zalora case study pdf

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Zalora: Data-Driven Pricing

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About The Author

Sunil Gupta

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• August 2022

Zalora: Data-Driven Pricing Recommendations

• Zalora: Data-Driven Pricing  By: Sunil Gupta, Pavel Kireyev and Srinivas Reddy
• Zalora: Data-Driven Pricing Recommendations  By: Ayelet Israeli

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GROWTH OF E-COMMERCE IN MALAYSIA: A Case Analysis of Lazada Group and Zalora Malaysia

It is crucial for an economy to monitor and analyze its growth to develop policies and strategic decisions which are essential to sustain the overall economic growth. There have been many studies conducted determine the factors that drive the growth in order to explain the wealth and productivity differences between countries. Technology and digital platform are one of these factors found with significantly impact by many scholars. Technological advances in this market drive the digital economy and this is being seen by the emergence of new goods, new business models as well as new markets. The digital aspect of economy is also termed as E-commerce which involves four basic participant groups namely Business to Business (B2B), Business to Consumer (B2C), Consumer to Business (C2B), and Consumer to Consumer (C2C). Even though the e-commerce penetration to the Malaysian market is still low compared to the total market size, the online transactions growth was projected at 20% to 30% year over year, and that’s indicate that the very near future will be dominated somehow by the new technology specially the ones based on internet use just like the e-commerce websites. Malaysians are one of the highest Internet users in the region, with the present 67% of internet users in Malaysia, it signifies that there will be a tremendous potential for e-commerce market growth. On this context, using exploratory method of analysis, this study investigates the growth of different e-commerce sites as well as the overall e-commerce growth in Malaysia. The study also compares two of the biggest e-commerce sites (LAZADA.) and (ZALORA) in Malaysia and finds a tremendous change in the profit of these two e-commerce sites.

Related Papers

International Journal of Advanced Computer Science and Applications

Dr Omkar Dastane

Abstract: E-Commerce tools have become a human needs everywhere and important not only to customers but to industry players. The intention to use E-Commerce tools among practitioners, especially in the Malaysian retail sector is not comprehensive as there are still many businesses choosing to use expensive traditional marketing. The research applies academic models and frameworks to the real life situation to develop a value proposition in the practical world by considering 11Street as the company under study and comparing it with Lazada as a leading competitor in the market. The objectives include identification of customers’ perception of a value for E-Commerce Businesses, followed by critical evaluation of existing value proposition of 11Street with Lazada to identify gap and finally to propose a new value proposition for 11street. This paper first identifies customer perceived value of E-Commerce followed by critical review of existing value proposition of 11Street and then comparing and contrasting with the leading player Lazada. By the end of this research, a new consumer value proposition proposal for 11Street proposed for consideration in matching with the Malaysian consumers’ value criteria.

Michael M Hansen

Zalora is an e-commerce company dealing with fashion online. The start-up has been growing rapidly since 2012, with customers in most of South East Asia. The founders of Zalora has built the company based on learnings from some of the most successful e-commerce business in US. In 2014, Zalora had successfully gained access to several countries in South East Asia. South East Asia is an emerging market, that will give some challenges when building the business. Zalora’s management team will have to understand culture, religion and internet usage in the region. For example, in Indonesia and Vietnam the e-commerce industry is slowly adapted in the society, but the payment method is still cash-on-delivery. This means the company will have to adapt to some of the e-commerce strategies as it moves forward. Other challenges will be on the infrastructure side in some of the countries, but by working with major brands in the same countries the risk can be shared between the companies.

Irwansyah Irwansyah , Sabrina Chairunnisa

Indonesia's e-commerce business is getting popular among public society and interest transactions using its services is increasing therefore the researchers analyzed the society interest in using e-commerce services of Lazada and Tokopedia. E-commerce is a business deal of sale and purchase goods which are conducted online, whereas the system of sale and purchase is done online via internet connection. The purpose of this research is to determine society interest in using e-commerce services of Lazada and Tokopedia. This research uses descriptive qualitative research methods to analyze the society interest in using the service of Lazada and Tokopedia. The results of reseacrh by using the Seoquake plugin is Tokopedia have a better rating than Lazada in Indonesian Country. The analysis is based on the views and the service which Tokopedia and Lazada provide, such as visually appealing website design, precise information that is presented, accurate product specifications, product design, user friendly, good services, secure and protected transaction systems, adequte product, a favorable and fast response, and on-time delivery. The conclusion of this research is society’s interest in using Lazada and Tokopedia e-commerce services is determined from their features quality, services, and convenience found on search engines.

