Final report topic comparision of business between lazada and shopee

MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY FACULTY OF LOGISTICS-INTERNATIONAL TRADE FINAL REPORT TOPIC: COMPARISION OF BUSINESS BETWEEN LAZADA AND SHOPEE Course Title Course ID Class ID Lecturer Group Students : Electronic Commerce : NT209DE01 : 1868 : Ngo Minh Tra (Ms.) :2 : Le Trung An – 22004013 Tran Ngoc Bao Han - 22005773 Nguyen Ngoc Khanh - 2192575 Nguyen Thanh Nguyen - 2195558 Nguyen Minh Quan - 2190132 MINISTRY OF EDUCATION AND TRAINING HOA SEN UNIVERSITY FACULTY OF LOGISTICS-INTERNATIONAL TRADE  FINAL REPORT TOPIC: COMPARISION OF BUSINESS BETWEEN LAZADA AND SHOPEE Course Title Course ID Class ID Lecturer Group Students : Electronic Commerce : NT209DE01 : 1868 : Ngo Minh Tra (Ms.) :2 : Le Trung An – 22004013 Tran Ngoc Bao Han - 22005773 Nguyen Ngoc Khanh - 2192575 Nguyen Thanh Nguyen - 2195558 Nguyen Minh Quan - 2190132 Ho Chi Minh City, 7/2022 TABLE OF CONTRIBUTIONS No Student ID Full name Tasks Percentage of contribution Chapter Word synthesis 22004013 Le Trung An ABSTRACT 100% 1.2 What is ecommerce marketing? 1.4 What is B2C? 22005773 Tran Ngoc Bao Han 3.1 Shopee 100% ACKNOWLEGEMENT 1.3 What is Business 2192575 Nguyen Ngoc Khanh Strategy? 100% 2.1 Shopee 1.1 What is an e4 2195558 Nguyen Thanh Nguyen commerce business? 3.2 Lazada 100% CONCLUSION 2190132 Nguyen Minh Quan 1.5 What is C2C 2.2 Lazada 100% HONOR PLEDGE “I have read and understood the behaviours of academic integrity violation I affirm that I have not given or received any unauthorised help on this assignment, and that this work is my own” Date: ……./……./2022 (Name and signature) ABSTRACT The report "Comparison business strategies of two e-commerce platforms (Shopee and Lazada)" with the purpose of researching the building and operating of the two largest e-commerce platforms in Vietnam, Shopee, and Lazada From the research results, draw conclusions on how to operate e-commerce platforms and make contributions to developing e-commerce platforms strongly ACKNOWLEDGEMENT The report "Comparison of business strategies of two e-commerce platforms (Shopee and Lazada)" is a report contributed and completed by many individuals First of all, our team would like to thank Ms Tra Ngo - Lecturer at Hoa Sen University for enthusiastically helping and editing so that the article can be completed in the best way Besides, the contribution of the authors of articles and documents is also an important part to help our report add more knowledge and more accurate information We have many shortcomings, but we hope that our report will provide you with the most accurate and informative information Thank you very much! Ho Chi Minh City, July 2022 TEACHER RATING Ho Chi Minh City, June 2022 ASSESSOR TABLE OF CONTENTS TABLE OF CONTRIBUTIONS i HONOR PLEDGE .ii ABSTRACT iii ACKNOWLEDGEMENT iv TEACHER RATING v TABLE OF CONTENTS vi LIST OF IMAGES viii Chapter INTRODUCTION TO E-COMMERCE BUSINESS STRATEGIES 1.1 What is an e-commerce business? 1.1.1 What is an e-commerce business? 1.1.2 E-commerce business conditions .1 1.2 What is ecommerce marketing? .1 1.3 What is Business Strategies? 1.4 What is B2C? 1.4.1 B2C concept .3 1.4.2 Features of B2C 1.4.3 Activities of B2C .4 1.4.4 The development potential of B2C 1.5 What is C2C? 1.5.1 C2C concept .6 1.5.2 Features of C2C 1.5.3 Activities of C2C .7 1.5.4 The development potential of C2C Chapter INTRODUCTION ABOUT SHOPEE AND LAZADA 2.1 Shopee 2.1.1 Overview of shopee 2.1.2 Achievement 11 2.1.3 SWOT analysis of shopee 16 2.2 Lazada 21 2.2.1 Overview of lazada 21 2.2.2 Achievement 22 2.2.3 SWOT analysis of lazada 24 Chapter BUSINESS STRATEGY OF TWO E-COMMERCE PLATFORMS (SHOPEE AND LAZADA) .26 3.1 Shopee 26 3.1.1 Shopee’s business philosophy 26 3.1.2 Shopee’s business strategy goals 26 3.1.3 Shopee’s competitive advantage 26 3.1.4 Shopee’s business strategy model 27 3.1.5 Shopee's business strategy activities 27 3.2 Lazada 31 3.2.1 Lazada’s business philosophy 31 3.2.2 Lazada’s competitive advantage 31 3.2.3 Lazada’s business strategy model 32 3.2.4 Lazada's business strategy activities 33 Chapter COMPARISON BUSINESS STRATEGIES OF TWO ECOMMERCE PLATFORM (SHOPEE AND LAZADA) 41 4.1 Similar 41 4.1.1 Shopee and Lazada policies for users .41 4.1.2 Quality of goods .41 4.1.3 Promotions/sales 41 4.2 Different 42 4.2.1 Lazada 42 4.2.2 Shopee 44 CONCLUSION 46 REFERENCE .47 Chapter 45 Engineering technology Mr James Dong (Director of Lazada Vietnam) said that Lazada's ecosystem which was built by modern technology and advanced logistics systems will support customers and partners well Lazada also sets the standard for new e-commerce with the 3-Easy model It is “Easy to buy – Easy to shop; Easy to sell – Easy to trade; and Easy to deliver – Easy to deliver” Accordingly, this e-commerce platform offers search suggestions and a personalized shopping interface according to consumers' preferences and habits, so that consumers can easily and conveniently shop