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A. INTRODUCTION
Shopee Company Limited is a business operating in E-commerce platform Industry, which was
launched in 2015 by Forrest Li's SEA group in Singapore. Shopee concurrently entered seven
markets at the time of its establishment, including Singapore, Indonesia, Malaysia, Thailand,
Taiwan, the Philippines, and Vietnam.
Shopee Vietnam introduced Shopee Mall in 2017, a sales channel with serious promises from
well-known Vietnamese brands and shops. When it comes to E-commerce in Taiwan, Shopee
has also become the leader.
With more than 600 million transactions on the exchange and a total revenue (GMV) of 10 billion
USD in 2018, Shopee was the most popular platform in terms of both website traffic and mobile
app ratings. The mobile wallet for Shopee, known as ShopeePay, was also originally introduced
in the Indonesian market.
Shopee also debuts in a number of new Latin American and European markets between 2019
and 2021, including Brazil, Mexico, Chile, Colombia, and Poland.
Currently, Shopee has risen to be the leading E-commerce platform in Southeast Asia with 343
million unique monthly visitors (Trang et al., 2021).
With regard to its Vision, Shopee strives to provide customers with simple, straightforward online
purchasing experiences that also offer preferential value, safety, and speed.
Additionally, Shopee places a focus on its Mission to "connect buyers and sellers," "help sellers
in their efforts to approach customers and developing brands," and "upgrade the E-commerce
floor into a channel that is oriented toward consumer behavior” (Hung, 2022).
The strategic objective of Shopee is to "contribute to a better society by bringing together the
community of customers and sellers through the provision of an E-commerce platform."
Since then, Shopee has positioned its business that it "offers an integrated online shopping
experience with a wide range of products, a dynamic user community, and a smooth service
chain" (Trang et al., 2021).
Shopee was centered on five Core values: "We stay humble," "We run," "We serve," "We
adapt," and "We commit."

B. THE INFLUENCE OF THE MACRO ENVIRONMENT IN SHOPEE AND ITS BUSINESS

STRATEGIES

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 1. PESTEL Model Analysis

This report focuses on analyzing the environment in which Shopee operates in the Vietnamese
market because this is a market with extremely strong E-commerce development. According to a
report by Google, Temasek and Bain & Company, in 2022, online consumers in Vietnam account
for 49%, just behind Singapore (53%), higher than Malaysia and Indonesia (Anh, 2022).

Along with that, the PESTEL business environment analysis model is utilized because it enables
managers to clearly perceive opportunities and challenges that their business encounters as well
as changes in the business environment at the national level (Ho, 2014).

1.1. Political Factor

Despite arriving in Vietnam rather late compared to other nations, the industry of E-commerce
expands incredibly rapidly in Vietnam and gets support and attention from the government. The
growth of E-commerce is one of the pioneering sectors that must be targeted for development of
the digital economy in Vietnam, the Prime Minister declared on May 15, 2020. (Address of 35
ministries of public sector, 2021). The government strengthened the initial E-commerce
management regulations when it issued Decree No. 85/2021/NĐ-CP on how to handle E-
commerce infractions and other legal proceedings, using E-commerce to trade in illegally
obtained commodities, items of unknown provenance, items that violate intellectual property
rights, and fake goods is illegal (Thao, 2022).

However, violations continue to take place in a number of intricate ways, causing confusion and
instability in this online marketplace and affecting consumers' trust as well as the operations of
genuine businesses. However, because there are currently few Government restrictions, it is
unable tighten and thoroughly handle this issue (Minh, 2021).

1.2. Economic Factor

The "miracle" of the Vietnamese economy's expansion is credited in part to the E-commerce
industry, which not only maintains its stable growth but also advances. In the context of the
nation's extensive economic integration and globalization, E-commerce also makes a significant
contribution to promoting the flow of goods and services and assisting businesses, particularly
small and medium-sized ones, in finding profitable production and business opportunities (Minh,
2022).

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According to the Southeast Asia Digital Economy 2020 study by Google, Temasek, and Bain &
Company, Vietnam has the third-largest E-commerce market in Southeast Asia with a 7 billion
USD market size. But by 2025, it's predicted that domestic E-commerce would develop at the
quickest rate in the region, rising by 34% to USD 23 billion (UK, 2021).

