Analysis On The Profitability Of JD Logistics From The Perspective Of Differentiated Competition Strategy

Under the background of "Internet +" era,the convenience,speed and timeliness of information network technology drive the rapid development of e-commerce.With the rapid development of the logistics industry,people have higher and higher requirements for distribution services.As one of the most well-known e-commerce companies in China,JD Group decided to build its own logistics system to better control the quality of its products and supply chain.Subsequently,JD Logistics was formally established in2007.After 10 years of running-in and exploration,JD Logistics was officially transformed into an independent logistics enterprise in 2017.In the early stage of development of logistics enterprises,brand homogenization is beneficial,which can help enterprises occupy the market.At the same time,it will also form an interdependent and independent living environment.However,with the change of market demand and business model,logistics enterprises have gradually stood out from the "low-end" development mode,toward professional,personalized,high-end and international development.Now the key is to avoid the shackles of homogeneous development,to build a unique brand with recognition,the use of differentiated development of brand strategy,in order to change the consumer’s low-end impression of the enterprise.Therefore,by using the literature induction method and case analysis method,the paper analyzes the differentiated competitive strategy of JD Logistics,and discusses its impact on profitability respectively from the four aspects of operating model differentiation,industrial layout differentiation,brand differentiation and technology differentiation,and finds that its overall profitability is in a good direction.The following conclusions are drawn:(1)The asset-heavy direct operation mode and diversified industrial layout lead to the large capital expenditure of JD logistics.Although the asset-liability ratio returns to normal level,non-operating losses lead to the decline in net profit,which further affects the ROE level.(2)Brand differentiation and operation mode differentiation help JD Logistics build brand image,form competition barriers and ensure the stable growth of its operating revenue.(3)JD Logistics’ continuous R&D investment helps to reduce cost and increase efficiency of integrated supply chain logistics and improve operating efficiency.(4)Generally speaking,the differentiation competition strategy helps JD logistics to improve its profitability,among which the differentiation of operation mode has the greatest impact on JD Logistics’ profitability.