Management Strategy: Why Lazada is at the top

My Management professor assigned me last week about a current Management Strategy that interests me and I have decided to do a research on Lazada. And boy, was I surprised to have found out that there is so much potential in this organization!

To give you an overview of the organization, Lazada Philippines is one of the most talked about consumer brands in the Philippines. What started out as a business incubator for the Samwer Brothers, turned into a successful business venture in Southeast Asia today. The Lazada website itself is at the Top 20,000 websites in the world.  What makes this organization interesting is that last September 2012, the secured over $50 million of funds from JP Morgan Asset Management to continue operations in Southeast Asia. That in itself implies that Lazada has a large potential in its target region and to have received that kind of amount in funds must mean that they have a solid strategic plan to make their operations successful.

Lazada Philippines was launched in February 2012 together with its other counterparts across Asia in Indonesia, Thailand, Malaysia and Vietnam. Lazada Philippines has a myriad of products from Computer Products, Cameras and Tablets to Clothes, Toys and Beauty Products. They have established a strong connection base with other brands across the Philippines and they have applied the "Differentiation Strategy" in their Management Style. What they did to make customers perceive that they are different is that they give good quality service, good bargain for their prices and sometimes mark down some prices of original products for the customers to save money giving them the popularity that they are so widely acclaimed for.  

What makes this different from their competitors is that all products are brand new have gone through quality control unlike in E-Bay Philippines, that you rely on photos to assure you that their products are in good condition when the seller tells you that their product is in good shape. Customers perceive them as being superior because they know that the products that Lazada offers range from widely known items to items that you don't come across in malls everyday, giving them an edge in the online business market. Also, unlike E-Bay that only uses credit cards and Paypal as their source for transacting with clients, Lazada offers a wide variety of payment methods like using debit cards, cash on delivery and Banco de Oro credit card installments which not a lot of online shopping websites offer for their clients in the Philippines. By doing these modes of payments, customers can be assured of warranties and return policies thus minimizing the risk for products that are not in good condition and customers giving bad reviews about the organization.

Just this year, Lazada was chosen as the Best Online Shopping Mall at the prestigious Golden Globe Awards. Considering Lazada as an early entrant to the online shopping websites, it has come a long way for a year of operations. What makes this company more interesting is that they cater to the Southeast Asian market so their target is narrow and is not hard to improve upon unlike if they chose to go global.

When I browsed through the website itself, I found many awesome deals and even bought a cellphone that was in sale. It is a perfect channel for people who want to buy something without having to go to the mall and having that item delivered right at your doorstep. Also, this website would be helpful for thinking of presents that you want to give to your friends or family. With just a couple of clicks, you can already access a wide variety of items that you can give to mom, dad, brother, sister or even your special someone. You won't have to go around the mall all day searching for the perfect gift; all you have to do is to go to their website and browse all their available products to find the perfect item to give to your loved ones. Overall, Lazada is very effective and efficient, giving their customers the utmost convenience of shopping right at home.