Besides, the level of inflation in Vietnam is at an extremely stable and low level. According to the
General Statistics Office, in the first nine months of 2022, Vietnam maintained an inflation rate of
2.73%, much lower than the National Assembly's expectation of 4% (Gso gov, 2022). This has
helped the production and business activities of domestic enterprises as well as stabilized
people's lives, thereby reducing pressure on the price level.

1.3. Social Factor

Vietnam's E-commerce market has been significantly impacted by the Covid-19 epidemic,
starting with consumer behavior. Before the pandemic, customers preferred purchasing in-
person, but today they favor internet shopping. According to a recent Statista survey, Vietnam will
have around 8 million more internet users in the first quarter of 2022. With 97% of users
continuing to use the service and 99% intending to do so in the future, the percentage of online
shoppers in Vietnam is also anticipated to increase. This shows that there have been positive
improvements in the proportion of consumers who choose to make purchases online, which will
serve as a catalyst for the expansion of E-commerce businesses in the future (Huan, 2022).

Additionally, Metric.vn data shows that 68 million Vietnamese, out of a total population of 97
million, are internet users, demonstrating the power of a young population (Linh et al., 2022).
According to the report of E-commerce in Southeast Asian countries in 2019 by Google,
Temasek, and Brain&Company, the E-commerce market in Vietnam is currently expanding quite
quickly, with 35.4 million users and generating more than $2.7 billion in revenue in 2019. This is
due in part to the high number of people conducting their E-commerce transactions on
smartphones (Minh, 2021).

1.4. Technology Factor

Taking advantage of the State's incentives for economic integration, businesses are also starting
a race in science and technology, especially in the field of E-commerce (Thanh, 2022). According
to the report of "Digital 2022 Global Overview Report" of We are social, Hootsuite, the
percentage of Internet users to shop each week in Vietnam ranks 11th among countries with

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58.2% and is on par with the level of Internet users. global average (Thanh, 2022). Along with
that, the strong technical development Big Data or artificial intelligence (AI) in Vietnam has made
it easier for E-commerce businesses to access, collect customer data and support them in the
operation process, improving the customer experience on the digital platform (Nghien, 2022). In
addition, the growth of E-commerce has spurred the development of digital payment methods
(Minh, 2022).

1.5. Key Friver for change

First of all, with the rapid development of the E-commerce industry in Vietnam, along with strong
support from the government, there is a potential opportunity for businesses in the industry to
continue to develop and expand in the future. However, along with that is the increase of forms of
fraud, widespread use of counterfeit goods or violations of intellectual property rights, which are
increasingly complex, sophisticated and unpredictable. This becomes a worrying factor for
customers and tightening, managing security, building brands, and trusting customers will be
what all E-commerce businesses aim to compete with in the future, not only Shopee. This also
becomes a worrying factor for foreign brands when entering the Vietnamese market and
participating in the E-commerce floor when the Vietnamese law is still quite lax with violations on
these E-commerce floors.

In addition, the popularity of the Internet, smartphones and the generation of tech-savvy
consumers will be a challenge for Vietnam's E-commerce. Therefore, if in the past, E-commerce
platforms invest mostly to gain market share through promotions, brand advertising, etc.,
especially Shopee when investing heavily in promotional discount programs as the main
Competitive advantage of the brand, in the coming years technology will become the leading
factor in this race and force businesses to quickly change their direction.

2. 5 Forces Model Analysis

The 5 Forces model is applied to this report, in order to help businesses have a comprehensive
view of the industry market, by analyzing competitors, partners and customers of the business
(Grundy) , 2006). From here, Shopee's strength and position in the E-commerce industry is
determined, in order to provide initial ideas for seizing opportunities and anticipating challenges
from the E-commerce industry to Sdopee.

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 2.1. Rivalry among existing competitors

Metric.vn data shows that Shopee, Lazada, Tiki and Sendo are the 4 E-commerce platforms with
the largest market share in Vietnam. Specifically: Shopee holds the largest market share in the
market with 72% in 6 months, from November 2021, with sales up to 43.12 billion VND. In
second place is Lazada with a market share of 20.9%, equivalent to a sales volume of up to VND
12.54 billion. Meanwhile, Tiki and Sendo are far behind the two competitors above (Mar, 2022)

Lazada, Shopee's most direct competitor, is a multinational E-commerce group owned by Alibaba
Group. Under the capital of the parent company, Lazda also implemented many powerful
marketing campaigns and deep discount programs. Like Shopee, Lazada offers products in
many different categories such as furniture, phones, tablets, fashion, beauty, etc. Lazada pays
more attention to customer experience when partnering with Grab to improve delivery for Lazada
with Grab's extensive network of drivers, partnering with Google to launch online training courses
for retailers selling online (Tuan, 2022).

