Analysis On The Success Of Taobao

Analysis on the Success of Taobao
ISBN 978–952–5726–00–8 (Print), 978–952–5726–01–5 (CD–ROM) Proceedings of the 2009 International Symposium on Web Information Systems
and Applications (WISA'09) Nanchang, P. R. China, May 22–24, 2009, pp. 202–205 Analysis on the Successful Strategies of Taobao's E–Commerce
Yang Lixia 1, Liu Xun 2 College of Arts, Hebei University of Engineering, Handan, China Email: claireyang123@yahoo.com.cn 2 College of
Mechanical Engineering, Hebei University of Engineering, Handan, China Email: cnliuxun@yahoo.com.cn Abstract–The improvement and the
development of internet technologies have triggered the rapid development of E–commerce applications since 21st century. A number of E–commerce
sites have been rising in China. But with the bursting of the... Show more content on Helpwriting.net ...
III. TAOBAO'S SUCCESSFUL STRATEGIES Taobao can be the top of E
–commerce market in just two years, people may think it lies on the
characteristics of the Internet economy, but the most important is its effective business strategies, including operation strategies and service strategies.
A. Operation Strategies 1. Capturing the market by No Fees In order to create brand, Taobao made a plan that it wouldn't receive any charging
transaction fees and 202 listing fees in the first three years. Taobao believes that only allows users to get real benefits in online transactions, and then
there will be more loyal network dealers. With this belief, Taobao captured the market rapidly and took more than 60% market share in two years. Free
is a huge investment, it reduces the threshold of personal transactions and protects the interests of both sides [3]. 2. Strengthening the comprehensive
cooperation with banks On October 27, 2003, Taobao and Zhejiang branch of ICBC (the Industrial and Commercial Bank of China) signed a
comprehensive cooperation agreement, which is a guard against default and fraud. It reflected the integrity of online transactions and payment. The
mode of payment and settlement on the online bank was born. This is a new mode which puts the bank intermediaries into the Internet and
E–commerce, and it creates a precedent on the national credit guarantee cooperation. The introduction of this service has greatly increased the users'
confidence on
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The Benefits Of Pipelines
Pipelines are the most traditional way of operating businesses, and are often straightforward. The market is fairly one–sided, as producers and
consumers tend to undertake specific, rigid roles. Cable television, launched in the mid–90s (Desjardins, 2017), emerged quickly as the direct pipeline
for delivering content to home viewers. Various cable companies have managed to maintain competitive advantage primarily through the offering of
sports content packages. Cable subscription grants not only access to local matches, but also to those from all around the world ranging from NBA to
NFL. Cable TV is advantageous as it is not restricted by regional limitations that may be imposed on broadcasting services online (Thompson, 2015).
For ... Show more content on Helpwriting.net ...
With the rise of information systems and the internet, new opportunities have opened up for businesses, contributing significantly to the rise of
platforms. The vigorous development of platform businesses has become a new pillar of contemporary global economy, as they occupy half of today's
top ten groups through market capitalisation (Woelderen & Pan, 2017). This is often done through using interactions and information to maximise and
transform engagement into key value growth drivers. For instance, Alibaba Group, which dominates China's online retailing market with the
customer–to–customer platform Taobao, has seen a 56% increase in annual profit due to the rapid growth of mobile users (La Monica, 2017).
According to Smith (2017), Taobao owns 529 million mobile monthly active users and 61.7% of transactions are made on mobile. Grasping the
opportunity brought by extensive use of mobile application, Taobao satisfied the growing social demand for shopping convenience. This illustrates
platforms' flexibility and ability to better meet the developing needs for expanding ecosystems and to survive in demand–side economies. Alibaba
Group (2017) has stated that Taobao aims to target the younger population as a lifestyle destination platform for both shopping and sharing product
knowledge, as information acts as key value generators and assets for platforms. Additionally, Taobao offers low costs for both sellers and customers

