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.

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