Recently, Meituan has made an important organizational restructuring. This adjustment involves Meituan's core takeaway and ** business, which can be said to be desperate to compete with Douyin. Although there were no dismissals or parachuting of senior executives, it can be seen that Meituan's internal structure adjustment is quite important. Next, this article will describe in detail the specific content of Meituan's adjustment, and analyze the meaning and motivation behind it.
Douyin's local life business has put huge pressure on Meituan, and according to relevant market research data, the total transaction volume of Douyin's local life in 2023 will account for about one-third of Meituan's, close to 200 billion yuan. This has also led to a lack of confidence in Meituan, which recently fell to a nearly three-year low. In response to Douyin's challenge, Meituan began massive subsidies and increased marketing spending. However, this did not lead to the expected profit growth. As a result, Meituan must adapt to the existing competitive environment.
According to Wang Xing's internal email, Wang Puzhong will be in charge of Meituan's platform, in-store, home-to-home, basic R&D and other businesses, while Zhang Chuan will be in charge of Dianping, Sa-As, cycling, and power banking. As for drones and overseas business, it was reported to Wang Xing himself.
1. The core business reports to an executive
The most noteworthy thing in this adjustment is that the takeaway (home-to-home) business, ** business and wine tourism business are in charge of one person. This is unusual under normal circumstances, where companies usually balance the spheres of power of the executives. However, in this adjustment, Meituan has concentrated these core businesses under one executive, which shows that it attaches great importance to the linkage between its strong food delivery business and in-store business.
In this way, Meituan may want to strengthen internal collaboration and form a strong team to meet the challenge from Douyin. Putting different operations in a single executive can also help improve decision-making efficiency and speed up execution.
2. Adjustment of home delivery business
Zhang Chuan's home delivery business was cut off, and the ** and wine tourism business were separated from it. This adjustment may be due to the sluggish development of Daojia's business, which has not performed well in the face of huge challenges from Douyin. Although this adjustment is a negative change for Zhang Chuan, on the whole, it may be a normal organizational restructuring.
3. Wang Xing is responsible for drones and overseas business
Wang Xing himself will be in charge of Meituan's drones and overseas business. This has also raised high expectations for Meituan's future development in overseas markets. However, compared to the e-commerce sector, the competition in the food delivery industry is more intense, especially when there are strong competitors such as Uber overseas. Therefore, Meituan still regards the domestic market as the main battlefield at this stage, and Wang Xing's important role may be more in resource allocation and cooperation with Wang Puzhong, and jointly charge ahead.
For Douyin's local lifestyle business, Meituan had to act quickly to maintain its market position and become more competitive. This organizational restructuring can be seen as a way for Meituan to concentrate on Douyin.
First, by reporting to a single senior executive on its core business, Meituan seeks to achieve better internal collaboration and improve decision-making efficiency. This will help optimize the allocation of resources and strengthen the linkage between the takeaway business and the in-store business. The move will enable Meituan to compete with Douyin more precisely and provide merchants with more attractive solutions, thereby enhancing its competitiveness in the market.
Second, the organizational structure adjustment will help Meituan better cope with Douyin's challenges to the in-store business. By integrating in-store and home-to-home services, Meituan is able to offer more competitive preferential terms on the merchant side and attract more merchants to cooperate, thereby driving the growth of in-store business.
Finally, Wang Xing's actions to take charge of drones and overseas business show that Meituan attaches great importance to overseas markets. However, considering the particularity of the food delivery industry and the market competition situation, Meituan still regards the domestic market as the main battlefield, continues to increase its domestic market share, and confronts Douyin head-on.
Through this organizational structure adjustment, Meituan has demonstrated its determination and confidence to compete with Douyin. Faced with the rise of Douyin's local lifestyle business and the loss of market share, Meituan had to step up its internal reforms. The adjusted organizational structure will help improve the efficiency of internal collaboration, strengthen the linkage between food delivery business and in-store business, and further consolidate Meituan's leading position in the field of local life.
Although the adjusted Meituan is facing tremendous competitive pressure and challenges, it is believed that under the leadership of Wang Puzhong, Zhang Chuan and Wang Xing, Meituan will be able to adapt to changes in the external environment and achieve sustainable development. Fighting Douyin again, this year is destined to be an eye-catching year.