Deakin University: MIS712 Strategic Direction E-Business Report

This report provides a comprehensive strategic analysis of JD.com, a leading e-commerce company in China. It begins with an executive summary highlighting JD.com's position and competitive advantages, including its extensive fulfillment network and commitment to quality. The report then details the company's current e-business strategies, such as online platform sales, diverse product offerings, and logistics investments, while also acknowledging challenges like managing customer demand and service quality. Subsequently, the report proposes new strategies, including a clear vision, objectives focused on market expansion and market share growth, and a value creation framework emphasizing product leadership, operational excellence, and customer intimacy. It identifies target segments, addresses privacy, ethical, and legal issues, and explores external partnerships and organizational structure. Furthermore, it outlines cost and revenue models, provides strategic alignment recommendations, and concludes with a course of action for implementation. The report aims to enhance JD.com's performance in a competitive market by adopting effective and organized strategies.

Running Head: E-BUSINESS STRATEGIES 0
E-Business Strategies
(Student Name)

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Table of Contents
Executive Summary.........................................................................................................................2
Current Strategies............................................................................................................................2
New Strategies.................................................................................................................................3
Vision...........................................................................................................................................3
Objective......................................................................................................................................3
Value Creation.............................................................................................................................3
Target Segment............................................................................................................................4
Privacy, Ethical and Legal Issues................................................................................................4
External Partners..........................................................................................................................4
Organizational Structure..............................................................................................................5
Cost Model...................................................................................................................................5
Revenue Model............................................................................................................................6
Strategy Alignment......................................................................................................................6
Recommendation.............................................................................................................................6
Course of Action..........................................................................................................................7

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References........................................................................................................................................8
Executive Summary
JD is one of the leading internet companies in China. It is one of the leading online
dealers as well as it is one of the biggest overall retailers. The company has set the standard for
online shopping through its commitment to quality, authenticity as well as their vast product that
offer a variety of products to its consumers. They cover entirety from fresh food to
microelectronics as well a makeup products. It is one of the unrivaled nationwide fulfillment
networks that covers almost 99% of the population of China as well as provide standard same as
well as next day delivery such service and speed s unmatchable globally (Chan, Huanyong Chen
& Zhao, 2018). The strategy of the business retained adjacent to the essential standards while the
company is mounting its corporate plans. JD has increased faith and trust among the customers
by delivering quality products to its consumers in an effective manner that made them popular in
the whole market. The company sells its products through the platform of online. Logistics
system, as well as employees, is the basic competitive advantage of the company. In the recent,
the company has faced various challenges that need to cope up on time to strive in the reasonable
arcade (Liu, Fu, Liu & Sun, 2017)
In the subsequent portion, there will be a thorough examination of the current strategies
of the company and the manner they can enhance their performance by adopting new plans that
can help the company to compete their competitors in a more operative and well-organized
manner.

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Current Strategies
The business has already adopted some strategies to fascinate a extreme number of customers
as they are clarified in below points:
 The business trade and manage their business through internet and online platform
 They deliver all diversity of products to their customers through their online portal
 The company has also capitalized an enormous quantity in structure logistic system to
attract investment for a startup.
 To keep their business competitive, the company offers attractive incentives to their
employees that make them feel motivated towards the targeted goal. However, such
incentive represents the costly one for the company.
 The company majorly provides service of product return as well as fast delivery service
to their consumers to gain their trust in a more effective and efficient manner.
 The warehouses are continued by the cross-docking technique to diminish the roster cost
of the company.
 The company attracts its consumers towards their products by imposing low prices on
their new products that make them competitive in the marketplace in an operative and
well-organized manner.
 They offer high-quality products to their customers that make the consumers satisfied and
make them loyal towards the company (Qin, Zhang, Xia & Liu,).
Such strategies benefit the corporation in enhancing the demand of their products
however; the corporation cannot able to satisfy the demand of their consumers efficiently. The
company maintains low stock and the demand of their products are high that creates the issue of