Meanwhile, Tiki's original model was an online book-selling website. However, in April 2017, Tiki
marked a transformation when it switched to a Marketplace form offering more than 10 million
products from 16 major categories, and became a direct competitor of SHopee. Besides, Tiki
also owns TikiNow service, fast delivery in 2 hours. In June 2020, Tiki raised approximately $130
million in a funding round led by private equity firm Northstar Group and began the process of
investing more in Technology in the future by partnering with new Startups (Anh, 2022).

2.2. Threat of new entrances

Along with the strong growth of the E-commerce industry as the number of E-commerce users is
expected to increase by 37% to 71 million users in Vietnam by 2025, according to a report by
Neilsen (Page, 2022). Realizing that potential, many E-commerce startups have also started to
enter this field in Vietnam.

However, this is a rather fiercely competitive environment. With limited capital, operating
experience and technology, there are very few businesses that are able to survive and catch up
with the 4 big players in the market, namely Tiki, Shopee, Lazada and Sendo. New businesses
entering the market to survive, can only gradually fill the gap in the market by choosing separate

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"niches" such as Mio, OCG (Hoang, 2022). Therefore, the pressure from new businesses on
Shopee is almost very small.

However, in the future, in order to solve the problem of expansion, Big E-commerce platforms
have begun to be interested in cooperating with startups like Tiki to expand opportunities for
startups in the field of public ad tech, shipping tracking technology; payment technology; AI
detects counterfeits; Big Data – personalize the buying experience (Anh, 2022).

2.3. Bargaining power of buyers

According to a report by Neilsen in 2022, up to now, more than 70% of Vietnam's population has
access to the Internet (Tuan, 2022). With the target audience is mostly the young generation,
who are quick in technology and always curious to discover new things. Along with the
development of a variety of E-commerce channels, they can completely choose to shop at E-
commerce sites that they trust or are interested in. Therefore, the bargaining power of customers
in the industry is very high.

Especially, in the period when E-commerce sites are developing strongly and it is not possible to
control the situation of fake goods, poor quality goods or online fraud. Since then, users tend to
be more careful, more careful, they are more interested in brand image, business reputation,
product/service quality and price (Brade, 2022).

Since then, beside Shopee, other E-commerce businesses have also started to invest more
heavily in offering promotions to customers, building brand images, promoting Marketing, etc to
create competitive advantages to attract and retain customers.

2.4. Bargaining power of Suppliers

As an intermediary buying and selling channel, Shopee's direct suppliers will be brands or small
business individuals. With the current strong development, the bargaining power from suppliers
for Shopee is not great.

Not only that, at present, many businesses have begun to attach importance to E-commerce
platform, especially Shopee as an indispensable sales channel in their business model. And in

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the future, the number of suppliers for Shopee is expected to increase even more, especially with
the entry of big brands into the Shopee Mall channel (Brade, 2022).

Shopee's goods are more varied thanks to a huge variety of these diverse suppliers, which
draws in more customers. On the other hand, over time, Shopee may become challenging to
manage, unstable, or subject to widespread fraud or counterfeiting as a result of the rapid growth
of its suppliers.

2.5. Threat of substitute products

The replacement products of Shopee will simply be the traditional physical stores or the brand's
leading sales websites. However, the pressure from alternative products on Shopee is not great
because the real need of customers is to shop online. Besides, for sellers, at present, Shopee is
giving sellers great power when they can be proactive in completing orders for customers without
having to go through the website, reducing business costs for Web design and management for
businesses (Tuan, 2022).

2.6. Positioning Shopee in relation to the 5 forces

It can be seen that the threat from competitors and the power of Bargaining from customers are
two important influencing factors for Shopee. Meanwhile, the bargaining power from Suppliers,
the threat from New entrances and Substitute product are not high for Shopee.

From this position, Shopee should focus its resources on enhancing the customer experience
and best meeting their expectations, thereby creating more competitive advantages over its
competitors player in the market.

