Exploring online retailing strategies : case studies of leading firms in the U.S. and China

Abstract

Online retailing has been a significant part of people's daily life. Research shows that 85% of internet users have purchased online. In China, with the increased penetration rate of internet and adoption of online payment, the online retailing is accounting for a larger percentage of overall retailing volume year by year. However, the lower barrier to entry of online retailing compared to traditional retailing makes the competition more intense than ever. In addition, several leading online retailing companies in the US experienced unprecedented obstacles when attempting to expand in China. This leaves an open question- what is the right strategy in online retailing? The objective of this thesis is to identify to best online retailing strategies in China by examining the online business environment of US and China and distilling current strategies of successful online retailing companies in both countries. The research has been based on case studies of leading online retailing companies. Four lenses, including operational excellence, customer intimacy, product leadership and platform leadership, have been used to explore the unique positions these companies have chosen, and the different set of activities they employed to achieve the positions.