Essay On Alibaba
Alibaba Group Holding Limited is a publicly traded in HangZhou, China. It start operate from 4 April 1999. Alibaba.com Limited, primary company of
Alibaba Group, is the world's largest online business–to–business trading platform for small businesses. Alibaba Group is a HangZhou–based group of
Internet–based e–commerce businesses, including business–to–business online web portals, online retail and payment services, a shopping search
engine and data–centric cloud computing services. Alibaba.com is a global website for members to find suppliers and buyers. Consumers can both sell
and buy products on Alibaba.com. The company began in 1999 when Jack Ma founded the website Alibaba.com, a business–to–business portal to
connect Chinese manufacturers... Show more content on Helpwriting.net ...
Moreover, Baidu offers audio and image files, along with Chinese–based search engines for different websites and 57 other community and search
services. Two years ago, Baidu was ranked as one of the top 5 Internet sites with the highest Alexa ranking. Regarding the files and services provided
by Baidu, it must be said that the company offers over 90 million images and multimedia files, in addition to the over 740 million web pages. The
multimedia content of Baidu covers MP3 music, movies and even a personal digital assistant mobile search. The company has even released a
low–cost smart phone recently.
During Q4 of 2010, it is estimated that there were 4.02 billion search queries in China of which Baidu had a market share of 56.6%. China's
Internet–search revenue share in second quarter 2011 by Baidu is 76%. In December 2007, Baidu became the first Chinese company to be included in
the NASDAQ–100 index. In May 2014, Baidu ranked 5th overall in the Alexa Internet

Marketing Strategies For Alibaba Group Holding Limited
Abstract: Alibaba has become the largest online commerce company in the world in just a few years and barely anyone expected it to be so successful.
It has provided numerous business opportunities for small and medium enterprises to leverage the innovative technology to compete more efficiently
domestically and globally. This study discusses the marketing strategies, promotion, distribution channels and some important lessons that were carried
out by Jack Ma to achieve success in this world of online trading.
Introduction: Alibaba Group Holding Limited is a Chinese e–commerce company that provides consumer–to–consumer, business–to–consumer and
business–to–businesssales services via web portals. It also provides electronic payment services, a shopping search engine and data–centric cloud
computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business–to–business portal to connect Chinese
manufacturers with overseas buyers. In 2012, two of Alibaba's portals handled 1.1 trillion yuan ($170 billion) in sales. The company primarily
operates in the People's Republic of China (PRC), and at closing time, on the date of its initial public offering (IPO), 19 September 2014, Alibaba 's
market value was measured as US$231 billion. However, the stock has traded down and market cap was $145 billion at the end of September 2015.
In September 2013, the company sought an IPO in the United States after a deal could not be reached with Hong Kong

E Commerce Powerhouse Ebay Is Known Internationally As A...
E–Commerce powerhouse Ebay is known internationally as a leader in the market. The company was founded by Pierre Omidyar in 1995 in San
Francisco Originally eBay went by the name Auction Web and was launched with the purpose of enabling site users/consumers with the ability to trade
unique items with each other. Under eBay's business model, of the time a seller would place an item on eBay's site with a minimum bid set for the
buyer and the duration specified for auctioning that item. The services were provided by eBay free of charge. The free services however, did not last
long as the site quickly gained popularity and garnered a lot of web traffic. As interest in eBay and conducting business on the site began to grow eBay
started ... Show more content on Helpwriting.net ...
eBay, thereby had become one of the most visited sites on the web.
With the company growing at an exponential rate Skoll and Omidyar knew that they need to garner venture capital. So, in 1997, Omidyar and
Skoll approached the U.S venture capital firm Benchmark. They were able to broker a deal and Benchmark endowed eBay with $ 5 million with the
stipulation that Benchmark be given a 22 percent stake in the company. With the help of Benchmark Omidyar and Skoll were able to bring onboard
David Beirne and Robert Kagle to service operations, as well as Meg Whitman an MBA Harvard graduate as CEO for the company.
As CEO of the Company, Whitman spearheaded the eBay Initial Public Offering (IPO) where the company sold over 4 million shares of the
business to the public at $18 per share. With new found revenue and continued success, eBay decided to expand the scope of its business and
acquired Butterfield & Butterfield. Butterfield & Butterfield is one of the world's largest and most prestigious auction houses specializing in fine arts
and irreplaceable collectables. Acquisition of Butterfield & Butterfield allowed eBay to launch another segment of their business called eBay Great
Collections'. EBay Great Collections' abetted eBay in capitalizing on a very unique but very lucrative segment of consumers which was antique
collectors. This deal between eBay and Butterflied and Butterflied also ushered in a brand new era of mega deals between eBay and several

