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MGT657 Group Assignment (final)

Strategic management (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

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MGT657 STRATEGIC MANAGEMENT

CLASS GROUP – NBI8A

GROUP ASSIGNMENT:

SHOPEE Pte Ltd

COMPANY REVIEW & STRATEGIC PLAN

PREPARED BY GROUP NO – 1:

NO. NAME MATRIC’S NO

1. HARIZ SYAZALI BIN HAMIS 2019997533
2. NUR 'AQILAH RUSHDIAH BINTI AHMAD ROSDI 2019919587
3. MUHAMMAD AKMAL BIN SAZALI 2018234832
4. MUHAMMAD AINULLAH BIN ZULFAKAR 2015363563
5. NUR AMIRAH BINTI NORMAN 2015452976

PREPARED FOR:
DR. MURNI ZARINA BT MOHAMED RAZALI

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ACKNOWLEDGMENTS

n the name of Allah, the Most Gracious, the Most Merciful.

~All praise to Him.

Let Allah9s Peace and Blessings be upon His Final Messenger, his pure family, his noble
Companions, and all those who follow them with righteousness until the Day of Judgment. Our
humblest gratitude to the holy Prophet Muhammad ‫ ﷺ‬whose way of life has been a continuous
guidance for us.

First and foremost, we would like to sincerely thank our MGT6579s lecturer, Dr. Murni Zarina
for her guidance, understanding, patience and most importantly, she has provided positive
encouragement and a warm spirit to finish this work. It had been a great pleasure and honour
to have her taught Strategic Management this semester.

Late 2021 was quite straining for everyone. Stress, anxiety, and discomfort for the unforeseen
future manifested in many of us. That is why our deepest gratitude goes to all our family
members, and friends who always there for us. They are certainly a gift, of which we often
taken for granted.

Our words are not enough to fully appreciate all the kind supports we have received. May Allah
grant the above cited personalities with success and honour in their life, as well as safety and
health from this moment on. Amin.

________
GROUP 1
15th January 2022

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TABLE OF CONTENTS

ACKNOWLEDGMENTS ......................................................................................................... 2

TABLE OF CONTENTS ........................................................................................................... 3

LIST OF TABLES AND FIGURES...................................................................................... 5

EXECUTIVE SUMMARY ....................................................................................................... 6

REPORT .................................................................................................................................... 7

1.0 OBJECTIVES .................................................................................................................. 7

2.0 COMPANY INTRODUCTION ...................................................................................... 7

2.1 BACKGROUND ......................................................................................................... 7

2.2 LOGO .......................................................................................................................... 9

2.3 MISSION ..................................................................................................................... 9

2.4 VISION ...................................................................................................................... 10

2.5 ORGANIZATIONAL VALUES ............................................................................... 10

2.6 CORE ACTIVITIES .................................................................................................. 11

I – COMPANY REVIEW ........................................................................................................ 12

3.0 COMPETITOR ANALYSIS ......................................................................................... 12

4.0 SWOT ANALYSIS ....................................................................................................... 14

5.0 TOWS MATRIX ........................................................................................................... 15

TOP TWO STRATEGIES ............................................................................................... 16

SWOT ANALYSIS CONCLUSION ............................................................................... 16

6.0 PEST ANALYSIS ......................................................................................................... 17

6.1 POLITICAL ANALYSIS .......................................................................................... 17

6.2 ECONOMIC ANALYSIS ......................................................................................... 18

6.3 SOCIAL ANALYSIS ................................................................................................ 19

6.4 TECHNOLOGICAL ANALYSIS ............................................................................. 19

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RECOMMENDATIONS FOR PEST ANALYSIS .................................................... 20

CONCLUSION ........................................................................................................... 22

9.0 INTERNAL FACTORS EVALUATION (IFE) MATRIX ........................................... 23

ANALYSIS OF IFE MATRIX ........................................................................................ 25

8.0 EXTERNAL FACTORS EVALUATION (EFE) MATRIX ......................................... 25

ANALYSIS OF EFE MATRIX ....................................................................................... 27

9.0 COMPETITIVE PROFILE MATRIX(CPM) ................................................................ 28

CPM ANALYSIS: ........................................................................................................... 28

II - COMPANY9S STRATEGIC PLAN ................................................................................. 29

10.0 SHOPEE9S STRATEGIC PLAN ................................................................................ 29

11.0 STRATEGY FORMULATION (STAGE 2) ............................................................... 31

11.1 STRATEGIC POSITION & ACTION EVALUATION MATRIX ANALYSIS.... 31

11.2 SHOPEE IE MATRIX ............................................................................................. 32

ANALYSIS OF IE MATRIX ..................................................................................... 33

11.3 BCG MATRIX......................................................................................................... 33

ANALYSIS OF BCG MATRIX ................................................................................. 33

12.0 STRATEGIC FORMULATION-STAGE 3 (QSPM).................................................. 39

QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM) ................................ 40

CONCLUSION ............................................................................................................ 41

13.0 FINAL CONCLUSION ................................................................................................... 42

REFERENCES ........................................................................................................................ 44

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LIST OF TABLES AND FIGURES

Table 1: SWOT Analysis ~ 13

Table 2: TOWS Matrix ~ 14
Table 3: Internal Factor Evaluation (IFE) Matrix ~ 23
Table 4: External Factor Evaluation (EFE) Matrix ~ 25
Table 5: Competitive Profile Matrix (CPM) ~ 28
Table 6: Strategic Position and Action Evaluation Matrix Analysis ~ 31
Table 7: Quantitative Strategic Planning Matrix (QSPM) ~ 40

Figure 1: Shopee Logo ~ 8

Figure 2: Malaysian Corruption Index 1995-2021 ~ 16
Figure 3: Malaysia Unemployment Rate 1982-2021 ~ 17
Figure 4: Number of internet users in Malaysia 2010 - 2020 ~ 19
Figure 5: Directional Vectors of SPACE Matrix ~ 32
Figure 6: The Internal-External (IE) Matrix ~ 32
Figure 7: BCG Matrix ~ 33

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EXECUTIVE SUMMARY

This written report is a compiled review of Shopee Ptd Ltd basic information, management and
its strategic plan.

The compilation made was based on understanding of Strategic Management Course over data
and sources which primaly available online. This report consisted of 3 parts, mainly;
Introduction, i) Company Review, and ii) Company9s Strategic Plan.

The Introduction compiles the basic the information of the company. Part I review the
company9s internal and external factors, its uniqueness, as well as its achievements and
problems it has. Part II mainly assess its management strategic plan, and its strategy
formulation overview.

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REPORT

1.0 OBJECTIVES

There are several objectives to be drawn from the study of Shopee Pte Ltd company
and its business from the strategic management aspects, which are:

1. To organize the information of the company into a proper outline and gain strategic
insights from the informations.
2. Assess the company9s competitive advantage, and audit what affecting its
performances internally and externally.
3. Review its short and long-term objectives and find out if their plan and strategies
alligned.
4. To formulate and draft best strategic plan for the company based on information
available.

2.0 COMPANY INTRODUCTION

2.1 BACKGROUND

Previously know as Garena, now known as Sea or Sea Group, is the leading consumer
internet compuany in Southeast Asia and Taiwan. One of its main business is an e-
commerce platform known as Shopee, which is operated by Shopee Pte Ltd.

Shopee Pte Ltd which is a Singaporean multinational technology but focuses mainly on e-
commerce. Shopee itself was launched in Singapore and 6 other countries1 in 2015, and as
of 2021, it already serving consumers and seller throughout Southeast and East Asia, as
well as some countries in Europe and Latin America. According to Tech in Asia, Shopee
was called one of the <5 disruptive ecommerce startups we saw in 2015= for its technical
advancement and mass scale, thanks to the mobile and social elements integrated into the
model (Husain, 2015).

1
Malaysia, Indonesia, Thailand, Taiwan, Vietnam, Phillippines

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Shopee e-commerce platform, which cater mostly the mobile users in the early years,
intended to provide an easy, secure and fast online shopping experience for customers
across Southeast Asia and Taiwan. The company9s online shopping portal offers products
across a range of categories including apparel, mobile, gadgets, home appliances, books,
electronics, automotive, and accessories, thereby enabling customers to buy products of
their choice conveniently from home with multiple payment options.

In March 2016, Garena, the parent company of Shopee, which is a mobile shopping
platform in South East Asia, announced that it had obtained a total investment of 170
million U.S. dollars from the Malaysian National Sovereign Fund and Tencent. And in
April of the same year, Alibaba spent 1 billion US dollars to acquire Lazada, the largest e-
commerce platform in Southeast Asia. At the end of 2016, Shopee have already made a
remarkable achievement. With more than US$1.3 billion in GMV, the daily volume
reached more than 200,000. More than 2,000 employees are located in different countries
and regions (Bella, 2018).

Shopee was placed in Top 5 e-commerce sites in Malaysia since its launch, and managed
to get second place in 2018. In 2021, Shopee currently leading the e-commerce ranking in
Malaysia according to Statista, with monthly traffic almost triple of its contender, Lazada
(Statista, 2022).

On 3 September 2019, Shopee officially opened its new six-storey regional headquarters
at Singapore Science Park. The new building has 244,000 square feet (22,700 m2) of
space, which can accommodate 3,000 employees and is six times larger than the previous
headquarters at Ascent Building. The building was previously tenanted by WeWork in
Singapore. The lease was subsequently relinquished to Shopee as a result of its rapid
expansion. By doing so, it strengthens its push into the digital economy. Shopee entered
India with a quiet soft launch in November 2021 (Heng, 2019).

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2.2 LOGO

Figure 1: Shopee Logo

From observation, the Shopee logo is designed by using an image of a shopping bag and
an alphabet of <S= in the centre of the shopping bag. <S= represented <Shopping= and also
<Shopee=. The orange colour differentiate itself compared to other online marketplace, and
the shopping bag is representing a necessary deliberate feature in brand service, it can
assist customers to remember and connect with the company instantly.

2.3 MISSION

Create a simple and secure mobile marketplace for everyone to buy and sell, anytime
and anywhere

As we know, almost all sellers in Malaysia use Platform Shopee to sell their products
as many of the consumers love shopping at Shopee. The mission of this company is
achievable and friendly to sellers and consumers. Some other platforms, the website or
application are complicated and hard for sellers and consumers to use. Most importantly,
the privacy details are secured, and if sellers did not post the items or the seller are
cheating, Shopee will take action by refunding the buyer.

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2.4 VISION

Shopee believes online shopping should be accessible, easy and enjoyable. This is the
vision Shopee aspires to deliver on the platform, every single day.

Almost everyone is using Shopee to buy any products, especially so during the time of
Covid which started at the end of 2019. Everyone is using online platforms to buy
necessary products and shopping. By using our smartphones, we can shop at any time,
anywhere at Shopee. It is very easy for everyone. Shopee also create various type of
activities, such as games, sharing, affliatie program to rewards their users using coins,
voucher and cashback. This made the experiences enjoyable toward different types of
consumers.

2.5 ORGANIZATIONAL VALUES

We serve
• Customers are always right
• Exceed customer expectations, deliver above and beyond
We adapt
• Anticipate changes and plan ahead
• Accept unanticipated changes and make things happen
We run
• Self-driven to deliver, don9t need anyone to push
• Always have a sense of urgency to get things done
We commit
• Be reliable, do what we say we will do
• Uphold high standards; don9t take shortcuts, even when no one is watching
• Act like an owner; proactively find ways to make our organization better
We stay humble
• Believe we are always the underdog, and seek to learn from the market and
competitors
• Accept that we are not perfect, and will never be
• Work hard first, celebrate and enjoy later

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2.6 CORE ACTIVITIES

This company provides an online retailing platform for businesses and individuals in
several countries. Shopee makes money via marketplace commissions, transaction fees,
CPC2 advertising on its platform, fulfillment services, payment fees, as well as
commissions paid by restaurants. Shopee itself operates on a marketplace business model
in which it matches supply (sellers) with demand (customers).

Shopee also acts as mediators for any dispute between sellers and buyers, and guarantors
for any warranty issues, acts of malice such as scam, and more to make sure the
marketplace safe and trusted for buyer to make transactions.

2
Cost Per Click. Shopee charge a small fee for any retailer that use this advertising service. It allows their products
listed on front pages of search result.

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I – COMPANY REVIEW

3.0 COMPETITOR ANALYSIS

Shopee has one of the most competitive business models in the market today compared
to their alternatives;

1. Carousell 5. Pinduoduo
2. Mudah 6. Lelong
3. Lazada 7. eBay
4. Alibaba

Some of the above charge fees/commissions and listing fees while the Shopee business
model does not. Most of these do not stand a chance against Shopee9s revenue model.
The subsidized shipping is currently being done by Shopee and Lazada. These are huge
competitive advantages against the listing model such as Carousell and Mudah and the
commission/fee model like Qoo10, 11Street, Lelong, and eBay.

Since the rest do not really stand to rank as highly in the long-term, let us set them aside
and explain why Lazada is the main competitor for Shopee.

