SWOT analysis for JD.com
Appendices
Appendix 1
SWOT analysis for JD.com
STRENGTHS
Good brand effect and excellent user experience
Authentic guarantee
Various payment methods
The logistics distribution system has minimal imperfections (Li & Tran, 2021)
Strong team cohesion WEAKNESSES
Strong price dependence
High operating costs
The after-sales treatment is not standard
OPPORTUNITIES
The economic situation is good, and the online retail market has a broad prospect
Increase the scale of online shopping users
Policy support
THREATS
Threat of competitors
Improved bargaining power of suppliers and consumers
Global economic instability (Li & Tran, 2021)
Appendix 2
Evaluation of strategic options for JD.com– The SAFE Method
SUITABILITY The proposed strategies such as cost leadership, differentiation and focus strategy are suitable to address the key opportunities and threats (Guan & Kim, 2018)
ACCEPTANCE The strategies meet the stakeholder’s expectation with a likelihood of return acceptance and positive reactions.
The level of risk is acceptable and the stakeholder reactions will be positive (Shen and Sun, 2021)
FEASIBILITY In practice, the proposed solutions will work and the needed resources can be obtained and integrated.
The strategy can be financed.
People and skilled labour can be obtained.
Required resources can be obtained
EVALUATION Cost leadership, differentiation and focus strategy are suitable, acceptable and feasible (Guan & Kim, 2018)
Appendix 3
MARKET PENETRATION
Increase production capacity
Increased investments in marketing (Hussain et al., 2013)
Enhanced distribution
Competitive pricing
PRODUCT DEVELOPMENT
Launch new products
Modify existing products (Hussain et al., 2013)
Strategic partnerships
Improve product quality
Research and development (Hussain et al., 2014)
MARKET DEVELOPMENT
Research and development
Regional expansion
Brand awareness
New customer segments (Hussain et al., 2013)
DIVERSIFICATION
Vertical diversification
Horizontal diversification (Hussain et al., 2014)
Diversifying towards new businesses (mergers and acquisitions) (Hussain et al., 2014)
References
Ansoff, H., 1957. Strategies for diversification. Harvard business review, 35(5), pp. 113-124.
Hussain, S., Khattak, J., Rizwan, A., & Latif, M. A. (2013). ANSOFF matrix, environment, and growth-an interactive triangle. Management and Administrative Sciences Review, 2(2), 196-206.
Hussain, S., Khattak, J., Rizwan, A., & Latif, A. (2014). Interactive Effects of Ansoff Growth Strategies And Market Environment on Firm’s Growth. British Journal of Business and Management Research, 1(2), 68-78.
Li, M., & Tran, C. T. L. T. T. (2021, August). A Case Study of Pinduoduo Strategy Based on SWOT Analysis. In 1st International Symposium on Innovative Management and Economics (ISIME 2021) (pp. 337-346). Atlantis Press.
Shen, Z. M., & Sun, Y. (2021). Strengthening supply chain resilience during COVID‐19: A case study of JD. com. Journal of Operations Management. https://doi.org/10.1002/joom.1161
Guan, L. R., & Kim, K. T. (2018). Comparative Analysis on Corporate Strategy of B2C E-Commerce in China: The Cases of JD. Com and Tmall. Journal of International Trade & Commerce, 14(1), 119-146.
