DiDi Global Inc: Analysis of Advertising Promotion Models and

Market Competitiveness - Based on the SWOT Model and Porter

Five - Force Model

Enze Liu

College of Business, City University of Hong kong, Hong Kong (SAR), Hong Kong, China

Keywords: Ride-Hailin, Didi, Emerging Technologies, Marketing Strategies, Industry Transformation.

Abstract: This paper explores the transformative impact of emerging technologies, particularly mobile Internet, big data,

and AI, on the global ride-hailing industry, with a focus on Didi, a leading mobility technology company. The

study analyses Didi’s marketing and development models to address key challenges in urban transportation,

including traffic congestion and evolving consumer demands. Using literature analysis, the research evaluates

Didi’s market position, competitive environment, and operational strategies through frameworks such as the

Porter Five Force Model and SWOT analysis. Key objectives include understanding target customer segments,

product/service features, and promotional effectiveness. Findings highlight Didi’s strengths in technological

innovation and market penetration, while identifying opportunities for optimization amid regulatory and

competitive pressures. The research concludes with actionable recommendations to enhance Didi’s

sustainability and competitive edge, emphasizing alignment with urbanization trends, policy compliance, and

user-centric service improvements.

1 INTRODUCTION

The ride - hailing industry has shown a booming

development trend globally. According to relevant

data, in recent years, the global ride - hailing market

has continued to expand, and the number of users has

also been increasing. With big data and artificial

intelligence integrating, the ride-hailing industry can

predict demand on-demand and allocate resources in

real time (Brown, Lee, & Martinez, 2020). Behind

this phenomenon are the acceleration of urbanization,

the growing diversification of people's travel

demands, and the technological support brought

about by technological progress. With the rapid

growth of the urban population, traffic congestion has

become more severe. Traditional public

transportation has certain limitations in meeting

people's personalized and immediate travel needs.

Ride - hailing, with its convenient, efficient, and

personalized service features, has quickly won the

favor of a large number of users.

Didi, a globally renowned mobility technology

company, holds a crucial position in the ride - hailing

industry. Conducting an in - depth analysis of Didi's

marketing and development models is of great

significance in many aspects. From the perspective of

the enterprise itself, a thorough analysis of its

marketing and development models helps Didi

identify its own strengths and weaknesses, enabling it

to optimize its operation strategies, enhance its

market competitiveness, and achieve sustainable

development. In terms of market competition, the ride

- hailing market is highly competitive. Studying

Didi's models can provide references for the entire

industry, promote healthy competition among

enterprises, and drive the overall development of the

industry. For consumers, understanding Didi's

development models can help them better understand

the operation mechanism of ride - hailing services,

protect their rights and interests, and also prompt

enterprises to continuously improve service quality

and provide consumers with a better travel

experience.

This research adopts the literature analysis

method. A wide range of authoritative materials,

including industry research reports, statistical

yearbooks, government policy documents, official

enterprise materials, and relevant academic research

results, are collected and analyzed in depth. Through

196

Liu, E.

DiDi Global Inc: Analysis of Advertising Promotion Models and Market Competitiveness - Based on the SWOT Model and Porter Five - Force Model.

DOI: 10.5220/0013988400004916

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd International Conference on Public Relations and Media Communication (PRMC 2025), pages 196-202

ISBN: 978-989-758-778-8

the review and interpretation of these documents,

Didi's operation status, market environment, and

development strategies are comprehensively and

systematically analyzed. This research aims to

address the following key issues: First, to deeply

analyze the characteristics of Didi's target customer

groups, market prospects, and the features of its

products and services, and clarify its market position.

Second, by using the Porter Five Force Model and

SWOT Model, comprehensively evaluate the market

competition situation Didi faces, as well as its own

strengths, weaknesses, opportunities, and threats.

Third, deeply analyze Didi's advertising and

promotion models and their effectiveness, and

identify their advantages and disadvantages. Fourth,

based on the above - mentioned analysis, put forward

targeted and operational strategic suggestions for

Didi's future development, helping it maintain its

leading position in the fierce market competition and

achieve long - term development. The following is the

structure of this article: First, a detailed analysis of

Didi's target customers will be carried out, followed

by an exploration of the market prospects.

