Lazada Value Chain Analysis

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Introduction Online shopping is becoming popular day by day, as the customers get the opportunity to shop from their home and they can see a lot of variety of product of different segments. Lazada is a new company in this domain; launched in 2012 and already has become the largest online shopping destination in South East Asia (Porter & Heppelmann, 2015).
Analysis of the Value Chain of Lazada Figure 1: Value chain analysis
Source: (Porter & Heppelmann, 2015)
The above model represents Porters’ forces model. In this model Michael, the porter had mentioned about the forces that are very crucial for the business. This model is also implemented in the value chain management of Lazada. This company is relatively new in the market, but in spite
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The term margin also sometimes represents profit, as the margin between the invested amount and the gained amount of the market is profit. The five activities that are listed on the top of the model are the basic or primary activities (Manova, 2014). This primary activity consists of inbound logistics, operations, outbound logistics, marketing, sales, and service that are provided by the Lazada. Inbound logistics consist of receiving goods, inspection storage, receiving returned goods etc. On the other hand, this company uses the operation module in this model to transform the raw material and the components into the products of the company (Shanbhag et al., 2016). The outbound logistics in this model is used by the Lazada to order processing, packing, shipping etc. The marketing and the sales is another important tool of this model that is widely used by the Lazada to take care of some domains, like- distributing channel, pricing, promotion, personal selling etc (Palia et al., 2014). Lazada gives special emphasis on the service also, as they think that service is the main thing that helps a company to keep their customers satisfied with the services, like- value for the customers, in person or …show more content…
The company has a strong network in their respective operating region and builds a strong relationship with their customers through providing service. The online services provide effortless shopping experience through web access and mobile but Lazada provides simple as well as direct access to customers via only one chain. To gain a competitive advantage in the targeted region, Lazada targets their customer who is actively using online services via mobile and web network. They focus on generating a good amount of revenues in the market while defending their leading position in the global market. They provide simple as well as an effective dashboard so that their customers do not need to hassle to find their desired products online. They used a strategy known as target outranking that helps the retailer to outrank competitors and outrank bidding shares as well in the global market (Chiang et al.,

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