Lazada, of course, has the advantage of its buyer, Alibaba (Their last valuation for Lazada
was 3.15b to own over 80%). Alibaba9s Alipay as the main payment system is a great
strategy to make Lazada profitable both directly and indirectly. This is through the
sharing of users and the profits from Alipay being channeled to sustain Lazada9s cash
burn3. By the end of 2015, Lazada was bleeding with 30% gross margins and -100% net
EBITDA margin, or something close to profit margin, for the laymen reading this.

Still, Alibaba9s Jack Ma is a highly respected businessman, his strategy of purchasing a

loss-making company and placing it in Alipay could prove to be one of his more
sophisticated maneuvers yet. Not many business owners use their Venture Capital arm
in a way that a portfolio company could bleed in one pocket and profit from another,

3
Both Shopee and Lazada and running the Debt-fuelled growth strategy, as both of them still making losses and
kept burning their money from investors. They incentives the consumers to make sure their platform have
consistent users the most. They way of the deadlock is when one runs out of money first, or one dominates the
market by huge gap and start reducing incentives and gain back the profit. (Ballard, 2018)

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resulting in a net gain in the long-term. Strategies like this are what make great
businessmen, as not only does it make money, but it also proves to be a great strategy to
deter competitors that do not own (a) a huge fund and (b) a payment processing business.
Just like Uber vs Didi Chuxiang (backed by Alibaba and the other Chinese tech giants)
was almost the same. Some say that Uber lost because they were not able to accept Alipay
as a form of payment.

One more thing that Shopee does not have is Alibaba9s logistics hub in Malaysia9s new
digital free trade zone. This is a clear path to lower cross-border logistics costs as an
additional competitive advantage.

To differentiate itself from Lazada and others, Shopee offers users to purchase their
products from its website or app through a security service which is its own escrow
service named <ShopeeGuarantee= to ensure that buyers can receive the products they
brought. Shopee will withhold the payment to sellers until buyers receive their products.
Moreover, Shopee provides real-time shipping information for users by cooperation with
Poslaju and DHL, and recently having their very own courier, Shopee Express4. Not just
that, Shopee Provides an interface with an in-app Live Chat function which is designed
as a social commerce platform to enable users to communicate with sellers in order to
build trust. Lastly, Shopee integrates social sharing features to allow users to share their
products in the social media platforms.

Different from Amazon, eBay and other shopping platforms, eventhough it has their
desktop web, Shopee is focused on their mobile social shopping platform, and it
conforms to the global e-commerce trend of mobile e-commerce. According to surveys,
more than 51% of online shopping people in Southeast Asia like to shop through social
media. In Thailand, for example, about 71% of smartphone users shop once on average
two months (Kemp & Moey, 2019). Recent years, PayPal and Facebook started to
explore the commercialization of social media. Shopee takes <social= as the starting
point, and takes socially-minded women as its main users to quickly enter the mobile e-
commerce market, attract large numbers of users through mainstream social media in a
short period of time, and compatible feature settings with strong social attributes such as
one-click sharing, chat comments, and fan resumption. At present, 60%-70% of users of

4
See https://www.techinasia.com/shopee-expands-logistics-services-malaysia-offer-nextday-delivery-shopee-
mart

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Shopee are young females. The main product categories are beauty care, baby products,
watch accessories, popular shoes and home furnishings, and now are expanding in the
entire category.

4.0 SWOT ANALYSIS

STRENGTHS WEAKNESSES

• E-Commerce Leader • Application error

• Strategy Promotion • Complicated promotion terms and
• Customer Base & Loyalty condition
• Financial Growth (GMV and gross • Complicated disbursement fund to
order) seller
• Focus on Innovation • Net Loss
• Financial Features
• Many Features available

OPPORTUNITIES THREATS

• Cooperation with logistic parties • Heavy competitor

• Extensive seller partners • Product Description
• Cooperative with famous brand • Government Regulation
• Hacker
• Buyers Interest
• Customer Privacy
• Customers Mind Set

Table 1: SWOT Analysis

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5.0 TOWS MATRIX

INTERNAL | EXTERNAL STRENGTHS WEAKNESSES

• E-commerce Leader • Application Error

• Strategy Promotion • Complicated Promotion Terms
• Customer Base & Loyalty and Condition
• Financial Growth (GMV and Gross Orders) • Complicated Disbursement
• Focus on Innovation Funds to Seller
• Financial Features • Net Loss
• Many Features Available
OPPORTUNITIES SO WO
• Cooperation with Logistics • Extending market networks into previously untapped areas (S1, O2) • Work together to reduce
• Parties • Maintain and improve the quality of logistics services, such as delivery within shipping costs so that all free
• Extensive Seller Partners 24 hours of goods arriving at the consumer9s location (S3, O1) vouchers do not require purchase
• Cooperation with Famous conditions (W2, S1)
• Brand
THREATS ST WT
• Heavy Competitor • Maintaining customer service, particularly those related to technology, so that • Every month, maintain and
• Product Description shopee9s service quality differs from competitors9 (S3, T1) improve the security of shopee
• Government Regulation • Create new chat features for sellers and buyers to use in order to solve problems websites and applications to
• Hacker with product details (S5, T2) avoid errors and piracy (W1, T4)
• Buyers Interest • Develop cutting-edge technologies for website security and mobile applications
• Costumer Privacy to combat piracy (S5, T4)
• Mind Set • Increase marketing and promotion by introducing shopee promos, flash sales,
and so on, so that consumers can compare prices at shopee that are lower than
prices in stores (S2, T5)

Table 2: TOWS Matrix

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TOP TWO STRATEGIES

• Work together to reduce shipping costs so that all free vouchers do not require
purchase conditions.
• Every month, maintain and improve the security of shopee websites and applications
to avoid errors and piracy

The top strategies selected above represent relevance and timeliness to be observed and
adapted by the organisation in order to mitigate future reputational damages and seek
better market positioning in breaking into a new market segment. Using both strategies
improves the platform9s quality of service to provide greater customer value and
satisfaction to patronise, builds a partnership, and creates a long-term business
relationship with the platform.

SWOT ANALYSIS CONCLUSION

Finally, SWOT Analysis can be used to gather information from a variety of perspectives
that can then be used to gain a strategic advantage by either matching strengths to
opportunities or converting threats or weaknesses into strengths and opportunities. Based
on the SWOT analysis, Shopee Malaysia has its work cut out for it in terms of future
strategies. This analysis aids in providing guidelines and a road map for the company to
follow in order to advance its reputation and brand name. If Shopee wants to be
competitive in the future, it must focus on profitability rather than volume alone. Volume
and market leadership alone will not add value to its stock. By the end of this assignment,
we had gained a great deal of knowledge about e-commerce. To be more specific, we learn
about the various types of business models and how they differ in each e-commerce
company. Next, we learned about SWOT analysis and how it is used by ecommerce
businesses to identify barriers to business goals and to explore new solutions to problems.

