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Global Expansion: Pinduoduo's Cross-Border E-Commerce Initiative

In August 2022, Pinduoduo Inc., one of the fastest growing and largest e-commerce companies in China, faced several challenges. Alongside intensified competition from Alibaba Group Holding Ltd. and JD.com Inc., as well as weakened consumer spending due to the COVID-19 pandemic, Pinduoduo had reached a potential growth ceiling within the domestic market. To explore new growth avenues, Lei Chen, the company’s chairman and chief executive officer, would need to evaluate the potential opportunities and challenges Pinduoduo might encounter in its overseas e-commerce business expansion.

Collection: Ivey Business School (Canada)
Ref: IVEY-W35264-E
Format: PDF
Number of pages: 19
Publication Date: Dec 21, 2023
Language: English

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Description

In August 2022, Pinduoduo Inc., one of the fastest growing and largest e-commerce companies in China, faced several challenges. Alongside intensified competition from Alibaba Group Holding Ltd. and JD.com Inc., as well as weakened consumer spending due to the COVID-19 pandemic, Pinduoduo had reached a potential growth ceiling within the domestic market. To explore new growth avenues, Lei Chen, the company’s chairman and chief executive officer, would need to evaluate the potential opportunities and challenges Pinduoduo might encounter in its overseas e-commerce business expansion.
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Year: 2022
Geographic Setting: China
Industry Setting: Information, Media & Telecommunications

Learning Objective

This case is suitable for undergraduate and graduate courses in operations management, marketing, e-commerce, supply chain management, and strategy management, especially in sections covering cross-border e-commerce strategies. It is also valuable for classes focusing on brand management and channel strategies. This case explores whether a leading Chinese e-commerce company should launch its cross-border e-commerce business to address challenges and explore new growth opportunities. After reading the case and answering the assignment questions, students will be able to understand the competitiveness and uniqueness of a leading e-commerce company’s business model; explain the factors motivating a Chinese e-commerce company to launch cross-border e-commerce; identify the opportunities and challenges in a Chinese e-commerce company’s overseas expansion; and consider and discuss the implementation of a Chinese e-commerce company’s cross-border e-commerce strategy.

Global Expansion: Pinduoduo's Cross-Border E-Commerce Initiative

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"Global Expansion: Pinduoduo's Cross-Border E-Commerce Initiative"