Subsequently, the product features, pricing, and

purchase channels will be analyzed. Then, the market

competition and comprehensive evaluation will be

conducted using the Porter Five Force Model and

SWOT Model. After that, the advertising and

promotion models and their effectiveness will be

deeply analyzed. Finally, research conclusions will be

drawn, and development suggestions will be put

forward. During the analysis process, factors such as

the urbanization process, technological development,

market competition, and policy regulations that affect

Didi will be fully considered to ensure the

comprehensiveness and practicality of the research

results.

2 TARGET CUSTOMER

ANALYSIS

2.1 Customer Characteristics

Didi's users are relatively evenly distributed in terms

of gender. Among different age groups, the 18 - 25 -

year - old young people usually travel for social

activities, study, or part - time jobs. The 25 - 45 - year

- old middle - aged and young people are the main

force in travel, with strong demands for commuting,

business trips, and leisure activities. First-tier cities

have the highest concentration of ride-hailing users

due to urbanization and traffic congestion (Zhang,

Chen, & Huang, 2019). Among the 45-60-year-old

group, family outings and medical trips are

increasingly common. Young adults (25-45 years old)

dominate ride-hailing usage because of their high

levels of mobility and reliance on technology (Li &

Zhang, 2021).

2.2 Geographical and Income

Distribution

Geographically, users mainly concentrate in first - tier

cities and developed second - tier cities. These areas

have a high population density and traffic congestion,

making residents highly dependent on ride - hailing

services (Li & Zhang, 2021). With the advancement

of urbanization, the demand in third - tier and lower -

tier cities is also on the rise. In terms of income, high

- income groups prefer premium cars or luxury cars;

middle - income groups mostly choose express cars

or carpooling; low - income groups also use Didi

when necessary (iResearch, 2023; Analysys, 2023;

Didi, 2022).

3 PRODUCT FEATURES,

PRICING, AND PURCHASE

CHANNEL ANALYSIS

3.1 Product Features

Didi offers a variety of vehicle models to meet

different travel scenarios. Its intelligent navigation

and real - time traffic information functions can

optimize travel routes and improve efficiency. Safety

features such as trip sharing and emergency

assistance ensure the safety of users' trips. In addition

to balancing supply and demand, dynamic pricing

strategies influence user loyalty through

perceived fairness (Li & Zhang, 2021).

3.2 Pricing Mechanism

Didi adopts a dynamic pricing strategy, adjusting

prices according to factors such as time, distance, and

supply - demand relationship. Prices increase during

peak hours and there are promotional activities during

off - peak hours. Overall, its prices are comparable to

those of traditional taxis, and services like carpooling

are more cost – effective (Smith & Johnson, 2022).

DiDi Global Inc: Analysis of Advertising Promotion Models and Market Competitiveness - Based on the SWOT Model and Porter Five -

Force Model

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3.3 Purchase Channels

Users can place orders through the Didi mobile APP,

which is easy to operate and supports multiple

payment methods. The APP is available for download

on major app stores and also has mini - programs on

WeChat and Alipay, providing users with extensive

access channels (Chen & Li, 2022).

4 MARKET COMPETITION

ANALYSIS BASED ON PORTER

FIVE FORCE MODEL

4.1 Threat of Existing Competitors

The travel market is highly competitive. Cao Cao

Travel focuses on new energy vehicles, and T3 Travel

relies on the advantages of automobile enterprises.

There are also aggregator platforms like Gaode Map,

which integrate numerous ride - hailing resources.

They attract users through subsidies, promotions, and

differentiated services, seizing market share,

increasing Didi's customer acquisition costs, and

squeezing its profit margins. Technological

advancements in autonomous driving, which lower

barriers to entry for tech firms, amplify the threat of

new entrants (Brown et al., 2020).

4.2 Threat of Potential Entrants

Although the ride - hailing industry has barriers in

terms of policies, technology, and capital, technology

giants and traditional automobile enterprises may still

enter the market with their technological, financial,

and industrial advantages. Their entry may bring new

technologies and business models, intensifying

competition and threatening Didi's market position.