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6.0 PEST ANALYSIS

PEST analysis is used to identify how future trends in the political, economical, social,
technological, environmental and legal environments might influence an organization. The
retail industry has experienced exponential growth in recent years. People of all ages are
becoming more familiar with e-commerce. The following are the analysis over the
environment in Malaysia:

6.1 POLITICAL ANALYSIS

A political factor determines how much the government or political situation can influence
the country9s economy or a specific industry. Malaysia, from a political standpoint, is one
of the world9s most peaceful and politically stable countries. It has one of Southeast Asia9s
most vibrant and peaceful economies. It is a multi-party democracy, with the Barisan
National Party, which governs the country, ruling for more than 60 years. Ut in 2018 until
now we have changed 3 Prime Ministers and 3 governments. This serves as proof for
investors that the government changes and the country9s trading policies are more than
stable, making Malaysia an appealing proposition.

However, allegations of high corruption have been levelled against Malaysian political
parties.. Furthermore, Malaysia is ranked 62 out of 180 countries in the most recent 2021
corruption index, as shown below. As a result, interested parties should investigate it
before investing in Malaysia, because any type of government work may necessitate
lobbying, bribes, and so on. This is a disadvantage for potential investors. Malaysia is
politically stable overall, with a few drawbacks.

Figure 2: Malaysian Corruption Index 1995-2021

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6.2 ECONOMIC ANALYSIS

These are economic performance determinants that have a direct impact on a company and
have long-term consequences. The indicators of a country9s economic analysis include the
unemployment rate, foreign exchange rates, interest rates, inflation rates, and so on. The
Malaysian economy9s economic situation in terms of these tools is discussed further
below. In Malaysia, the unemployment rate has remained unchanged since October 2021,
rising to 4.3 percent or 705 thousand, as shown below. This means that the labour force
has increased, indicating that new firms can invest in Malaysia and hire employees at a
lower cost. Furthermore, Malaysia is importing human capital from Bangladesh and other
countries, which increases the workforce and makes Malaysia an appealing bid for MNCs.

Figure 3: Malaysia Unemployment Rate 1982-2021

However, when it comes to the foreign exchange rate, the local currency has been volatile.
Due to weak demand for Malaysian exports, it rose 0.58 percent against the USD in
January 2022. As a result, it can shake investors9 confidence because constant insecurity
can jeopardise their investment. On the bright side, Malaysia9s inflation rate can be
described as low. According to the latest inflation rate recorded on 2021, it has been around
the ideal 2.5 percent approximately compared to last year, it has been quite moderate,
which will attract foreign investors as they can do planning and budgeting more efficiently.
To be profitable, businesses will need to work around the Malaysian economy and
capitalise on advantages.

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6.3 SOCIAL ANALYSIS

Social analysis examines the market9s social environment and assesses determinants such
as cultural trends, demographics, population analytics, and so on. Religious factors, ethical
issues, trends, history, education, demographics, health, and so on are all indicators of a
country9s social analysis. According to Malaysian social statistics, the Malaysian
population is made up of 60% Malay, 30% Chinese, and 10% Indians. As a result, it
enriches and revitalises the country9s culture. As a result, Malaysia hosts numerous
cultural festivals throughout the year, which can be targeted by business organisations.
Furthermore, Malaysian consumers9 purchasing habits are changing. They are increasingly
turning to the internet for their shopping needs.

As a result, e-commerce businesses can explore the opportunities in this market and benefit
from a massive 28 million population base. Furthermore, the country has a rich history,
which makes tourism an appealing industry. As a result, businesses such as travel agencies
will be eager to establish a presence there. Malaysia, on the other hand, has a high rate of
alcohol abuse. As a result, businesses should be aware of the consequences of hiring the
wrong person for the job. It may have a negative impact on the company9s image. As a
result, companies will need to be extremely cautious about this factor before proceeding.

6.4 TECHNOLOGICAL ANALYSIS

It entails technological advancements that may have a positive or negative impact on

industry and market operations. Technological development, research and development,
patents, licencing, information technology, consumer purchasing trends, and other factors
can all have an impact on technology. Malaysia had 29.03 million internet users in 20215,
indicating that the ICT market has strong growth fundamentals, as illustrated below,
including rising incomes and a high-tech-focused national development plan.

5
https://www.statista.com/statistics/553752/number-of-internet-users-in-malaysia/

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Figure 4: Number of internet users in Malaysia from 2010 to 2020 and a forecast up to 2025
(in millions)

Malaysia has the potential to generate US$ 6.2 billion from e-commerce businesses by
2018. It is sufficient to mention how consumer purchasing habits are changing as a result
of technological advancements. The strong banking sector, as well as good distribution
networks and widespread use of credit cards, are to blame for the massive shift in consumer
purchasing patterns. As a result, it is also opening up opportunities for businesses to profit
from these sectors. Furthermore, Malaysia9s most well-funded sector is education, and it
is home to a number of prestigious universities where much research and development is
carried out. As a result, new firms can take advantage of the benefits of R&D work and
innovate in their businesses.

RECOMMENDATIONS FOR PEST ANALYSIS

We came up with the clothing site business based on the PEST analysis in Malaysia. With
the PEST analysis on Malaysia, we will now determine whether or not this business is
appropriate for this country.

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• Current political situation: First, consider the country9s political situation. Malaysia9s
political environment is ideal for any type of business. It has a very peaceful and
appropriate political situation, and the most important thing is that this country is not in
the midst of any kind of political outbreak or chaos. For the time being, there is no chance
of changing the trade laws because they did not have 2/3 in the parliment after changing
government on 2018. This political factor appears to be advantageous to our company
because in the long term check and balance in the government can be improve when there
is no party controlling the parliment. The only issue is the country9s high rate of corruption.
This has the potential to raise our costs. Because the corruption rate in ASIAN countries
is lower, the cost will be minimal. Every year, it tends to fluctuate. Overall, the political
environment will be favourable to our company.