To do this, enterprises first need to tighten management and select Suppliers more carefully with
clear buyer and seller protection Policies. Besides, by cooperating with New entrances that are
Tech startups, Shopee should also focus on developing technology such as optimizing product
display to users; public shipping tracking; payment technology; AI detects counterfeits; Big Data
– personalize the buying experience.

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C. THE INTERNAL ENVIRONMENT AND CAPABILITIES OF SHOPEE

1. VRIO analysis

First, Shopee owns Threshold Resources as a large network of links with most of the major
delivery units and banks in Vietnam. Shopee also has Threshold Capabilities as Shopee has
experience in inventory management and is very good at handling orders.

On the other hand, Shopee also owns many Unique Resources such as strong financial
resources, large market share, diverse product and price sources, and a developed E-commerce
ecosystem. Shopee also has Distinc Capabilities such as the ability to create attractive
promotion policies, the ability to attract customers with variety of beneficial policies.

These Shopee Resources and Capabilities will be listed in the Resources and Capabilities table
below.

Threshold Resources Threshold Competences

 Linked with most reputable shipping units  Efficient and accurate inventory
nationwide: GHN, GHTK, Viettel post, VN management
post, J&T, Supership, ..
 Ability to set up and process orders
 Linked with 22 major banks in Vietnam efficiently

 Young, dynamic, enthusiastic and creative

Human resources
Unique Resources Core Competences
 Strong financial capacity from parent  Promotional Activities
company (SEA Group) DevelomentThe ability to offer many
attractive promotion policies for customers
 Highest market share in the E-commerce
market

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  Owning an E-commerce ecosystem:
ShopeePay (e-wallet for payment),
ShopeeFood (Food delivery), Shopee
Express (Shipping service), Shopee
Express Instant (fast delivery service)

Table 1.1. The Resources and Capabilities analysis table of Shopee

From the resources listed above, the enterprise resource analysis model - VRIO is used in the
case of Shopee to help businesses identify solid resources to become a sustainable competitive
advantage. firm for your business, from there, devise strategies to make the most of that
resource (Knott, 2015).

Difficult to Exploited by Competitive

Valuable Rare
imitate Organisation implication
Linked with most
Competitive
reputable shipping Yes No No Yes
parity
units nationwide
Linked with 22
Competitive
major banks in Yes No No Yes
parity
Vietnam
Young, dynamic,
Temporary
enthusiastic and
Yes No No Yes competitive
creative Human
advantage
resources
Efficient and
Temporary
accurate inventory
Yes No No Yes competitive
management
advantage

Ability to set up Temporary

and process Yes No No Yes competitive
orders efficiently advantage
Strong financial Temporary
Yes No No Yes
capacity competitive

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 advantage
Sustainable
Highest
Yes Yes Yes Yes competitive
marketshare
advantage
Owning an E- Sustainable
commerce Yes Yes Yes Yes competitive
ecosystem advantage
Promotional Temporary
Activities Yes No No Yes competitive
Development advantage

Table 1.2. The VRIO Analysis table of Shopee

Shopee needs to continue to maintain its sustainable competitive advantage by continuing to

implement Marketing and Promotion campaigns to increase market share and retain customers.
Shopee also needs to continue to strengthen and build a stronger E-commerce ecosystem in the
future.
In addition, for temporary competitive advantages, Shopee can implement strategies to create
barriers for competitors to catch up, such as registering intellectual property rights for algorithms.
used and operated by Shopee. Organize talent recruitment programs with many benefits for
candidates, create opportunities for candidates to move to Shopee branches in other countries to
study, etc.

2. Stakeholder Mapping
From the analysis of Shopee's existing resources, the Benchmarking tool is used to compare
the effectiveness of businesses in using their Resources and Capabilities to compete with
competitors in the industry, Lazada and Tiki.