4.3 Threat of Substitute Products

Public transportation is inexpensive and can carry a

large number of passengers. Shared bicycles and

electric vehicles are suitable for short - distance

travel. Traditional taxis have advantages in scenarios

such as immediate pick - up and non - network -

dependent payments. These substitutes meet users'

travel needs in different scenarios, reducing users'

reliance on Didi and limiting its market scale and

profit growth. The ability to substitute for private

transportation, particularly in markets with high

costs, remains a critical challenge (Wang & Liu,

2020).

4.4 Bargaining Power of Suppliers

Drivers are important suppliers. When the number of

drivers is sufficient, their bargaining power is weak.

However, during peak hours or in areas with

imbalanced supply and demand, their bargaining

power increases, and they may demand better

treatment. Despite Didi's growing scale and ability to

influence key suppliers, other suppliers can still

impact its operating costs and service quality (Liu &

Zhao, 2023).

4.5 Bargaining Power of Buyers

There are many travel options in the market, giving

users strong bargaining power. Users are sensitive to

prices and will compare prices, services, and

promotions among different platforms (Gupta & Kim,

2021). If Didi's prices are high or its services are poor,

users are likely to switch to other platforms. User

reviews and word - of - mouth are crucial to Didi's

market image and business development, prompting

it to optimize services and price reasonably.

5 COMPREHENSIVE

ASSESSMENT BASED ON

SWOT MODEL

5.1 Strengths

Didi has a large number of users and drivers, forming

a network effect that is difficult for new entrants to

compete with in the short term. By utilizing big data

and algorithms, its intelligent dispatching system

increases operational efficiency (Li & Wang, 2021).

It also has a high brand awareness and strong market

recognition, and its business is diversified, covering

ride - hailing, chauffeur - driven services, carpooling,

freight transportation, and other fields. Didi's AI-

driven dispatching system enhances operational

efficiency and establishes it as a leader in smart

mobility solutions (Brown et al., 2020).

5.2 Weaknesses

Strict policy regulations result in high compliance

costs. Safety issues have received widespread

attention. Although measures have been taken,

potential safety hazards still exist, affecting the

company's image. The large and complex driver team

has led to uneven service quality and professional

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qualities of some drivers, affecting the user

experience.

5.3 Opportunities

The continuous advancement of urbanization has led

to an increase in residents' travel demands, providing

a broad market space. The development of

technologies such as artificial intelligence, big data,

and autonomous driving provides support for

improving service quality, optimizing operational

efficiency, and expanding business boundaries. Didi

can also cooperate with industries such as tourism,

catering, and hotels for cross - border integration and

expand business growth points.

5.4 Threats

The market competition is fierce, and both existing

competitors and potential entrants pose competitive

pressures. Macroeconomic fluctuations affect

residents' consumption power and reduce travel

demands. Public opinion pays close attention to

issues such as safety, privacy protection, and labor

rights in the ride - hailing industry. Negative incidents

can easily trigger public opinion storms and damage

the company's reputation. The deterioration of

consumer trust and brand equity will occur if safety

concerns are not addressed (Gupta & Kim, 2021).

5.5 Strategic Suggestions

Leverage brand and user advantages to cooperate

with other industries to launch customized travel

service packages and expand business boundaries.

Didi should increase investment in the research and

development of autonomous driving technology to

enhance its technological competitiveness. Didi

should establish a sound compliance management

system, use technology to strengthen driver review

and training, optimize safety guarantee measures, and

rebuild a safe image. Didi should improve service

quality, launch differentiated services, and enhance

user stickiness. Didi should strengthen market

promotion, consolidate market share, and actively

seek cooperation to jointly cope with competition.

Didi should pay attention to policy and public opinion

trends, optimize cost structures, strengthen safety

management and public relations construction, and

safeguard the brand image.

