Chaldal
Chaldal
Chaldal
CHALDAL.COM
ASSIGNMENT OF MANAGEMENT INFORMATION SYSTEM, MIS207
Submitted to:
Department of management.
Submitted by:
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Table of Contents
Executive Summary...........................................................................................................................................v
Introduction........................................................................................................................................................1
Requirement 1.0: E – business in organisation..................................................................................................2
1.1 Mission and Vision..............................................................................................................................2
1.2 Range of Service..................................................................................................................................2
1.3 E-Business model of Chaldal.com...........................................................................................................2
1.4 Drivers of E-business adoption in organisation.......................................................................................3
Requirement 2.0: Revenue Model of CHALDAL.............................................................................................3
2.1 Value of proportion..................................................................................................................................3
2.2 Revenue Model........................................................................................................................................4
2.3 Online Marketplace Structure..................................................................................................................4
Requirement 3.0 E-business Platform and Infrastructure..................................................................................5
3.1 E-Business Application Services.............................................................................................................5
3.2 IT use for E-business application and its functions.................................................................................5
3.3 Web Technology of Chaldal.com........................................................................................................6
3.4 Web Content Management.......................................................................................................................6
Requirement 4: Digital strategy for e-business:.................................................................................................6
4.1 SWOT Analysis.......................................................................................................................................7
Requirement 5.0 E-business Security................................................................................................................9
5.1 Major security threats for chaldal.com.....................................................................................................9
5.2 Suggestions for Security Management:.................................................................................................10
Recommendation..............................................................................................................................................11
Conclusion........................................................................................................................................................11
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Letter of transmittal.
Dear Sir,
With deference, we, the students of the group Spider, from your section number 14 of course MIS207, want
to state that we have done a report on Chaldal.com concerning its e-business. Whatever we have been able to
do throughout this report is mainly because of what we have learnt from your lectures. You have helped us a
lot in this subject both directly and indirectly. Hence, we appreciate you and thank you.
To summarise, it would mean a lot to all of us if you took some moment and gave us your sensible
counselling on our report.
Sincerely,
Your students,
1. Radyah Kabir.
2. Tonusree Debnath.
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Executive Summary.
This is a report takes a peek inside the E-business structure and strategies that are followed by the
Bangladeshi well-known online company, Chaldal.com. In this report, we tried to include data that
represents the mission/vision of Chaldal, the range of services, the types of product they sell, their revenue
earning strategy. Furthermore, we tried to include their platform and IT infrastructure which basically
consists the function of SCM, CRM, ERP. We also reported what type of technologies and IT applications
they are utilising to fulfil the need of their customer. Adding to that, this report also tries to acknowledge the
SWOT analysis of Chaldal.com. Lastly, we interpreted some IT security vulnerabilities of this company.
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Introduction.
What does chaldal mean? Chaldal is two adjoined Bangladeshi words, where ‘chal’ means rice and ‘dal’
means pulses. Chaldal.com is a well-known Bangladeshi online site that mainly sells grocery and food
products through the internet. With over 4000 products and over 500 brands in their catalogue, customers
can find everyday grocery items. Starting with Rice and Dal, Spices till Frozen products, Beverages,
Personal and Beauty care products, Meats and Fishes, Medicine, chaldal offers everything. To give a brief
picture of what they sell, we can think of products such as bananas, green apples, guavas, potatoes, onion,
etcetera, raw beef, raw fish, and etcetera. Chaldal.com was founded back in 2013 by Waseem Alim, Zia
Ashraf, and Tejas Viswanath. For operating purposes, chaldal has their own website, plus they have their
own version of a smartphone application dedicated to both android and IOS. Apart from all these, what
stands out is that, among the world’s best 500 startups in 2015, Chaldal.com was ranked 9th, plus in 2017
chaldal.com was announced as The Daily Star E-business of The Year.
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Requirement 1.0: E – business in organisation.
1.1 Mission and Vision.
Motto:
The motto of Chaldal.com is pretty simple. Save money and save time. It is better to have a simple motto
than a complicated one so that the business can build up from it
Mission:
The mission of Chaldal.com is to have their inventory always filled with qualified products at a low price
and to deliver to customers’ doorstep within 1 hour of the order.
Vision:
The vision of Chaldal.com is to become the best online grocery provider in Bangladesh.
Moving on, currently, Chaldal.com delivers only to Dhaka, Bangladesh. Inside Dhaka, Chaldal.com covers
most of the areas except few areas of Old town of Dhaka. Furthermore, to be able to deliver as quickly as
possible, chaldal owns 14 warehouses all across Dhaka. Plus, they employ 600+ employers who are always
ready to serve the customers as soon as possible. Currently, they deliver 5000+ orders per day and serve
almost 2000+ households across Dhaka city.