Business Analysis : E Shop
Key Partners
E–shop offers both products and services that can be used by consumers that are not only health–conscious but also culturally curious. Tea is alternative
product which is beneficial to human 's health. As a result, customers can come and enjoy our categories of tea offered without feeling self– conscious.
They could also try new types of tea that they have not tried before. E–shop also educates our customers about the cultural aspects of traditional art of
Chinese tea making along with the benefits of tea. By broadening our customers ' understanding of tea, E–shop offers them a place to obtain knowledge
in terms of health and culture. Below are the names of each team member, their role in the organization, and highlights of ... Show more content on
Helpwriting.net ...
They can visit us for social reasons like business meetings or networking.
E–shop also will provide a culturally sophisticated and intellectual atmosphere for customers. Moreover, this will allow our customers to enjoy our
offered teas compared to our business.
Key Resources
Our e–shop mainly is exported Chinese tea from China to UK. We have sold all kinds of Chinese tea which customers like. And also, we sell tea
products such as teapots, tea cups, tea sets, tea trays. Moreover, we also try to teach customers to learn and appreciate the art of traditional tea making
in a place of serenity, which is the value we provide to our customers.
Our Chinese tea e– shop got a website to let the customer easy to know our e–shop and contact with us. Moreover, the main for buy our e–shop's tea is
using Taobao platfrom to online trading. Because Taobao online trading is most popular for use in China and more safeguard. Taobao major promotion
C2C (consumer to consumer) online trading, individuals or small businesses are sellers in taobao open online stores. The electronic commerce field in
China is the most popular consumer welcome and the most influential one of e–commerce sites.
Value Propositions
There is an increase demand for healthier beverages like tea. This current trend of consuming health to maintain a better lifestyle has increased over
the past years. Thus, as an antioxidant, tea is beneficial to one 's health. Furthermore, by offering tea, we are also aiding to our

Taobao
Abstract
In this case, it mainly defines how eBay enter the Chinese market and state problems why eBay failure problems in China compare to Tao Bao. We
will introduce EBay, compare and contrast between eBay and Tao Bao, also, we talk about reasons failure in China.
Introduction to EBay
EBay which is a management that allows people from all over the world to buy and sell items, auctions and shopping online. EBay was founded on
4th September 1995 and by name Auction web of Pierre Omidyar in California. People can sell goods on EBay over the network.
As an online auction site, eBay created a buyer but also the seller of unprecedented business model which was C2C mode. EBay has differences from
traditional marketing because e Bay make a ... Show more content on Helpwriting.net ...
Tao Bao has another payment, such as, cash on delivery, bank transfer. But if trade dispute occur, Tao Bao will difficult to provide the same assistance.
On the other side, eBay offer variety of payment methods, including PayPal which is leading online payment and they responsible for the completion
of buyers and sellers money. (Jeffeny Kow, 2010)
Issues of eBay
In 2004, eBay acquired by Each Net to enter the Chinese market, many analysts believe eBay will become leader in Chinese market. Tao Bao and
eBay both have a wealth of experience in international and domestic markets and to maintain close contact with consumers. By the end 2006, eBay
has invested three hundred million US dollars for the Chinese business but with little success. Market share of eBay continue to decline each year and
fell pitifully until 2006, Alibaba's Tao Bao leapt on it. After the completion of the acquisition Bo Shao and other eBay executives have been chosen to
leave eBay. With Tao Bao online, EBay has difficulty situation inChina and market share began declining. The biggest problem is the user experience
and defining aspect of the product, at beginning which get global platform to China. Because of eBay's global platform is grid, according to the
situation in China, localization is hard, which limits the prospects for our development in China fundamentally.
Kathy Burns, n.d. What Is an eBay Business Model. Retrieved on

Ebay in China
21/11/2011
E–Bay Strategy In China Alliance or Acquisition? Case Study Strategic Management
Gabriela Е alamonovГЎ Barbora JandovГЎ Pierrick Boissel Julien Meunier Alexandre Godet
SUMMARY
I. The Input Stage
п‚· п‚· п‚· п‚· п‚· CAGE VRIO Analysis CPM matrix EFE matrix IFE matrix
II. The Matching Stage
п‚· п‚· п‚· BCG matrix SPACE matrix GSM matrix
III. The Decision Stage
п‚· п‚· Matrix Analysis QSPM matrix
IV. Questions
п‚· п‚· п‚· п‚· Assessment of eBayВґs choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition
strategy Assessment of the potential benefits and risks of eBayВґ s joint venture with Tom Online Assessment of both companies: eBay and Tom
Online, decisions on their respective ... Show more content on Helpwriting.net ...
Information system is analyzed as the parity. The reason is lack of a customer service hotline on eBayВґs websites. But on the other side they try to
meet needs their customer, e.g. facilitate payment system. eBayВґs executives do not adopt the management style to Chinese conditions. For the
majority of population was the only option to pay by cash, because of non–users of credit cards. Also there are problems with the system of auction,
because Chinese people like face to face purchases and they are used to deal the lowest price and in auction– selling format usually the prices went up.
These issues caused the evaluation of marketing and customer service as the parity. E–Bay had adopted various expansion strategies, both locally in the
US and globally in new international markets. It builds a brand image in the US as an industry leader and tries to expand to other foreign countries.

