Q1.

What did market entrant Lazada do to successfully enter the South Asian e-
commerce market? Consequently, which of Lazada strategic assets are useful for
Alibaba?

Things successfully done by Lazada

 Logistics
 Payment Gateway
 Partnership
 Reseller Model
 Quality Control
 Competent Management Team

Category Key Strategic Undertakings by Lazada Use for Alibaba

Asset

People & Culture CEO - - Achieved online footprint of 5 million Alibaba had experience only
Maximilian daily visits in China. To compete with
Bittner Amazon and other regional
- Strong content marketing capabilities players in the fast-growing
made Lazada significantly popular in the market, experience,
online shopping space in SE Asia knowledge and brand
recognition will be required
Competent - The Management team had experience
Management in working in the fragmented South
Team Asian market

Supply Chain Merchant - Lazada had an active merchant Instrumental to succeed and
Network Network network of 27,000. This helped in build business in emerging
accounting for 65% of total revenues markets. Alibaba will have
to spend billions with high
risk to create the same
Lazada Express - Own logistics service with higher platform and network of
control partners, merchants and
distributors
- partnered with over 100-third party
logistics providers

- Fleet of over 2000 vehicles for last mile

delivery

Payments & Tech HelloPay - Large population preferred COD Later integrated with
Alibaba’s Ant financial and
COD - e-payment and e-wallets were key to e- re-branded as Alipay
commerce growth since only 2-11
percent used online payment systems

Partnerships LiveUp - Similar to Amazon Prime membership Can compete with Alibaba’s
membership in partnership with Uber, Netflix, rival Amazon Prime
program Redmart to provide exclusive discounts, membership in Southeast
offers and deliveries Asian market

Unilever - Strategic partnership to capture FMCG

market with estimated projection of $25B
by 2020