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dissatisfaction among the customers at a superior level, the business also face a challenge in
managing quality services in their business that pretentious the global performance of the
business at a greater level.
New Strategies
The roadmap is deployed for implementing the new strategy. The road map is divided
into nine parts that will be used to analyze the new strategies that can be adopted by the business
as they are clarified in below points:
Vision
The vision and mission of the corporation are to carry superior products and cover the
demand of its consumers in an operative way. It is one of the visions of the business to lead in
the global market and make brand recognition in the global market. Moreover, the company also
has the vision to make the environment healthy by adopting and delivering renewable bags and
boxes.
Objective
The unbiased of the company is explained in the below points:
 The company has an objective to cover the whole international market by expanding its
business in every region.
 The company has an objective of enhancing its market share
 Attracting a maximum number of consumers is the main objective of the company
(Hornsby, C., Ripa, Vassillo & Ulgiati, 2017)

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Value Creation
Value creation plays a prominent role in enhancing the value of products. It is one of the
primary aims of any business to run their business more efficiently. Forming worth for the
consumes benefits trade the products as well as services while making worth for the stockholders
in the method of enhancing at the stock price ensure the upcoming obtainability of the outlay
capital to fund the operation (Wiengarten, Bhakoo & Gimenez, 2015). Therefore, JD will is
required to focus on the value creation to cope up from the challenge. It is divided into three
disciplines as they are explained in the below points:
Product Leadership: such proportion covers the pints such as innovation, introducing
new product life management. Therefore, the company is required to sales their product with
high volume and at a discounted price to make its product differentiate. The company can also
introduce innovative products with the brand name to make the image of the business in the
worldwide market (Yang, Evans, Vladimirova & Rana, 2017).
Operational Excellence: such castigation of the value is majorly depends on the
implementation of the competence. JD intends to add effectiveness by addition the morals over
their state of art processes. The company is requiring enhancing the healthy terms with the local
suppliers that will help the company to control over its price in an effective manner. The
company can also encourage low energy consumption as well as less contamination producing
tools for the manufacture of the product.
Intimacy of Customer: such discipline is majorly anxious with structure as well as
handling the consumer vile by contribution further on-focus as well as personalized services. The

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company is required to build a core standard in their business to maintain a brand image in the
market (Geissdoerfer, Bocken & Hultink, 20160.
Target Segment
JD has already established their business on the online platform. Following are the points
as well as criteria that call for a segmentation which include retention of existing consumers,
refined distribution channels, identification of potential consumers. The target segment is
enlightened in the below points:
Geographical: The Company will focus on the international market to aim their
customers at a greater level. The international market will expand the demand and sale of the
business in an operative and well-organized manner.
Demographic: the company will target the young generation for their product due to the
reason they have strong spending power. The company will target all range of income to target a
large segment of consumers in an effective manner (Dolnicar & Leisch, 2017).
Psychological and behavioral: in the recent scenario, most of the consumers prefer
online shopping to save their time and avail offers and discounts prominently, therefore, the
company will target such consumers by marketing their product in the social media (Dibs &
Simkin, 2016).
Privacy, Ethical and Legal Issues
 A discretion problem related to the staff of the corporation is pursuing. Monitoring
systems are connected in JD companies to monitor the email as well as other web

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undertakings. Therefore, the company breaches the privacy policy as they keep their eyes
on the activity of the employees that make them uncomfortable (Spiekermann, Acquisti,
Böhme & Hui, 2015).
 The corporation can face the issue of hacking by the theft of online data and security. It
will create the biggest issue for the company that might distress the overall recital of the
business at a bigger level
 Infringement of the copyright can be the biggest problem for the business at a bigger
level. Due to the free flow of information on the internet, the plagiarism, as well as
copyright infringement, is a continual issue for the company (Choi, Lee & Sohn, 2017).
External Partners
While expanding the corporate in the worldwide market, the business is required to
analyze the source of funds to fulfill its requirement of funds smoothly. Therefore, it is required
for the company to partner with delivery service companies to enhance their roots of delivering
goods to a particular market. They can connect with leading delivery companies to provide their
delivery services speedy in the global market. It is essential for the business to make a chain and
department of logistics to manage such activities in an effective manner (Plouffe, Bolander, Cote
& Hochstein, 2016). Such a partner will help the company to grow in the viable market in a more
actual as well as well-organized manner. Moreover, the company can also partner with other
agencies on the basis of commission to sell their product in the international market on
commission basis (Miozzo, Desyllas, Lee & Miles, 2016)

