Rocket Internet

Presentation

April 21th, 2015

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 1

Introduction

“To Become the World's Largest Internet

Platform Outside the United States and China”

1. Identify Basic Consumer 2. Copy a Proven Business

3. Scale up the Company
Needs in Unserved Markets Model

Corporate Strategy – IBS2, Group C Rocket Internet Diversification Strategy Page 2

Rocket‘s Platform Elements

 Leveraging on country
knowledge
 „Never making the same Rocket Network
mistake twice“
of Companies
 Learning curve effects
Infrastructure

Technology

Processes
 Proprietary technology  Proven Business Models
 Same technical platforms  Standardized Master-
Launch Process

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Value Creation through Transferring Skills

Independent Businesses Infrastructural support

 Largely Autonomous (Elements of shared activities)

business units
 Office facilities

 IT support

 Marketing
Transferring
Skills
Utilize Common Skills Internal Incentive System

 Best Practice Approach  Partly based on corporate

results
 Corporate Staff as
integrators

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Strategy of Related Diversification (I)

Offensive
 Leveraging existing strengths (Online + Industry Know-How)
Timing  Best practice approach to gain critical size

E-Commerce Marketplaces Financial Technology Travel

Industries

 High economies of scope on corporate level

Synergies  No shared activities (except IT and HR)

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Strategy of Related Diversification (II)

 Back-end integration
Implementation  Regional based divisions
 KPI driven control mechanisms

Grow the pie – Market Failure:

 Exploring new/unserved markets

Ownership 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

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