The case tracks the growth of Africa’s leading e-commerce company, the Jumia Group (formerly Africa Internet Group). In 2012, AIG embarked on its journey in Africa with the strong belief that the internet could improve people’s lives on the continent. Later, the company expanded into more than 23 African countries, creating a sustainable ecosystem of digital services. The largest and most important of AIG’s ventures was the shopping site Jumia.com, which operated in eleven countries. In August 2016, AIG rebranded all its subsidiaries under a single brand name, Jumia Group, aiming to create a fully integrated ecosystem. Among its investors, the group gets its major backing from Berlin-based startup incubator Rocket Internet.

The case describes the strategies adopted by Jumia to adapt itself to the African continent and how it became a power player in the African e-commerce sector. It also presents the challenges the e-commerce giant faced in Africa including poor infrastructure, under developed logistics, low internet penetration, inadequate banking facilities, and economic and political instability. Despite its success, Jumia Group was far from making profits. While the Co-CEOs of Jumia Group, Sacha Poignonnec (Poignonnec) and Jérémy Hodara (Hodara), were pushing for growth and market share instead of profits, analysts wondered whether the company would ever be profitable and be able to sustain its dominance in the fast-growing African e-commerce market.

Leadership and Entrepreneurship Case Studies | Case Study in Management, Operations, Strategies, Business Environment, Case Studies

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Issues

The case is structured to achieve the following teaching objectives:

	Understand the ‘copy-build-sell’ business model adopted by companies in developing and emerging markets
	Analyze the strategy adopted by Jumia in Africa.
	Evaluate Jumia’s business model and understand the reasons behind the company’s success.
	Identify the factors challenging the growth of e-commerce in the African continent.
	Explore ways in which Jumia can overcome the challenges and maintain its dominance in the African e-commerce sector.

Contents

AIG REBRANDS TO JUMIA

CHALLENGES

THE ROAD AHEAD

EXHIBITS

Keywords

Business Model,Entrepreneurship,Imitation Strategy,Rebranding,Competitive Advantage,Business Strategy

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