Operating a business in China successfully is a challenging task due to the enormous completion that exists in the country’s market. This is due to the high level of employment in the country that has led to a lot of people engaging in entrepreneurial activities upon which they depend for their income. This has led to a lot of completion in the country ’s, and a lot of investors are finding it quite difficult to cope with the situations. To overcome the stiff competition in this market, the entrepreneurs are required to come up with strategies that would enable them to keep their business in operation and profitable so that they can also survive the economic hardships that are associated with such macroeconomic factors.
However, despite the stiff competition, Richard Liu Qiangdong has remained competitive in the Chinese market with his company JD.Com, formerly, JingDong. This company operates as an online store that supplies its technology products and services to its customers internationally. Richard Liu Qiangdong established this organization back in 1998 after he completed college and could not find employment.
Before starting JingDong, Richard Liu Qiangdong had tried to venture into the hotel and catering industry, where he had begun operating a restaurant in Beijing. This was not successful, and so he decided to change his investment option to technology.
What motivated Richard Liu Qiangdong to start the company was the knowledge and skills that he had acquired in the campus on computer engineering. This was an additional course that he had done to supplement his skills in sociology. After opening the company, it immediately turned successful, and wealth started accumulating for Richard Liu. This went on until 2003 when there was an outbreak of SARS. The outbreak prevented his employees from getting to the premises to serve his customers. The customers’ movement was also limited since the Chinese government had declared a curfew to prevent the spread of the epidemic. See This Page to learn more.
As a result, Richard’s business suffered huge losses the only option that was left for Richard Liu Qiangdong was to strategize the distribution structure of the organization again. This would ensure that such happenings could never disrupt the company’s revenues in the future.