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Case Analysis Rakuten Ichiba

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Information about Case Analysis Rakuten Ichiba
Business & Mgmt

Published on December 2, 2008

Author: icestorm

Source: slideshare.net

Description

This is the case study conducted on Japan largest online retail chain store Rakuten Ichiba, and also its latest expansion to Rakuten Taiwan Joint Venture with President Chain Store, the largest chain store owner in Taiwan that own 7-Eleven.
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Rakuten corporate summary Rakuten in early stage (pre-IPO) Rakuten in growth stage Rakuten in global expansion stage Rakuten Ichiba summary Rakuten Ichiba business model Rakuten Ichiba success secret Rakuten Ichiba Taiwan summary Rakuten Ichiba future Comparison with Easy Pha-max Business model Operation Things to learn from Rakuten Ichiba Conclusion

Rakuten corporate summary

Rakuten in early stage (pre-IPO)

Rakuten in growth stage

Rakuten in global expansion stage

Rakuten Ichiba summary

Rakuten Ichiba business model

Rakuten Ichiba success secret

Rakuten Ichiba Taiwan summary

Rakuten Ichiba future

Comparison with Easy Pha-max

Business model

Operation

Things to learn from Rakuten Ichiba

Conclusion

Mr. Hiroshi Mikitani, Chairman & CEO Rakuten Inc. A former banker at age of 35, founded Rakuten in 1997 during Internet boom and brought the company to IPO in 2000.

40million members – 3 rd Jul 08 Ranked No. 5 in Japan top website – Alexa No. 1 retail brand in Japan & 14 th Consumer Brand Exceed 24,000 merchants – Q2 08 Net sales of US$1.76bil & US$304mil net income – 2007 financial report Hired aprox. 3400 employees IPO in Jasdaq – 2000

40million members – 3 rd Jul 08

Ranked No. 5 in Japan top website – Alexa

No. 1 retail brand in Japan & 14 th Consumer Brand

Exceed 24,000 merchants – Q2 08

Net sales of US$1.76bil & US$304mil net income – 2007 financial report

Hired aprox. 3400 employees

IPO in Jasdaq – 2000

 

 

1993 – 1995: Mikitani earned his MBA in Harvard, and join Bank of Japan when he returned 1995: Mikitani left his job with Bank of Japan to start an online business with his own money 1997 2/7 : founded MDM, Inc. with 5 employees 1997 5/1 : Rakuten Inchiba (cybermall) launched, with 13 merchants & first month revenue of US$3200 Initial business model: charging ‘virtual real-estate fee’ of US$475 per year

1993 – 1995: Mikitani earned his MBA in Harvard, and join Bank of Japan when he returned

1995: Mikitani left his job with Bank of Japan to start an online business with his own money

1997 2/7 : founded MDM, Inc. with 5 employees

1997 5/1 : Rakuten Inchiba (cybermall) launched, with 13 merchants & first month revenue of US$3200

Initial business model: charging ‘virtual real-estate fee’ of US$475 per year

1999: Mall expanded to 1600 shops & 600,000 registered members 1999 June: rename to Rakuten Inc. 1999 Sept: start Rakuten Auction service Rakuten make $5.7mil sales in 1999, earned $2.4mil profits. 2000 : start Rakuten University teaching e-business Rakuten went public in Jasdaq in Apr 2000 with market capital of $3.1 billion (45% own by Mikitani & his wife)

1999: Mall expanded to 1600 shops & 600,000 registered members

1999 June: rename to Rakuten Inc.

1999 Sept: start Rakuten Auction service

Rakuten make $5.7mil sales in 1999, earned $2.4mil profits.

2000 : start Rakuten University teaching e-business

Rakuten went public in Jasdaq in Apr 2000 with market capital of $3.1 billion (45% own by Mikitani & his wife)

2000: founded Rakuten USA Inc. Rakuten Books founded as JV with Nippon Shuppan Hanbai Inc. Infoseek Japan acquired by Rakuten Inc as portal services 2001: Showtime Inc for TV shopping 2002: Rakuten travel Inc founded Lycos Japan acquired by Rakuten & merged with Infoseek 2003: MyTrip.net acquired by Rakuten Start Rakuten Securities Inc by acquire DLJDirect SFG Securities 2004: Acquired Minnano Shushoku for career business service Acquire Cyber Brains Consultancy to form Rakuten Research Acquire Aozora Card to form Rakuten Credit Founded Rakuten Baseball – Rakuten Eagle Baseball team

2000: founded Rakuten USA Inc.

Rakuten Books founded as JV with Nippon Shuppan Hanbai Inc.

