Case 4 Best Buy and e Bay in China PDF

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Chapter group assignment on best buy and ebay in China....

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Mkt 3500 Section 1 Professor Silvia Martin Case 4: Best Buy and eBay in China

1. Will China maintain its strong economic growth in the years to come? Some suggest it will until 2050. What do you think? I believe China will maintain a strong economic growth rate and slow down around the year 2050. Currently, many parts of China and its inhabitants are an untapped market for many business and if purchasing power is to increase as well as consumption then this will drive economic growth. However, just as economic growth in Germany or the United States during the industrial revolution, economic growth will not necessarily decline but instead remain stagnant in China by 2050.

2. If China will go from 17 million to 190 million middle-income people by the year 2020, would the scenario presented Best Buy in 2006 not be applicable anymore? That is, the culture shock in 2006 was that the Chinese would not pay for Best Buy’s overly expensive products unless they are a brand like Apple. Would newly rich Chinese customer engage in this purchasing by 2020? Not necessarily, a lot of the cultural beliefs are established at an early age and passed down from generation to generation. I do think that they may be willing to pay more for a

specific brand and it not necessarily be an Apple. I do believe that people that people who were newly rich would engage in this spending by 2020.

3. With Alibaba’s ownership of the very popular TaoBao online shopping system (similar to eBay and Amazon) and its spread across the world, will a Western-based online shopping culture ultimately infiltrate China? Although it may be unlikely, I believe the only possible way Western-based online shopping would infiltrate China would be through Amazon. Amazon is powerful enough, has the capital, and obtains the financial assets to move into just about any market they would like.

4. What is the current situation? According to the Wall Street Journal, China and the United States are in an artificial intelligence race. China wants to be a world leader by 2030 and be ahead of America in artificial intelligence by 2020. As of 2017, China is better the United States in artificial intelligence patent applications 652 to 101 with deals that include fields such as deep learning. The U.S. had 62 percent of artificial intelligence deals in 2016 but it decreased by 50 percent in 2017....