6 ADVERTISING AND

PROMOTION MODEL AND

EFFECTIVENESS ANALYSIS

6.1 Television Advertising

Television advertising is one of the important means

for Didi to enhance its brand awareness. Didi usually

places advertisements during the prime time of

popular variety shows and TV dramas. By leveraging

the high ratings of these programs, it can achieve

wide exposure. For example, in some national - level

popular variety shows, the advertisements can reach

hundreds of millions of viewers, making more people

aware of Didi's brand and services. In terms of

enhancing brand awareness, television advertising

has certain effects. It can make some people who are

not familiar with online ride - hailing services, such

as some middle - aged and elderly people, get to know

Didi. However, the audience's attention to

advertisements during the program is limited. Many

people will switch channels or play with their mobile

phones during the advertisement time, resulting in a

significant reduction in the actual reach of the

advertisements. Moreover, television advertising is

difficult to accurately target the target customer

group. It cannot conduct personalized promotion for

users of different ages, regions, and consumption

habits, making the efficiency of converting

advertisements into actual users relatively low. Ads

on social media powered by algorithms achieve better

conversion rates by utilizing user behavior data

(Smith & Johnson, 2022).

6.2 Print Media Advertising

In the aspect of print media, Didi places

advertisements in some urban newspapers and

industry magazines. In urban newspapers, the

advertisements are mainly aimed at urban residents,

delivering information such as Didi's promotional

activities and the launch of new services (Zhang &

Chen, 2020). In industry magazines, it focuses on

demonstrating Didi's achievements in technological

innovation and industry leadership, establishing a

professional image. Print media advertising has a

certain degree of precision for specific audiences. For

example, advertisements in industry magazines can

effectively reach industry insiders and investors,

helping to enhance Didi's influence and professional

image within the industry. However, in the digital

age, the overall audience size of print media is on the

decline. Young people mainly obtain information

DiDi Global Inc: Analysis of Advertising Promotion Models and Market Competitiveness - Based on the SWOT Model and Porter Five -

Force Model

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through the Internet, limiting the coverage of print

media advertising. In addition, the form of print

media advertising is relatively single, mostly in the

form of text and pictures, lacking the interactivity and

instant feedback of online advertising, making it

difficult to attract the younger generation of users.

Therefore, the overall promotional effect is gradually

weakening.

6.3 E-Commerce Advertising

Didi has various forms of cooperation with e -

commerce platforms. During e - commerce

promotion periods, Didi places advertisements on e -

commerce platforms, providing users with travel

coupons to guide e - commerce users to choose Didi

for their travel needs during shopping trips. At the

same time, Didi also conducts joint promotions with

e - commerce platforms within its APP, such as

recommending popular e - commerce platform

activities, realizing the sharing of user resources

between the two sides. E - commerce advertising is

quite effective. E - commerce platforms have a large

and active user base, which overlaps significantly

with Didi's target customer group. By advertising on

e - commerce platforms, Didi can accurately reach

potential users, especially those shopping people with

travel needs. Moreover, the joint promotion activities

of the two sides can achieve a win - win situation. By

leveraging the traffic advantages of e - commerce

platforms, Didi can quickly increase brand exposure

and attract new users. At the same time, e - commerce

platforms can also enhance the user experience and

increase user stickiness by relying on Didi's travel

services. This cross - platform cooperation model

greatly improves the conversion rate of

advertisements through resource integration and

complementary advantages.

6.4 Influence Marketing

Didi's invitation to influencers to experience and

share their travel experiences is an important

promotional method. Influencers have a large number

of fans on social media, and their recommendations

and sharing have a strong influence. For example,

some lifestyle and travel - related influencers will

show the whole process of using Didi in detail,

including the convenience of hailing a car, the in - car

environment, and the driver's service. Through real -

life experience sharing, they can make their fans trust

and be interested in Didi. Influencer marketing is

particularly effective in attracting young user groups.

Young users are highly dependent on social media

and have a high degree of recognition and following

for influencers. Influencer marketing successfully

narrows the trust gap among younger audiences,

although it necessitates careful risk management

(Chen & Li, 2022). The personalized

recommendations and vivid content presentation of

influencers can effectively break down users'

resistance to traditional advertising. Moreover, the

fan groups of influencers often have similar hobbies

and consumption habits, making the promotion more

targeted and likely to stimulate the desire of fans to

try, thus converting them into actual users. However,

influencer marketing also has certain risks. If a

cooperative influencer has negative incidents, it may

have a negative impact on Didi's brand image. In

addition, the quality of the influencer market is

uneven. Improper selection may lead to poor

promotional effects.

