Rocket Internet Diversification Strategy Group C Master in Management IE Business School

1. Page 1Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Rocket Internet
Presentation
April 21th, 2015

2. Page 2Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Introduction
“To Become the World's Largest Internet
Platform Outside the United States and China”
2. Copy a Proven Business
Model
1. Identify Basic Consumer
Needs in Unserved Markets
3. Scale up the Company

3. Page 3Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Rocket‘s Platform Elements
Rocket Network
of Companies
Infrastructure
Processes
Technology
 Proven Business Models
 Standardized Master-
Launch Process
 Proprietary technology
 Same technical platforms
 Leveraging on country
knowledge
 „Never making the same
mistake twice“
 Learning curve effects

4. Page 4Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Value Creation through Transferring Skills
Transferring
Skills
Independent Businesses
 Largely Autonomous
business units
Utilize Common Skills
 Best Practice Approach
 Corporate Staff as
integrators
Internal Incentive System
 Partly based on corporate
results
Infrastructural support
(Elements of shared activities)
 Office facilities
 IT support
 Marketing

5. Page 5Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Strategy of Related Diversification (I)
Industries
E-Commerce Marketplaces Travel
Timing
Synergies
Offensive
Financial Technology
 Leveraging existing strengths (Online + Industry Know-How)
 Best practice approach to gain critical size
 High economies of scope on corporate level
 No shared activities (except IT and HR)

6. Page 6Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy
Strategy of Related Diversification (II)
Ownership
Implementation
 Back-end integration
 Regional based divisions
 KPI driven control mechanisms
Grow the pie – Market Failure:
 Exploring new/unserved markets
Capturing more of the pie – Market Power:
 Scaling up quickly to build entry barriers through network effects
 Back-end integration and country knowledge as leverage