share.

References
http://www.kaymu.com.bd/?gclid=CjwKEAiAy8ujBRCY6chveijhFASJAAcyGic7S_nDpHzOumv58M65c3gqgd1MVvqGuhkWvaEzd9WTxoCBeHw_wcB
2. http://en.wikipedia.org/wiki/International_business_strategy