We created a holistic product & corporate strategy for Kogan, one of Australia’s most recognised brand. Redefining the brands objective and creating a new solution which will closely tie the entire 6+ different business segment offerings by Kogan to its customers. The aim of this strategy is to integrate the offerings with the help of a financial instrument and creating a deep AI driven insight to enhance the customer offering at the right time and at the right price.

1. MGSM850 – Strategic Frameworks
Group Presentation
Himanshu Kolhekar (44520433)
Major Tanmay Bhardwaj (45479224)
Anurag Gupta (44454848)
Matthew Beadle (44548494)

2. 2006
Ruslan Kogan
started selling
Kogan branded low-
cost TV on eBay
Kogan.com Ltd. - A brief overview
Launch of the
website
2010
Acquired Dick Smith’s
Online retail business
Listed on ASX
2016 2018
Objective: To create an affordable and comprehensive user experience
Interesting Facts about Kogan.com(2*) :
• Caters to 17 different categories of products and services
• Being an online marketplace, nearly half of its customers are
from the age group 55+ and residing in affluent suburbs of
Australia
Source 1* : Kogan Annual Report 2018
Source 2*: Amazon's entry to Australia doesn't worry Ruslan Kogan. (2019). Retrieved from https://www.intheblack.com/articles/2018/04/01/amazon-entry-australia-doesnt-worry-ruslan-kogan
(1*)

3. KOGAN.COM LTD. PRODUCTS AND SERVICES
Kogan.com
Ltd.
Kogan
Marketplace
Kogan
Mobile
Kogan
Internet
Kogan Travel
Kogan
Insurance
Pet Life Health Home Landlord Car Travel
Kogan
Money

4. Customer
Website/Mobil
e App
Browse
Single Vendor
with Single
Price
Customer
Website/Mobil
e App
Browse
Multiple
Vendors with
Different
Pricing
Proprietary private
supplier marketplace
bidding
No Proprietary
Bidding System –
Seller set their own
price
KOGAN VS COMPETITOR MARKETPLACE
MODELS
Brick & Mortar
Customer Physical Store Explore
Multiple
Products with
Different
Manufacturers
Retailer sets their
own price within the
maximum cap set by
manufacturer
Online Retail

5. PESTLE ANALYSIS
Political
Increased
investment in
telecoms
infrastructure
Trade regulation
and tariffs
Tax implications
on overseas
businesses
Economic
Discretionary
household income
growth
Expected decline in
Trade-weighted
Index
Increasing price
competition has
seen backwards
integration from
Kogan
Interest rates
Sociocultural
Improving
Consumer
sentiment Index
Changing
consumer
attitudes driving
growth
Increasingly tech
savvy population
Technological
Ongoing
technological
innovation
Improved security
and reliability of
online payment
methods
Increased
bandwidth YoY
(5G)
Improved
purchasing
experiences
Improve after
sales service
Legal
Copyright issues
Rising wages in
supply chain
GST Implications
Environmental
Climate and
weather patterns
Manufacturing
implications
(sustainability)

6. PORTER’S FIVE FORCES MODEL

7. Resources/capabilities Valuable Rare Hard to Imitate
Organised to
Exploit
Implication
Brand image/equity Yes Yes Yes Yes
Sustained
Competitive
advantage
Customer base Yes Yes Yes Yes
Sustained
Competitive
advantage
Customer loyalty Yes No No Yes
Competitive
Parity
Technology Yes No No Yes
Competitive
Parity
Product range Yes Yes Yes Yes
Sustained
Competitive
advantage
Supply Chain Yes No No Yes Competitive
Parity
VRIO ANALYSIS
Key Takeaway: Customer Loyalty

8. STRATEGY OVERVIEW
Major Takeaways from industry and company
analysis:
- Customer Loyalty
- To create an ecosystem, which generates
inter-product loyalty
- Generating savings for the customer, driving
customer loyalty, repurchasing decisions
Source: Kogan Annual Report 2018

9. • Uses cost leadership as its generic strategy for
competitive advantage.
• Making in-demand products and services affordable
and accessible
• Increase the product diversification
• Increase the industry diversification
• Increase the number of active customers
STRATEGY OVERVIEW
CURRENT POTENTIAL
• To be a global player in developing economies
• In Australia, 1 in 10 items will be bought online by
2020
• To increase the customer loyalty of Kogan users
• AI based solution and talent for prediction and
prescriptions

10. RECOMMENDATIONS
Kogan Travel
Kogan Internet
Kogan Mobile
Kogan Insurance
Kogan Money
KOGAN KOINS
KOGAN
DIGITAL BANK
KOGAN ECOSYSTEM

11. RE-DEFINING THE CORE
Objective: To create an affordable and comprehensive user experience
KOGAN
DIGITAL BANK
USER SEARCH HISTORY / PATTERN
on KOGAN PORTALS
AI computes, collates
the data and provides
relevant purchase
offers to the consumer

12. Spend
Save
Collect
Kogan
Koins
Redeem
Repurchase
IMPLICATIONS
KOGAN ECOSYSTEM
Sales
Profits
Word of mouth and referral business
Life-time customer Value
Customer Relationships
Customer Savings
Improved product offerings