WHAT FACTORS CAUSED THE GIGANTIC CHINESE E-COMMERCE FAILURE ON THE ON-DEMAND PLATFORM MARKET?

Abstract

This study found that even in a fast-paced industry that requires all players to think and act quickly, it can cost a company more than its profits, especially when entering a new market that is already crowded with aggressive competitors. This study argued that such a company came up with a new business idea and launched it into the market without thoroughly researching the market, and it demonstrated why they might fail with a thorough investigation with the relevant stakeholders. The goal of this study is to help readers understand how an unwise business model will cause companies to fail from the beginning to the end of the business, as well as to identify the key factors that will cause it to fail. The company that intended to compete in the e-commerce market but unintentionally ended up in the on-demand market. This study used a qualitative research method. The primary instruments were in-depth interviews, as well as secondary data analysis for the relevant issues. There were fourrespondents for the in-depth interview, including two managers who are currently working on the team, one seller who is currently selling on the platform and one staff member who works at a competitor firm. Also, this study will use Shopeefood as an example study with the same case scenario, which is an e-commerce firm that enters the on-demand platform market and how they differ from the firm in this case study. This study was conducted between June and August of 2022.