Chinese tech is on the rise but not threatening US tech titans…so far Chinese tech giants are not anymore mere copycats: they develop specific technologies and innovative business models. Most are trying to expand beyond Chinese market and some have already become global leaders. US tech titans still hold ground: they champion revenues and profits but Chinese tech giants are growing faster. The tide is rising.
Amazon’s attractive value proposition boosts growth but hurts profitability Amazon pursues an hyper-growth strategy (29% per year since 2005) based on innovation and pricing to dominate e-commerce and disrupt retail. Most of the value is transferred to customers resulting in a very attractive and distinctive proposition. On the other hand that strategy puts a hefty cost burden on business, crushing operating profits.