Moving on, it can be said that Chaldal.com simply follows the B2C business model. They are online
merchandisers. They buy the products that they sell from other sources, stock those items, and then sell
those products directly to final consumers through the internet.
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1.4 Drivers of E-business adoption in organisation.
For chaldal.com, many drivers come into play when we think the company’s adaptation into the e-business
world. Below is the list of the drivers that really stands out a bit and are the prime factors:
1. Cost efficiency: cost is one of the most important characteristic we look at while setting up an e-
business, which incurs less compared to setting up a physical business, Chaldal.com chose the path
of internet and saved money, e.g. no monthly store rent/ no big investment in owning a store.
2. Accessibility: Maximum people are equipped with internet and smartphone these days. So, it is a
wise decision to start an online business as people feel reluctant to go out and shop online more
nowadays. Thus, chaldal.com launching with its website, and smartphone application seems like a
very good initiative. Plus, it is viable for chaldal.com to reach and obtain more customer in this way.
3. Convenience: An e-business seems more convenient these days as it will be possible to shop from
online 24/7.
4. Product type: It is safe to say that no business successfully sold everyday grocery items before
Chaldal.com in Bangladesh. As it is a unique step, thus, we, consumers, also are delighted over this
e-business site.
5. Speed: It is just faster to shop online. Furthermore, online business is also beneficial for the company
itself as they can react faster to market changes in accordance with the company’s respective
suppliers.
6. Competition: This factor can also be regarded as the “peer pressure.” To analyse, if chaldal.com
would have decided to go for brick and mortar strategy, this company would have been no different
than a basic store selling groceries or a super shop like Meena Bazar. Thus, chaldal.com decided to
go for pure-play in order to be different than its counterparts.
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2.2 Revenue Model
Chaldal.com has a revenue model called, web-based online business which is followed by a sales-based
revenue model. They receive orders from customers through website or app and deliver those requested
items to consumers’ location. Chaldal follows the B2C model so they collect revenue through customer
order price and delivery charge. Since it is an online shop so, they follow various types of online payment
method (Visa, Master Card, American Express, DBBL NEXUS, Bkash, Rocket etc) as well as they also
have option for cash on delivery services.
Lower Price: Chaldal delivers their product at very cheap rate compare to market price that’s why customers
are interested to buy from chaldal compare to any other competitors.
Promotion: Chaldal.com provides so many ads on social media for promoting their website to the users.
Through various types of advertisement many visitors turn into customers.
Offer Exception: Chaldal gives offers in particular festival for generate revenue as well as they provide
promo codes for discounts to increase customer numbers.
Very low delivery charge: Chaldal.com always gives interesting delivery cost. Delivery charge for orders
over BDT 400 then the charge is BDT 9. But if the order is less than BDT 400 the delivery charge increases
by BDT 10. Also, the charge fluctuates the delivery charge from the area inside or outside the city.
Communication: use of E-mail or via SMS Chaldal inform their loyal or regular customers about their
current offers to generate more revenue.
Market Segment
Chaldals market is segmented into four segments. Geographic, Demographic and Behavioral Segmentation.
Geographic Segmentation: Dhaka is mainly targeted by Cahaldal.com as their regional section. They target
those regions within Dhaka City for which Chaldal provides 1 hour of delivery. They are: Banani,
Bashundhara RA, Cantonment, DOHS Banani, DOHS Baridhara, DOHS Mohakhali, Dhanmondi, Farmgate,
Gulshan etc. Minimum 4-7 hr timeframe for the majority of the regions of the agreement are to be arranged
according to customer convenience.
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Demographic Segmentation: Chaldal offers various types of products for every age group of people like,
they have beauty & health segment for female as well as baby care segment specially for babies.
Behavioral Segmentation: Chaldal.com have flash sale and offer options for those customers looking for
discount all time. They attract customers with prices like 99tk instead of 100tk.
Enterprise Resource Planning- It is a procedure that organizations use with the help of ERP
software to integrate or combine specific processes of the organization with running or operating
using a particular system. Here Chaldal uses an ERP software known as Magento, popular software
that makes Chaldal’s website as convenient as possible with a hassle-free checkout experience. Their
helpline options and quick chat makes it more easy and friendly.
3.2 IT use for E-business application and its functions
An intranet is a private network of a particular organization constricted within the organization, and
only the employees can access it for convenient communication. Chaldal uses the intranet for their
internal communication and private exercises.
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An extranet can be considered intranet as this can only be accessed by someone within the
organization and who is working for the company and separately. Chaldal allows representatives to
access the extranet when working outside the area to do his/her work.
The Internet consists of various computer networks and interconnected servers that allow users to
communicate and share information globally. The Internet has enabled Chaldal to be linked with its
customers and has their website, from where online shopping is usually done.
