E-commerce - case study

Founded: Bucharest, Romania in dec.2001.

Founders: Radu Apostolescu, Bogdan Vlad and

Dan Teodosescu.

eMAG adventure: In 1998 Radu Apostolescu, student in the third year to a Medicine University, had the idea to made a recruitment site MyJob.ro. Six years later he sale this business to NetBridge for less then 1 mil.$. He graduate the medicine University with the maximum grads but in 2001, instead to be a surgeon, had prefer to involve into another e-business project with two associates: an IT&C virtual store.

Behind eMAG.ro there are two companies:

- Dante International – a B2C e-commerce own by the founders(33% stocks each) which bring 60% from the eMAG profit

- eMag International – a B2B e-commerce own by the founders (30% stocks each) and Gabriel Dumitrescu (10% stacks)

The shareholders have different capital investments and unequal effective efforts participation in this e-business; the Executive Manager it is Radu Apostolescu.

Vision EMAG: Online will always be easier.Mission EMAG : EMAG will always adapt your business model and communication system, to become the place where everyone simply finds what he wants. Values EMAG: Customer oriented  Effectiveness  Innovation  Integrity  Respect  Dynamism

eMAG.ro it is the most succesful romanien online shop and held, at the moment, 85% market share of trade in IT&C products and derived in Romania.

The name “eMAG" originated from mixing two words:

electronic and “magazin”,

where “magazin” -> the romanian word for “store” or “shop”

Online businesses have more than doubled their profits every past year, salling products such as laptop computers, digital cameras, mobile phones and home appliances.

eMAG is one of the main E-commerce stores in Romania and it has begun to eclipse more traditional IT&C retail sales.

IT&C online store, set up in 2001(18 dec they recived the first command online), in 2006 had around 150 employees and their number currently topping 300 eMAG is a profitable business due to the fact that it has sustained development through its own means.

in 2002 sales revolved around 150.000 euros;

in 2003 sales revolved around 1.2 mil. euros;

in 2004 sales revolved around 3.9 mil. euros;

in 2005 sales revolved around 11.8 mil. euros;

in 2006 eMAG.ro sold IT&C products worth 35 mil. euros and net losses worth 0.45 mil. euros( according to the Finance Ministry);

in 2007 eMAG.ro held a 70% market share of trade in IT&C products and derived turnover worth 77 mil. euros;

in 2008 eMAG weigh over 85% of the market and online sales are amounted to 150 mil. euros.