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Amazon In China And India Case Solution

Solution Id Length Case Author Case Publisher
1766 1077 Words (5 Pages) Krishna G. Palepu, Kairavi Dey Harvard Business School : 120111
This solution includes: A Word File A Word File

Amazon is seeking potential solutions to improve its international advantage related to its global competitors Flipkart in India and Alibaba in China.  A thorough analysis of government structure and its role in business, cultural differences, current market demand, partnership opportunities with related organizations, current economic climate, and product innovation must be considered prior to future strategy implementation in each market.

Following questions are answered in this case study solution

  1. Introduction

  2. Market Analysis of China

  3. Market Analysis of India

  4. Steps 

Case Analysis for Amazon In China And India

2. Market Analysis of China

i. Factor Condition

Currently, China has become the largest e-commerce market in the world. Great achievements come from China's unique market environment and cultural soil, and also from the unique wisdom of Chinese internet people (Rothaermel, 2013). The Chinese team has a stronger collective sense of cognition than the Western countries, even for some high-tech companies. 

ii. Demand Condition

Currently, China has become the largest e-commerce market in the world. In the 2017 “Double Eleven” shopping spree, Alibaba's consumer websites exceeded $24.6 billion in 24 hours, which is higher than the total network sales of “Black Friday” and “Online Shopping Monday” in the United States. Today, Chinese e-commerce sales account for 14% of China's total retail sales (Howard, 2015). 

iii. Relating and supporting industry

In operation, Chinese e-commerce also focused on building a reputation evaluation system. eBay and Amazon pioneered an online evaluation method, but Alibaba upgraded it (Ray, 2011). The convenience of payment methods is also an important part. Alipay is fundamentally different from PayPal. 

iv. Firm Strategy, structure, and rivalry

Amazon and eBay are websites that focus on products, and shoppers are their customers. They don't give third-party sellers too much space to promote the store; Alibaba does not. Its most important customer is not a shopper, but a third-party seller who sells products on the website. The Chinese retail industry begins with mutual trust between buyers and sellers. Chinese e-commerce companies have proposed customizable stores. Alibaba allows sellers to create vibrant interactive stores within the Alibaba market so that sellers don't have to create their own websites (Hackstetter, 2013). 

v. Government and Chance

Chinese Govt has passed a new law for e-commerce businesses to regulate the sales of counterfeit products. According to this law, online operators are required to register for a license and adopt electronic payment system for taxation purposes (Ray, 2011). 

3. Market Analysis of India

i. Factor Condition

International companies set their sights on India for sale online, because India belongs to the BRICS list, a list refers to countries with the greatest growth potential. India is in second place as the fastest growing country in the world, just behind China, while also considering that its economy is the second-largest in the world (Ray, 2011). India specifically has 1,252 million inhabitants, and the average age of the inhabitants of this super country is 27 years old: that is, it is a very young country and which, favors connectivity and the use of new technologies.

ii. Demand Condition

From eBay to Amazon, from Softbank to Alibaba, e-commerce leaders around the world have turned India into a center for global e-commerce dominance, investing billions of dollars in madness for the “next Chinese market”. According to a report by Deloitte, India has almost 400 million users on the internet, and its population that buys through the Internet already represents 28% of the total (Hackstetter, 2013).

iii. Relating and supporting industry

Precisely, another reason that makes India a cake for eCommerce is its potential for the technology. It is one of the countries that generate more computer engineers in the world and has a rising technological market (Rothaermel, 2013).

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