Strategic Management of JD.com

STRATEGIC
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
JD.com.........................................................................................................................................3
External analysis of JD.com........................................................................................................4
Internal analysis of JD.com..........................................................................................................7
Competitive strategies..................................................................................................................9
CONCLUSION..............................................................................................................................13
REFERENCES................................................................................................................................1

INTRODUCTION
Business environment and its forces are very important and essential elements for every
company because these forces can severely affect the business activities of the companies and
their current operations. But by proper analysing and studying business environment, companies
can achieve great success. Also, by doing the internal and external analysis by the companies
along with adopting good strategic management policies and models, companies in addition to
prove themselves best among others, can also easily meet the market competition and grab the
future growth opportunities. This project will study about the business environment, its forces,
internal and external analysis of the companies. This project also deals with the concept of
strategic management and its various models including the Bowman's clock and Ansoff matrix,
in the contrast of JD.com which is one of the most famous and well-known retailing company of
China.
MAIN BODY
Organizational overview:
JD.com
It is one of the biggest and famous e-commerce company as well as retail and logistics
industry of china. It provides a variety of products to its customer through its online platform or
through mobile applications. JD.com sells almost every kind of product including clothing, food
products, digital equipments, computers, books, kitchen and home products, groceries and many
more. JD.com was founded in 1988. Liu Qiangdong is the founder as well as current chief
executive officer of JD.com. Headquarter of JD.com is in Beijing, China. The current chief
financial officer of the JD.com is Sandy Xu.
Business environment:
It refers to the environment or surrounding of business in which the company have to do
their operations or activities in order to survive or meet the market competition. It is a very
important element or part of the companies which either helps them to meet or achieve their

objectives or may even harm their working and leads to the non achievement of their goal or
creates troubles for the companies in the way of success. But by doing the proper study or
acquiring knowledge about the business environment, companies can forecast the future or even
grab the future opportunities (Gallego-Posada, and Puerta-Yepes, 2018).
The study of the business environment can be done by studying the internal and external
environment in which a company have to survive. The study of the external environment can be
done by studying its various forces including the political, economic, social, technological,
environmental, and legal forces which are continuously changing and may harm the business
operations. In the same way the internal environment of the company includes its own internal
management, or employees of the company which also have an impact over the company's
operations. However, it would be right to said that both the internal and external environment
affects the companies but the impact of internal environment is competitively low in comparison
of external environment because of the controllability factor which means it is somehow easy to
control the internal environment in comparison of external environment which is uncontrollable.
External analysis of JD.com
The external analysis of the JD.com will includes the analysis of external environment
which have an impact over the JD.com in terms of its decrease in sale or affecting its business
operations. The external environment analysis can be done by two ways which includes the
Pestel analysis and Porter's five force model.
Pestel analysis:
It is one of the important practice which is used to study the external environment and its
elements and their effect over the business of company. As, JD.com is that company which
operates in such a changing environment where the changes occur very frequently in terms of
changing the taste and preferences or needs of the consumers or changes in the technology. In
addition to the above changes the changes in economic, legal or political environment also have
a great effect over it (Çitilci, and Akbalık, 2020). Apart from it, the study is also helpful for the
JD.com because it will help it in formulating the strategic planning or strategies for the future
which again helps the JD.com in the expansion of its business in other areas or countries and
grabbing the future opportunities by avoiding the threats.
Political environment: