Q1 (a)

Briefly explain different categories of new service development. What are the significances of new service development for an enterprise?

(b) Referring to the article Meituan-Dianping and Pinduoduo embody the excitement over digital China, what categories of new service development have Meituan-Dianping and Pinduoduo introduced respectively?

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Tercantitate by 14. in Padded 16 Sheys The wyrow.cdbach are theran promeda Smiley darbaycan de haldeyr Badettir.yemem Rochester, head The shopping frenzy has boosted Pinduoduo's revenues by 44% year on year in the first quarter, to 6.5bn yuan. The money comes from transaction fees and adverts bought by merchants to have their offers promoted in the app. Similarly to eBay but not many e-commerce giants, Pinduoduo does not hold inventory or operate its own logistics network, relying on merchants to ferry products to buyers. Instead, it burns a spectacular, and growing, amount of cash on sales and marketing: 112% of revenues in the first quarter. Mr Liu insists these costs can casily be dialled back. Experience of other marketplaces suggests otherwise. Uber, which also matches sellers (drivers) with buyers (riders), has been perpetually loss-making. Like Uber, Pinduoduo enjoys some "network effects--the more buyers use its app, the more sellers it draws, who in turn attract new buyers, and so on. But, again as in ride- hailing, buyers and sellers face few costs in switching to another app that offers a better deal. jd.com and Alibaba have already launched Pinduoduo clones to their vast user base. The market is giving Pinduoduo the benefit of the doubt. The pandemic appears to have done it no harm; cooped-up Chinese consumers have turned to the firm for necessities and, sometimes, a dose of retail therapy. With negligible business outside China, it is, like Meituan, shielded from the Sino-American tech war making life difficult for TikTok, with its mostly non-Chinese users, or Huawei, China's telecoms champion. White House threats to expel Chinese firms from American exchanges have not dampened investors' enthusiasm. Nor has the sudden departure of Mr Huang, who stepped down as its chief executive on July 1st and cut his stake in the company from 43% to 29% (he remains chairman and holds 81% of voting rights). Meituan's path to riches is clearer. It ended last year in the black for the first time. Its profitable food and travel arms have been gaining market share from rivals (such as Ele.me, Alibaba's food-delivery app, and Ctrip, China's biggest travel agency). That gives its loss-making divisions financial breathing room Ultimately, both firms embody the excitement over digital China's bright prospects. But tarp will only become the new but if both firms can match Tencent's and Alibaba's consistently fat profits