Research On The Development Strategy Of JD Health Company

With the increasingly rich technological innovation and application forms of "Internet+healthcare",major giants have entered the Internet health track one after another.Relying on the powerful platform and extensive services provided by the headquarter JD Group,JD Health has developed into the leading enterprise in the industry,becoming the largest online medical and health platform and the largest online retail pharmacy in China.But 90%of JD Health company’s revenues over the past three years have come from online retail pharmacies,and the healthcare business is still in its infancy.In the face of more and more industry entrants,changes in national and industry policies,as well as the complexity and uncertainty of medical treatment,how to find its own positioning and maintain sustainable and healthy development of JD Health company has become a research subject of great realistic meaning.To perform an empirical study on this has important theoretical value and practical significance.By studying relevant literature,questionnaire survey and other research methods,and using PEST model,Porter’s Five Forces model,internal and external factor matrix and other analysis tools,this paper makes a systematic research and analysis on the external environmental factors and its own resources and capabilities of JD Health Company.According to the analysis,the main opportunities of JD Health company are as follows:the relevant policies of "Internet+Healthcare" tend to be positive,and the continuous standardization of policies creates opportunities for Internet health care;The continuous deepening of aging degree and the uneven distribution of medical resources;The expenditure of health care has been increasing year by year,and the awareness of health consumption has become stronger and stronger.The main threats are:policy uncertainty;Increased competition in the industry;New formats may require continuous investment and profit margins may be lower than expected;The public,especially the elderly,can hardly adapt to the new service mode in a short time.The main advantages are:the strong support of JD Group ecosystem;Strong supply chain capability of JD Health;A closed-loop medical and health service ecosystem with all-scene products and online and offline integration;Strong operation capacity,high market share.The main disadvantages include:single source of income and profit;The profitability of online medical and health services needs to be improved;Product line is large and complete,lack of clear positioning.Using SWOT model,Boston matrix and other analytical methods,combined with the analysis results of the enterprise’s internal and external environment,the types of development strategies that the company should adopt were identified,and the key development directions of each business sector were determined.Afterwards,based on the strategic positioning,mission,and development goals of JD Health Company,the QSPM matrix analysis method was used to ultimately determine that the overall strategy of the enterprise should adopt a growth oriented strategy,and the business level strategy of the enterprise should adopt a differentiation strategy.Furthermore,the implementation measures for the overall strategy and business level strategy were proposed,including promoting technological innovation,deepening the construction of upstream and downstream customer service capabilities,adding new product categories,and achieving differentiation in product quality,product categories,brand services,etc.,continuously exploring the implementation measures for entering emerging business formats and other business level strategies,and proposing relevant guarantee measures.This paper takes JD Health company as the key research object,uses strategic management theory and other analytical tools to profoundly analyze the internal and external environment of JD Health and the main characteristics of the "Internet+Healthcare" industry,and then makes a suitable development strategy for JD Health company,and provides a real case for reference research on the development strategy of the "Internet+Healthcare" industry.Through the case analysis of the development strategy of a benchmark,it provides the path and direction for the optimization and upgrading of the development strategy of the company,and also provides certain research results for the development strategy formulation and optimization of enterprises in the industry.