Main Menu

My Account
Online Free Samples
   Free sample   Rocket internet case study

Rocket Internet Case Study: Evaluating The Factors To Sustain In Global Environment


Task: Draft a short and relevant discussion over the rocket internet case study


The present scenario of the corporate world is getting much more fierce and complex because of the introduction of globalization. A lot of competitors are now present in the same market since globalization has increased the accessibility of local markets in every corner of the world. The continuous evolution of the most modern technologies is bringing down the lifecycle of products, ideas, and organizations. The concept of business model would hold much significance in this context. It could be observed in the current corporate world that successful companies are following very unique and advanced business models which are very hard to follow. This factor would provide the organization with much upper hand against its competitors. By the implementation of a superior business model into its system, the respective organizations could discover, make use of, and maintain the competitive upper hand in the operative market along with sustaining a particular and balanced value of shares. The drafting process of efficient and superior business models involve the evaluation of the factors like other business models, strategies adopted by other corporate organizations, and the value of shares. The major challenge companies in the global platform face are to discern the relevant business model in a very competitive environment. It is by the implication of a very superior business model in its system that the rocket internet has to turn out to be a great success. The most recent strategies in the business environment by the rocket internet organization is discussed in this rocket internet case study. The headquarter of the rocket internet is situated in Berlin which is majorly focused on providing a general platform for the building up of a new startup. It was by Oliver, Alexander Samwer, and Marc that the company was established in the year of 2007. The company currently retains the human resource magnitude of around 30000 employees. A lot of companies have utilized the platform provided by rocket internet and turned to be great successes. Providing office space for emerging companies has turned out to be a very commendable and unique service that has attracted global attention.

This report on the rocket internet case study would explore the major strategies and policies adopted to sustain in the path of progress in such a competitive market. Additionally, this report on rocket internet case study has also tried to cover the limit of the company performance along with its competitive advantage in the operative market. To provide the analysis provided in this rocket internet case study on an authentic basis, a VRIO analysis is also provided. Though the business framework of the company is being updated periodically to cope up with the dynamically changing market, the business strategy model is still the traditional one.

The agility of Rocket Internet in the current dynamic market
While studying the current position of rocket internet in the dynamic market, it could be perceived that though the company has the financial security to sustain the monetary needs of the company and its subsidiaries, the are required to provide the customers with a supreme technical platform for which the regular update according to the most modern technology is required (Eckard et al. 2015). The absence of this approach would make the platform of the rocket internet an obsolete one and even could risk the existence of it.

Strongpoints and resources of the rocket internet
The company of rocket internet retains a vast team of experts that provides relevant advice to the board of management at crucial instances. The team of experts not only provides the higher authority with the advice on the management of the market, but also on the fields of operations, intellectual strategic development, and the department of customer management (Eckard et al.2015). Unlike in other companies, the human resource department of the rocket internet has focused on recruiting not only normal employees but also the expert ones so that any critical situation on the global platform could be tackled easily by using their proficiency. It has been observed that normal companies tend to recruit candidates with both the skill of entrepreneurship management and general analytical skills. This approach has turned out to be a very critical factor for the rocket internet company to sustain its course towards financial success. To add more power to its business process, the company has implied a superior business model. It is based on Silicon Valley in which the company is operating that the head of the human resource is recruited. In the organization of the rocket internet, both the managing director and co-founder had contributed a lot to lead the company towards the path of development. Since the company operates in the dynamic market, only the people with appropriate graduation in MBA are recruited n the company. When the people with appropriate qualifications work under the better business model, the company would course to the path of success. The model of eBay was utilized by the management of the rocket internet case study to draft a customized set of the business plan. Though it was also been criticized by many of the scholars and corporate observers that the rocket internet has copied the business techniques of other organizations. Thus the innovative approach of the company is brought into question and hence the company needs to still verify its authenticity in front of the world.

