This case chronicles the rise of Meituan Dianping, the third largest company in China’s hyper competitive e-commerce industry. Best known for its food delivery service, the company was changing the lives of hundreds of millions of consumers and millions of merchant through a suite of smartphone apps.
To reach this point, the company had gone through several live or die competitive battles including the so called “Thousand Groupon War”. Well positioned to ride the fast-growth wave of China’s service e-commerce, there was no room for complacency. Competition was fierce and so was the pressure coming from merchants and consumers spoilt for choice. What strategies should the company implement to sustain long-term growth in the fast-evolving market?
Meituan Dianping: China’s Super Service App is a rich strategy case that allows for the teaching of multiple key concepts including:
- Competitive strategies in online-to-offline businesses
- Network effect and competitive strategies in two-sided markets
- Core competencies in fast cycle markets
- Judo strategy
- Platform strategies
- Collaborative strategies
- Business level strategy and the working of price discounting