Dr. Subhadeep Mukherjee

E-commerce stands for electronic commerce. E-commerce is performing business online and electronically. Over last few years the popularity of e-commerce has rigorously developed due to its quick and convenient way of exchanging goods and regional and global services. India will be booming platform for e-commerce business models; the country already reported 65% growth in e-commerce retail business year in 2015-2016. The paper is focused on the conceptual research with exploratory cum descriptive nature on the basis of secondary data. This paper explains the concept of e-commerce, business models for e-commerce, differences between traditional commerce and electronic commerce, merits and limitations of e-commerce. It also highlights various trends and challenges of e-commerce and also with the essential opportunity and growth factors required for e-commerce in India.

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Zalora: Spurring sales with real-time personalization through Google BigQuery

About Zalora

Founded in 2012, Zalora is an online retailer that sells fashion to customers in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Taiwan. Zalora has about 26 million users of its websites and mobile applications in the region.

Tell us your challenge. We're here to help.

Using google bigquery with google analytics, zalora has increased sales and revenues by personalizing customers’ experiences on its websites and mobile applications., google cloud results.

• Enabled rapid querying of data associated with 16 million visits per week (each visit incorporated up to 10 events)
• Democratized access to data throughout the business
• Delivered a highly personalized customer experience
• Helped position the business to take advantage of the likely surge in online retail in South East Asia

Helped eliminate need to add 5 more technology team members

The online retail market in South East Asia and elsewhere in the region is maturing, but has enormous unfulfilled potential. Zalora is strongly positioned to reap the rewards of an online retail boom in South East Asia and nearby markets.

Founded in 2012, the business sells fashion, footwear, and accessories to customers in Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Taiwan through websites and mobile applications.

Headquartered in Singapore, Zalora is part of the Zalora Group with The Iconic, an online retailer that sells fashion to customers in Australia and New Zealand. By late 2017, Zalora grew to support about 26 million users across the markets it serves.

Targeting growth

“We aim to be South East Asia’s fastest growing online fashion destination,” explains Karthik Subramanian, Chief Technology Officer, Zalora. “Our value proposition is that you don’t need to go into a shopping mall to buy good clothes. Instead, you can go online and place an order that will be delivered in a day to a day and half, depending on your location. So it’s fashion at your fingertips.”

Understanding how a customer travels through its ecommerce conversion funnel—the transition from an initial interaction with its digital properties to completing a transaction—is key to the Zalora business model.

“We had been using a sample of the conversion funnel data we captured and extrapolated from that to make business decisions,” Subramanian explains. “However, this was not giving us the insights we needed to personalize our websites and applications to deliver a high-quality customer experience.”

Zalora also wanted to identify online retail trends early to seize new opportunities and adapt quickly to changing market conditions.

“Google BigQuery delivers the reliability and functionality that serves a mission-critical purpose for our business. This is not retroactive reporting—this is real-time decision-making.”

Google BigQuery to complement Google Analytics

Zalora had used Google Analytics “from day zero” to track and report raw clickstream data from its websites and applications.

Zalora then decided to use Google BigQuery to extract information about users’ interactions and behavior on its websites and applications.

All Google Analytics data is now written by default into Google BigQuery. “We’ve been using Google BigQuery for nearly two years now,” Subramanian says. “It enables us to identify the drop-off rate at particular points during the checkout flow—for example, if a visitor to one of our websites or apps adds a product to a shopping cart and decides not to proceed, or views a product and opts not to add it to their cart. We can view this by individual visitor and at an aggregate level.”

Zalora uses this data to determine whether to tweak its websites or applications to correct any customer experience or product problems. “We may check whether there is an image sizing concern, or the quality of the image is not good enough to spur a purchase,” Subramanian says.

With the business now a mature ecommerce player, it typically intervenes only in the event of sizeable deviations from its average customer checkout and average bounce rates.

Zalora has also gained the ability to respond quickly to feedback on pricing decisions, such as the currency conversion rate on a particular product or market.

Delivering a personalized experience

Google BigQuery has helped Zalora determine how products are presented to customers on its websites or applications. Images of products that sell faster than others are promoted to lead positions on Zalora pages to improve conversion rates and grow revenues.

