The Cultural Differences of Expanding Platform-based Businesses in China and Russia

Bachelor Thesis , 2022 , 89 Pages , Grade: 1,0

Economics - International Economic Relations

The main objective of this bachelor thesis is to try to identify how cultural differences might affect the running of platform-based businesses in Russia and China. Moreover, this thesis attempts to offer a rationalization for bringing up new businesses in the respective countries. Aspects such as the main driving forces behind the imbalance faced today between the two respective markets will be investigated and its possible link to the respective culture will be discussed.

The rise of the internet in the 1990s changed the business world to a great extent. A wave of new business models overtopped the economy, one of them the so-called platform-based business model. A platform-based business connects the customers directly with the traders, operating as a modern middleman. Especially C2C markets, consumer-to-consumer marketplaces, where the platform operates as a middle-man between two independent private parties, have increased in popularity. However, since then, a world without platform-based businesses seems unimaginable, as this business model affects all markets, including B2B, business to business, and B2C, business to consumer. Corporations like Amazon, Google, Facebook, and Alibaba are just a few of examples to illustrate the impact this business model created on everyday life. Especially to Millennials and Gen-Z, these companies serve as an attractive labor source and their outputs are used by them on a daily basis. Although the impact of this business model is universal, there are cultural distinguishing factors regarding expanding these businesses among countries. The thesis at hand tries to investigate the cultural differences in expanding a platform-based business in China and Russia.

Inhaltsverzeichnis (Table of Contents)

• 1 Introduction
• 1.1 Realization
• 1.2 Objectives of the Thesis
• 1.3 Non-Objectives of the Thesis
• 1.4 Research Questions
• 1.5 Methodology
• 2 The Platform-based Business Model
• 2.1 The Evolution of Platform-based Businesses
• 2.1.1 The Roots in Ancient History
• 2.1.2 The Accessibility of the Internet to Consumers
• 2.1.3 The Dot-com Bubble
• 2.1.4 The Financial Crisis
• 2.1.5 The Impact of Covid-19
• 2.2 Platforms as a Business Model
• 2.2.1 The Four Columns of the Core Transaction
• 2.2.2 The Four Core Functions of Platforms
• 2.2.3 Platform Types
• 2.2.4 Exchange Platforms
• 2.2.5 Maker Platforms
• 2.2.6 The Power of Using the Network Effect Right
• 2.2.7 Modern Monopolies
• 2.3 The Importance of Platform-based Businesses in the 21st Century
• 2.3.1 Financial Drivers of Platform-based Businesses
• 2.4 Summary of the Platform-based Business Model
• 3 Current Market Analysis of Platform-based Businesses
• 3.1 Current Market Situation in the United States of America
• 3.2 Current Market Situation in China
• 3.3 Current Market Situation in Russia
• 3.4 Summary of the Current Market Analysis of Platform-based Businesses
• 4 Cultural Analysis
• 4.1 The Reasoning behind choosing both - Hofstede and GLOBE
• 4.2 Hofstede Model
• 4.2.1 Comparing and Contrasting China to the United States of America
• 4.2.2 Comparing and Contrasting Russia to the United States of America
• 4.2.3 The Main Differences between China and Russia
• 4.3 GLOBE Study
• 4.3.1 Comparing and Contrasting China to Russia
• 4.4 Summary of the Cultural Analysis
• 5 Applying the Cultural Analysis to the Current Market Situation
• 5.1 Applying the Cultural Analysis of the Current Market Situation in China
• 5.2 Applying the Cultural Analysis of the Current Market Situation in Russia
• 5.3 Compare and Contrast China to Russia
• 5.4 Summary of Applying the Cultural Analysis to the Current Market Situation
• 6 Discussion and Conclusion

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to examine the cultural differences of expanding platform-based businesses in China and Russia. The study focuses on the influence of cultural factors on the success of platform-based business models in these two countries.

• Evolution of Platform-based Businesses
• Cultural Influences on Platform Adoption
• Market Analysis of Platform-based Businesses in China and Russia
• Application of Cultural Frameworks (Hofstede and GLOBE)
• Comparison and Contrast of Platform Strategies in China and Russia

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 introduces the thesis, outlining its objectives and research questions. Chapter 2 explores the platform-based business model, tracing its evolution and analyzing its key components. Chapter 3 provides an overview of the current market situation of platform-based businesses in the United States, China, and Russia, highlighting prominent companies in various industries. Chapter 4 delves into the cultural context, employing the Hofstede and GLOBE models to compare and contrast the cultural dimensions of China and Russia. Chapter 5 applies the cultural analysis to the market situation, examining how cultural factors shape the adoption and success of platform-based businesses in China and Russia.

Schlüsselwörter (Keywords)

The primary focus of this thesis lies on platform-based business models, cultural differences, and the impact of culture on the success of these models in China and Russia. Key concepts include Hofstede's cultural dimensions, the GLOBE study, market analysis, and comparative analysis of platform strategies. This research aims to provide insights into the cultural nuances affecting the expansion of platform-based businesses in these two significant markets.

• College: FH OÖ Standort Steyr (University of Applied Sciences Upper Austria)
• Grade: 1,0
• Author: Jakob Reisinger (Author)
• Publication Year: 2022
• Pages: 89
• Catalog Number: V1288346
• ISBN (PDF): 9783346748485
• ISBN (Book): 9783346748492
• Language: English
• Tags: intercultural management, platform based business, china, russia, america, us, uber, facebook, apple, amazon, b2b, b2c, c2c, social media marketing, alibaba, tencent, mail.ru, yandex, baidu, google, Activision blizzard, doordash