Market competency of the Rocket Internet
In the corporate world, the company of rocket internet is considered to be one of the most successful ones though it is also accused of copying the ideologies of other prominent organizations. The business model of the rocket internet seems to be the amalgamation of the policies of various strategic plans drafted by different prominent companies. It is the head of the company and other higher officials on the top hierarchy of the company system that the business strategy of the rocket internet was planned and designed. The major feature of the market strategy of rocket internet organization comprises the internal novel business model. The multiplying business model suits the business process of the company since the distributive business model is installed in the system. The existing system in the company also implies online business models. The company is unique from other competitors because it recruited efficient and specialized employees which consecutively paves the way for the systemized platform.

If taken the scenario excluding the context of China and the USA, it provides the customers with the largest internet platform along with providing them with the customized service in reliance with the public demand. From the analysis of the rocket internet case study, it could also be perceived that the company has implied a very financial model in its system. The major dynamics that the company management majorly focuses upon are the power of the technological infrastructures used in the company system, the power of the network, and the sustenance of supremacy in modern technology. In the global scenario, a lot of companies are posing very tough competition for the rocket internet organization. Since the company is the largest network base outside the Chinese and American premise it has dominated the market on a global platform. Though the groups like HUT which is based in Britain and Berlin venture are turning out to be the fiercest competitors of the rocket internet organization. In the current scenario, it is the rocket internet that retains the highest magnitude of customer base globally.

Threshold ability and factors that are giving a cutting edge to the organization of rocket internet
The ability of an organization to sustain in a hostile environment by using the available resources could be termed as threshold capability (Keeton et al. 2012). The factor of threshold competency is being developed by the organization by the regular perseverance of the employees of the respective organizations. If taken the rocket internet case study for instance the dominant brand reputation of the company could be justified by the uniqueness of its norms and values.

Threshold capabilities
Threshold Resources: The company of rocket internet has headquartered itself in the city of Berlin. In the current scenario, even the headquarter of the company retains the human resource of around 700 employees with a network of around 25 offices. The whole magnitude of the human resources retained by the rocket internet organization sums up to about 15000 workers. A very strong economic boost is being contributed by the rocket internet since it provides significant financial security to the start-up companies. The company has also employed around 250 specialists so that any condition in the business process or the market environment could be encountered efficiently along with taking part efficiently in strategic planning.

Threshold potential: The major capability that would provide the rocket internet a cutting edge in the business processes is a high ability in web development. Only if the supremacy in technical efficiency is sustained, the quality in its service should be maintained to the desired parameter. Recruiting the candidates with highs skills in Web development and software programming which ensures that the customers of the company are provided with high-quality services and products. The implementation of high-end IT tools accompanied by efficient diagnostic tools; the quality of the service could be augmented to the supreme level. The company has done well in the global market since it had installed the concepts and ideologies of different organizations along with the appropriate use of most modern technologies.

Individualistic abilities: The founder of the rocket internet organization, Sarnwer brothers have envisaged various distinctive resources into the system of the company. Now in the global market, the company has earned the reputation of a reliable and huge brand among its customers. Any amendments in the entrepreneurial working culture could be done effectively on a rapid basis if the models with centralized characters are installed in the business process of the company. The centralized model has led to the improvement of the whole working culture in the organization. The process on the global basis is maintained by the rocket internet company by the sustenance of the high-quality network and accessory units in the organization. The major asset of the company which contributes majorly to its performance sustainability is the department of Global venture development. In the internal environment of the rocket internet, the pace of strategic decision making and its implementation is very high. It is because of the implementation of the entrepreneurial culture that the employees of the rocket internet organization can work in a hostile and fierce condition for a much longer period. The company has also raised the bar to select the employees so that they could cope up easily with the highly competitive environment and simultaneously comply with the distinctive or individualistic abilities.

Dynamic Skills: For securing the top position in the operational market, rocket internet organization has installed the ideology of inspirational leadership. The company follows the approach of strong leadership by providing internal motivation to the employees. For conducting this task, efficient people with high analytical and conceptual skills with better influence are selected.

Rocket Internet case study VRIO Analysis
To analyze the competency level of the competitors, the tool of VRIO analysis is majorly used by the corporate bodies. The tool of VRIO takes into account the various dimensions and factors so that the analysis of the competitors should be done effectively. The factors of core competency and the magnitude of the resources are taken into account while conducting the test of VRIO analysis. In the test, the four elements are being taken into account that could be termed as valuable, rareness, imitability, and Organization.

