HomeResearch & Knowledgeback to HomeStrategyback to Research & KnowledgeHEMA in China: Is Alibaba ahead of Amazon in retailing?back to Strategy

Case Study

HEMA in China: Is Alibaba ahead of Amazon in retailing?

By Stefan Michel, Marco D’Amore, Nursultan Shokanov and Yuehong Zhang

15 pages

February 2020

Order this case study

Reference: IMD-7-2097

The case describes the dynamics and potential transition of grocery shopping into New Retail concept – a term introduced by Jack Ma and projected to disrupt the way retail industry is working now. The Case discusses and hints that there might be a different game Alibaba and Amazon are playing when merging online and offline shopping and creating a new customer experience with their respective HeMa and AmazonGo initiatives. The hype around the concept with likes of Starbucks and Zara trying to create strategic partnerships with Alibaba for creating the New Retail format suggest that there is a bigger picture involved. The Case highlights the difference in the resources and capabilities utilized by the New Retail players and the traditional brick and mortar retailers, such as Wall Mart, Carrefour and others and suggests that the wholistic “ecosystem” approach might bring a different flavour to the traditionally low margin industry through leveraging the payment system and creating a last mile delivery platform for further growth.

Learning Objective

How and why develop long-term initiative outside of its core business and what are the strategic implication in terms of resources and competences adaptation.
Understanding the difference between traditional and platform business scalability, networking potential and monetization.
How grocery Key Success Factors are influenced by introduction of new technologies.
How initiative addresses one or more aspects of the “protecting”, “growing” and “creating” strategic horizons.

Keywords

Platform, Digital Transformation, Retail

Settings

Alibaba Group, Hema, Amazon, Consumer Services, Retail, Consumer Goods, Information Technology, eCommerce
2015-2018

Type

Published Sources

Available Languages

English

Related material

Teaching note

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Best-selling Case Study

Keep reading

Article

Where Mario Draghi’s €800bn industrial strategy for Europe falls short

The former Italian premier and ECB president’s call for massive EU investment is a wake-up call to Europe’s economic stagnation. But can the contin...

Embracing circularity - Long-term profitability

Julia Binder and Manuel Braun delve into why a circular approach to business can help build more resilience and boost profitability.

Strategy

By Julia Binder and Manuel Braun

in I by IMD

Article

Abstract thinking: how artworks can sharpen decision-making

Peter Lorange explains how artworks support his decision-making process and can also help new businesses thrive.

Decision Making Strategy

By Peter Lorange

in I by IMD

Article

How a new approach to demand planning can redefine success

Demand Planning Key Performance Indicators (KPIs) are frequently criticized for being too complex or irrelevant. However, an emerging approach is g...

Strategy

By Ralf W. Seifert, Richard Markoff and Matthew Spooner

in I by IMD

Article

Navigating global and local strategies: FUCHS’ journey in China and what other businesses can learn about their approach

FUCHS SE's journey in China shows how its FUCHS2025 strategy balances global ambitions with local agility, leveraging local expertise for global in...

Strategy

By Rouven Acquaviva

in I by IMD

Article

Long-term orientation, family-intensive governance arrangements, and firm performance: An institutional economics perspective

In this study, we examine the effect of cultural long-term orientation on the likelihood of adopting more family-intensive governance arrangements ...

Family Business Performance Management Strategy

By Michele Pinelli, Francesco Debellis and Alfredo De Massis

in Small Business Economics

August 2024, vol. 63, pp. 731-754, https://doi.org/10.1007/s11187-024-00877-4

Article

NIO Customer Experience - Resetting the standard

Never heard of NIO? Those who haven't are set to become few and far between, as the electric vehicle (EV) maker continues its fast and furious rise...

Innovation Leadership Strategy

By Stéphane J. G. Girod, Rui Meng and Hui Zhang

in I by IMD

26 July 2024

Case Study

Should Unilever pivot from being purpose-led?

The case study delves into strategic transformation and leadership transitions at Unilever since 2009. Unilever has been an industry leader of busi...

Strategy Marketing Purpose Sustainability Diversity and Equity and Inclusion

By Goutam Challagalla and Samaja Penumaka

Article

Strategic planning in volatility: The dance between agility and core strengths

Understanding your organizational capacity for agility and responding to events accordingly is the key to success in the new business environment, ...

How to navigate our future world order - Maha Hosain Aziz

In a post-pandemic era shaped by wars, climate change, and new technologies, Maha Hosain Aziz outlines the main risks and shock events that could d...

Long-term orientation, family-intensive governance arrangements, and firm performance: An institutional economics perspective

By Michele Pinelli Francesco Debellis and Alfredo De Massis
in Small Business Economics August 2024, vol. 63, pp. 731-754, https://doi.org/10.1007/s11187-024-00877-4

Summary

In this study, we examine the effect of cultural long-term orientation on the likelihood of adopting more family-intensive governance arrangements ...

Contact

Research Information & Knowledge Hub for additional information on IMD publications