“The placement of product images is tweaked in real time based on business rules we’ve defined and the data coming out of Google BigQuery,” Subramanian says. “We built the clickstream pipeline that delivers this functionality from a combination of Google BigQuery and our own platform. Google BigQuery delivers the reliability and functionality that serves a mission-critical purpose for our business,” he adds. “This is not retroactive reporting—this is real-time decision-making.”

“With Google BigQuery, nobody in the business has to depend on an engineer or a technology team member to run a task or query—they can simply do it themselves.”

Another key use case for Google BigQuery at Zalora is to track the performance of marketing optimization activities. “All that data comes in to Google BigQuery, and we use it to calculate our cost of customer acquisition and other key metrics,” Subramanian says.

The Google BigQuery pricing structure—based on the queries run rather than the volume of data stored in the Google BigQuery data warehouse—enables Zalora to control its costs effectively. The business must capture and manage the data associated with 16 million visits to its websites and applications per week, with each visit generating up to 10 events. “Google BigQuery allows us to query these large data volumes extremely quickly and act accordingly,” Subramanian says.

A lean technology team

Using Google BigQuery with Google Analytics also enables Zalora to maintain a lean technology team, with Subramanian estimating he would need to add another five members if he had to deploy infrastructure and manage the data himself. “We have effectively outsourced to an as-a-service model so internally we can focus on the value-added task of extracting conclusions from the data,” he says.

Democratizing data access

Google products are democratizing access to data throughout the business, and Subramanian is extremely pleased with the outcome. “Our marketing team constantly analyzes clickstream and marketing activity data through Google BigQuery without intervention from the technology team,” he says. “In fact, with Google BigQuery, nobody in the business has to depend on an engineer or a technology team member to run a task or query—they can simply do it themselves.

“My philosophy is if there is a use case you don’t need us to help you with, just do what you have to,” he adds. “Why should I insert myself between every idea, every information flow, or every decision-making process simply because a technology-dependent step is involved?”

Subramanian sees the key benefit to the company of this democratized approach as being “the ability to make decisions faster with buy-in from the right people. It also takes some of the pressure off the technology team,” he says.

“Google BigQuery and Google Analytics have enabled us to provide highly personalized experiences to our customers and positioned us to exploit the likely rapid growth in online retailing across South East Asia,” Subramanian concludes.

The In-Depth Business Model of Zalora

By Aditya Shastri

Zalora has 31% of the marketplace share of NVM. It has an active customer base of 16.3 million users. It is one of Asia’s leading fashion destinations. Thus this makes us keen to know the business model of Zalora.

In this blog, we will be looking at the in-dept business model of Zalora which includes its value proposition, key activities, key partners, target audience, cost structure, revenue model, etc. But before we start with its business model let us know about Zalora as a company.

About Zalora

Zalora is an online retailer that sells luxurious high-end clothing from both local and global brands. It was founded in 2012 by Rocket Internet (Neubodi, Kitschen, Adidas, Casio, &, etc).

Despite its main focus is on selling all things that are luxurious fashion; ranging from accessories, bags, clothes, and even grooming supplies and footwear, Zalora now accepts third-party retailers to sell their products on a platform

The headquarters of Zalora is located in Singapore. They have many localized sites in places like Indonesia, Malaysia, Hongkong, Vietnam, Philippines, Thailand, etc.

Let us now start with the detailed business model of Zalora.

BUSINESS MODEL OF ZALORA

The business model is used to determine a company’s plan for generating revenue. It determines the products or services the business plans to sell, its identified target market, and any anticipated expenses.

Let us now look at the elements of Zalora’s business model, s tarting with the value proposition of Zalora.

  1. Value proposition of Zalora

• It provides its customers with different products which give its customers the facility of a one-stop-shop for high-end fashion.
• The products sold by Zalora are of the best quality and it also provides a cheaper price than the prices in the offline stores.
• It provides its customers with two payment methods which are online payment byways of debit card, credit card, online banking, etc, or by cash on delivery. This makes it convenient for the customers to choose from whatever they want.
• It gives its customers the privilege to enjoy free shipping under its terms and conditions.
• It also gives its customers a 30-day return policymaking the customers relaxed while buying any products.

Let us now see the key activities of Zalora.

2. Key Activities of Zalora

• Its main activities are marketing the products and creating sales for the products sold on the platform.
• One of the crucial responsibilities of Zalora is customer retention and acquisition.
• Procurement of new brands and popular items
• They try and find out what are the different requirements of the customers on the platform and provide them with the required service or items.
• Operations in the warehouse and logistics
• Zalora sees that all its customers are happy and engages with different products being advertised to them at all times and manages its customer service.

