A Study On Jindong Group’s Development Strategy In The Rural E-commerce Market

With the rapid development and popularization of Internet technology,internet service has been more and more involved in people’s daily lives,and greatly changed people’s lifestyles and consumption habits.E-commerce can break the limit of geographical location and time,and it brings great opportunities and convenience to both companies and consumers.Online shopping has been gradually accepted by consumers and developed rapidly.In recent years,with the development of China’s economy and acceleration of urbanization process,residents of 3-tier and 4-tier cities and rural areas had a higher consumption level and stronger purchasing power,hence there is a huge market potential in these areas,and all e-commerce companies are trying their best to increase their market share in these areas.Developing rural e-commerce,would not only help to expand rural consumers’ market and bring agricultural products into cities,but also provide great opportunities for employment and start-ups.Besides,it will do good to the economic transformation and upgrading in rural areas,transformation of national economic growth,and improving living standards of rural residents.Object of this study is Jingdong Group,and its development strategy in the rural e-commerce market is discussed.First,this paper researched the history of Chinese e-commerce market and the current status of e-commerce in rural areas,and conducted a PEST analysis to analyze the external factors related to rural e-commerce market,and then the opportunities and threats facing Jingdong were identified.Second,this paper analyzed Jingdong’s internal factors including company resources and company capabilities to summarize the strengths and weaknesses of Jingdong on rural e-commerce,and then constructed Jingdong’s internal factors evaluation matrix,and identified Jingdong’s core competitiveness of developing rural e-commerce.Third,this paper conducted a SWOT analysis to identify Jingdong’s strengths,weaknesses,opportunities and threats on rural e-commerce.Based on above analyses,this paper suggests that Jingdong should adopt reinforcement strategies including market development strategy,market penetrating strategy,product development strategy,related diversification strategy,competitive strategy and soon.In the end,according to the selected strategies,the necessary support measures were identified to ensure the smooth implementation of the strategies.The rapid development of rural e-commerce is the result of both policy and market factors.Rural e-commerce market will become an important part of e-commerce market.The results of this analysis can also provide a reference for other e-commerce companies to develop their own strategies on rural e-commerce,and have some practical significance for facilitating development of China’s rural e-commerce.