Online to Offline Business Model Research and Market Competition Analysis: A Case Study of Chinese Retail and Service Industry

Smart phones and 3G started the era of Mobile Internet, the Online to Offline is coming with it. What is the O2O business model and it’s core values? What changes will it bring to the retail industry? And how will the whole market competition structure change? These are the key issues this paper want to figure out. I will choose Chinese retail and service industry as an example, try to research the business model about O2O, and then focus on the Omni channel strategy in retail market. Besides, I will use the Strategy Group Analysis and Five Forces model to have a better understanding about the competition in retail and service industry. The paper finds that the O2O Closed Loop has several structural advantages, this makes it become the mutual strategic goal for both internet companies and offline groups. The entrance platform and mobile payment system will be crucial for online players while the offline company will all try to implement the Omni channel strategy. After massive mergers and acquisitions the double sides will integrate to several O2O companies to reorganize the online and offline resources. After reading this paper, you will know better about O2O and the market, this will help to explain the crazy events happened during this years, and provide an insight to find the market when you start your own business.