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Analysis and Implementation Improvement on Business Model of Shanghai Mecoxlane Company

Author: LinMeiQiong
Tutor: HeJiaXun
School: East China Normal University
Course:
Keywords: Macoxlane Business Model Evaluation Improvement
CLC: F713.36
Type: Master's thesis
Year: 2010
Downloads: 591
Quote: 0
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Abstract


Consumer behavior and enterprise operation means, affected by the increasing Internet technology and spreading network, have changed. Lots of traditional retailers are extending their businesses to online ones. Shanghai Mecoxlane International Mailorder Co., Ltd., known for its direct marketing, is busy with opening real stores, however. Mecoxlane firstly started an integrated business model consisting of catalog mail order, e-commerce and real store. Why does Mecoxlane go the opposite direction and transform its light operation mode to a heavy one? Focusing on this question, this paper adopts qualitative and quantitative investigation method and deeply studies the business model of Macoxlane, and comes out the advantages of Macoxlane and reasons for its success. It also tells the existing problems of Macoxlane and provides associated solutions for the reference of other enterprises that are prone to start multi-channel business.This paper consists of six chapters. The first chapter introduces the background, study method and the target company. The second chapter introduces the business model definition, core principle and evaluation method. The third chapter first introduces Macoxlane’s business model and analyzes the operation system structure, including the production value proposition, multi-channel distribution mode and the supporting system of logistics, customer service and information technology. The forth chapter analyzes the operation efficiency, profitability and growth, makes a general evaluation of Macoxlane’s business model and tells Macoxlane’s problems in implementing the business model. The fifth chapter provides related solutions for Macoxlane about the business model implementation. The sixth chapter tells the conclusion and the shortness of the study method and the questions need further study.The paper gets the following conclusions:first, the multi-channel distribution of Macoxlane satisfies different customers’demands; deeply penetrates the market and sets higher entrance standard for competitors; different channels can share products, store and logistics, database and information system, forming an inner scale economy expressed as 1+1+1>3; different channels can help meet shortness of others and the accumulated customer information help compose the database-core resource of Macoxlane. Second, the paper concludes that Macoxlane has good profitability and growth, since it has been making profits, seeing fast growing sales revenue and extending asset scale in the recent years. However, Macoxlane has its problems in propaganda of the value proposition, channel management, uses of external resources and shortness of managerial persons. At last, the paper gives six solutions for Macoxlan’s problems. First, Macoxlane should do more in propagandizing its brand and cultivating the customer value, to promote its brand reputation. Second, Macoxlane should take its website as the core channel and make catalog and real stores as assistant. Third, differentiate strategies for different channels. Forth, stop opening new stores and better administrate the existing stores. Fifth, strengthen the utilization of the external resources. Sixth, introduce more talents from the outside or inside of the company.

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CLC: > Economic > Trade and Economic > Domestic Trade and Economic > The circulation of commodities and the market > Sale of goods > E-commerce,online trading
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