Criteria Shopee Lazada Tiki

Shipping Linked with most reputable Links with many shipping units, Cooperating with 2 shipping
Service shipping units nationwide. one of which is big brands like units, Ninja Van and GHN
Along with that is the DHL, GHN, Grab. The delivery process is very
company's own shipping unit Lazada also owns Lazada fast, professional 2h ship

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 (Shopee Express). express (LEX), which is its own service, received high
Own Shopee's own express shipping brand. appreciation from customers.
delivery unit (Shopee Express 8/10
Instant) However, the shipping fee is
7/10 quite high. Estimated delivery
time is quite long (2-8 days)
6/10
Payment Shopee is associated with a Diverse payment methods, As an E-commerce platform
Service large number of banks, but Banking, credit cards, e-wallets associated with the most
there is only one payment (Momo wallet, ZaloPay, eM banks (39 banks), diverse
method from E-wallets. wallet). payment methods, linked with
With many great promotions many e-wallets (Momo,
and diversityinteresting X There are not many big and Viettelpay,
of Moca, VNPay,
programs through payment distinct promotions for each of ZaloPay)
with ShopeePay wallet, users these payment methods yet
have begun to prefer and use 5/10 X Too diverse but no middle-
this form of payment more. class investment to improve
8/10 the payment trend through
customers' e-wallets
7/10
Policy for The process of opening a Attractive commission for X Tiki has no place for small
sellers, store is easy and fast, there are sellers, Free to sell, only pay if business individuals. You must
Suppliers many incentives for sellers using support services. be a business to register a

such as Free opening of the business on Tiki.

store and 0% business X Credit cards, e-wallets, and a X The procedure for opening a
commission variety of payment methods booth is difficult and

9/10 (Momo wallet, ZaloPay, eM complicated, requiring many

wallet). types of documents.
7/10 X Sellers incur a flat fee and
commission.
5/10
Quality of Products, quality and prices Lazada's products are slightly Due to strict seller
Products are very diverse better than Tiki's but not as good censorship policy, quality Tiki
& X The issue of market dumping goods are more guaranteed,

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Services has not been controlled, as Shopee's. 100% genuine commitment.
causing confusion for sellers X There is no switchboard, only Customer service is quite
X The situation of poor quality online chat. Issues that need to good, creating trust for the
goods is still rampant, lowering be handled quickly must wait for seller
the reputation of genuine shops a written response. 8/10
X The Shopee switchboard has 5/10
not been fully effective. Mostly
still buyers and sellers contact
themselves
5/10
Marketing Strong Marketing Activities Regularly have creative Marketing activities are not
marketing strategies to attract strong and diverse
Implement many and various users 5/10
attractive and new promotions 8/10
9/10

Human Diversified recruitment and X Recruitment activities are not

Highly focused on recruiting
Resources young personnel when training programs for young exciting and diverse. There

organizing Management trainee human resources such as are no recruitment and

programs (Global Leadership Lazada Forward Youth Program, training programs for young

Program) and diverse training Lazada Internship Program human resources

programs for employees LazPrentice, Lazada Vietnam 5/10

8/10 Management Trainee Program,
etc.
9/10

3. Assess strengths and weaknesses of Shopee

In the context that the E-commerce market is becoming more and more exciting in Vietnam,
along with large capital from the SEA group, Shopee can invest more in attracting suppliers by
becoming an E-commerce platform with many attractive benefit policies for sellers. Huge capital
also helps Shopee to implement many great promotions to attract customers, From there,
businesses can reinforce the variety of products or prices for their E-commerce site. Huge capital

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also helps Shopee to implement many great promotions to attract customers as the compatitive
advantages of business.

On the other hand, Shopee's ability to offer a variety of policies that are helpful and
straightforward for buyers, like registering a business easily without any confirmation, turns into a
weakness when this E-commerce platform is unable to control product quality, lacks stability, and
negatively impacts brand reputation in the eyes of consumers during the time when the
government was unable to strictly manage fraud on the E-commerce floor, along with users'
propensity to focus on quality and Brand image.

Besides, along with the increasingly strong and popular development of the E-commerce
industry in Vietnam, as a business with up to 73% market share, Shopee has become the most
fiercely competitive platform, the competitive situation in the world. Unfairness between stalls
such as dumping or piracy has increased dramatically.

D. MANAGEMENT TOOLS RECOMMENDED FOR SHOPEE

1. Applying the Ansoff matrix to product and market strategy

With 73% market share with great competitive advantages in terms of cash flow, human
resources or Marketing, Shopee is facing a big problem about the loss of control of counterfeit
goods, poor quality goods or dumping suppliers, affecting product quality, image and consumer
confidence.