than In terms of seller support, this platform shortens the listing process, along with a series of business management solutions with real-time charts, product marketing solutions, etc With shipping, Lazada maximizes process optimization, ensuring on-time delivery, contactless delivery to limit risks for buyers and sellers Besides, Lazada also invests in building a sustainable e-commerce ecosystem through technology and logistics, based on the core value "Customer First - Customer is the first priority" Mr Vu Duc Thinh - Logistics Director of Lazada Vietnam said that the logistics system is Lazada's bright spot in the ecommerce market This is also one of the priorities in Lazada's development strategy to ensure customers have the most optimal shopping experience This ecommerce platform has built its own solid logistics system, capable of shipping more than 80% of Lazada's orders in the market on its own In addition, Lazada develops omnichannel delivery - processing orders of any e-commerce platform quickly Customers can orders at Lazada, Shopee, Tiki, etc Lazada Logistics still accepts freight Thanks to this system, brands and sellers are proactive in controlling inventory, while removing logistical problems such as high operating costs during order fulfillment In addition, this solution also helps businesses reduce the challenge of having to expand their operating network without economic potential Picture 3.23: Automated product classification system of Lazada Vietnam (Source: Lazada Vietnam) Chapter 46 Human resources management According to HR Asia magazine in 2021, Lazada was ranked in the list of "Best places to work in Asia" and HR Asia's in-depth survey on human resource policies, recruitment, working environment v.v at Lazada Firstly, Unleash the potential of every employee: A strong organization is built from unleashing the maximum potential and strengths of each employee Therefore, creating a dynamic, youthful and creative working environment is always one of the top criteria in Lazada's human resource development strategy At Lazada, each employee is given the opportunity to learn, experience and challenge themselves with new knowledge in the field of e-commerce - which is constantly evolving and changing every day Each department, each position has the opportunity to participate in Lazada's interesting and useful human resource training programs If talented and passionate young people in the field of e-commerce learn about all departments and working processes at an e-commerce platform through the Lazada Forward Youth 2021 program, the employees will be equipped with skills for future leaders through the annual Lazada Learning program One step up, for mid-level employees, Lazada has a Leadership Development Program (LEAP) that helps build capacity and equip future leaders Picture 3.24: LEAP Program Forward Youth are Lazada's two programs on training and recruiting talents (Source: Lazada.vn) Secondly, the physical and mental health of employees is a top priority As an e-commerce platform, Lazada's staff spans from office staff, operations staff at warehouses, sorting centers and delivery staff Therefore, despite the recent strict social distancing, part of Lazada's staff in the logistics group still works normally to ensure the adequate supply of essential goods to the people With that situation, Lazada has actively implemented the "Covid Care 2.0" program to ensure the health of employees and the community even during the stressful situation of the Covid-19 epidemic with a series of safety measures, including: including implementing a work-from-home policy, organizing vaccinations and equipping employees with health protection kits, having a special policy for employees who are F0, building disinfection chambers at warehouses goods, sending essential items to employees… Picture 3.25: Lazada protects employees' health (Source: Lazada.vn) Thirdly, Individual roles and sustainable association are realized An advanced working environment is one that always respects individual differences and encourages employees to exchange ideas openly, fairly, regardless of position, rank or experience … Lazada culture is very flexible and always upholds the role of each individual, as well as the connection between individuals and leaders, and individuals with the development of the company In its human resource development strategy, Lazada continuously applies assessment tools to receive employees' feedback on the working environment, work regimes and policies; at the same time increasing activities of sustainable association between employees and the senior leadership team Specifically, eNPS – an online survey tool that collects opinions to assess employee satisfaction and proposes innovative and creative ideas; or roundtable seminars to discuss and exchange ideas between employees and leaders Picture 3.26: James Dong - CEO of Lazada Vietnam freely interacts with associates (Source: tuoitre.vn) Finally, employees