The company seeks primarily to consider markets with low competition. Rocket Internet believes that product development and promotion should be aggressive – i.e., aggressive implementation can also be seen as a sustainable advantage (Browne, 2020). It is also necessary to emphasize the bets on the implementation of the idea because the brothers believe that the idea guarantees only 10% of success, and the main thing is to implement it (Gabriele, 2021). This gives the company’s actions consistency and emphasis on the practical aspects of performance, which often leads to stable profits and results.
Rocket Internet rarely recklessly copies an idea – it examines the sector first. An investor who traveled with his brothers to study one of the emerging markets tells about this. The brothers wanted to understand which business model would help the firm attract the most clients, regardless of cost or industry (Johnson et al., 2017). They believed that if one has a customer base, they can add a few more to the main service. However, it is impossible to unambiguously define the company’s business model. Gabriele (2021) notes that it is most logical to consider it from three sides: as a non-standard venture investor, an ideological exporter, and a redistributor of risks.
Further, it can be argued that the company is following an expansion model within its corporate-level strategy. At the beginning of its journey, Rocket Internet focused on Europe, where the venture capital market was in its infancy. It spotted promising concepts in the United States and then implemented them in new regions. The brothers soon realized that competition in Europe was growing and that Western models could flourish in emerging markets (Gerber, 2016). Therefore, they decided to cover Latin America, Southeast Asia, Africa and the Middle East.
Comparison with EasyJet
From the previous analysis, it seems clear that EasyJet demonstrates a clearer business-level strategy – focusing on low costs – than Rocket Internet (“Strategy,” n.d.). The latter can be considered from different angles, and it is not easy to define its business model. However, in the corporate-level strategy framework, both companies have determined approaches. EasyJet strives for stability, and Rocket Internet – for expansion, and their choices seem justified. Nevertheless, EasyJet cares more about its corporate social responsibility than Rocket Internet (“Our values,” n.d.), which is visible from the fact that the latter has high turnover rates and tends to copy competitors’ ideas (Johnson et al., 2017).
Browne, R. (2020) Start-up factory Rocket Internet to delist, six years after going public.
Gabriele, M. (2021) No shame: The Rocket Internet story.
Gerber, C. (2016) Rocket Internet – A detailed look and analysis about Rocket Internet.
Johnson, G., Whittington, R., Scholes, K., Angwin, D. and Regner, P. (2017) Exploring strategy: text and cases. London: Pearson.
Our values (n.d.).