• Economic situation: This country9s economic growth has been increasing over
the last ten years. That will be an excellent opportunity for us to invest in Malaysia.
People can afford to buy goods and services because the inflation rate is low. As
a result, our products will be sold as long as the economy is doing well.
• Social situation: Malaysia is a multi-cultural country with a diverse population.
There are three major populations there. They are from Malaysia, China, and India.
As a result, various religious festivals and other events are held there each year.
This could be a huge advantage for our company. On different occasions, we can
bring different clothes in different designs and sell them there. As a result, we can
obtain a high percentage of sales.
• Technological situation: Because Malaysia is technologically advanced, our
business will be more broadened and beneficial as a result. Most people understand
how to use the internet and are well-versed in social media. Furthermore, Malaysia
has a very advanced banking and distribution network, which will assist us in
operating our business and reaching out to customers more efficiently. As a result,
we can reap the full benefits of E-commerce for both promotional and sales
purposes. This will save us time while also improving the effectiveness and
efficiency of our business strategy.

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CONCLUSION

According to the findings of this paper9s analysis, the Malaysian economy can be worked
by business organisations if the appropriate sectors are explored. From a business
standpoint, it capitalises on the country9s advantages while successfully avoiding the
negative consequences of establishing a business in the country. As a result, in order to
maintain any successful business proposition and the organization9s successful
profitability, investors should take advantage of the advantages and minimise the risks of
the base in which the business is established. Political, economic, social, and technological
advancements point to an expanding and appealing market for Shopee.com to exploit. The
Chinese and Indian markets have grown tremendously. The use of the internet as a social
networking channel has opened up new possibilities.

Furthermore, as global environmental awareness grows, it is critical that Shopee.com9s

strategy supports environmentally friendly activities. The global nature of Shopee.com9s
activities also implies that any strategies developed should be in accordance with the
various legal obligations that exist around the world. Malaysia is a beautiful country with
diverse ethnic groups, incredible forestry, and hardworking people striving to better
themselves. However, the country9s political system has been tainted by questionable
politicians who aren9t afraid to break the rules in order to stay in power.

Having said that, the country remains politically stable. The economy is doing well; less
than 4% of the workforce is unemployed. The government is working to develop the
country9s technology and knowledge-based industries so that it can rely less on gas and
diesel exports. It is hoped that it will increase investments and Over the next few years,
domestic demand will increase.

Because Malaysia is technologically advanced, our business will be more broadened and
beneficial as a result. Most people understand how to use the internet and are well-versed
in social media. Furthermore, Malaysia has a very advanced banking and distribution
network, which will assist us in operating our business and reaching out to customers more
efficiently. As a result, we can reap the full benefits of E-commerce for both promotional
and sales purposes. This will save us time while also improving the effectiveness and
efficiency of our business strategy.

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9.0 INTERNAL FACTORS EVALUATION (IFE) MATRIX

Internal factors evaluation matrix (IFE) is a tool that uses internal audit9s report to analyze
a firm9s internal strengths and weaknesses. An IFE matrix gives important information and
helps in strategy formulation.

Strengths
• E-Commerce Leader
• Strategy Promotion
• Customer Base & Loyalty
• Financial Growth (GMV and gross order)
• Focus on Innovation
• Financial Features
• Many Features available

Weakness
• Application error
• Complicated promotion terms and condition
• Complicated disbursement fund to seller
• Net Loss

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The result from IFE analysis was obtained through a number of key factors of strength and
weaknesses. In this case the ratings scale is from 1= major weakness to 4=major strengths.

No. Key Factors Weight Ratings Weighted

Scores
Strengths

1. E-commerce Leader 0.12 4 0.48

2. Strategy Promotion 0.12 3 0.36

3. Customer Base & Loyalty 0.12 4 0.48

4. Financial Growth (GMV and 0.09 4 0.36

Gross Orders)
5. Focus on Innovation 0.09 4 0.36

6. Financial Features 0.05 3 0.15

7. Many Features Available 0.05 3 0.15

Weakness

1. Application Error 0.12 1 0.12

2. Complicated Promotion 0.10 1 0.10

Terms and Condition
3. Complicated Disbursement 0.07 2 0.14
Funds to Seller
4. Net Loss 0.07 1 0.07

Total 1 2.77

Table 3: Internal Factor Evaluation (IFE) Matrix

Weight:

0.0 (Not Important) – 1.0 (Very Important)

Rating:
1- Major Weakness,
2- Minor Weakness,
3- Minor Strength,
4- Major Strength.

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ANALYSIS OF IFE MATRIX

The main strengths of online retail market in which Shopee operates is the being the E-
commerce leader and customer base and loyalty, too. The major weakness of this industry is
the Complicated Disbursement Funds to Seller and application error.

The weighted score of 2.77 (which is greater than 2.5) shows a strong internal position but
there are still issues to be sorted out. As in case of Shopee due to strategy promotion and
focussing on innovation have been high and though net sales have decreased. Shopee9s website
still having application error but they spending more in the innovation for stabailize their apps.

8.0 EXTERNAL FACTORS EVALUATION (EFE) MATRIX

An External factors evaluation model is based upon the external audit and evaluates key
external factors that affect a firm and also studies how well a firm responds to these
factors. In our evaluation of Shopee we found the following factors that affect Shopee9s
business and profitability.

Opportunities
1. Cooperation with logistic parties
2. Extensive seller partners
3. Cooperative with famous brand

Threats
1. Heavy competitor
2. Product Description
3. Government Regulation
4. Hacker
5. Buyers Interest
6. Customer Privacy
7. Customers Mind Set

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The result from EFE analysis was obtained through a number of key factors of
opportunities and threats. In this case the ratings scale is from 1= major threat to 4=major
opportunity.

No. Key Factors Weight Ratings Weighted

Scores
Opportunities

1. Cooperation with 0.12 4 0.48

Logistics Parties
2. Extensive Seller Partners 0.12 4 0.48

3. Cooperation with Famous 0.10 4 0.40

Brand
Threat

1. Heavy Competitor 0.12 1 0.12

2. Product Description 0.12 1 0.12

3. Government Regulation 0.10 1 0.10

4. Hacker 0.09 2 0.18

5. Buyers Interest 0.09 1 0.09

6. Costumer Privacy 0.07 2 0.14

7. Mind Set 0.07 1 0.07

Total 1 2.18

Table 4: External Factor Evaluation (EFE) Matrix

Weight:

0.0 (Not Important) – 1.0 (Very Important)

Rating:
1. Response is poor,
2. Response is average,
3. Response is above average,
4. Response is superior.

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ANALYSIS OF EFE MATRIX

Based on the weight assigned it can be concluded that Cooperation with Logistics Parties,
Extensive Seller Partners,and the Cooperation with Famous Brand are perhaps the most
important factors in online retail industry, having a high effect on Shopee9s business.

A weighted score of 2.18 (below average and midpoint 2.5) shows that the Shopee.com has been
weak and been threaten but Shopee can still manipulate the opportunities and counter the threats
that it has failed to do i.e. Shopee has not been able to work well if hacker threaten can not be
handle wisely and it has not been touch customer privacy.