Let us now see the key [partners of Zalora.

3. Key Partners of Zalora

• Zalora has partnered with different suppliers from local and international brands so that it can provide its customers with different types of products making it convenient for them to choose from many different choices.
• They have also partnered with delivery services to provide fast delivery services to its customers in all different locations over the world.
• Rocket Internet
• Collaborated firms
• The latest partner of Zalora is Asia’s top next model.

Let us now see the customer relationship of Zalora.

4. Customer relationship of Zalora

• Email marketing – Zalora keeps its customers updated with all new items available on their site. They also sent them emails if they have kept something in the cart for some days. They remind them about the product in their cart to buy it. They also sent them emails about special offers for them from the company.
• Optional customer service hotline in different languages
• Social media – It uses its social media accounts like Facebook, Instagram, Twitter to interact with its customers and provide them updates on different topics.

They send push notifications to the customers which have kept a reminder for the arrival of new products or to notify them when the product comes back in stock.

Let us now see the target audience of Zalora.

5. Target audience of Zalora

• Zalora provides products for both male and female customers on its platform.
• Age between 16 – 44 years old is the target audience of Zalora because of their interest in new fashion products and the changing need of items.
• Low to big spenders
• Fashion enthusiasts are the main target audience for Zalora as these customers are going to buy their products more often them the other customers. So, Zalora has a deeper interest in this type of target audience.

Let us now see the cost structure of Zalora.

6. Costs Structure of Zalora

• Operating costs for offices and warehouses- These are the costs incurred on the storage of products and creating a workplace for its workers and providing them with all facilities in it.
• Costs of marketing
• Advertising and other forms of promotion – Zalora has to market its products and brand on different platforms like Facebook, Instagram, Google, etc, to gain new customers and increasing the brand value.
• Affiliation is a program that allows you to join a group of people

Let us now see the revenue model of Zalora

7. Revenue model of Zalora

Zalora warns its revenue mainly from the Advertising done on its platform, the commission of third-party sellers, and transaction fees.

• Advertising-

Advertising can be used in a variety of ways to generate cash. In Zalora’s situation, advertisements are mostly displayed on their mobile and desktop platforms. Even so, advertising money can still be generated through click-through rate (CTR), cost per click (CPC), and cost per impression (CPI) (CPM).

• Transaction fees-

It earns from the transaction fees paid by the sellers. Zalora charges its sellers a commission when their products are sold from its platform.

With this, we come to the end of the Business Model of Zalora. Let’s conclude the case study in the section below.

On the analysis of the business model of Zalora, we have seen that it has implemented its business model in the best possible way in the market. It still has a larger potential to grow in the international market which it needs to acquire.

In its value proposition, it offers its customers a one-stop-shop, lower prices, different payment modes, free shipping, etc. Some of its key activities are marketing and sales, customer retention, management of customer service, etc. Its main target audience is fashion enthusiasts and people of the age group of 16-44. The main revenue streams of Zalora are the advertising done by its sellers and the transaction fees.

Wasn’t it interesting to know the business model of Nike? Learn how to grow your business using digital marketing, check out our website for more information . You can also check out Free Digital Marketing Masterclass by IIDE to understand what digital marketing is all about.

If you are interested in digital marketing and wish to be in touch with our academic counselors then connect with them at [email protected] for a free counseling session.

Hope you liked this case study and found it informative and insightful!  Do share your thoughts about the case study in the comments below and do let us know if we have missed anything.

Author's Note: My name is Aditya Shastri and I have written this case study with the help of my students from IIDE's online digital marketing courses in India . Practical assignments, case studies & simulations helped the students from this course present this analysis. Building on this practical approach, we are now introducing a new dimension for our online digital marketing course learners - the Campus Immersion Experience. If you found this case study helpful, please feel free to leave a comment below.

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Leads the Learning & Development segment at IIDE. He is a Content Marketing Expert and has trained 6000+ students and working professionals on various topics of Digital Marketing. He has been a guest speaker at prominent colleges in India including IIMs...... [Read full bio]

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Zalora Philippines From Growth to Profitability Case Study Solution

Posted by John Berg on Feb-16-2018

Introduction

Zalora Philippines From Growth to Profitability Case Study is included in the Harvard Business Review Case Study. Therefore, it is necessary to touch HBR fundamentals before starting the Zalora Philippines From Growth to Profitability case analysis. HBR will help you assess which piece of information is relevant. Harvard Business review will also help you solve your case. Thus, HBR fundamentals assist in easily comprehending the case study description and brainstorming the Zalora Philippines From Growth to Profitability case analysis. Also, a major benefit of HBR is that it widens your approach. HBR also brings new ideas into the picture which would help you in your Zalora Philippines From Growth to Profitability case analysis.

