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Suning.com: Managing the Challenges of Expansion

Yan Zhu, Jing Chen, Hubert Pun

商品編號:W27154
出版日期:2022/04/01
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商品來源:
商品主題:General Management/Strategy
商品類型:Case (Pub Mat)
涵蓋議題:expansion;direct channel
難易度:4 - Undergraduate/MBA
內容長度:15 頁
地域:China
產業:Real Estate and Rental and Leasing
事件年度:2021

As a traditional retailer focused on selling home appliances, Suning.com Co. Ltd. (Suning) grew quickly and became a leading retailer in China, dominating the market until the 2000s. By 2021, however, Suning was facing challenges, including fierce competition from e-commerce giants such as Alibaba Group Holding Limited, Jingdong, and Pinduoduo Inc. and from its upstream brand manufacturers. It also faced financial pressure in its core business due to aggressive expansion. Suning’s revenue, assets, and equity declined, and its net income, which had significantly declined since 2018, had been in the red since 2020. Should Jindong Zhang, co-founder of Suning, change the company’s current business strategy? How could Zhang use an omnichannel structure to ensure Suning’s sustainable growth?

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