Analysis of the Marketing Strategies of Luckin Coffee to Get Rid of the Financial Fraud

Abstract

In today's society, the market competition is very fierce, a variety of products and services emerge endlessly. Without a good business strategy, companies will be at a disadvantage in the competition and even go bankrupt. In the increasingly competitive market, some companies wrongly take some improper practices to address their situation, such as financial fraud, referring to the act of dishonestly obtaining money or assets by fraudulent means. It involves false information, misrepresentation, or concealment of facts for financial gain. If a company commits financial fraud, it will be forced out of the market and its reputation will be greatly reduced. We first conduct a SWOT analysis to evaluate the company's internal and external strengths and weaknesses. Subsequently, we assess the measures implemented by Luckin Coffee in response to the analysis. Thirdly, we validate the effectiveness of these measures using financial statement data. Ultimately, we draw some conclusions for other companies in mitigating financial fraud.