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9.0 COMPETITIVE PROFILE MATRIX(CPM)

Shopee Lazada Mudah.com

Factors Weight Rating Weight Rating Weight Rating Weight

score score score
E-Commerce Leader 0.11 3 0.33 2 0.22 1 0.11
Product Quality 0.10 4 0.40 4 0.40 2 0.20
Consumer Loyalty 0.10 4 0.40 3 0.30 4 0.40 Table 5: Competitive Profile Matrix
Product Variety 0.09 4 0.36 3 0.27 4 0.36 (CPM)
Customer Service 0.11 3 0.33 4 0.44 2 0.22
Price Competitive 0.11 4 0.44 3 0.33 3 0.33
Promotion 0.09 4 0.36 3 0.27 1 0.09
Payment System 0.11 4 0.44 4 0.44 1 0.11
Application Structure 0.10 4 0.40 3 0.30 2 0.20
Coin Benefit 0.08 3 0.24 4 0.32 0 0.00

Total 1.00 3.7 3.29 2.02

CPM ANALYSIS:

The CPM analysis reveal that shopee have comment best strenght with other competitors Lazada.com about Product Quality and have
comment best strenght Consumer Loyalty with Mudah.com.

About technology apps as we can see Lazada and Shopee compete each other but Mudah.com not follow the changes. We can see Shopee
apps more structure than Lazada but Lazada have benefit coin more than Shopee. All this companies can still improve by improving strategies
on their weaknesses and maintaining strategies on their strength to greatly improve their rating in the most significant industry areas.

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II - COMPANY’S STRATEGIC PLAN

10.0 SHOPEE’S STRATEGIC PLAN

The Shopee9s philosophy is customer experience, which the company tries to connect and
enhance through social features.

Shopee’s website: extra steps on ensuring the supporting system available during the sales
period and maximize the site9s technological availability which enables retailers and brands
to manage properly, correctly, and smoothly the upsurge number of orders during this 2020
11.11 sale season.

Tutorial course on the website: Also known as Shopee University, these series are an
important part of Shopee9s marketing strategy in connecting with partners. This helps
brands and sellers with instructions on establishing, running, and controlling their online
tills on the website. Furthermore, dedicated lessons available on summing up what to expect
for sellers on big sales day.

New feature: Shopee intends to insert more friendly useful facets on the website for buyers
to easily navigate the site. For example, schedule notifications for upcoming sales and stock
of their wishlists, make use of the in-app games to earn extra rebates

Shopee9s in-house marketing department works together to an integrated and 360-degree

marketing approach to keep customers participated in all Shopee9s online, offline platforms

Kick-off offline channels with celebrity ambassadors: Shopee9s marketing strategy

progressively aims to further boost the brand9s coverage and boost visibility about the
upcoming 11.11 sales. Doing this by feature celebrity, KOL endorsement on every
Shopee9s advertisement and offline marketing campaign

Out-of-house initiatives: Shopee utilizes the celebrity endorsement on the banner, poster,
billboard on buses, taxis, trains

Local influencers engagement: Shopee targets to work more closely with local
influencers to further promote the upcoming sale event 11.11Thanks to the sharp growth
of eCommerce marketplaces in SEA, there is a growing opportunity for SMEs, retailers,

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and brands. This is proven with Shopee, as the number of sellers on Shopee9s website raise
around 60% annually

Shopee 9.9 Super Shopping Day: All sellers signed up for Shopee9s Seller Support
Package in April, during 9.9 sale day Shopee will highlight these new sellers throughout
super sale days 9.9, 10,10, and 11.11. Sellers has reported 6 times higher in the number of
orders during that period

Shopee University Program: This program includes online Seller Education Hub, Shopee
Masterclass, e-tailer9s social commerce tutorials which insist sellers on improving e-
commerce skills along with familiarizing with the Shopee Live platform.

International connection: Shoppe9s marketing strategy to reach out for international

connection among local, global brands with the regional digital-first shoppers. At the
beginning of 2020, Shopee has successfully connected 600 brands with big-name as
Samsung, Disney, and L9Oreal which generate 2,5 times sales during 10.10 sale days.

Besides preparing for the massive sales 10.10, Shopee steps up their marketing strategy by
putting emphasis on their partners, offering more opportunities for their online shopping
value chain consisting of businesses, retailers, sellers.

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11.0 STRATEGY FORMULATION (STAGE 2)

Matching stage focus on some creating feasible alternative strategies by aligning on
external and internal feature.

11.1 STRATEGIC POSITION & ACTION EVALUATION MATRIX

ANALYSIS

1.Growth potential +6 1.Market Share -1

2.Profit Potential +6 2.Quality -2
3.Resource validity +5 3.High Shipment Quality -2
4.Easy to entry +5 4.Customer Loyalty -1
5. Technological ai advance +5 5. Technological Innovation -2

Total 27 Total -8
Average 25/5 =5.4 -8/5= -1.6
External Strategic Position Internal Strategic Position
Environmental Stability (ES) Score Financial Strength (FS) Score
6. Technological Change -1 6.Net Income +2
7.Inflation -2 7.Earning per share +3
8.Competitor Price Range -1 8.Working Capital +3
9.Barriers to entry -1 9.Cash Flows +4
10.Competetive Pressure -4 10 Debt Issues +3
11.Price Elasticity of demand -5
12.Risk Exposure -2

Total -16/7=-2.3 15/5=3

Industry Strength (IS) Competitive Advantage (CD)
13.Grow Potential +6 11.Market Share -1
14.Profit Potential +6 12.Quality -2
15.Resource Availability +5 13.High Shipment Quality -2
16.Easy to entry +5 14.Customer Loyalty -1
17. Technological ai advance +5 15. Technological Innovation -2

Total 27 -8
Average 25/5 =5.4 -8/5= -1.6

Table 6: Strategic Position and Action Evaluation Matrix Analysis

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Figure 5: Directional Vectors of SPACE Matrix

This figure 1 show that space matrix from Shopee that from matrix analysis we can see
Scored is (3.8,0.7) it means that Shopee is aggressive company.

11.2 SHOPEE IE MATRIX

The IE matrix to analyse working condition and Strategic position on business. Analysis
factor from internal and external factor which combine into one suggestive model. The IE
matrix work on plot the total weighted score from EFE matrix on the y axis then the IFE
matrix plot on the x axis

Figure 6: The Internal-External (IE) Matrix

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ANALYSIS OF IE MATRIX

This tell us the Shopee should hold and maintain its position and it should pursue it
strategies focus on increasing market penetration and product development.

