Abstract

Abstract for: How Late Entrant Survive in A Market with A Dominant Firm: A Case Study of JD Takeaway in Chengdu

Introduction Using JD Takeaway in Chengdu as a case, this study examines why late entrant in a market dominated by a leading incumbent may experience rapid early growth but fail to sustain it.
Approach This study applies System Dynamics and builds four sectors—user diffusion, platform attractiveness competition, delivery riders, and rider attractiveness—to simulate the interaction between demand-side and supply-side factors.
Results The base run reproduces JD’s pattern of rapid early user growth followed by decline and stabilization at a lower level. Policy simulations show that advertising and longer coupon duration mainly improve short-term acquisition, while rider subsidy is the most effective lever for sustaining service quality, retaining users.
Discussion late entrants should improve rider conditions and supply stability, rather than rely only on short-term promotions. For future research, the model could be extended to include multiple platforms, merchant-side dynamics, and financial constraints.

Introduction	Using JD Takeaway in Chengdu as a case, this study examines why late entrant in a market dominated by a leading incumbent may experience rapid early growth but fail to sustain it.
Approach	This study applies System Dynamics and builds four sectors—user diffusion, platform attractiveness competition, delivery riders, and rider attractiveness—to simulate the interaction between demand-side and supply-side factors.
Results	The base run reproduces JD’s pattern of rapid early user growth followed by decline and stabilization at a lower level. Policy simulations show that advertising and longer coupon duration mainly improve short-term acquisition, while rider subsidy is the most effective lever for sustaining service quality, retaining users.
Discussion	late entrants should improve rider conditions and supply stability, rather than rely only on short-term promotions. For future research, the model could be extended to include multiple platforms, merchant-side dynamics, and financial constraints.