Strategic Analysis of Shopee’s Business Approach in Navigating E-Commerce Competition in Indonesia
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Abstract
The rapid growth of Indonesia’s e-commerce sector has triggered intense competition among digital platforms, pushing major players like Shopee to continuously innovate to maintain their market leadership. Facing strong rivalry from competitors such as Tokopedia and Lazada, Shopee has implemented a series of tailored strategies to meet the unique demands of the Indonesian market. This study assesses these strategies using a qualitative approach through literature review and SWOT analysis. Findings reveal that Shopee’s success is largely attributed to aggressive digital marketing efforts, including mobile-based campaigns and influencer collaborations, which have been effective in acquiring new users and maintaining customer loyalty. Additionally, Shopee’s large-scale discount strategies have provided a competitive edge in a price-sensitive market. However, over-reliance on price-based approaches may threaten long-term profitability. Therefore, it is recommended that Shopee focuses more on service innovation, especially by enhancing logistics systems and leveraging advanced technologies, to sustain its competitive position in the evolving e-commerce landscape. Based on the SWOT analysis, Shopee’s core strengths lie in its mastery of digital technologies, data-driven marketing strategies, and its ability to build an integrated service ecosystem.
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