JD.com: leveraging the edge of e-business
Publication date: 24 September 2018
Abstract
Subject
area E-Business; Corporate Strategy; Strategic Management; Operation Management.
Study
level/applicability Senior undergraduate; MBA; EMBA.
Case
overview After development for 10 years, JD was now China’s second largest business-to-customer (B2C) e-retailer and the largest in self-operated sector. It was September 2015 when Liu Qiangdong was deciding whether to persist with JD’s self-operated model and the heavy investment in the self-built logistics system. JD’s business model had been functioning well. However, as JD grew bigger and bigger, it became too expensive to expand its logistics system. JD had not made a profit since it raised funds from investors. Liu had to come up with a good proposal before the next monthly meeting to convince them that JD would finally overtake its biggest rival, Alibaba which ran on a different business model. In addition, JD was exploiting the rural and the global markets, as well as a new business in internet finance. Facing challenges and dilemmas, should JD persist with its model? How could Liu align short-term profitability with long-run development? How could JD overcome attacks from Alibaba and other competitors?
Expected
learning outcomes This case is appropriate for courses in e-business and strategy, particularly those with a strong focus on doing e-business in emerging markets (e.g. China). After studying the case, students should be able to: understand the e-commerce market in China; understand business models and key strategies of e-retailers; identify and analyse the pros and cons of the self-operated business model and self-built logistics system in e-commerce; learn how to evaluate performance, strategies and business models of e-commerce companies; and extract key trends in the market and compare different strategies.
Supplementary
materials Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.
Subject code:
CSS 11: Strategy.
Keywords
Acknowledgements
Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.
Citation
Chan, A.K., Huanyong Chen, C. and Zhao, L. (2018), "JD.com: leveraging the edge of e-business", , Vol. 8 No. 3. https://doi.org/10.1108/EEMCS-06-2016-0109
Publisher
:Emerald Publishing Limited
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