To solve this problem, Shopee has launched the Shopee Mall platform, which is a special booth
with genuine products from reputable brands and sellers in the market. However, with Shopee's
rapid development, more and more businesses and retailers participating in a rush, the problem
of counterfeit goods on this website is still increasing rapidly. The Ministry of Industry and Trade
said that in 2021 alone, the market management force, in collaboration with the Department of E-
commerce and Digital Economy, discovered more than 3,000 cases of abusing E-commerce to
trade in smuggled and infringing goods. intellectual property rights, counterfeit goods, etc (Thao,
2021).

Therefore, Shopee needs to apply Ansoff Matrix for Shopee Mall products in this market.

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 The Ansoff Matrix

Shopee needs to apply Market Penetration Strategy, invest more in Shopee Mall booth to
increase the market share of this product in the market. To do this, Shopee needs to implement a
Backward integration strategy, to increase control over suppliers. With a huge number of
suppliers and their Bargaining Power is not high, Shopee can completely increase the price of
store opening fees and commissions for suppliers, and reduce prices with Shopee Mall suppliers.
This not only increases the market share of Shopee Mall, promoting sellers to participate in this
store, but also significantly eliminates unorthodox sellers. This also boosts Shopee Mall's market
share, encouraging sellers to engage in this store, and substantially reduces the number of
unconventional merchants.

Besides, Shopee also needs to apply Related diversification strategies when investing in
further development of AI technology such as Tracking technology; AI detects counterfeits; Big
Data – personalize the buying experience, thereby to control and improve the quality of products
in the Shopee Mall store. Shopee can cooperate, merge or acquire growing Technology startups
in Vietnam and abroad.

2. Porter’s three generic competitive strategies of Shopee

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 Three Generic Strategies (Porter, 1990)

At the present time, it can be seen that the bargaining power from customers for Shopee is quite
large. Currently, Shopee has applied Cost leadership strategy by selling products at the lowest
prices in the market along with issuing many deep discount codes, free shipping one with high
frequency. To apply this campaign, businesses had to invest more capital in the process of
operation, promotion, reduction and optimization of personnel in the business, etc.

However, this is not a long-term solution that Shopee can use to create a sustainable competitive
advantage for its Business. According to Statista's report, as of December 31, 2021, Shopee
Vietnam's accumulated loss has reached more than VND 7,500 billion (Nguyen, 2022). Besides,
Sea group, Shopee's parent company is also suffering heavy losses, recording a net loss of $931
million in the second quarter of 2022, more than double the loss of $433.7 million a year ago.
one year, as reported by Bloomberg (Vinh, 2022).

Therefore, to create a sustainable competitive advantage, in the future, Shopee needs to switch
to a Differentiation strategy. Specifically, after applying the Ansoff model to the Shopee Mall
store and capturing a certain market share, along with better quality products, stable and
reputable suppliers, Shopee can gradually limit the promotions of Shopee Mall. promotions and
discounts, invest more in the development of AI to improve the quality of E-commerce platforms,
use Big Data to collect customer data, continue to build and expand the E-commerce ecosystem,
in order to improve user experience. Since then, the product price has been completely raised to

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meet the new needs of customers, the need to experience the best service and best quality
products.

3. The Balanced Scorecard of Shopee

Vision and Strategies: Shopee aspires to facilitate easy and convenient online buying while
offering clients preferential value, safety, and speed through logistical support and payment.

Objective Measures Targets Initiatives

Invest 45% of
Invest in AI
revenue in the
Invest on development and
fourth quarter of
Financial Technology and Investment costs promotional
2022 in Technology
Promotion activities activities, Sale for
and Promotion
customers
activities
Tighten user
Customer protection policies
Limit E-commerce
satisfaction with Establish a strict
fraud
product quality vetting process for
100 million positive
Customer merchants to enter
reviews
Conduct training
Customer
Improve Customers courses on
satisfaction with
services customer care
customer service
skills
Conduct employee
Rate of satisfaction
engagement
Increase employee level from 85% Commitment
reviews and
commitment customers, partners rate
ratings and give
Learning and management
them feedback
Develop Conduct training
Training completion 95% complete the
programming and courses majoring
rate training
design skills in programing
Internal Develop a simple Customer 100 million positive Hire professional
Business UI that is easy and satisfaction when agencies to design

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 shopping in the
attractive reviews UX UI
platform
65% pay with
Process Percentage of ShopeePay wallet, Offer many
Improve methods
customers paying 20% cash payment promotions for
of payment
in each method and 15% other payment methods
methods

From BSC Table Analysis, it can be seen that the application of the Market Penetration Strategy
is the most effective way for Enterprises to achieve the Vision and Strategy that have been set
out.