Infoseek Japan acquired by Rakuten Inc as portal services

2001: Showtime Inc for TV shopping

2002: Rakuten travel Inc founded

Lycos Japan acquired by Rakuten & merged with Infoseek

2003: MyTrip.net acquired by Rakuten

Start Rakuten Securities Inc by acquire DLJDirect SFG Securities

2004: Acquired Minnano Shushoku for career business service

Acquire Cyber Brains Consultancy to form Rakuten Research

Acquire Aozora Card to form Rakuten Credit

Founded Rakuten Baseball – Rakuten Eagle Baseball team

2005: Acquire Linkshare Corp (online marketing company) under Rakuten USA Rakuten Auction Inc founded as JV with NTT Docomo Consolidate Kokunai Shinpan to structure Rakuten KC 2006: Rakuten sign ops tie up with Shinsei Bank for online mortgage & Tokyo Bank for online banking business 2007: Rakuten Inc celebrate 10 th Anniversary Rakuten Travel open Guam branch Fusion communication acquired by Rakuten to start IP Telephony Rakuten Bank@TTB was founded in alliance with Tokyo Tomin Bank Rakuten move in to new HQ – Rakuten Tower Rakuten enter restructuring stage to further improve business efficiency

2005: Acquire Linkshare Corp (online marketing company) under Rakuten USA

Rakuten Auction Inc founded as JV with NTT Docomo

Consolidate Kokunai Shinpan to structure Rakuten KC

2006: Rakuten sign ops tie up with Shinsei Bank for online mortgage & Tokyo Bank for online banking business

2007: Rakuten Inc celebrate 10 th Anniversary

Rakuten Travel open Guam branch

Fusion communication acquired by Rakuten to start IP Telephony

Rakuten Bank@TTB was founded in alliance with Tokyo Tomin Bank

Rakuten move in to new HQ – Rakuten Tower

Rakuten enter restructuring stage to further improve business efficiency

2007: Rakuten and Taiwan President Chain Store sign JV to start Rakuten Ichiba Taiwan 2008: Rakuten Europe open in Luxemburg as European Hub Rakuten start operation in Bangkok Thailand for travel business

2007: Rakuten and Taiwan President Chain Store sign JV to start Rakuten Ichiba Taiwan

2008: Rakuten Europe open in Luxemburg as European Hub

Rakuten start operation in Bangkok Thailand for travel business

The most successful e-business portal in Japan

 

240,000 orders a day

 

 

 

Merchants Rakuten Merchants Server (RMS) 40million of Rakuten members Rakuten’s ECC (E-commerce Consultants) Rakuten University Members 20million items for selection User-friendly interface Rakuten super point program (loyalty card) Safe shopping service

Merchants

Rakuten Merchants Server (RMS)

40million of Rakuten members

Rakuten’s ECC (E-commerce Consultants)

Rakuten University

Members

20million items for selection

User-friendly interface

Rakuten super point program (loyalty card)

Safe shopping service

 

 

 

May 7 th 08 : Pre-opening May 27 th 08: Grand opening Aug 6 th 08: 440 shops & 160k members Hot sales item: Ladies fashion & Japanese products Target 1000 shops by end 2008

May 7 th 08 : Pre-opening

May 27 th 08: Grand opening

Aug 6 th 08: 440 shops & 160k members

Hot sales item: Ladies fashion & Japanese products

Target 1000 shops by end 2008

Others Misc: Training courses for Rakuten University RMS Training (must attend) : NT$ 3,000 Listed Items Monthly Rental Transaction Fees Package 1 2,000 items NT$ 5,000 5% Package 2 5,000 items NT$ 7,000 4% Package 3 100,000 items NT$ 10,000 3%

Others Misc:

Training courses for Rakuten University

RMS Training (must attend) : NT$ 3,000

 

Become the No.1 Internet Service company in the world Future e-commerce will move from US & EU lead to Asia leads, main reason is due to raising star from China and India consumers. Rakuten’s strategy to enter China market will determine if the company’ World No. 1 goal is achievable.

Become the No.1 Internet Service company in the world

Future e-commerce will move from US & EU lead to Asia leads, main reason is due to raising star from China and India consumers. Rakuten’s strategy to enter China market will determine if the company’ World No. 1 goal is achievable.

Rakuten’s competitive advantages Trusted Brand in Japan Large subscriptions of members in Japan Complete e-business eco-system in Japan Large base of merchants in Japan Challenges for Rakuten ahead Japan No.1 ≠ World No. 1 Competition with Amazon (currently 80mil active members & 2million stores associated with Amazon) Global economy downturn may slowdown its global expansion (but may be a golden opportunity for its M&A strategy if the company is loaded with healthy cash-in-hand)

Rakuten’s competitive advantages

Trusted Brand in Japan

Large subscriptions of members in Japan

Complete e-business eco-system in Japan

Large base of merchants in Japan

Challenges for Rakuten ahead

Japan No.1 ≠ World No. 1

Competition with Amazon (currently 80mil active members & 2million stores associated with Amazon)

Global economy downturn may slowdown its global expansion (but may be a golden opportunity for its M&A strategy if the company is loaded with healthy cash-in-hand)

 

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