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Jumia Nigeria E-Commerce Companys Analysis
Jumias PESTEL Analysis
Jumia Nigeria E-commerce Company benefits from the ever-improved market conditions. Improved Africas economic performance since the turn of the century lowered the poverty level and enabled the countries to gain when it comes to GDP per capita. The favorable marketplace motivates competitive business that aims at maintaining sustainable economic success. Unfortunately, specific threats exist to undermine the entrusted parties efforts to guarantee the companys success (Ramon & Arora, 2017). Notably, the regions macroeconomic conditions influence its success, with the stakeholders needed to make appropriate changes.
Political Factors
Many political factors can influence a companys efficiency, such as rigorous guidelines for hazardous waste disposal, which raise a companys chances and boost sales. According to the findings, the market has a good reputation for being free from fraud and corruption (Titiloye, 2019). For instance, because of the workers celebration after the 2011 elections, Jumia Nigerias reputation might be harmed if the party refuses to follow the protocols.
Economic Factors
The company has a certified workforce with an elevated level of conserving the environment and other limited resources. Consumer knowledge of bioplastics is one economic driver that affects operational productivity. The countrys taxation system favors the online market, thus attracting many players. Unfortunately, the emergence of China and Indias marketplaces threatens the efforts of Jumia Nigeria to realize sustainable profitability (Titiloye, 2019). Additionally, the firms operations require heavy machinery that increase their expenses.
Social Factors
Besides the high literacy rate and low infant mortality rate, Jumias analysis revealed that its marketplace has joint population development. The changing societal gender roles in the region are also influencing the success of the industry (Titiloye, 2019). For instance, many women in the area prefer disposable Jumia Nigeria. The scholars add that the women are always willing to pay extra for the Jumia Nigeria retail to the marketplace.
Technological Factors
The company has shown a keen interest in advancing technologically because of fierce market competition and a burning desire to increase its market share. Due to the tremendous technical pressures, the corporation has increased its R&D domain spending to make advanced technologies and innovation conceivable. As a result of environmental concerns, the firm is being forced to utilize more high-tech products, considered environmentally benign, since they use fewer non-biodegradable plastics (Titiloye, 2019). This investment in high-tech equipment helps the company manage its product diversity.
Environmental Factors
The market has come under fire from environmentalists for its use of non-biodegradable plastics. In the Jumia Nigeria marketplace case solution, the plastics used caused contamination and posed a health risk to customers. K-C and P&G have completed numerous recycling jobs to avoid market criticism and are making significant efforts to adapt to Japanese technologies to produce eco-friendly outputs (Titiloye, 2019). Thus, it is evident that e-commerce values the environmental conservation models.
Legal Factors
The country has a transparent legal system and suggests sophisticated monetary control. It is possible to make progress in the legal field. However, it is illegal for businesses in Nigeria to use non-biodegradable materials in their unique operations because of the 1976 disposal of trash laws, and this increases company expenses (Titiloye, 2019). While environmentalists push for eco-friendly techniques and equipment, they also set restrictions and require businesses to use them. If they do not, they risk harsh condemnation and many legal notifications.
Jumias Path to Profitability
Jumia has always prioritized expansion above profitability in its goal to become Africas largest e-commerce platform. However, to maximize profits, the corporation is currently prioritizing specific initiatives. With a total population of approximately one billion individuals, Africa does have one of the lowest rates of e-commerce penetration in the world (Ramon & Arora, 2017). However, with advancing technology, investors are enthused about Jumias potential, hence boosting the firms profitability.
References
Ramon, C, & Arora, N. (2017). Jumia Nigeria: From retail to marketplace (A). Harvard Business School Case, 401-718.
Titiloye, O. (2019). Nigerian e-commerce market research (Business to Consumer Market).
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