The E-commerce Business Strategy Of SU Pte. Ltd.

With the development of internet technology, e-commerce has begun the rapidspread in China in recent years. This tendency was also proved in the “China’s onlineretail market quarterly monitoring report, Q22012”, published by AnalysysInternational on24th July2012. The report showed that the total transactions of theonline retail market in China in the second quarter of2012had reached278.8billionChinese Yuan, and the total amount for the first half of2012was497.6billion ChineseYuan. Compared with218.8billion Chinese Yuan in the first quarter, statistics showsthat the market turnover of the second quarter had a QoQ growth of27.4%andyear-on-year growth of45%, among which the B2C transaction amount is in closeproximity to100billion Chinese Yuan.The SU is a newly established company, which deals with health food business,such as nuts, dried fruits and casual snacks. Free door-to-door service and cash ondelivery are provided as well. With the growing number of similar shops openingnearby, market competitive pressure is also growing. In order to overcome thepredicament, the author, as one of the co-founder, is trying to combine the traditionalsales with e-commerce and take it as an important direction of survival and growth. Tostrive to create new advantages in competition, the strategies and objectives of thecompany will be made through research and analysis of e-commerce, and the core ofthe new competitive advantages is “health food B2C”.Firstly, the author researched and studied the current development status of theB2C company at home and abroad and their development strategy and theory ofe-commerce. The author also analyzed the challenges and opportunities faced andimportant issues encountered in the growth of the SU, and stressed the importance ofe-commerce strategy in the growth of the company.Secondly, the author starts to analyze from the company’s internal and externalenvironment. Using the propose, development, implementation, and evaluation of thestrategy of the company’s e-commerce as the integral framework, the author analysis the health food industry with the following scientific methods, such as five forces ofthe micro-environment, the macro-environment, the value chain of the e-commerce ofthe health food industry and the EFE, SWOT, GSM matrix. Based on the result ofthese analysis and studies, the author proposed that the company’s corecompetitiveness should be built by combining of e-commerce with the corecompetitive advantage of the traditional sales and taking the target centralization anddifferentiation as the strategy.Finally, combine the e-commerce platform with the information platform toguarantee the smooth implementation of the strategy of the company’s e-commercedevelopment.This thesis is a brand new, in-depth exploration of the combination of the verticalB2C e-commerce with traditional food industry, and hope that the research results canprovide a reference for other enterprises in food industries to develop e-commercestrategy.