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Organizational Structure
The company will follow the same organizational structure in their business. The
company has already divided the department according to the work that makes them competitive
and efficient in the market. They only need to focus on individual department which is the
logistic department. In such a department, the company is required to enhance the value of
products to meet the demand of the market in an effective manner. They need to Borden the
work and management of logistics to make the company more efficient in the market (Yin,
2016).
Cost Model
The cost model is one of the effective manners to analyze in which segment the cost will
occur according to which the budget will maintain therefore while implementing the strategy the
cost of JD will occur on:
 The purchasing or take place on rental for the warehouse to keep the stock with the
company to make availability of products

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 The cost will also occur on partnering with the distributor agency in the form of
commission that is required to pay for the expansion of business in an effective manner
 The costs will also occur on analyzing the data that will help the company to make the
strategy accordingly.
 While expanding the supply chain and logistics team, the company needs to bear the
extra cost to manage them (Barron & Hulleman, 2015)
 The salaries of staff also occur cost to the company
 The makeover of the overall management of the company will increase the cost to the
company
 The cost will also occur on application development as well as maintenance (Eriksson,
Johanson, Majkgard & Sharma, 2015)
Revenue Model
The revenue model will support the business in analyzing the source of revenue that the
company will earn by adopting such strategies in an effective manner. There are different
sources of income that JD can earn from the competitive market as they are illuminated in the
below points:
 The major source of revenue is from the sale of a product from the e-commerce platform
or website. It is one of the major sources of revenue for the company for which they
make huge efforts to entice a extreme number of customers in a more operative manner.
 Delivery fees from the consumers will also be the source of revenue for the company that
will give a huge amount to the company due to the reason the number of online orders is
high as a comparison to the offline orders.

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 Funding from banks and market will also be the source of revenue for the company to run
the business in a more effective manner.
 The distributors who work for the commission will also create a source of revenue for the
company in a more effective as well as efficient manner.
 Web Traffic, YouTube, as well as download of App, will also create a great source of
revenue for the company in which they will able to retain their consumers in more
effective as well as efficient manner (Spieth & Schneider, 2016).
Therefore, such sources of revenue will support the company to grow in such a competitive
market and can able to expand its business globally in effective as well as efficient manner.
Strategy Alignment
 While revising the supply chain and logistics will help the company to make the supply
of their products more smoothly that will help in attracting a extreme number of
customers in an operative and well-organized manner.
 The company is mandatory to emphasis on the promotion process as well to make their
business more competitive in the market.
 The availability of products in every region will give a new opportunity to the company
to expand its range of consumers to target it will help the company to enhance its sales in
a more efficient manner (Akter, Wamba, Gunasekaran, Dubey & Childe, 2016).
 The sustainable steps of the company towards protecting the environment will increase
awareness of the brand in the global marketplace that will the corporation to enhance its
goodwill in such a market in an effective manner.

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 While expanding the delivery service will satisfy the consumers in an effective manner
and also will enhance the sales that will make them competitive in the market in an
operative and well-organized manner (Smith, 2016).
Recommendation
From the overhead examination there are convinced recommendations are provided to the
corporation as they are explained in below points:
 It is essential for the corporation to examine the vision of the company according to such
the target will set to grow in the market.
 The company should control its cost to maximize their sales in an effective manner
 The company should expand its production volume by an increase in the number of the
warehouse to keep the products stores which are non-perishable in nature.
 The corporation should analyze the taste and preference of consumers to attract them
more efficiently and effectively.
Course of Action
Action Time Period Objective of Growth
Opening of a new e-
commerce site
4-5 months Plan to cover the
international market
Will give new face to Brand 3-4 months Denzel Washington can be
the novel face for the