Mobike China: competing through the giant’s ecosystem

Abstract

Learning outcomes

Students will be able to analyse competitive situations of the focal firm in the platform market, factors that make the focal firm become dominant in the sharing economy through the technology platform and the focal firm’s motives and growth strategies through mergers and acquisitions and overseas expansion, as well as give recommendations on the focal firm’s strategies to move forward to achieve and maintain its competitive position in the platform market.

Case overview/synopsis

On 4^th April, 2018, Meituan-Dianping (Meituan), a Chinese group-buying website for consumer products and retail services acquired Mobike, a Chinese dockless bike-sharing platform for US$2.7bn. Mobike had raised several rounds of funding for its large investments and operations in this highly competitive and cash-intensive industry. However, it was still struggling to survive and make a profit in the Chinese and overseas markets. It was believed that the merger between the companies was the only viable alternative. Had Meituan’s Chief Executive Officer made the right decision in acquiring Mobike? After Mobike became an integral part of Meituan, what should be done to turn this technology platform to be profitable in the Chinese and overseas market?

Complexity academic level

The case is intended for senior undergraduate or graduate-level courses in business schools.

Supplementary materials

Teaching Notes are available for educators only.

Subject code

CSS 11: Strategy.

Citation

Kittilaksanawong, W. and Liu, H. (2021), "Mobike China: competing through the giant’s ecosystem", , Vol. 11 No. 1. https://doi.org/10.1108/EEMCS-04-2020-0128