Amazon in China

Amazon.com Inc. (Amazon), the Seattle-based e-commerce giant, leaped into China with a buyout of Joyo.com Limited, China’s largest online book, music, and video retailer, in 2004. Amazon had the ambition of becoming the dominant online retailer in China by capitalizing on its globally recognized brand, cutting-edge technologies, and advanced business model and philosophy. In the following years, China’s e-commerce industry experienced exponential growth, representing a golden opportunity for technology firms. For Amazon, however, many challenges started to surface, including intense competition from Alibaba Group Holding Limited and JD.com Inc., which limited Amazon’s growth. In 2018, as China’s e-commerce industry quickly became one of the world’s largest, Amazon had to determine what its next steps should be.

This case is suitable for use in undergraduate- and graduate-level courses on information technology, corporate social responsibility, sustainability, business and society, international business, and strategy. It introduces the overall Chinese e-commerce landscape and the competition among Amazon, Alibaba, and JD. Students will explore Amazon’s current core competencies, its platform strategy, its successful navigation of both industry and societal challenges, and the possible root causes of its continuous market share shrinkage in China. Working through the case and assignment questions will give students the opportunity to do the following:<ul><li>Describe the e-commerce industry landscape in China, and explain how this market differs from those in North America, Europe, and other regions.</li><li>Explain the importance of continually rethinking core competencies and business models, including product- and platform-based models.</li><li>Examine the relationship and tension between globalization and localization, and explore different internationalization strategies.</li></ul>

• e-commerce
• digital platform
• internationalization
• global strategy