Research On The Competitive Strategy Of JD Group’s Used-car Business

As the social economy progresses in China,cars have gradually become a necessity in people’s lives.Moreover,with the increasing car ownership,Chengdu has become the second largest city in the country in terms of the used-car ownership.The huge car ownership also generates a high transaction volume of car circulation.Although the usedcar market has great potential,the used-car industry is in the primary stage of industry development.Car distributors and e-commerce companies have entered the market in succession,which intensifies the competition in the used-car industry and brings a great impact on enterprises engaged in used-car business.In this paper,JD Group is taken as the research object.It is a local automobile integrated service enterprise in Chengdu that has been developing for many years.Its used-car business lacks a complete and scientific strategy.Therefore,it urgently needs to formulate a market competition strategy conforming to its actual situation under the guidance of strategic management methods,thereby adapting to the internal and external environmental evolution and seeking the long-term survival and progress of the enterprise.Firstly,the external macro environment and industry environment of JD Group’s used-car business is analyzed by employing GPEST and Five Forces Model.This study finds that there are opportunity factors that are conducive to the development of the usedcar industry,such as huge potential of regional market economy,large car ownership,change in national concept of the second-hand car.Meanwhile,there are also threat factors such as direct impact of car distributors and e-commerce companies,fierce competition of high-quality car sources,impact of new energy vehicles,etc.Secondly,the external environment of JD Group’s used-car business is explored by using the value chain analysis tool.It is found that JD Group’s used-car business owns the advantages such as whole industrial chain layout,high brand awareness and large customer resources,and also faces the disadvantages such as lack of online sales channels and geographical limitations.Thirdly,the IFE matrix and EFE matrix are applied to evaluate and rank the internal and external environmental factors of JD Group’s used-car business.Each three key factors are identified respectively in terms of opportunity,threat,advantage and disadvantage.Furthermore,the key factors of internal and external environment are matched by SWOT mode to conclude that the strategic direction of its used-car business is ST strategy.In addition,the competitive strategy of its used-car business is determined to be differentiation strategy through the basic competitive strategy matching method.It is clear that differentiation needs to be constructed from two aspects: the whole process service of used-car products and the related derivative business of used-car.Finally,combined with the actual situation of the enterprise and the competitive strategy of differentiation strategy,four key measures for its strategy implementation are proposed,namely,improving online operation channels and the density of offline service outlets,establishing internal incentive mechanism for cooperation business,highlighting the training of used-car appraisers,and promoting the technical training in used-car.