3.3 Web Technology of Chaldal.com
Web 2.0 is the new face of the earlier World Wide Web, which is more dynamic and allows user-generated
content to be viewed. This doesn’t only allow to read but also interact more with the users. Chaldal has Web
2.0, which helps them to continue their CRM with ease.
3.4 Web Content Management
For managing the content on Chaldal’s website, the following activities are taken in action:
Chaldal proves to be an updated website as they frequently refresh their website due to new products
and customer needs. Furthermore, glitches and the quality of the website is often improved.
They even added a section where favorites or products you may like are highlighted—making
shopping more convenient.
Chaldal contains a banner where new products and upcoming products that were added are shown
Secondly,' wealthy in site content' is chaldal.com. They now have more than 15 groups of goods and about
6000 products. Clients are quickly drawn in by analyzing the material of their site along these lines. Buyers
can sort goods according to their tastes as well.
Third, chaldal.com also uses the 'SMS promotion technique' and 'email advertisement process' as well. It
continually updates its prices and offerings to consumers through these methodologies. Web-based lives are
also incredibly complex. For the very moment of shopping, clients often receive promo code.
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4.1 SWOT Analysis
Strengths
Weakness
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Currently, chaldal.com is the one of the largest e-commerce company in Bangladesh. If we analyze their
situation we can see that:
Description Amount
employees 325
Warehouses 14
Chaldal.com, like any other organization, still has some basic, focused risks that are a potential concern for
chaldal.com.
A. New entrants: Chaldal.com is doing its Dhaka-based business at a rapid rate of growth. A new
entrant. However, there are some fresh entrants. They virtually offer the same service.
1. Othoba.com.
2. Sbazzar.com.bd.
3. Khaasfood.com.
4. Upoharbd.com.
5. Dokani.com.
They need to collaborate with their USP in order to preserve the business sound of chaldal com (one of a
kind offering recommendation). If they work with it, they will build a solid spot in the showcase and get
some loyal customers. But the latest candidates can't take a bite of their pie.
B. Price challenges: A chance of value problem is reliably present. Any candidate can put down their
expense to grab customers from chaldal.com. So chaldal.com must be fully informed about the new
technique of the contender, particularly valuing it.
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Requirement 5.0 E-business Security
E-business security is an essential part that ensure security through the internet. It will keep the business
and customers free from attacks. It consists of protocols that safeguard people who engage in online
selling and buying of goods and services. Chaldal.com is a web-based company and many important
activates are based on their information system. They store user information, order information, credit
card information in this system. If this system is somehow hacked or lost then it can be great threat for
them. Customers will lose his/her faith in e-business if its security is compromised.
Database Threats: Data is a very critical asset of any company. Every day chaldal.com collect a lot of
data on their daily operations and customers. Their Data is stored in databases that are used to handle
data. Most of the business databases contain username/user passwords without keeping in view the
security. In any situation some intruder or hacker may get user’s personal important information to
misuse the secured data imposing as the authorized user and keeps the private information. So, it's one of
the biggest threats for chaldal.com
Technical failures: such as software bugs, a computer crash or the computer failure of computer
component. For this risk, Chaldal.com may be affected by this in their business system.
Managerial responsibilities: if the top-line IT managers are not aware or concerned for the business
and customer data that they possess, it is inevitable for data to get lost, corrupted, stolen.
Compliance Monitor (CM): Often times companies check their IT security status periodically, maybe
quarterly, or 6/12 months. This is a big threat to the company as the company is not instantly
acknowledging what the internal IT issue until it piles up and becomes a massive obstacle.
So for these 2 threats, I accumulated suggestions to mitigate the damages, from both technical and non-
technical views. Firstly, I would recommend Chaldal to install multi-level monitoring techniques that
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would keep eyes on database activity in real time, this will also help to identify information leak from
the database as soon as it takes place. Furthermore, this will also not the give access to big data
transactions without the consultation of the top workers of IT.
Secondly, from a non-technical perspective, I would recommend chaldal to have a solid emergency plan
consisting of a team filled with IT experts. Because, in the end, there is no 100% certainty that if Chaldal
pursues this or that, a cyberattack will not happen. So it just seems reasonable to be prepared if it takes
place.
Lastly, Chaldal needs to identify what their most critical data are, and back them up frequently. Plus they
need to install the security updates regularly in order to mend patches and bugs.
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Recommendation.
For chaldal.com, we recommend to amplify their depth in logistics and only then they can obtain the ability
to deliver orders outside Dhaka as well. Plus this will also mean that they will be able to close the gap
between current condition and company’s vision.
Conclusion
In ending remarks, all we can say is that Chaldal.com has been doing a fantastic work, and this pandemic
has some super influence on their success. However, they should continue to perform as they are doing now,
while keeping some of the mentioned opportunities, weaknesses, strengths and threats in mind.
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