Analysis of External and Internal Competencies of JD.com

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author’s note

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Table of Contents
1. Executive Summary...............................................................................................................2
2. Current strategies assessment.................................................................................................2
3. New strategies........................................................................................................................6
3.1 Road map..........................................................................................................................7
3.1.1 Vision............................................................................................................................7
3.1.2 Mission..........................................................................................................................8
3.1.3 Objectives......................................................................................................................8
3.1.4 Value creation................................................................................................................8
3.1.5 Target segment..............................................................................................................8
3.1.6 Privacy, ethical and legal issues....................................................................................8
3.1.7 External partners............................................................................................................9
3.1.8 Organisational model.....................................................................................................9
3.1.9 Revenue and cost model................................................................................................9
3.1.10 Strategy alignment.......................................................................................................9
3.1.11 Recommendation.......................................................................................................10
4. Bibliography.........................................................................................................................12

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1. Executive Summary
The report analysis the external and internal competencies of a market and the manner
in which a company like JD.com can continue to expand and develop its competencies in the
market. An analysis of the PESTEL, five forces and the core competencies of the company is
undertaken so that an understanding of the position of the company can be made. The manner
in which development of new strategies can help JD.com is analysed and proposed in the
research. Description of the new strategy that is the cost leadership strategy is provided along
with a road map depicting the specifics required for the changes. At the same time, a business
canvas model is developed that highlights the key areas of the business. Smart
recommendations are provided which highlights the changes required within 6 months.
2. Current strategies assessment
The analysis of the external and internal capabilities of JD.com can be because the
company had been doing reasonable well in its external as well as internal environment. For
example, from the analysis of the PESTEL it can be seen that JD.com from the point of view
of the political forces, the Government of China had supported the development and
promotion of e-commerce sites in the country. Therefore, as stated by Prajogo (2016) it can
be said that the Chinese Government provides excellent support to the people capable of
forming business ideas that can help in the economic growth of the country. It is for this
reason that China is considered as one of the world’s largest economy.
At the same time, it is seen that the economic condition of the country is stable and
thus JD.com can continue to remain innovative in the country and ensure that the
development of e-commerce can help in changing the condition of the people. As observed
by Yeoh and Popovič (2016) it is to be noted that the encouragement from the Government

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and the ability to develop businesses are the main reason for the high development of China
in the economic scale.
In terms of social factors, the focus is on the development of changes within the
society. According to Ifinedo, Pyke and Anwar (2018), in the case of China, it has been seen
that the people are advanced and have a keen sense of providing support to the business
environment that exists. At the same time, it is also seen that the rise of the internet have
made the people of the country to be able to increase the rate of internet usage. Grant (2016)
has also seen it that in 2016, the rate of interest use in China has increased and thus, it shows
the development of the society and the manner in which the e-commerce business of JD.com
can gain benefit.
Therefore, it can be said that the technological development of the country can affect
the development of China as a country and it is for this reason that the country is regarded as
one of the most updated nations. According to Ratten, Ferreira and Fernandes (2017), the use
of internet can be considered as the reason behind the development of JD.com and thus the e-
commerce section in the department can be considered as one of the effective functional area
at the organisation. Hence, it can be said that the development of technology is one of the
most important factors that help in the growth and development of JD.com in the competitive
business market of China.
The assessment of the legal factors in China sheds light on the fact that for the success
of JD.com, express licensing has been a major factor for the success of the company. Ansoff
et al. (2018) pointed out this sheds light to the fact that the support from the legal
departments along with its Government is the key reason for the development of JD.com. The
enhanced opportunities received from each of legal departments ensure that JD manages to
compete in the delivery of markets by using logistics. At the same time, Noe et al. (2017)