To write an effective Harvard Business Case Solution, a deep Zalora Philippines From Growth to Profitability case analysis is essential. A proper analysis requires deep investigative reading. You should have a strong grasp of the concepts discussed and be able to identify the central problem in the given HBR case study. It is very important to read the HBR case study thoroughly as at times identifying the key problem becomes challenging. Thus by underlining every single detail which you think relevant, you will be quickly able to solve the HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification

The first step in solving the HBR Case Study is to identify the problem. A problem can be regarded as a difference between the actual situation and the desired situation. This means that to identify a problem, you must know where it is intended to be. To do a Zalora Philippines From Growth to Profitability case study analysis and a financial analysis, you need to have a clear understanding of where the problem currently is about the perceived problem.

For effective and efficient problem identification,

• A multi-source and multi-method approach should be adopted.
• The problem identified should be thoroughly reviewed and evaluated before continuing with the case study solution.
• The problem should be backed by sufficient evidence to make sure a wrong problem isn't being worked upon.

Problem identification, if done well, will form a strong foundation for your Zalora Philippines From Growth to Profitability Case Study. Effective problem identification is clear, objective, and specific. An ambiguous problem will result in vague solutions being discovered. It is also well-informed and timely. It should be noted that the right amount of time should be spent on this part. Spending too much time will leave lesser time for the rest of the process.

Zalora Philippines From Growth to Profitability Case Analysis

Once you have completed the first step which was problem identification, you move on to developing a case study answers. This is the second step which will include evaluation and analysis of the given company. For this step, tools like SWOT analysis, Porter's five forces analysis for Zalora Philippines From Growth to Profitability, etc. can be used. Porter’s five forces analysis for Zalora Philippines From Growth to Profitability analyses a company’s substitutes, buyer and supplier power, rivalry, etc.

To do an effective HBR case study analysis, you need to explore the following areas:

1. Company history:

The Zalora Philippines From Growth to Profitability case study consists of the history of the company given at the start. Reading it thoroughly will provide you with an understanding of the company's aims and objectives. You will keep these in mind as any Harvard Business Case Solutions you provide will need to be aligned with these.

2. Company growth trends:

This will help you obtain an understanding of the company's current stage in the business cycle and will give you an idea of what the scope of the solution should be.

3. Company culture:

Work culture in a company tells a lot about the workforce itself. You can understand this by going through the instances involving employees that the HBR case study provides. This will be helpful in understanding if the proposed case study solution will be accepted by the workforce and whether it will consist of the prevailing culture in the company.

Zalora Philippines From Growth to Profitability Financial Analysis

The third step of solving the Zalora Philippines From Growth to Profitability Case Study is Zalora Philippines From Growth to Profitability Financial Analysis. You can go about it in a similar way as is done for a finance and accounting case study. For solving any Zalora Philippines From Growth to Profitability case, Financial Analysis is of extreme importance. You should place extra focus on conducting Zalora Philippines From Growth to Profitability financial analysis as it is an integral part of the Zalora Philippines From Growth to Profitability Case Study Solution. It will help you evaluate the position of Zalora Philippines From Growth to Profitability regarding stability, profitability and liquidity accurately. On the basis of this, you will be able to recommend an appropriate plan of action. To conduct a Zalora Philippines From Growth to Profitability financial analysis in excel,

• Past year financial statements need to be extracted.
• Liquidity and profitability ratios to be calculated from the current financial statements.
• Ratios are compared with the past year Zalora Philippines From Growth to Profitability calculations
• Company’s financial position is evaluated.

Another way how you can do the Zalora Philippines From Growth to Profitability financial analysis is through financial modelling. Financial Analysis through financial modelling is done by:

• Using the current financial statement to produce forecasted financial statements.
• A set of assumptions are made to grow revenue and expenses.
• Value of the company is derived.

Financial Analysis is critical in many aspects:

• Decision Making and Strategy Devising to achieve targeted goals- to determine the future course of action.
• Getting credit from suppliers depending on the leverage position- creditors will be confident to supply on credit if less company debt.
• Influence on Investment Decisions- buying and selling of stock by investors.

Thus, it is a snapshot of the company and helps analysts assess whether the company's performance has improved or deteriorated. It also gives an insight about its expected performance in future- whether it will be going concern or not. Zalora Philippines From Growth to Profitability Financial analysis can, therefore, give you a broader image of the company.

Zalora Philippines From Growth to Profitability NPV

Zalora Philippines From Growth to Profitability's calculations of ratios only are not sufficient to gauge the company performance for investment decisions. Instead, investment appraisal methods should also be considered. Zalora Philippines From Growth to Profitability NPV calculation is a very important one as NPV helps determine whether the investment will lead to a positive value or a negative value. It is the best tool for decision making.

There are many benefits of using NPV:

• It takes into account the future value of money, thereby giving reliable results.
• It considers the cost of capital in its calculations.
• It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Zalora Philippines From Growth to Profitability NPV will be as follows:

Present Value of Future Cash Flows minus Initial Investment

Present Value of Future cash flows will be calculated as follows:

PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

where CF = cash flows r = cost of capital n = total number of years.

Cash flows can be uniform or multiple. You can discount them by Zalora Philippines From Growth to Profitability WACC as the discount rate to arrive at the present value figure. You can then use the resulting figure to make your investment decision. The decision criteria would be as follows:

• If Present Value of Cash Flows is greater than Initial Investment, you can accept the project.
• If Present Value of Cash Flows is less than Initial Investment, you can reject the project.

Thus, calculation of Zalora Philippines From Growth to Profitability NPV will give you an insight into the value generated if you invest in Zalora Philippines From Growth to Profitability. It is a very reliable tool to assess the feasibility of an investment as it helps determine whether the cash flows generated will help yield a positive return or not.

However, it would be better if you take various aspects under consideration. Thus, apart from Zalora Philippines From Growth to Profitability’s NPV, you should also consider other capital budgeting techniques like Zalora Philippines From Growth to Profitability’s IRR to evaluate and fine-tune your investment decisions.

Zalora Philippines From Growth to Profitability DCF

Once you are done with calculating the Zalora Philippines From Growth to Profitability NPV for your finance and accounting case study, you can proceed to the next step, which involves calculating the Zalora Philippines From Growth to Profitability DCF. Discounted cash flow (DCF) is a Zalora Philippines From Growth to Profitability valuation method used to estimate the value of an investment based on its future cash flows. For a better presentation of your finance case solution, it is recommended to use Zalora Philippines From Growth to Profitability excel for the DCF analysis.

To calculate the Zalora Philippines From Growth to Profitability DCF analysis, the following steps are required:

• Calculate the expected future cash inflows and outflows.
• Set-off inflows and outflows to obtain the net cash flows.
• Find the present value of expected future net cash flows using a discount rate, which is usually the weighted-average cost of capital (WACC).
• If the value calculated through Zalora Philippines From Growth to Profitability DCF is higher than the current cost of the investment, the opportunity should be considered
• If the current cost of the investment is higher than the value calculated through DCF, the opportunity should be rejected

Zalora Philippines From Growth to Profitability DCF can also be calculated using the following formula:

DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n

In the formula:

• CF= Cash flows
• R= discount rate (WACC)

Zalora Philippines From Growth to Profitability WACC

When making different Zalora Philippines From Growth to Profitability's calculations, Zalora Philippines From Growth to Profitability WACC calculation is of great significance. WACC calculation is done by the capital composition of the company. The formula will be as follows:

Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate) + % of equity * Cost of Equity

You can compute the debt and equity percentage from the balance sheet figures. For the cost of equity, you can use the CAPM model. Cost of debt is usually given. However, if it isn't mentioned, you can calculate it through market weighted average debt. Zalora Philippines From Growth to Profitability’s WACC will indicate the rate the company should earn to pay its capital suppliers. Zalora Philippines From Growth to Profitability WACC can be analysed in two ways:

• From the company's perspective, it can be analysed as the cost to be paid to the capital providers also known as Cost of Capital
• From an investor' perspective, if the expected return on the investment exceeds Zalora Philippines From Growth to Profitability WACC, the investor will go ahead with the investment as a positive value would be generated.

Zalora Philippines From Growth to Profitability IRR

After calculating the Zalora Philippines From Growth to Profitability WACC, it is necessary to calculate the Zalora Philippines From Growth to Profitability IRR as well, as WACC alone does not say much about the company’s overall situation. Zalora Philippines From Growth to Profitability IRR will add meaning to the finance solution that you are working on. The internal rate of return is a tool used in investment appraisal to calculate the profitability of prospective investments. IRR calculations are dependent on the same formula as Zalora Philippines From Growth to Profitability NPV.

There are two ways to calculate the Zalora Philippines From Growth to Profitability IRR.

• By using a Zalora Philippines From Growth to Profitability Excel Spreadsheet: There are in-built formulae for calculating IRR.

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]

In this formula:

• Ra= lower discount rate chosen
• Rb= higher discount rate chosen
• NPVa= NPV at Ra
• NPVb= NPV at Rb

Zalora Philippines From Growth to Profitability IRR impacts your finance case solution in the following ways:

• If IRR>WACC, accept the alternative
• If IRR<WACC, reject the alternative

Zalora Philippines From Growth to Profitability Excel Spreadsheet

All your Zalora Philippines From Growth to Profitability calculations should be done in a Zalora Philippines From Growth to Profitability xls Spreadsheet. A Zalora Philippines From Growth to Profitability excel spreadsheet is the best way to present your finance case solution. The Zalora Philippines From Growth to Profitability Calculations should be presented in Zalora Philippines From Growth to Profitability excel in such a way that the analysis and results can be distinguished to the viewers. The point of Zalora Philippines From Growth to Profitability excel is to present large amounts of data in clear and consumable ways. Presenting your data is also going to make sure that you don't have misinterpretations of the data.

To make your Zalora Philippines From Growth to Profitability calculations sheet more meaningful, you should:

• Think about the order of the Zalora Philippines From Growth to Profitability xls worksheets in your finance case solution
• Use more Zalora Philippines From Growth to Profitability xls worksheets and tables as will divide the data that you are looking at in sections.
• Choose clarity overlooks
• Keep your timeline consistent
• Organise the information flow
• Clarify your sources

The following tips and bits should be kept in mind while preparing your finance case solution in a Zalora Philippines From Growth to Profitability xls spreadsheet:

• Avoid using fixed numbers in formulae
• Avoid hiding data
• Useless and meaningful colours, such as highlighting negative numbers in red
• Label column and rows
• Correct your alignment
• Keep formulae readable
• Strategically freeze header column and row

Zalora Philippines From Growth to Profitability Ratio analysis

After you have your Zalora Philippines From Growth to Profitability calculations in a Zalora Philippines From Growth to Profitability xls spreadsheet, you can move on to the next step which is ratio analysis. Ratio analysis is an analysis of information in the form of figures contained in the financial statements of a company. It will help you evaluate various aspects of a company's operating and financial performance which can be done in Zalora Philippines From Growth to Profitability Excel.

To conduct a ratio analysis that covers all financial aspects, divide the analysis as follows:

• Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off its short-term debt. These include the current ratio, quick ratio, and working capital ratio.
• Solvency ratios: Solvency ratios match a company's debt levels with its assets, equity, and earnings. These include the debt-equity ratio, debt-assets ratio, and interest coverage ratio.
• Profitability Ratios: These show how effectively a company can generate profits through its operations. Profit margin, return on assets, return on equity, return on capital employed, and gross margin ratio is examples of profitability ratios.
• Efficiency ratios: Efficiency ratios analyse how efficiently a company uses its assets and liabilities to boost sales and increase profits.
• Coverage Ratios: These ratios measure a company's ability to make the interest payments and other obligations associated with its debts. Examples include times interest earned ratio and debt-service coverage ratio.
• Market Prospect Ratios: These include dividend yield, P/E ratio, earnings per share, and dividend payout ratio.

Zalora Philippines From Growth to Profitability Valuation

Zalora Philippines From Growth to Profitability Valuation is a very fundamental requirement if you want to work out your Harvard Business Case Solution. Zalora Philippines From Growth to Profitability Valuation includes a critical analysis of the company's capital structure – the composition of debt and equity in it, and the fair value of its assets. Common approaches to Zalora Philippines From Growth to Profitability valuation include

• DDM is an appropriate method if dividends are being paid to shareholders and the dividends paid are in line with the earnings of the company.
• FCFF is used when the company has a combination of debt and equity financing.
• FCFE, on the other hand, shows the cash flow available to equity holders only.

These three methods explained above are very commonly used to calculate the value of the firm. Investment decisions are undertaken by the value derived.

Zalora Philippines From Growth to Profitability calculations for projected cash flows and growth rates are taken under consideration to come up with the value of firm and value of equity. These figures are used to determine the net worth of the business. Net worth is a very important concept when solving any finance and accounting case study as it gives a deep insight into the company's potential to perform in future.

