MGX3121 Lecture Week 3 Case Study - Amazon in China

Amazon couldnt repeat its success in china as amazon

This preview shows page 2 - 6 out of 8 pages.

Amazon couldn’t repeat its success in China as Amazon focused on globalization instead of localizing into China’s market. This caused a culture clash where Amazon as an American company, focused on improving its technology instead of Chinese companies that invest heavily in marketing to gain Chinese consumers’ attention (Customer centric approach). Chinese consumers were left unaware of Amazon and did not have a culture of purchasing goods through e-tailers. companies such as Ali-baba and -inadequate marketing effort despite having comparative advantage web features over local firms (Ex: automatic price- tracking systems)
Image of page 2

Subscribe to view the full document.

-failed to adapt to local preferences (Ex: unappealing web designs, lack of product information) Inconsiderate of Chinese market preferences/needs - consumers preferred to see what they were buying in person before paying. High competition and its app design was not as attractive or as advanced as some of the other companies in china Lack of understanding of the local market 6
Image of page 3
The reason why Amazon couldn’t repeat its success in China as the company’s inability to adapt to the local market of China and the preferences of Chinese consumers thus it was expected to shut down or pull out from China market. Furthermore,there is high competition with the local suppliers/companies such as Taobao and Alibaba which most likely preferred by the customers in China market.Besides that, Amazon failed to attract customers by using their company’s website design. It turns out Chinese purchasers don't care for the website composition Amazon conveys. In China, e-commerce sites like Taobao and JD.com are significantly more cluttered, cramming more merchandise onto a solitary screen. Amazon couldn’t repeat its success in China because Amazon market system is unable to adapt to the China market due to cultural differences. It can be seen that Consumers in China hardly seemed disappointed when Amazon announced that it would stop its marketing operation in China starting on July 18. Besides that, Consumers in China mostly prefer to shop on their local China e-commerce such as Taobao, Alibaba, Tian Mao where they could easily use their local e-wallet to purchase items. The reason why china has failed to penetrate into china market is due to cultural differents and lack of understanding. For example, amazon websites were not created with cultural aspect in mind that suit china market. The reason why Amazon could not repeat its success in China is because the external forces/environment of the market was not taken into consideration. For example, the rising of the local rivalries have posed a threat to Amazon because these companies understand the local market hence they have the ability to differentiate their products or services in a way which is appealing to the locals (even though their products and services are similar to Amazon) As for Amazon, they have the mindset of “Americans” and the HQ of Amazon.China presumes that the system that they use for their home country would be suitable to the China market.
Image of page 4

Subscribe to view the full document.

The benefits of a Prime subscription aren't a differentiator in China. Prime's fast and free delivery, and its discounts, don't stand out in China because local companies can match or
Image of page 5
Image of page 6
  • Fall '19
  • Culture of China, Amazon China

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern