EasyLife: Developing a Regional E-Commerce Platform
(8 pages of text)
After several years of effort, Dalian Zhongding Information Co. (DZI) had become the leading prepaid card distributor in Liaoning Province. When government regulations and the rise of online third-party payment options sent the prepaid card business into decline, DZI transformed itself into an online intermediary by building a regional e-commerce platform offering fast home delivery, mainly of supermarket products. Despite its marketing efforts, the company faced fierce competition, difficulty attracting users, and a low secondary purchase rate. In 2015, the company needed to adjust its development strategy. What practices should this regional e-commerce platform adopt to obtain traffic, increase purchasing conversion rate, and increase visitor retention?
This case is suitable for MBA and executive courses in e-commerce and marketing. It will help students become familiar with the regional e-commerce platform market and its management practices. The case will help them understand online traffic, purchasing conversion rates, and stickiness management theories, which are vital to earning profits through e-commerce platforms. After working through the case and assignment questions, students will be able to do the following:
- Understand the regional e-commerce platform market and its marketing practices.
- Define and apply the concepts of traffic acquisition mechanism, purchasing conversion rate, and stickiness management.
- Analyze the characteristics of regional e-commerce platforms.
China, Small, 2015
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