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13020241105 13020241105 Presentation Transcript

  • International Diversity Management A study of E-Commerce sector in China and USA Purav Patel 13020241105, IB-B SIIB, Pune China-USA: E-commerce 1
  • China: GDP USA: GDP China: Unemployment Rate USA: Unemployment Rate China-USA: E-commerce 1
  • Index of Economic Freedom China USA Population(2012) 1,35,06,85,000 31,75,58,000 HDI(2012) 0.699 0.937 Overall Freedom 51.9 76 Fiscal Freedom 70.2 69.3 Business Freedom 48 90.5 Financial Freedom 72.3 69.2 Investment Freedom 25 70 Trade freedom 72 86.4 Monetory Freedom 71.6 76 Labor Freesom 62.5 95.5 Property Right Score 20 35 Freedom from Corruption 36 71 http://index-of-economic-freedom.findthedata.org/ China-USA: E-commerce 2 View slide
  • The top 5 growth industries through 2015 are: China • E-Commerce (set to grow 400%!) • Outstanding Corporate Bonds • Life Insurance • Wealth Management • Personal Computer Sales USA • VOIP Providers • Wind Powers • E-Commerce • Environment Consultancies • Biotechnology China-USA: E-commerce 3 View slide
  • • An e-commerce transaction is the sale or purchase of goods or services over internet • It describe business that rely on the Internet, such as e-mail, instant messaging, shopping carts, Web services, UDDI, FTP, and EDI, among others. E-Commerce: Introduction • More than 85% of the world population used internet source to make purchase • 73% population prefer online purchase • 41% books purchased by online across the global. China-USA: E-commerce 4
  • E-Commerce sector: CHINA & USA China-USA: E-commerce 5
  • WEAKNESS • Security, Fake websites, Fraud • Fewer discounts and bargaining • Long delivery timing • No idea about quality and physical condition of the product • Limitation of products • Lack of personal services • More shipping cost • Customer Satisfaction STRENGTH • Boundary less (global location) • Time saving, No time constraints • Price/product comparison, • Cost effective, Lowers transaction cost • Direct communication with consumer • Improved customer interaction • Flexible target market segmentation OPPORTUNITIES • Changing trends • New technologies • Global expansion • High availability (24 hour and seven days a week) • Wide business growth • Cut down on local competition • Advertising THREATS • Competitors • Changes in environment, law and regulations • Innovation • Privacy concerns • Fraud, Risk S W O T A N A L Y S I S China-USA: E-commerce 6
  • China: E-commerce History • In 1994, Professor Wang Ke from the Chinese academy of social science has introduced first time E-commerce concept in China • In1997, Xinhua Book store of Hangzhou city opened first online bookstore in china • Chinese e-commerce in 1998 with Alibaba.com, a business-to- business online platform born. • 2003 was a turning point for Chinese e-commerce with the release of Alipay, Alibaba's version of PayPal. • In 2003, first western MNC ebay entered in Chinese market. • In 2004 Amazon.com entered controlling stack with joyo.com in china. • In 2009, China's e-commerce market totaled 263 billion RMB (approximately $38.5 billion) with growth equivalent to about 105% increase year-on-year. China-USA: E-commerce 7
  • China’s online shopping market (B2C&C2C) reached 72.5 bn USD in 2010 and is expected to grow at a CAGR of 70% for the next five years China Online Shopping Market (bn USD, 1997-2015f) China-USA: E-commerce 8
  • China: E commerce Uniqueness • The government supports e-commerce due to its economic benefit and potential for job creation. • The Chinese government has heavily subsidized the rollout of high- speed access, so internet penetration now approaches rich-country levels. • China’s ‘Singles Day’ occurs on November 11 each year. The month and day are represented by ‘ones’ (11/11). • In 2013 11/11’ online sales rose by 80 percent from the previous year, to over USD5.7 billion. • At present there are some 48,000 registered domain names in China, On average, two e-commerce sites per day are being registered. • This combination of high-tech online shopping with traditional delivery methods is a creative approach to the development of e-commerce in China. China-USA: E-commerce 9
  • Commodities most frequently bought by Chinese online shopping user China’s online shopping market Transaction volume includes B2C and C2C market China-USA: E-commerce 10
  • USA: E-Commerce History • Amazon.com, It was founded in 1994 by Jeff Bezos and was one of the first American ecommerce companies to sell products over the Internet. • Dell.com is another one of the most recognizable e-commerce brands online. Dell.com’s website was launched in 1994 with a single static web page and their online presence quickly grew. • Ebay is also one of the pioneer e-commerce MNC started in 1994 year. • In 1998, PayPal launches its alternative payment service; eBay acquires PayPal in 2002 -Google, the future king of search, debuts -Yahoo launches selling platform Yahoo Stores • In 2005 zapoos.com acquired by Amazon.com China-USA: E-commerce 11
  • USA: E-commerce Uniqueness • E-commerce spending in the United States will hit approximately $262 billion this year, up 13.4% from $231 billion in 2012, according to a new projection from Forrester Research Inc. • In 2017, online spending will reach $370 billion, which represents a nearly 10% compound annual growth rate from 2012 USA: E-commerce, Government Support • To promote the more effective use of electronic processes internally within government, to use e-commerce to achieve other government objectives, such as: • Export promotion • To resolve regulatory or tax issues seen as being affected by the spread of e-commerce, • The application of state and local sales taxes China-USA: E-commerce 12
  • GDP contributed by Internet China-USA: E-commerce 13
  • Top 10 engaged companies China • Alibaba.com/Tmall.com • 360buy.com • Sunning.com • Amazon.cn • Dandang.com • Vancle.com • 51buy.com • Coo8.com • Newegg.com.cn • YiHauDian.com USA • Amazon.com • Dell.com • EBay • Buy.com • Cosco.com • JCP.com • Smartbargain.com • Abebooks.com • AE.com • Gap.com China-USA: E-commerce 14
  • Conclusion • A developing country can be rationalized and mechanized if it introduces e-commerce effectively and efficiently. It will enhance its output and gives competitive advantage. • Many development organizations will be impeded from entering into e-commerce because of high entry costs and technical barriers. • The successful companies of the future will be those that take e-commerce seriously, dedicating sufficient resources to its development. E-commerce is not an IT issue but a whole business undertaking. China-USA: E-commerce 15
  • Future Outlooks • Online Retail globally: • By 2015, It will grow to $1.4 trillion industry • By 2020, It will grow to $4.2 trillion industry • In USA, it will grow to $325.25 billion expected e commerce market worth • In China, it will grow to $320 billion expected e commerce market worth China-USA: E-commerce 16
  • Bibliography • http://www.go-globe.com/blog/ecommerce-in-china/ • http://www.businessweek.com/articles/2013-11-21/china-is-about- to-take-americas-online-shopping-crown • http://www.statista.com/topics/1007/e-commerce-in-china/ • http://www.iresearchchina.com/views/Ecommerce/ • http://edition.cnn.com/2013/09/19/business/on-china-alibaba-e- commerce/ • http://chineseculture.about.com/od/businesseconomy/fl/Chinas-E- commerce-Culture.htm • http://www.economist.com/news/leaders/21573981-chinas-e- commerce-giant-could-generate-enormous-wealthprovided- countrys-rulers-leave-it • http://steveblank.com/category/china/ China-USA: E-commerce 17
  • China-USA: E-commerce 18