Analysis of Competencies and Strategies for JD.com

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

1MANAGEMENT
Executive Summary
The analysis of the report is on the external and internal competencies that exist in a market
so that a company like JD.com can expand as well as develop the competencies in a
competitive business market. PESTEL analysis, Porter’s five forces analysis along with the
core competencies of JD.com is undertaken to understand the position it has in the markets of
China. The development of new strategies can assist JD.com in maintaining its competency
in the business. Cost leadership strategy is considered as the new business strategy that can
help assist the development of JD.com. The report provides a road map that depicts specific
requirements for the implementation of the strategies. A business canvas model is also
provided which helps to highlights the key developmental areas of the business.
Recommendations are suggested that contributes for the changes that are required by JD.com
within 6 months.

2MANAGEMENT
Table of Contents
Current strategies assessment.....................................................................................................3
Analysis of PESTEL...............................................................................................................3
Analysis of Porter’s five-forces..............................................................................................5
Analysis of the core competencies.........................................................................................6
New strategies............................................................................................................................8
Recommendation......................................................................................................................11
Reference..................................................................................................................................13

3MANAGEMENT
Current strategies assessment
Analysis of PESTEL
The external and internal capabilities of JD.com can be analysed as the company had
been reasonable in terms of dealing with its external and internal problems in the business
environment. An analysis of the external environment can be in the form of PESTEL, which
provides evidence about the fact that JD.com gain support from the Government. As stated by
Carley and Christie (2017) this can be considered as an advantage from the point of view of
the political forces, as the Government of China does not interfere in the management of the
development and promotion of e-commerce sites in the country. Therefore, in the words of
Sachs (2015) it has been seen that the support of the Chinese Government can provide
freedom in continuing with the formation of business ideas so that it can help in the economic
growth of the country. Hence, China is considered as one of the world’s largest economy in
the world.
Along with this, the economic condition of China is stable and for JD.com, it can help
with the continuation of its innovative practises in the country to ensure the development of
e-commerce so that changes can be made in the living condition of the people. In this regard,
observation of by Assembly (2015) highlights the encouragement provided by the Chinese
Government for the development of its businesses as one of the important reason for the
development of the country after considering its economic scale. However, counter
observation made by Charles Jr, Schmidheiny and Watts (2017) provides threat about
economic loss, which usually is done based on the fluctuating nature of business and the lack
of popularity of e-commerce in the world.