Did Amazon succeed in China? What did it learn?

Expert Solution

Ans: Amazon: It is an American MNC. It focuses on eCommerce, digital streaming and artificial intelligence. It is the world's largest online marketplace. Its product line available at its websites include several media. apparel, baby products, amazon pantry, amazon prime, etc.

Amazon came in the market of China in the year 2004 through the acquisition of Joyo, an online shopping market. Amazon did great jib in its initial days but gradually due to stiff competition, failed to adapt local tastes, in china e-commerce sites like Taobao and JD.com are much more cluttered, cramming more goods onto a single screen.

Learning in china

As Amazon is struggling in china they used to establish American culture, which failed miserably.
Failed to adapt the preference of Chinese consumer's tastes.
Not timely upgraded its feature as per the environment.
endless price wars with the competitors
Amazon's Chinese sales are small enough that the company does not break them out in its financial reports,
Not able to compete with competitors like Alibaba
censorship by the Chinese govt. due to cultural differences between china and the west.
The company did not adapt well to the unique Chinese market, which is price sensitive for many goods and favours near-instant delivery and a focus on authentic foreign products.

keosha answered 3 months ago

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