KOÇ UNIVERSITYKOÇ UNIVERSITY

FALL 2004 MGIS 410

Electronic Commerce Infrastructure and Business Models

E-commerce at

Kangurum.com• Established in 1997 as migrosonline• Turned into kangurum.com in 2000, inspired

by examples from abroad• An e-commerce application projected by

Migros and Koç Sistem Bilgi İletişim A.Ş.• Started with 14 stores ,reached up to 100

stores in 2003, and eliminated it down to 60 stores

• Main categories: baby products, computers,flowers, electronics,pets,gift and accessories,migros virtual market,automative,toys, gourmet,health&beauty,sports equipment, textile&dry cleaning,and telecommunications

• Payment by credit card, cash, remittance on website, or at the door by credit card.

• Kangaroo and orange colored m at the end built brand equity on the brandname of Migros

• “Matrix” structure building the synergy among the firms on the website, cross relations among them

• Soon to develop catalogue, digital platform and phone sales

Kangurum.com• In 2003 10% of visitors of kangurum.com

contributed to the sales turnover• 67% from İstanbul, 16% from Ankara,

13%from İzmir and 4% from the other cities• Credit card usage rate is 60%• Free online registration • Once a member, can have a personal

agenda,and can keep track of favorite products and shopping in the user account

• Some discounts for some products and to-the-door service for personal use

• For firms wholesales are made as well as retail sales

• No big challenger since stores at kangurum.com have the greatest shares offline,too.

• General manager, Serdar Kaşıkçı, indicates that the physical goods bought physically are investigated at kangurum.com even if not bought; an indication of movement to webshopping in the near future

• Kangurum.com generates revenue from advertisements and affiliates

Logizmo.com• A logo-melody downloading center• Established by AMVG(A Mobile Ventures Group)in 2002 in İstanbul• Now centered in Dubai, now serving GSM operators in Romania,

Ukraniai Azerbaidjan, ready to serve Middle East• 5 million GSM users have used logizmo services until 2004• 100,000 logos, 3000 melodies• USA is targeted as a market after growth in present markets• Each year twice a growth in annual turnover• 3 projects: logizmo.com, Aeredeon, and indirix.com• AMVG contracted with logizmo operating in Germany, took the

licensing rights in Turkey • First mover in Turkey, despite 17 competitors still the market leader• Logo-melody market volume in 2003: $600million• In 2004: $4 billion• Pays royalties to owners of works of art and football clubs• In 2003: 1.5 million logo-melody upload/month• Main categories: operator logos, melody, ems, messages with

pictures, polymelodies, true tone, colored logos, animated messages, and themes

• Football club emblems and love-themed logos popular but the most popular logo “a couple of eyes” in 2003. In 2004: champion Fenerbahçe logo

• Most popular melody in 2003: Dudu, in 2004: TV series melodies• Advantages for the company: collection of payment easy in M-

commerce• Advantages for users: logizmo points and eventually gifts earned

when new logos are created and if submitted to the use of website• Free membership

Other Projects by AMVG

• Aeredeon: mobile business and mobile marketing• Aforeign partnership again with Aeredeon of England• Projects like EfesPilsen campaign, “Smart” campaign in

popular restaurants like Kırıntı and Sushico• Indirix.com: no foreign partners this time• Internet and mobile phone based reverse auction like

Priceline.com, the opposite of auction system• Still not in use, under construction, look at

domainwhitepages.com

Security

• One of the most important concerns in e- commerce

• Operating system you use plays important role; backdoors.

• Examples: UNIX, Windows based OS

• Firewalls are a must in every e-commerce system

• Security scanners must also be utilized.

References

• www.kangurum.com• www.logizmo.com• www.domainwhitepages.com• www.milliyet.com.tr/2003/09/14/business/

bus16.html• www.milliyet.com.tr/2003/10/02/business/

bus13.html• www.radikal.com.tr/haber.php?

haberno=122547&tarih=18/07/2004

Prepared by

Canan Urhan