have opportunities for career development Most of Lazada's employees belong to the Millenial and GenZ generation the generation that aspires to develop themselves in their careers Therefore, not only offers the opportunity to work in a dynamic and professional international environment, but Lazada also attracts young talents by building a clear and feasible career development journey along with unique experiences attractive challenges, helping each employee have more motivation to raise annual work goals, creating a premise for career advancement Lazada continuously organizes a series of Learning Festivals with the participation of talented speakers inside and outside the company, to promote employee learning on a variety of topics such as "The Urge of Learn, Unlearn", Relearn", "Numerology", "Resilience and Stress Management", Besides, the "coffee talk" sessions with company leaders also help employees freely share views and receive additional advice benefits on career development Picture 3.27: The Learning Festival program brings a lot of useful knowledge on a variety of topics for employees (Source: Lazada.vn) Chapter 47 Marketing management Lazada's marketing mix strategy focuses on analyzing four factors of product, pricing strategy, distribution and advertising 47.1.1.1.1 Product Lazada aspires to become an "online hypermarket", with all goods from basic to luxury In addition, a few items such as cosmetics, home appliances, and high-tech items are invested by Lazada and co operated exclusively with big brands This action helps the company earn more profits and improve its reputation 47.1.1.1.2 Price Lazada uses a Hi-Low pricing strategy (High Base - Low Promotion) Although the original price is high, every month Lazada will organize a discount with product promotions, making the product price lower than other trading floors This strategy will help customers always remember Lazada and visit often to participate in shopping interactions because of good prices 47.1.1.1.3 Place Lazada has a large inventory and fast shipping (LEX) But to speed up delivery, Lazada cooperates with VNPost, Ninja Van, DHL, etc Focusing on the link above will help save time to store goods, save space and can deliver goods as soon as they are available at the warehouse 47.1.1.1.4 Promotion Receiving a lot of support from the parent company, Lazada creates many promotions, discounts and regular brand promotions everywhere Increasing coverage is how Lazada impresses customers and makes them always remember Lazada Chapter 48 COMPARISON BUSINESS STRATEGIES OF TWO E-COMMERCE PLATFORM (SHOPEE AND LAZADA) Chapter 49 Similar Chapter 50 Shopee and Lazada policies for users Buyer Protection Policy is an important factor that users need to consider when choosing to buy a product or not Shopee and Lazada both make sure to provide this extra safety for consumers Customers will never receive fake goods and have more trust in the e-commerce platform.  Chapter 51 Quality of goods The number of orders on the Lazada e-commerce platform is large and linked to many large and small stores in particular and many businesses in general Still, the source of quality goods is always guaranteed Shopping on LazaMall will be committed to being genuine and always highly reliable Shopee also has its own certificate of authenticity and quality ShopeeMall always has high reliability for customers when shopping, but other Shopee products may still have low-quality products When choosing to shop on Shopee, you need to refer to many reviews that make buyers wonder about the quality of that item Chapter 52 Promotions/sales Shopee's strong discounts are always available on the same day of the same month, such as 5/5 or 6/6… More prominent are promotions with orders of 1,000 VND or 10,000 VND Besides, Shopee always offers events or minigames to help players accumulate discount points when making purchases Lazada also captures the discount model on the same day of the same month and often opens promotions with many incentives for buyers On Lazada, you can still buy items for only VND which is a pretty prominent point on Lazada Chapter 53 Different Chapter 54 Lazada Chapter 55 Wedsite UI The interface of the Lazada seller center is user-friendly and for the intermediary seller However, for those just starting out in selling online, it may take a few steps to fully grasp the website's functionality Even so, Lazada makes up for it through Lazada University, where newbies can take advantage of training resources to become Lazada sellers Picture 4.28: Lazada Website UI Chapter 56 Marketing Strategy for Sellers Pioneering the combination of AI, machine learning and data analytics to optimize user experience Accordingly, the customer's shopping history data will be stored and processed to help optimize the search and give the right suggestions in the future purchases of the customer Picture 4.29: Mr Vu Duc Thinh, Director of LEL Express Company introduced the automatic goods