Rocket Internet Case Study Solution
Is the Rocket a Successful Business or Lucky?
Rocket Internet has been following the same strategy since its foundation, it has grown by copying business models of other successful firms. Nowadays, people prefer innovative products and differentiation. Providing services and products similar to other businesses cannot be the reason of growth or success.
Copying the other firm’s business models brings high litigation and reputational consequences and negatively affects the share price which ultimately results in low investors’ confidence. It is merely a surprise how Rocket Internet has achieved growth despite all of the risks associated with replicating other firm’s business models.
Since effective and collective leadership is essential for business growth, it is still a surprise how the CEO has been able to grow the business considering his aggressive behavior. No organization can grow without the contribution or trusts of its employees.
Rocket Internet focuses on short term gains rather than creating long term sustainability by quickly selling off its investments. Out of 60 companies launched by Rocket, only 11 proved to be successful acquisitions which created doubts on its business model and current strategy. The firm also made some irrational decisions like selling off its investment worth $500 million in Facebook prior to its listing on stock exchange in 2011.
As CEO Oliver Samwer, what would you do next?
Since collective leadership is one of the main reason of organization growth, the first thing Oliver Samwer can do is change his behavior with the employees. Instead of being rigid, he should bring the best out of the employees by explaining them that their mission is collective and they have a major part in achieving this mission.(Campa, 2018) He can do this by delegating authority to subordinates and by aligning their goals with the organization objective.
One of the main factor of growing profits and ensuring the company’s success is achieving product differentiation. Oliver Samwer should discontinue the current business model and launch its own startup businesses with new technologies like Hyper-Personalization, Edge computing and Big Data.(Jones, 2019)
Conclusion
Rocket internet is a leading technology based company in Berlin. The current business model includes investing in startups at their high growth stage and implement improvements in these firms to ensure speedy and geographical growth. Once the firm achieved its specified targets, it was sold to other firms and its business model was replicated by Rocket Internet to expand into new markets. It faced reputational consequences for replicating the other firm’s business models and operational problems as key employees left the company due to aggressive behavior of the CEO. The firm wanted to expand its markets outside Europe and USA by launching its own startup and raised funds through IPO. However, because of the reputational damage and operational problems, the firm’s share price was affected significantly.
It is recommended that the CEO should stop replicating other firm’s business model and launch its own startup and introduce new technologies. The CEO should also change his behavior with the employees and become a collective leader to ensure the long term sustainability of Rocket Internet…………
This is just a sample partical work. Please place the order on the website to get your own originally done case solution.
How We Work?
Just email us your case materials and instructions to order@thecasesolutions.com and confirm your order by making the payment here
Related Case Solutions & Analyses:
Asahi Net: Bringing Innovation to Education
Putting the Relationship Back Into CRM
Exeter Group Inc. (A)
Starting Small Reaching High (B)
Czech Mate: CME and Vladimir Zelezny (B2)–SBS Negotiates
PacificLink iMedia: Becoming a Full Service Interactive Agency
Unity Airways: Chris Watson (B)
DRILLING SOUTH: PETROBRAS EVALUATES PECOM
Newspaper And Hospitality Industry
ESSAY