Alternative Solutions

After doing your case study analysis, you move to the next step, which is identifying alternative solutions. These will be other possibilities of Harvard Business case solutions that you can choose from. For this, you must look at the Zalora Philippines From Growth to Profitability case analysis in different ways and find a new perspective that you haven't thought of before.

Once you have listed or mapped alternatives, be open to their possibilities. Work on those that:

• need additional information
• are new solutions
• can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if enough resources are available for implementation and if the company workforce would accept it.

For ease of deciding the best Zalora Philippines From Growth to Profitability case solution, you can rate them on numerous aspects, such as:

• Feasibility
• Suitability
• Flexibility

Implementation

Once you have read the Zalora Philippines From Growth to Profitability HBR case study and have started working your way towards Zalora Philippines From Growth to Profitability Case Solution, you need to be clear about different financial concepts. Your Mondavi case answers should reflect your understanding of the Zalora Philippines From Growth to Profitability Case Study.

You should be clear about the advantages, disadvantages and method of each financial analysis technique. Knowing formulas is also very essential or else you will mess up with your analysis. Therefore, you need to be mindful of the financial analysis method you are implementing to write your Zalora Philippines From Growth to Profitability case study solution. It should closely align with the business structure and the financials as mentioned in the Zalora Philippines From Growth to Profitability case memo.

You can also refer to Zalora Philippines From Growth to Profitability Harvard case to have a better understanding and a clearer picture so that you implement the best strategy. There are a number of benefits if you keep a wide range of financial analysis tools at your fingertips.

• Your Zalora Philippines From Growth to Profitability HBR Case Solution would be quite accurate
• You will have an option to choose from different methods, thus helping you choose the best strategy.

Recommendation and Action Plan

Once you have successfully worked out your financial analysis using the most appropriate method and come up with Zalora Philippines From Growth to Profitability HBR Case Solution, you need to give the final finishing by adding a recommendation and an action plan to be followed. The recommendation can be based on the current financial analysis. When making a recommendation,

• You need to make sure that it is not generic and it will help in increasing company value
• It is in line with the case study analysis you have conducted
• The Zalora Philippines From Growth to Profitability calculations you have done support what you are recommending
• It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens your Zalora Philippines From Growth to Profitability HBR case study argument. Thus, your action plan should be consistent with the recommendation you are giving to support your Zalora Philippines From Growth to Profitability financial analysis. It is essential to have all these three things correlated to have a better coherence in your argument presented in your case study analysis and solution which will be a part of Zalora Philippines From Growth to Profitability Case Answer.

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Zalora stops sneaker bots and protects brand reputation.

- Kenichi Otsuka

“We were very impressed with how responsive the HUMAN team was to get us this protection and solve our pain before any real damage was done to our reputation. Since then, the product has performed exactly as we expected, accurately stopping bots without any impact on real users. We think we made the right choice in partnering with HUMAN.”

During ZALORA’s regular online releases of exclusive new sneakers and clothing, bot operators bombarded the sites with automated attempts to purchase products as quickly as possible. They would then resell the items for inflated prices on secondary markets. ZALORA feared that its excellent reputation with customers would be damaged if its exclusive products were found on other markets.

ZALORA was also experiencing automated credential stuffing attacks, fake account creation, and web scraping. The influx of bad bots created large unpredictable costs and forced the company to scale up its infrastructure. ZALORA needed an advanced bot mitigation solution to handle the increase in sophisticated attacks.

ZALORA chose HUMAN because:

• Easily integrates with their CDN provider, Amazon CloudFront, without any code or configuration changes on their origin web servers
• Protects against sophisticated bot attacks using behavior-based, machine learning algorithms
• Accurately predicts whether a user is a bot before Amazon CloudFront serves a webpage, saving infrastructure costs

Furthermore, the HUMAN support team is available 24/7/365 via Slack, email, or phone to act as an extension of ZALORA’s team.

ZALORA deployed HUMAN into their Amazon CloudFront CDN and WAF infrastructure, and they immediately saw a major increase in bot detection. In fact, HUMAN detected 400% more malicious bots than the previous solution. By minimizing bot traffic, HUMAN reduced hosting and bandwidth costs by approximately 30%. This improved site performance and allowed real human customers an honest chance of purchasing exclusive ZALORA products. ZALORA could now stop worrying about brand damage and unplanned infrastructure costs, and could instead concentrate on platform improvements and other core initiatives to drive business growth.

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