11.3 BCG MATRIX

The BCG matrix is planning tools that uses graphical representation of company product
and service to help effort that company decide what to keep, sell or invest more, it models
of four-square matrix. Y axis market grow x market share.

Figure 7: BCG Matrix

ANALYSIS OF BCG MATRIX

The BCG matrix for Shopee to Win the Southeast Asia E-Commerce Battle will help
decide on the strategies that can be implemented for its strategic business units.

Strategic business units with high market growth rate and high relative market share are
called stars. Businesses should invest in their stars and can implement vertical integration,
market penetration, product development, market development, and horizontal integration
strategies. Strategic business units with high market growth rate and low relative market
share are called question marks. These strategic business units require close considerations
whether the business should continue with them or divest. Strategic business units with

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low market growth rate but with high relative market share are called cash cows. The
business should invest in these to maintain their relative market share. Lastly, the strategic
business units with low market growth rate and low relative market share are called dogs.
The business should divest these strategic business units.

STARS

The financial services strategic business unit is a star in the BCG matrix of Shopee to Win
the Southeast Asia E-Commerce Battle. It operates in a market that shows potential in the
future. Shopee to Win the Southeast Asia E-Commerce Battle earns a significant amount
of its income. Shopee to Win the Southeast Asia E-Commerce Battle should vertically
integrate by acquiring other firms in the supply chain. This will help it in earning more
profits as this Strategic business unit has potential.

The Number 1 brand Strategic business unit is a star in the BCG matrix of Shopee to Win
the Southeast Asia E-Commerce Battle, and this is also the product that generates the
greatest sales amongst its product portfolio. The potential within this market is also high
as consumers are demanding this and similar types of products. Shopee to Win the
Southeast Asia E-Commerce Battle should undergo a product development strategy, where
it develops innovative features on this product through research and development. This
will help Shopee to Win the Southeast Asia E-Commerce Battle by attracting more
customers and increases its sales.

The Number 1 brand Strategic business unit is a star in the BCG matrix of Shopee to Win
the Southeast Asia E-Commerce Battle has a 20% market share in this category. It also the
market leader in this category. The overall category is expected to grow at 5% in the next
5 years, which shows that the market growth rate is expected to remain high. Shopee to
Win the Southeast Asia E-Commerce Battle should use its current products to penetrate
the market. This could be done by improving its distributions that will help in reaching out
to untapped areas. This will help increase the sales of Shopee to Win the Southeast Asia
E-Commerce Battle.

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CASH COWS

The supplier management service strategic business unit is a cash cow in the Shopee to
Win the Southeast Asia E-Commerce Battle. This has been in operation for over decades
and has earned Shopee to Win the Southeast Asia E-Commerce Battle a significant amount
in revenue. The market share for Shopee to Win the Southeast Asia E-Commerce Battle is
high, but the overall market is declining as companies manage their supplier themselves
rather than outsourcing it. The recommended strategy for Shopee to Win the Southeast
Asia E-Commerce Battle is to stop further investment in this business and keep operating
this strategic business unit as long as its profitable.

The Number 3 brand strategic business unit is a cash cow in the BCG matrix of Shopee to
Win the Southeast Asia E-Commerce Battle. This is an innovative product that has a
market share of 25% in its category. Shopee to Win the Southeast Asia E-Commerce Battle
is also the market leader in this category. The overall category has been declining slowly
in the past few years. Shopee to Win the Southeast Asia E-Commerce Battle has the power
to influence the market as well in this category. It should, therefore, invest in research and
development so that the brand could be innovated. This will help the category grow and
will turn this cash cow into a star. The overall benefit would be an increase in sales of
Shopee to Win the Southeast Asia E-Commerce Battle.

The international food strategic business unit is a cash cow in the BCG matrix for Shopee
to Win the Southeast Asia E-Commerce Battle. This business unit has a high market share
of 30% within its category, but people are now inclined less towards international food.
This change in trends has led to a decline in the growth rate of the market. The
recommended strategy for Shopee to Win the Southeast Asia E-Commerce Battle is to
invest enough to keep this strategic business unit under operations. If it no longer remains
profitable and turns into a dog, then Shopee to Win the Southeast Asia E-Commerce Battle
should divest this strategic business unit.

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QUESTION MARKS

The local foods strategic business unit is a question mark in the BCG matrix Shopee to
Win the Southeast Asia E-Commerce Battle. The recent trends within the market show
that consumers are focusing more towards local foods. Therefore, this market is showing
a high market growth rate. However, Shopee to Win the Southeast Asia E-Commerce
Battle has a low market share in this segment. The recommended strategy for Shopee to
Win the Southeast Asia E-Commerce Battle is to invest in research and development to
come up with innovative features. This product development strategy will ensure that this
strategic business unit turns into a cash cow and brings profits for the company in the
future.

The Number 4 brand strategic business unit is a question mark in the BCG matrix for
Shopee to Win the Southeast Asia E-Commerce Battle. This strategic business unit is a
part of a market that is rapidly growing. However, this strategic business unit has been
incurring losses in the past few years. It has also failed in the attempts made at innovation
by research and development teams. The recommended strategy for Shopee to Win the
Southeast Asia E-Commerce Battle is to divest and prevent any future losses from
occurring.

The confectionery strategic business unit is a question mark in the BCG matrix for Shopee
to Win the Southeast Asia E-Commerce Battle. The confectionery market is an attractive
market that is growing over the years. However, Shopee to Win the Southeast Asia E-
Commerce Battle has a low market share in this attractive market. The low sales are as a
result of low reach and poor distribution of Shopee to Win the Southeast Asia E-Commerce
Battle in this segment. The recommended strategy for Shopee to Win the Southeast Asia
E-Commerce Battle is to undergo market penetration, where it pushes to make its product
present on more outlets. This will ensure increased sales for Shopee to Win the Southeast
Asia E-Commerce Battle and convert this strategic business unit into a cash cow.

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DOGS

The plastic bags strategic business unit is a dog in the BCG matrix Shopee to Win the
Southeast Asia E-Commerce Battle. This strategic business unit has been in the loss for the
last 5 years. It also operates in a market that is declining due to greater environmental
concerns. The recommended strategy for Shopee to Win the Southeast Asia E-Commerce
Battle is to divest this strategic business unit and minimise its losses.

The Number 5 brand strategic business unit is a dog in the BCG matrix for Shopee to Win
the Southeast Asia E-Commerce Battle. This is operating in a market segment that is
declining in the past 5 years. The company also has negative profits for this strategic
business unit. However, it is expected that the market will grow in the future with
environmental changes that are occurring. The recommended strategy for Shopee to Win
the Southeast Asia E-Commerce Battle is to invest in the business enough to convert into
a cash cow. This will ensure profits for Shopee to Win the Southeast Asia E-Commerce
Battle if the market starts growing again in the future.

