Case Details
TEMU: A Disruptor in the Cross-Border E-commerce
This case examines TEMU, a cross-border e-commerce platform launched by China’s Pinduoduo (PDD) in 2022, and its rapid rise as a global disruptor. Within a short time, TEMU expanded to 72 countries, becoming one of the most downloaded shopping apps worldwide and surpassing Amazon in average daily user engagement. By leveraging PDD’s strengths in a low-cost manufacturing supply chain, gamified shopping experiences, and data-driven operations, TEMU attracted cost-conscious consumers through steep discounts, viral marketing, and a fully managed supply chain model.
The case highlights how TEMU successfully penetrated underserved markets—particularly lower-income US states—through aggressive advertising campaigns, including Super Bowl commercials and engagement-driven promotions. Yet, its explosive growth has brought significant challenges: concerns over product quality, backlash from suppliers facing steep penalties, cross-border logistics constraints, and rising geopolitical risks stemming from US trade policies and regulatory scrutiny.
This case invites discussion on platform strategy, digital disruption in global e-commerce, and the organizational and geopolitical complexities of international expansion for Chinese tech firms.
Learning Objective:
1. Develop an understanding of the cross-border e-commerce industry and its dynamics.
2. Analyze a company’s business model and compare it with competitors to identify sources of competitive advantage and core capabilities.
3. Identify new business opportunities enabled by digitization and the development of digital capabilities.
4. Understand the formulation and adaptation of global strategies, with a focus on value creation and value capture in international markets.
5. Explore the relationship between generic strategies and value innovation