Business model diversification in the E-commerce context: a case study of Amazon and Alibaba

• Main Author: Yu, Heming
• Other Authors: Teo Chee Chong
• Format: Final Year Project
• Language: English
• Published: Nanyang Technological University 2022
• Subjects: Engineering::Maritime studies
• Online Access: https://hdl.handle.net/10356/163789
• Institution: Nanyang Technological University

With the development of high-speed Internet, increasing smartphone penetration, market stability, and the ongoing development of payment technology, the digital economy has achieved remarkable growth over the last decade. Online shopping platforms are getting increasingly popular among customers on account of their vast assortment of products, user convenience, and seamless one-stop services. E-commerce enterprises must build and strengthen their business plan to remain outstanding in a highly competitive market nowadays. Business model diversification is often used as a growth strategy by contemporary industrial enterprises after they achieve a certain degree of development. Thus, this study aims to contribute to existing studies on business model diversification and global e-commerce. Multiple case study research was undertaken to get a cross-organizational knowledge of diverse business models and the e-commerce market. The VRIO framework was adopted to evaluate each firm’s internal factors from a resource-based view and Porter’s five forces analysis was utilized to analyze their external competitive environment. Through the case studies of Amazon and Alibaba, this study suggests that their business model diversification strategies have contributed to their relatively sustainable competitiveness among major competitors, while the competition is intense in the wider market due to the threat of rivalry and substitutes. To remain competitive in the industry, companies may constantly develop themselves following the latest trends in the industry and seek opportunities through ecosystem strategies.