Introduction
The present-day business world presents a challenge for companies requiring them to continuously realign their policies to remain competitive on the market. Vipshop Holdings Limited is no exception to the rule, and its management’s actions should correspond to the principles of competitive dynamics. In order to analyze them, it is vital to consider the main components of its policies, such as the mission, vision, strategic and tactical actions providing the company with a competitive advantage on the market. This way, it will be possible to conclude on its efficiency or reveal issues that need to be eliminated to increase the competitiveness of Vipshop Holdings Limited.
Main body
The company under consideration is a leading online discount retailer in China. This position implies the presence of other players on the market striving to increase their importance in this sector (“Corporate profile,” n.d.). However, the situation of Vipshop Holdings Limited is quite positive due to the recent tendency for rapid growth and the resulting outperformance (Zacks Equity Research, 2020). The company shares keep moving higher, and this circumstance defines its leading role (Zacks Equity Research, 2020). This outcome allows concluding on a sufficient degree of flexibility ensured by the management.
The first components of the activity of Vipshop Holdings Limited are its mission and vision explicitly stated in the latest corporate social responsibility report. According to it, they are focused on the expansion of their business on a global scale (Vipshop Holdings Limited, 2019). Their vision relates to the goal of becoming a world-class e-commerce platform, and the mission is defined as the intention to improve quality of life and, consequently, achieve happiness and contentment of the population (Vipshop Holdings Limited, 2019). These tasks complement each other and present the principal competitive advantage of the company when combined.
However, the vision and the mission of Vipshop Holdings Limited provide only a basic understanding of the company’s policies. Their practical implementation can be seen from a set of strategic actions aimed at achieving the objectives mentioned above. In this case, the main initiatives that should maintain the company’s position on the market are the creation of an offline network and the all-channel flash sale retail (Vipshop Holdings Limited, 2019). The choice of these strategic actions is conditional upon the need to upgrade the offline market in order to remain competitive online.
These projects are complemented by specific tactical actions that efficiently address the needs of the company’s employees. Thus, they provide sports and medical facilities as well as training courses, thereby demonstrating the practical implementation of their mission and vision (Vipshop Holdings Limited, 2019). The company also assists low-income workers through the V-Love fund and targeted poverty alleviation programs (Vipshop Holdings Limited, 2019). As for communities, the business helps diseased and special groups of people by providing various services (Vipshop Holdings Limited, 2019). In this way, the orientation on sustainable development allowing to remain competitive includes not only profits but considers the impact on society.
Conclusion
To sum up, the leading position of Vipshop Holdings Limited on the market is mostly supported by the improvement of their financial indicators. However, the concept of competitiveness dynamics relates not only to the profits but also to the company’s overall impact. From this perspective, its actions also correspond to the components of a business’s competitive advantage, which include strategic and tactical actions. Thus, Vipshop Holdings Limited can be considered as one of the strongest players on the retail market.
References
Corporate profile. (n.d.). Vipshop Holdings Limited.
Vipshop Holdings Limited. (2019). Vipshop corporate social responsibility report. Web.
Zacks Equity Research (2020). Vipshop Holdings Limited (VIPS) hits fresh high: Is there still room to run? Nasdaq.