Developing B2b and B2c Types of E-Commerce at Midea Corporation

Course Project

Developing B2B and B2C types of e-commerce at Midea Corporation

Abstract

This project discusses that what e-commerce can do to help Midea gain more profit or reduce the spending. In China, most of the IT technologies that customers use are at the initial stage. The development of the Internet is just at the beginning. Therefore, customers can’t make an order for what they want only by viewing the company’s homepage. As the leader in the area of Chinese household appliances, Midea should play a leading role to run the e-commerce which is good for running the business. This project says that how Midea finds out its problem and deal with it by e-commerce.

Brief Company background

Midea which produces the home appliance, mainly involved in the field of logistics and other large-scale comprehensive modernized enterprise was established in 1968. What is more, it has four industry groups, therefore it is China's largest home appliance production base and export bases. In 1980, Midea officially entered the home appliance industry. Currently, there are 130,000 employees are hired by Midea.

Looking to the future, Midea will continue to adhere to the effective, harmonious, scientific policy of development, in order to form the industrial diversification, the development of large-scale, business specialization, regional operations and management of differentiated of industrial pattern. Moreover, it strives to establish a healthy financial structure and enterprise core competitive advantage, and it initially has the ability to utilize the worldwide deployment of resources, and maximizing the value of the enterprise as a whole is the company’s objective, and it hopes to improve the structure of business organization and management mode. By 2010, Media become a internationalization of consumer electrical appliances manufacturing enterprise, which its annual sales exceeded 100 billion RMB, and it among the top five of the world's white goods manufacturer, to become a better brand of home appliance in China.

Discussion of business problem(s)

Midea sells their products with old and traditional marketing approaches only. Customers purchase some electrical appliances what they need in physical stores, then they go back and wait the products be sent to their home. What a waste of time to the customers and cost to the company! There is no doubt that the traditional marketing approaches have limited the marketing channel and impeded the company’s business development. Therefore, how to expand the sale, to breakthrough marketing bottleneck are the main and important problems that the company faces. So, conventional sales methods should be changed with the development of e-commerce. The company could use the e-commerce