The Evolution of Opple

Lightning’s E-commerce
Business
Syndicate 1
1. Mochammad Nadhif Arsyad (29120381)
2. Andika Prawira Pitono (29120575)
3. Rizqi Ghani Faturrahman (29120382)
4. Herdiansyah Gustira P.S (39020901)
Table of Contents

Case Overview
Discussion 1:
Pain Points of Lighting Industry
Threats and opportunities of the Internet
Opple Reinvent
Discussion 2:
Manage potential conflict
Discussion 3:
Opple’s Challenges
Keep sustained growth
Case Overview
 1996: Company Lightning was discovered by Wang Yaohai and
Company Overview Ma Xiuhu

1998: Later, the company is given the name "Opple" by them

Opple Lighting was founded in 1996, is a 1999: The first 3 years running, they began to think about
multinational company from China which expanding their capacity and building a factory
is engaged in the lighting corporation. 2004: After the factory and capacity were successfully enlarged
Located in Shanghai, China and built, they carried out market development abroad.

2009: Opple headquarters, moved to Shanghai.

2012: The Wujiang Opple production base begins operations.

2013: In terms of sales of lightning products, Opple was ranked

first for online sales (with sales revenue of 60 million yuan
during the Singles Day Shopping Festival).

2015: Annual sales of Opple products exceed NVC and Phillips

Linghting's. Making Opple an industry leader

2016: Opple entered the Shanghai Stock Exchange

 Events
● It had taken the Shanghai-based firm just seven years to grow online sales from zero to lead the industry
● At first, most department heads opposed the launch of e-commerce, arguing that it would impede the
development of existing businesslines.
● Opple’s venture to e-commerce:
○ To avoid direct conflict with offline channels, the e-commerce team could not source from the
company’s existing product line.
○ he leveraged his resources in the supply chain department and contacted Opple’s external suppliers. They
quickly developed many innovative home lighting products for e-commerce and produced them in small
and frequent batches as OEMs.
● Key factors in the success of the e-commerce BU included the continuous fine-tuning of its organizational
structure, talent management approach and performance system, as well as operations strategy and new
channels such as online malls.
● Building and Refining the Performance System, Boosting Operational Efficiency
● Impact of the e-commerce BU
○ Corporate Culture Changes
○ Organizational Structure Changes
○ Incentive Mechanism Change
Discussion 1:
Pain Points, Threats and
Opportunities, Links in the
industry chain did Opple reinvent
Pain Points of Lighting Industry

● In 2011 and 2012, the lightning sector experienced challenges

● There are new technologies of lighting, such as LEDs, that disrupted the market
● The presence and development of market places such as e-commerce can bring
various kinds of new brands to the market
● Fierce competition, during Single's Day 2012, online lamp sales tripled to 600
million yuan.
● Market turbulence resulted in a fall in sales for Opple
 Threats and opportunities of the Internet

Threats: Opportunities:

● The condition of the back-office that cannot ● Can make direct sales to customers
keep up with the fast development of the e- ● Can make the market bigger because of the
commerce business. This causes delivery unlimited access from customers
errors and other problems.
● There are differences in product prices that
occur in online stores and offline stores
● The channel department's only function is to
sell products, so it cannot develop products
independently.
Industry chain that Opple reinvent
To address the pain, threats using the opportunity, Opple reinvent the manufacturing and
distribution chain in the industry.
● First Opple creates e-commerce business unit. The e-commerce business is then given an
independent which allowed his team to develop new products independently without
going through the company’s product development process. For example, he leveraged his
resources in the supply chain department and contacted Opple’s external suppliers. They
quickly developed many innovative home lighting products for e-commerce and produced
them in small and frequent batches as OEMs
● Besides the manufacturer chain, Opple also reinvent the distribution chain by first
rebuilding the warehousing system to meet the needs of online sales logistics with better
order status management.
Discussion 2:
Manage Potential Conflicts
between old and new businesses
Manage potential conflict

● Offline channel department opposed the launch of an e-commerce business.

● E-commerce department receive very little support from relevant functional departments
due to the rigid structure of administrative rights and responsibilities.
○ Veterans in new jobs, newcomers on old jobs, the veterans ease the interdepartmental
conflict.
● To avoid direct conflict with offline channels, the e-commerce team could not source
from the company’s existing product line.
○ he leveraged his resources in the supply chain department and contacted Opple’s
external suppliers. They quickly developed many innovative home lighting products for
e-commerce and produced them in small and frequent batches as OEMs.
○ persuaded Ma and the new supply chain head to sign an agreement drafted by him,
which allowed his team to develop new products independently without going
through the company’s product development process
Discussion 3:
Challenges that Opple will face
and how can it keep sustained
growth?
Opple’s Challenges

● The New Lightning technology such as LED that can disrupted the market share from
incandescent bulbs and CFLs
● The Rise of E-commerce brand to the market that can cause market turbulence
● Need a sustainable business model that can integrate online/offline business activity
● The e-commerce BU constantly adjusted its organizational structure to adapt to its
business.
Sustained Growth

● Creating a strategy that can take advantage of this e-commerce business condition
for other companies businesses so that sales increase and their business grows
(electrical products, ceilings, luxury lighting, smart lights, etc.)
● Making a system that can integrate online and offline businesses
Thank You