Valuable: If the actions taken by the decision-making body of the company has the potential to bring positive changes to the business processes. These changes would augment the product and service quality, thus ensures better delivery to the consumers. In the global market, the organization of rocket internet possesses very potential and valuable resources which provides it with the cutting edge in the business. These features are contributing to the value of the whole organization and thus gives an upper hand against its competitors in the same operating market. By observing into the rocket internet case study, it has been ascertained that the company has the potential to tackle with the hindrances posed by the competitors, supports its financial ventures, capacity to withhold even if there is a case of human resource shortage, maintaining an amiable relationship with the clients and other competitors, ability to derive out unique innovation, high quality of the corporate leadership, etc. The above-mentioned factors in this rocket internet case study are very significant for any company operating at the global platform.

Rare: The factors which come under the category of rare are the ones like the efficiency of managing various financial hindrances, possession of expert team and the same could be ascertained by the evaluation of the rocket internet case study (Muhammad and Iliyas, 2015). The rare factors provide the company with the instant upper hand, though it is an instant one.

As it was mentioned in the previous section of the rocket internet case study, the model installed in the system of rocket internet organization was being referred and inspired by the models innovated by other corporate companies. Though it should be understood that imitating the model in its original state is not possible since each organization has its requirements and restriction. It could be perceived in the above-provided content of the rocket internet case study that the company has the ability to provide the quality products it its customers even in the deficiency of required resources.

Organizational support: Among the major tool used by the company, the tool of cash is the most prominent and substantial one which plays a crucial role in the evaluation of the financial parameter. The major factor associated with finance is credit risk (Matthews and Bruggeman 2015). Credit risk is one of the direct risks which the organizations face in the operative market. Rocket internet organization is getting a lot of investment and is getting the cutting edge with respect to the competitors in the same operative market. The major multinational companies like Facebook, Groupon, Zynga, Linkedin, and eBay.

Rocket Internet Case Study

Figure 1: VRIO Analysis of rocket internet case study
(Source: Mitchell 2013, pp-340)

By the analysis conducted in this rocket internet case study, it could be ascertained that with respect to the German perspective to the German economy, the rocket internet organization is one of the largest investors. Apart from its organizational growth, the company has also invested a lot in other firms and holds around 43 % of the shares in its operative market. The further process of investments in private funds is being approached by the management of the company in a very innovative way. In this report regarding the rocket internet case study, a very detailed is done to reveal the capabilities of the models and the business processes adopted by the company. The study of this rocket internet case study would provide the reader with the necessary strategies to be taken to survive in the global market. The company has taken the approach of employing the departments of Risk management and HR management which could be followed by other companies for increasing their competency in the market. It should be noted from the evaluation of this rocket internet case study that the competitive advantage doesn't come under the category of the valuable parameter.

Reference List
Eckard, K., Eaton, H,. de Giacomo Araujo, M. and Smith, S., 2015. Rocket Internet case study: Clone factory of Long-Term Stakeholder

Keeton, K.E., Schmidt, L.L., Slack, K, J. and Malka, A.A., 2012. The rocket science case study of teams. Industrial and Organizational Psychology

Lee, C.M., 2015. The Effective Security Measures Against Internet Fraud

Matthews, C.H. and Brueggemann, R., 2015. Innovation and entrepreneurship: A competency framework. Routledge.

Mitchell, S.T., 2013. Space, Sovereignty, Inequality: Interpreting the explosion of Brazil’s VLS rocket. The Journal of Latin American and Caribbean Anthropology.

Muhammad, L.J., Ali, A.G. and Iliya, I.S., 2015. Security Challenges for building Knowledge-Based Economy in Nigeria. International Journal of Security and its applications, 9 1), pp. 119-124.

Get Top Quality Assignment Help and Score high grades. Download the Total Assignment help App from Google play store or Subscribe to totalassignmenthelp and receive the latest updates from the Academic fraternity in real time.


Related Samples

Question Bank

Looking for Your Assignment?

Search Assignment
Plagiarism free Assignment









9/1 Pacific Highway, North Sydney, NSW, 2060
1 Vista Montana, San Jose, CA, 95134