Strengths And Weaknesses Of Ozon

Decent Essays
Weaknesses of Ozon.ru One of the weaknesses of Ozon.ru is its unqualified staffs in customer service department. As there are increasingly demand from Russian that desire to get customer service through phone, however in Russian culture, majority of them are not a friendly people. The impolitely attitude of customer support staffs might cause problems for Ozon.ru. For example, unsatisfied customer service might encourage customers to shift from Ozon.ru to another online retail shop (SFGate 2015). Therefore, CEO of Ozon.ru Maelle Gavet, set an objective to get Ozon.ru customer support staff to be polite. Besides, the shortage of engineers is also a problem towards Ozon.ru. The good engineers in Russia are more scarce and expensive; the salary request by web programmer in Moscow is much higher than web programmer in San Francisco. Hence, the high cost to get qualified engineers will be viewed as an additional cost for Ozon.ru.

Strengths of Wikimart
Wikimart, which is the online retail market, is basically a technological based company. The majority of the employees in 2011 were programmers who are responsible to write software code in order to support the online businesses of Wikimart. With own programmers, Wikimart able to create suitable or needed software that needed by the company (Rusbase 2015).
Besides, Wikimart also grab its share of the fast-growing market of cross-border sales to Russia by selling the products for example household goods, kid’s products, sporting attire and so on by foreign suppliers such as European and Chinese to Russian customers in the beginning of 2014 (East-West Digital News 2015). With the growth of cross-border sales, Wikimart is able to grow even faster (East-West Digital News 2015). Weaknesses of Wikimart One of the weaknesses of Wikimart is the incapability to turn into profit because of inadequate of available inventories to supply for the demand or order of customers after established.
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Although Wikimart has vast potential in online retail market with their increasing online merchants and product varieties, the company had not turn into profit yet in year of 2012 but have faith that they will gain profit in 2015 and will be able to have a stable profit in 2016 (Rbth.com 2014). Besides, they even set an objective to reach annual revenue at $15 million by 2018 with the increasing share of the fast-growing online retail market (Rbth.com 2014). The next weakness of Wikimart to compete with Ozon.ru is the years of established in the e-commerce sector inside Russia (East-West Digital News 2015). Ozon.ru established in 1998 that occupied 2.5% in the market while Wikimart formed after it, which is in 2008 only occupied 1% in the market (prezi.com 2015). This means that they are only 7 years old in the sector but Ozon.ru is already 17 years old (East-West Digital News 2015) . Therefore, the large gaps made Wikimart not able to go beyond Ozon.ru even though they are growing fast in online retail market (East-West Digital News 2015). Besides, Wikimart also confronting higher cost in building up its own intangible resources since they are new in this sector compare with Ozon.ru. The intangible resources that are costly to build up are including company reputation, customers’ loyalty, competitive space and etc. For an example, Ozon.ru is the large player that established much earlier than Wikimart have its own warehouse and transportation team while Wikimart only new to the

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