ABCC-2022-006: “Shopee's Short-Lived Venture into India: Market entry and Exit Amid Environmental Uncertainty”

Category: Strategy

Abstract: Shopee, the largest e-commerce platform in Southeast Asia as of early 2022, entered India in mid-2021 to harness the market opportunities. It consistently deployed its resources and capabilities to catch up Amazon India, Flipkart, Tata Group, etc. However, it faced severe challenges – cut-throat competition, logistical issues, consumer distrust, the economy’s difficult transition to digital payments, local resistance and a tough legal and geopolitical landscape. It announced in March 2022 that it would be closing its Indian operations. This case shed light on the trade-offs of this market exit and offers insights into international expansion to emerging markets amid environmental uncertainty.

ABCC-2022-006: Shopee's Short-Lived Venture Into India: Market Entry and Exit Amid Environmental Uncertainty