6.5 Social Media Advertising

Didi places in - feed ads on social media platforms

such as Weibo, Douyin, and WeChat. Through big

data analysis, these platforms can accurately push

advertisements based on users' interests, geographical

locations, consumption behaviors, and so on. For

example, for users who often travel to nearby places

on weekends, Didi will push preferential information

for hitchhiking or car rental services. For users who

are frequently active in business areas, it will push

advertisements for premium car services. Social

media advertising has good results and great

potential. Its precise push function greatly improves

the targeting of advertisements, enabling the

advertisements to reach users with real needs, thus

increasing the conversion rate. The interactivity of

social media is strong. Users can like, comment, and

share advertisement content at any time, forming a

word - of - mouth dissemination effect and further

expanding the influence of the advertisements. In

addition, social media advertising can adjust

advertising strategies and content in a timely manner

according to users' real - time feedback and behavior

data, achieving dynamic optimization and

continuously improving advertising effectiveness.

6.6 Offline Advertising

In terms of offline advertising, Didi places print ads

in places such as bus stops, subway stations, and

office buildings. The advertisements at bus stops and

subway stations can cover a large number of travelers,

especially those who rely on public transportation for

daily travel. The advertisements in office buildings

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are mainly targeted at office workers. These places

have a large flow of people, which can increase brand

exposure opportunities. Offline advertising plays a

certain role in strengthening the brand. Long - term

placement of advertisements in these places can

continuously strengthen the brand impression in the

minds of users, making the Didi brand an important

consideration for users when choosing travel options.

However, offline advertising also has some problems.

The advertising form is relatively single, mainly static

text and pictures, making it difficult to fully display

the service features and advantages of Didi.

Moreover, offline advertising cannot conduct

accurate data monitoring and effect evaluation like

online advertising, making it difficult to accurately

judge the actual impact of advertisements on user

behavior.

7 CONCLUSION

Overall, among Didi's various advertising and

promotion models, e-commerce advertising,

influencer marketing, and social media advertising

are relatively more effective. E-commerce

advertising achieves precise reach and high-

efficiency conversion by leveraging the traffic and

user base of e-commerce platforms. Influencer

marketing successfully attracts young user groups

with the influence of influencers and the fan

economy. The precise push and interactivity

advantages of social media advertising make it

perform well in enhancing brand awareness and user

participation. While television advertising, print

media advertising, and offline advertising still hold

some value in certain areas, their effectiveness is

comparatively limited due to restrictions in

communication methods and shifts in audience

behavior. Moving forward, Didi should focus on

increasing investment in more effective promotional

models when developing advertising and promotion

strategies. At the same time, it should optimize and

innovate other promotion models based on its brand

positioning and the needs of target customers to

maximize the effects of brand communication and

market expansion.

Didi has significant advantages in the travel

market but also faces many challenges. Through

comprehensive analysis, Didi needs to give full play

to its advantages, seize opportunities, and actively

address weaknesses and threats. It should

continuously innovate its business model, strengthen

technology research and development and

management, improve service quality, adapt to

market changes, and achieve sustainable

development.

The significance of this research lies in providing

valuable references for Didi and the entire ride-

hailing industry. For Didi, the research results help it

to understand the effectiveness of its advertising and

promotion models, the market competition situation,

and the development direction more deeply, thus

optimizing its operation strategies and enhancing its

market competitiveness. For other enterprises in the

industry, this research can be used as a reference to

help them better formulate development strategies

suitable for themselves. At the same time, this

research also provides consumers with a deeper

understanding of the operation models of ride-hailing

service providers, helping consumers make more

informed choices. In addition, the research results can

also provide a basis for government departments to

formulate relevant policies, promoting the healthy

and orderly development of the ride-hailing industry.

Future research can further focus on the

application of new technologies in the ride-hailing

industry. With the continuous development of

technologies such as artificial intelligence,

blockchain, and the Internet of Things, they have

great potential in optimizing the ride-hailing

dispatching system, ensuring data security, and

improving the user experience. Follow-up research

can deeply explore how these new technologies are

deeply integrated with ride-hailing services, as well

as the challenges and solutions that may be faced

during the application process, so as to promote the

more efficient, safer, and sustainable development of

the ride-hailing industry driven by technology.

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