Question

what are the five (5) possible critical factors that you believe the involvement of the Lazada Malaysia website in the Malaysian e-marketplace could be a successful one? Rationalise them.

Answer 1

The five (5) possible critical factors that I believe that Lazada should incorporate in its business strategy to become successful in the Malaysian e-marketplace are as follows-

i.  Lazada should focus on those customers who have been accessing its website through mobile. The population of such customers is quite impressive. Hence, Lazada should make its website and online offerings more mobile user friendly.

ii. The demand for fashion & beauty, electronics, and sports & hobby goods is quite high in the Malaysian e-market as compared to the demand for other products. Hence, Lazada should work on product variation for these goods.

iii. The third most critical factor for Lazada to be successful in the Malaysian e-market could be “price”. The e-market of Malaysia is highly competitive due to the presence of many foreign and local rivals. Hence, Lazada should offer its product at a very competitive price to the customers and should also charge a nominal fee from the sellers as a commission on every successful sale. And in order to meet the long-run revenue requirement, Lazada can go for the sale of sponsored product ads.

iv. Lazada should provide exclusive offers, discounts, coupons and other freebies to its customers so that it can capture the online customer base of the Malaysian market.

v. Lazada should also work on building a long-lasting relationship with its customers and sellers on mutually beneficial terms and conditions. It should also try to make a trustworthy relationship with its customers and sellers by respecting their online privacy and offering them a secure online payment method.

These are the 5 critical factors that I believe could be very useful for Lazada to become a successful player in the Malaysian e-marketplace.