Alibaba vs. Tencent: The Battle for China’s M-Commerce Space

Alibaba vs. Tencent: The Battle for China’s M-Commerce Space
Name
Department, Institution Affiliation
Course Code; Course Name
Instructor's Name
Date
Abstract
M-commerce refers to an established wireless framework such as tablets and phones to manage online transactions. For instance, they are used for sales and purchases and guide different business engagement processes. China's M-Commerce space is classified as the most developing and highly competitive due to phones' rapid growth and development. Besides, communication development is rapid and more opportunities are being opened to ensure successful business engagement. For instance, by 2018, China got ranked second worldwide due to its rapidly growing M-Commerce. There is constant competition in the Chinese market, especially the companies advocating for digital transformation and growth. The major sectors that show extreme competition in the Chinese market are the local markets and the foreign players. Besides, more resources are mobilized to enhance the domestic companies, with local companies also focusing on a better framework to meet the consumer demands. Alibaba and Tencent focus on developing strategies that expand the technological market; therefore, the entry strategy must align with the company goals. Before deciding on the appropriate strategy, it is also essential to consider the available resources. A company should consider a reliable approach that would allow it to adequately exploit any opportunity in the market. The suitable entry strategies for the two companies are franchising and joint venture. The strategy is based on the Chinese cultural dimension of collectivism. China majorly focuses on collectivism which advocates for group-way of thinking. A collectivist culture is significant in business development since it promotes business thinking and development. The collectivist thinking is also promoted by familial relationships that the Chinese embrace. Therefore, entry into the Chinese market requires adequate consideration of group behaviors and group-way of doing business to ensure business transformation and growth. Lastly, the collectivist nature of Chinese business players embraces business development and growth due to networking and digital growth. Therefore, entry into the market would lead to sustainable growth and development.
Table of Contents
1 Introduction……………………………………………………………………..………4
2 Company Overview…………………………………………………………..…………5
3.0 China’s Competitive Market ………………………………………………….………..6
4.0 Analysis of Entry Strategy and Possible Entry of Competitors…………………………9
5.0 Operational Environment…&...