Failures of amazon
Amazon is an American tech giant that deals with cloud computing AWS and e-commerce. It’s the most significant online retail company in the world, and its headquarters based in Seattle. It has had difficulties establishing itself in oversea countries like China. After 15 years of retail in the Asian powerhouse, Amazon decided to end its operations because of several factors. Consumers’ taste and local preference, endless price wars, regulations, and knockoffs are challenges that are common in China.
These factors include slowness to adapt to changes and move with changing trends. Failure to adjust to the local taste and the preference of Chinese consumers like not giving customers a website design they like. It was clear that Consumers in China were not pleased with a cleaner web design, which it uses on all of its sites (Ye & Chang 2017). When compared, for instance, with local e-commerce sites like JD.com and Taobao, their websites are more accommodative, more colorful, and filled with goods and adds on a similar site screen. This reluctance of sticking to a single UI style made it difficult to sell its webpage while local competitors benefited from their in-depth knowledge of local tastes.
The company found itself trapped in a competition of endless price wars and failed to take advantage of Singles Day’s massive promotions in November, China’s equivalent of Black Friday. Trade regulations made it hard to operate freely, but this factor applies to all foreign investors in China. There has been a growing number of fake goods sold to consumers because of online platforms rely on producer’s detection techniques. Amazon struggled to root out knockoffs, which are increasing at an alarming rate, which created imitators instead of innovators (Bdkar 2019).