Rocket Internet’s Business Model

The Clone Factory.

Rocket Internet’s Business Model.

This is an interesting example of where the company bases its business model upon the ability to be second or third to market. Let’s think about this in more detail, because it makes total sense – the first companies to get to market experience the costs and the huge learning curve that is associated with any start-up which enters a new and emerging market. If there is no advantage to being first it to a market, or if the market is new and expanding and has room for many new competitors, then this is a really good business idea. Some would argue that Rocket Internet is a ‘disruptive’ organisation.

Rocket Internet’s Portfolio

The clone factory is based upon Rocket Internet and their business strategy for dominance in Germany and other parts of the world. So the company does not really have a new and innovative idea; essentially it waits and watches how other innovative online and digital start-ups enter new markets, then it quickly invests time and resources in developing its own version of its competitors’ idea, adapting and improving it.

By having a vast portfolio of these types of start-ups, rocket Internet has developed a strategy whereby it will see many of the start-ups becoming successes, whilst others will diminish fadeout. The business model will hopefully deliver successful companies in the long-term. Here’s another issue, investors in these companies will want to see returns in the medium, if not the short term. However, these tech companies which may not see a return for many years to come. However, these will be the new cash cows for investors as these markets mature and as customers are satisfied.

Its chairman, the charismatic and future thinking German entrepreneur Oliver Samwer, find himself continually reasoning and explaining the need to think about the medium to long-term. These new businesses are cutting-edge and pioneering. In fairness to Samwer, his companies are disruptive and ‘clone’ is a little misleading.

Some examples of rocket internets new clone businesses include Bonativo (Farmer’s market online), Carmudi (to buy and sell vehicles), EatFirst (super-fast takeaway food), EverJobs (for jobseekers) and Easy Taxi (arguably an Uber clone).

Tim Friesner.

 

Marketing Crossword.

Marketing Crossword

This is a free marketing crossword. This example contains many of the basic marketing tools and models that you might find in an essentials of marketing course. Why not post your answers below? Enjoy.

Marketing Crossword

ACROSS
6 What is the topic of this crossword?
7 What do you charge for a product? One of the 4Ps.
8 What analysis contains political and economic, and ends in ST?
9 SMART refers to what?
10 What ‘Life Cycle’?
12 Whose four-celled matrix contains market penetration?

DOWN
1 What is distribution? One of the 4Ps.
2 What is advertising? One of the 4Ps.
3 The ‘what’ mix?
4 Neil H. ‘who’ describes the marketing mix in 1965?
5 Whose four-celled matrix contains cash-cows?
11 What analysis contains opportunities and threats?