classification system Chapter 57 Selection based on shopping habits Lazada has a stronger foundation in terms of the website Lazada always has favored those who shop on its computers such as discount vouchers or points incentives The amount of traffic to the website has also created a fever because Lazada strongly focuses on marketing activities and wants to dominate the ecommerce market in Vietnam Picture 4.30: Lazada website on computer Chapter 58 Shopee Chapter 59 Wedsite UI In terms of website UI, Shopee is more seller-friendly than Lazada As you can see in the image above, the user interface of the Shopee seller center is simpler It is a suitable sales platform for those who are not familiar with most of the technical terms related to sales Picture 4.31: Shopee Website UI Chapter 60 Marketing Strategy for Sellers They have partnered with celebrities, singers, KOLs and dancers to create reviews that buyers enjoy and appreciate As a result, Shopee is more skilled at influencing customers' purchasing decisions than expected Picture 4.32: Shopee cooperated and used the image of singer Bao Anh in the promotional clip for the huge sale campaign at the end of the year Chapter 61 Selection based on shopping habits Shopee focuses on developing the mobile application platform It can be seen that Shopee works very effectively on the Moblie App When experiencing Shopee on the phone, most users feel extremely comfortable with its eyecatching and easy-to-use interface, even for beginners This is a big priority when Shopee wants to use the segment of customers who often use their phones to serve shopping Picture 4.33: Shopee on mobile app CONCLUSION In short, you should buy at Shopee or Lazada, you can buy anywhere as long as you choose a good product, a reputable shop and have a clear return and exchange warranty In my opinion, goods with a value of 10,000,000 VND should be purchased at genuine stores of such goods on Shopee Mall or Lazada Mall If you want the goods to be delivered quickly, then you should choose to buy at Lazada because they have automatic goods sorting equipment so the delivery process is very fast And another thing that is difficult to control is that there are good and bad goods everywhere, and the thing that the old people often say that luck is better than smart is also partly true in this situation, but if you are a smart consumer then the probability of meeting poor quality goods will be greatly reduced So arm yourself with some knowledge to buy quality online REFERENCE factors leading to the success of a campaign at Shopee (2021) Retrieved from Shopee Uni: https://banhang.shopee.vn/edu/article/10765 Choudhury, S R (2021) More than 75% of people in Southeast Asian countries now have access to the internet, report finds Retrieved from CNBC: https://www.cnbc.com/2021/11/10/google-temasek-bain-reporton-southeast-asia-internet-economy-2021.html Du, T (n.d.) Effective business strategies on e-commerce platforms Retrieved from Admarket: https://admarket.vn/blog/chien-luoc-kinh-doanh-hieuqua-tren-cac-san-thuong-mai-dien-tu-a261.html Ha, L T (2022) Case Study: SWOT analysis of Shopee in detail Retrieved from LPTECH: https://lptech.asia/kinh-doanh/case-study-phan-tich-mo-hinhswot-cua-shopee-chi-tiet Ha, V T (2021) Analysis of Shopee's business strategy - Famous e-commerce platform Retrieved from MISA AMIS: https://amis.misa.vn/30796/chienluoc-kinh-doanh-cua-shopee/ Khoo, S (2021) Top Ecommerce in Southeast Asia Retrieved from Linkedin: https://www.linkedin.com/pulse/top-7-ecommerce-southeast-asia-senkhooLinh, T (2022) 2022 selling on Shopee or Lazada? Detailed comparison for sellers Retrieved from Haravan: https://hocvien.haravan.com/blogs/thuong-mai-dien-tu/2022-ban-hangtren-shopee-hay-lazada-so-sanh-chi-tiet-cho-nguoi-ban Mien, M (2022) What is Lazada? Which country's Lazada company? Retrieved from Chanh tuoi: https://chanhtuoi.com/lazada-la-gi-p2415.html Selling on Lazada and Shopee: Unbiased direct comparison (2020) Retrieved from Split Dragon: https://blog.splitdragon.com/vi/selling-on-lazada-vsshopee-a-direct-unbiased-comparison/#Lazada_Mobile_Seller_App Shopee (n.d.) Shopee is the leading e-commerce platform in Southeast Asia and Taiwan Retrieved from Shopee Careers: https://careers.shopee.vn/about The battle between Lazada and Shopee (n.d.) Retrieved from Sikido: https://sikido.vn/cuoc-chien-giua-lazada-va-shopee ... control of the quantity and quality of goods Chapter 26 BUSINESS STRATEGY OF TWO ECOMMERCE PLATFORMS (SHOPEE AND LAZADA) Chapter 27 Shopee Chapter 28 Shopee? ??s business philosophy The Shopee e-commerce...HOA SEN UNIVERSITY FACULTY OF LOGISTICS-INTERNATIONAL TRADE  FINAL REPORT TOPIC: COMPARISION OF BUSINESS BETWEEN LAZADA AND SHOPEE Course Title Course ID Class ID Lecturer... ……./……./2022 (Name and signature) ABSTRACT The report "Comparison business strategies of two e-commerce platforms (Shopee and Lazada) " with the purpose of researching the building and operating of the two