First, the price increase for Shopee's suppliers will help businesses have more commissions and
revenue to soon deploy investments in Technology development, improve UX UI quality, deploy
more Greater promotion activities attract customers. Besides, the development of market share
for Shopee Mall channel will meet the needs of safe shopping, Limit E-commerce fraud and
improve the user experience. This is also a way to encourage shoppers to use the payment
methods provided by Shopee more.

It can be seen that this strategy has been able to meet the majority of Objectives and is on the
right track with the Initiatives outlined above. And most of all, measuring the customer
satisfaction rate with the experience of using Shopee Mall or the percentage of users purchasing
goods through Shopee Mall after improving the UX UI can be easily measured and controlled.

E. THE STRATEGIC MANAGEMENT PLAN IN SHOPEE

1. Factors contribute to the successful implementation of the suggested strategic
management plan of Shopee

There are several factors that affect the effectiveness of building a BSC plan to manage
strategies with Shopee.

The first is a specific and accurate measure of the project's progress, which Consist with the
strategic management plan has set out. To do this, the project progress report data needs to be
highly up-to-date in each specific stage, with an accurate and clear conversion rate.

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Besides, closely coordinated implementation of control levels is also a decisive factor for this
success. Building a quality control system with the whole enterprise level (Capture the progress
of the strategy against the overall goals of the enterprise), division and functional level
(Departments such as Marketing will control the progress of promotion activities or the customer
service department controls the rate of change in customer satisfaction during the campaign)
and individual level (Each individual evaluates their own commitment and their colleagues
during the project whether it acquired enough to meet the targets set out in BSC).

The fact that all levels carefully control the Objectives and Targets that they are assigned from
BSC, and work together to adjust and improve will help businesses make the most of the
strategic management plan effectively. most fruitful.

2. Bussiness Canvas Model for Strategic Business Management of Shopee

Business Canvas Model Template (Canvanizer, 2019)

Key Activities The project mainly collects commissions with Suppliers, expands market share
and develops Shopee Mall channel and invests in technology development

Key Resources Capital from SEA group, along with high market share (73%), abundant source
of customers and suppliers

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Value Proposition First, Shopee Mall offers a sales channel with quality products, reputable
brands at affordable prices. Effective AI Tracking technology to quickly and accurately detect fake
and poor-quality goods.

Revenue Stream The revenue source will be spent 45% on developing Technology and
Promotion activities for Shopee Mall booth

Customer Relationships Special customer care services on ShopeeMall booth such as express
delivery, high discount vouchers, skipping the order approval stage, attractive Shopee coin
refund policy, etc.

Channel Directly via Shopee platforms, Social Media, Offline, etc .

Key Partner Big brands and small businesses participate in sales on Shopee Mall booth

Cost Structure The fixed percentage for each specific item in Shopee Mall will be different.
However, in order to create a competitive advantage in price in Shopee Mall compared to
Lazadal Mall or Tiki, this rate is still lower than other businesses.

Customer Segment Young generation (20-35 years old), with stable income (Over 3 Million
VNĐ), care a lot about product quality and brand image

From the application of the Canvas model, this plan also has an adjustment in the order of
elements to show how important they are to the implementation of the strategy. In particular, Key
Activities is considered the most important factor to help Shopee control the main activities of the
campaign and thereby provide specific criteria and targets for each step of the implementation
plan, corresponding to eight remaining elements in the Canvas model.

D. CONCLUSION
Thus, from analyzing the macro environment, industry environment and existing resources of the
Enterprise, specific Business Strategies for Shopee have been given. Along with that are
Stategic Business Management Methods and specific recommendations to improve the
efficiency of this strategic management process. However, there is a limitation in this study.
Shopee is a multinational corporation, heavily influenced by the parent company and other SBUs
during its operation, but this report only analyzes Shopee in the Vietnam market without

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mentioning the relationship between Shopee and the Vietnamese market. this system. This is the
noticable point that other future studies need to pay attention to and improve.

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