The synthetic fibre products strategic business unit is a dog in the BCG matrix of Shopee
to Win the Southeast Asia E-Commerce Battle. The market for such products has been
declining, and as a result of this decline, Shopee to Win the Southeast Asia E-Commerce
Battle has been facing a loss in the past 3 years. The market share for it is also less than
5%. The recommended strategy for Shopee to Win the Southeast Asia E-Commerce Battle
is to divest this strategic business unit to minimise any further losses.

The artificially flavoured products strategic business unit is a dog in the BCG matrix for
Shopee to Win the Southeast Asia E-Commerce Battle. These products were launched
recently, with the prediction that this segment would grow. However, with increasing
health consciousness, people are now refraining from consumption of artificial flavours.
The market is shrinking, and Shopee to Win the Southeast Asia E-Commerce Battle has
no significant market share. The recommended strategy for Shopee to Win the Southeast
Asia E-Commerce Battle is to call back this product.

Some of the strategic business units identified in the BCG matrix for Shopee to Win the
Southeast Asia E-Commerce Battle have the potential of changing from their current

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classification. For example, a dog changing to a cash cow. These have been identified in
the BCG matrix of Shopee to Win the Southeast Asia E-Commerce Battle and
recommended strategies to ensure such change have also been made.

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12.0 STRATEGIC FORMULATION-STAGE 3 (QSPM)

Quantitative Strategic Planning Matrix (QSPM) is a strategic management tool used

in the evaluation of strategic options and determination of relative attractiveness of
strategies. The QSPM technique determines which of the selected strategic options is
feasible, and it actually prioritizes these strategies. Decision stage is the last stage of
strategy formulation. Consideration of set of strategies is made in a sequential or
simultaneous manner. The relevant internal & external factors are integrated in the
decision-making process.

*continue on the next page*

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QUANTITATIVE STRATEGIC PLANNING MATRIX (QSPM)

1 E-Commerce Leader 0.12 4 0.48 3 0.36 4 0.48 4 0.48

2 Strategy Promotion 0.12 4 0.48 4 0.48 3 0.36 4 0.48
3 Customer Base & Loyalty 0.12 3 0.36 4 0.48 4 0.48 4 0.48
4 Finalcial Growth (GMV and 0.09 4 0.36 3 0.27 3 0.27 3 0.27
gross order)
5 Focus on Innovation 0.09 3 0.27 2 0.18 4 0.36 4 0.36
6 Financial Features 0.05 3 0.15 3 0.15 3 0.15 3 0.15
7 Many Features available 0.05 3 0.15 3 0.15 3 0.15 3 0.15
Weakness
1 Application error 0.12 4 0.48 4 0.48 4 0.48 4 0.48
2 Complicated promotion terms 0.10 3 0.3 3 0.3 3 0.3 3 0.3
and condition
3 Complicated disbursement fund 0.07 3 0.21 3 0.21 3 0.21 3 0.21
to seller
4 Net Loss 0.07 1 0.07 1 0.07 1 0.07 1 0.07
Opportunities
1 Cooperation with logistic parties 0.12 4 0.48 2 0.24 2 0.24 3 0.36
2 Extensive seller partners 0.12 3 0.36 3 0.36 3 0.36 4 0.48
3 Coorperative with famous brand 0.10 4 0.4 3 0.3 3 0.3 4 0.4
Threat
1 Heavy competitor 0.12 4 0.48 3 0.36 4 0.48 4 0.48
2 Product Description 0.12 3 0.36 3 0.36 3 0.36 4 0.48
3 Government Regulation 0.10 2 0.2 2 0.2 2 0.2 2 0.2
4 Hacker 0.09 4 0.36 3 0.27 4 0.36 4 0.36
5 Buyers Interest 0.09 4 0.36 4 0.36 3 0.27 3 0.27
6 Costomer Privacy 0.7 3 2.1 2 1.4 4 2.8 4 2.8
7 Mind Set 0.7 3 2.1 4 2.8 4 2.8 4 2.8
Total 10.51 9.78 11.48 12.6

Table 7: Quantitative Strategic Planning Matrix (QSPM)

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CONCLUSION

Shopee statement possesses strong characteristic, such as specification company target

market and as aspect of it marketing approach, strategic plan for feature. However, a
recommendation to improve the scope of business because the company already has their
shipment, store and worker located in Southeast Asia.

The mission statement that Shopee also satisfactory, best of the practice in development
mission statement, example inclusion of pricing product selection and practice help define
the practice strategic direction of the e-commerce business. Such Characterization help
specification of strategy e-commerce business.

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13.0 FINAL CONCLUSION

The purpose of this report was to laid down as many as Shopee information availabe to the
public, and to analyze the effectiveness of their operation and managements especially. To
make sure that Shopee9s operation and management was done strategically, an audit over
its internal and external factors was done. And some recommendations were made.

Our findings explained the reasons Shopee are ahead of their competitors. Not only Shopee
are focused on very strategic mobile market, but its also managed to get head start of many
of its competitiors by utilizing the expertise of their parent company and a lot of money
injections to place itself to fit nicely with Malaysia9s needs and demands.

Futhermore being an early platform for buyer and seller with guarantee programs made
itself able to be trusted, and gathered a huge pool of user for its expansions and
implementing new business and features. Shopee able to diminish their threats and
leverage over the opportunities and their strength, probably due to their background as a
technology companies that can quickly adapt to market and situation. The same reason is
why they can take benefit from political, economic, social and technological environment
in Malaysia, and e-commerce competitive industry, which is the flexibility to changes and
adapt.

Shopee also have strong hold in their internal strength and weakness, and managed to
handle external threat extremely well, in fact, reacting to external changes positively to
benefit. Their operation styles to keep the user retention, like monthly sales is adapted by
its competitors and positively influence the retailer9s styles of profitting from the platform.

Their internal weaknesses which comprised from major stuff like complicated promotion
term and conditions for retailers, to the smallest problem like application error and atleast
not as bad as their competitors. And by keeping this weakness far lesser than its
competitors, their user9s base will not turn to another platform.

Overall, Shopee is one of the companies that have examplary strategic plan. Although
8examplary9 it is not easy to emulate, to get same result. The only way forward for Shopee

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now is to get secure standing is Asia market, and start profitting from early Southeast
market, by reducing incentive to consumers without losing them. Only then it may consider
to openly contending in more global market such as Europe and U.S.

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