Business Strategy

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Business Strategy

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Contents
ⅠOverview3
ⅡExternal analysis5
a . Analysis of general environment (PEST)5
b. Analysis of industry environment (5 forces)5
c. Analysis of competitor environment6
ⅢInternal Analysis7
a.Core competencies7
b.Strengths and weaknesses9
Ⅳ Business-level Strategies9
a.Innovation10
b.Integrated supply chain11
ⅤCorporate-level Strategies12
Platform Strategy12
Ⅵ Other Current Strategies13
a.Cooperate with Baidu13
b.Category expansion strategy13
c.Wireless strategy14
d.Geographic expansion strategy14
e.Customer experience15
Ⅶ Strategic Recommendation16
a.Improve the after-sale service16
1)Focus on the quality16
2)Improve the attitude towards consumers17
3)Reduce the cost of consumers to enjoy after-sales service.17 4)Platform17
b.Establish brand image18
1)Hold the enterprise open day18
2)Corporate social responsibility18
3)Advertising19
4)Open experience Store19
Ⅷ Conclusion20

ⅠOverview

The store No. 1, e-commerce website, formally launched on July 11, 2008, and created the precedent of “online supermarket" in China. It was established by the world's top 500 Dell executives Yu Gang (Vice President) and Liu Junling (global vice president, and president of Greater China) in Shanghai Zhangjiang Hi-Tech Park. The aim of store No.1 is to provide customers with one-stop online shopping for daily necessities and the core concept of it is "integrity, customers, innovation, execution”. Also it makes efforts to achieve the target of the world's leading multi-channel retailer. Since the launch, just only in one year it has registered users more than one million, thousands of suppliers, and hundreds of brand partners; the goods it provided involve in the food and beverage, beauty treatments, kitchen cleaning, maternal and child toys, electrical appliances, home furniture, nutrition care, gift cards, and other categories, which includes 480 small classes, more than 40 thousand kinds of goods. The e-commerce company in a four-year period, grew up from the little-known B2C rookie to the dark horse of the industry. In 2010, the sales of store No. 1 reached 805 million yuan and last year, the sales reached 2.72 billion yuan, which completed more than 200% growth; but after the establishment of the first two years, this figure was only 417 million yuan and 46 million yuan. As the first online supermarket in china, Store No. 1 implemented a series of strategies to promote the development. The most important is supply chain management, and it can be said that Store No.1 has the best supply chain management as applying for a number of patented technologies and 124 software copyrights. Also focus on innovation and developed the app of smart phones for it. Additionally, every year based on its own development and market situation it adopts and implements many new strategies. For 2013, expanding the national market and cooperate with Baidu achieving Joint Business Plan are its major tasks. However, with the development and growth, the store No.1 is facing many problems. One of them is funding dried up, it had to make the changes to the shareholding structure, and the founders of the enterprise lose the controlling stake. From the below picture we can see the changes of ownership structure. [pic].

1. Ping An Insurance sell its 20% of shareholding to Wal-Mart, while Wal-Mart purchased the equity of equity incentive agreement signed between Store No. 1 management team and Ping An Group. 2. Wal-Mart through the capital increased holdings of shares; meanwhile Ping An Group and Shop No. 1 experienced the process of ownership dilution. Also, in China, the e-commerce JD(Jing Dong)and Tmall have occupied most of the market, and Store No. 1 is difficult to break through. Moreover the retail industry from online to the shops fell into endless price war, leading a harsh environment. So how to maintain existing...
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