LDX E-Commerce Co., Ltd. Competitive Strategy Research

With the rapid economic development of our country,the quick arrival of information era,the continuous innovation of science and technology,as well as the fast popularity of internet and information,a new sales model appeared on the market,namely,e-commerce.It is implemented through computers and internet,and opens up new markets for the user.Rapid growth of China’s e-commerce transaction number and amount,its business model is also innovative,showing a multi-level,diversified development trend.Meanwhile,e-commerce is also facing fierce competition and high maintenance costs,poor supervision of law and network security issues.The 21st century is the era of information technology,with its own continuous improvement and perfection,electronic commerce will become a network application development,with broad prospects.Nanjing LDX e-Commerce Limited(hereinafter referred to as "LDX company"or the "company")was established in 2012,after rapid development,it has become dual brand agent which include the main brand of Midea electric appliance brand and flanking brand of fuku electric appliances.The company currently working on online sales of B2C platform,especially Taobao platform.Its business turnover has more than 200 million Yuan.LDX company is now during the development of a crossroads,and how to improve the company’s business scale,make it "big and strong",is a primary problem which had placed in front of the company’s management.This article is to start from here,with an in-depth analysis of all factors,finally to find a realistic development strategy for the company.Below is a general idea of this article.First,use PEST analysis methods and some tools such as Porter’s five forces model to analyzing the external environment of the company,find the favorable and unfavorable factors in the external environment,such as the Government’s strong support for the development of the Internet industry,and so on.Then,through SWOT analysis method and value chain analysis tools to analyzing the existing internal resources and internal capacity of the company,in order to identifies strengths and weaknesses of the company in a competitive environment,such as the company’s current financial strength is abundant,project management skills are more prominent,but the company does not have a core qualification currently,it also need to strengthen the construction of qualification.Finally,according to the results of the analysis,combined with the theory of competitive strategy,core competence theory and RBV for the company’s overall strategy and the specific implementation strategy,the company’s basic strategy is to keep operating in the segmented market differentiation,taking advantage of resources,build core brands.Overall,the results of this research plays a guiding role to LDX when it formulates an overall development strategy,and it also has some reference value for the similar enterprises when they make the strategic planning.