Additional temporary advantage related to the purchase protection because respondents extremely agreed that eBay did the best job in monitoring and
protecting its users from purchasing counterfeit items from its site.
п‚·
Competitive Profile Matrix
In CPM is important to identify eBay Вґs major competitors, their strengths & weaknesses in relation to a sample company Вґs strategic position.
Proposed CPM shows the clear insight to the eBay about its

Taobao vs. Ebay China
CASE: IB–88 DATE: 01/04/10
TAOBAO VS. EBAY CHINA
Ten to 15 years from now, I think China can be eBay 's largest market on a global basis.... We think China has tremendous long
–term potential and we
want to do everything we can to maintain 1 our No. 1 position. – Meg Whitman, eBay CEO, 2004
By 2008, Jack Ma, CEO of Alibaba.com Inc., was in a position to consider how to fortify Taobao's dominant position in China's online
consumer–to–consumer (C2C) market. Ma and his company had come a long way since May 2003, when they first launched the Taobao website. Back
then, eBay China dominated the fledgling market, holding over 70 percent share. It had entered China with its acquisition of the start–up EachNet, and
was actively building upon ... Show more content on Helpwriting.net ...
Debit cards were common in China, with about 300 million cards issued by mid–2001. However, each city had a separate payment gateway to process
these cards, so a card from one city often could not be used at the issuing bank's system in another city. 4 This lack of integration made it very
difficult for auction sites to handle debit card payments online. The credit card option was even worse. Because China's credit system was not
developed, Chinese banks were cautious about issuing cards and the application process was complicated. By 2001, there were only about 25
million credit cards issued in China, accounting for less than 1 percent of consumer spending (compared to about 25 percent in the U.S.), and credit
cards were accepted at only about 3 percent of China's shops. As the need for better credit card services intensified in the early 2000s, various
institutions responded. In 2001, Bank of China and China Construction Bank started accepting credit card applications online. At the same time, a
large number of credit verification companies emerged to help banks work around the lack of a personal credit scoring system in China. These
companies checked the backgrounds of applicants through various channels, including meeting the applicants in person. In February 2002, the People's
Bank of China, China's central bank, announced a project to enable the four largest banks to process cards across cities and banks. In the wake of these
changes, China's

Marketing Tools For The Chinese E Commerce Markets
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e–commerce markets, some of the factors explained in the
case are:
First mover advantage was created when Alibaba enter the e–commerce market with the business to business transactions for small and medium
business. This give the advantage for the firm to gain greater market share, obtain specialized sources and human capital, and it gain a great part of
customers that are loyal to the company.
Local knowledge was a really important factor for Alibaba because by knowing what are desires, interest and customs of their customers, Alibaba
created an advantage over its competitors.
Marketing tools created a great advantage for Alibaba because ... Show more content on Helpwriting.net ...
2.Discuss the rationale behind Ma establishing Taobao.com. What are the factors that led to Taobao's success as compared to eBay in the Chinese
online auctions market?
Ma established Taobao.com because he want to compete against eBay, and take the leadership in the auction market, he team up with Son to overthrow
eBay that at this time got about 80% of the market share in China. Ma as a visionary leader for Alibaba, launched Taobao because of the market
growing of the Costumer to Customer service in the the internet. This was a great opportunity to expand its service line, which they were dominants in
the Business to Consumers market. Some of the factors that led to Taobao's were:
The understanding of local language, culture and consumers preferences.
The acquisition of the local knowledge which is a great factor for success, with this Ma can target the features that customers desire the most and
facilitate the usage. Which he approached the local markets.
Ma differentiated Taobao from its competitor, he did not wanted to be a follower and he find new ways to create value for its service, Taobao did it
by not charging for its services. After strong critics from eBay, this approach was successful and eBay had to adopt it.
Alibaba created a payment system called Allipay which helped transactions to have more credibility because the consumer will pay for the product, and
an intermediary keep

China Cross Border Trade Case Study
China's internet business showcase is enormous, developing quick, and progressively open to merchandise from abroad. Because of the mix of abroad
travel, expanded Internet utilization, presentation to remote brands and surging interest for outside items from Chinese customers, China is anticipated
to end up plainly the world's biggest cross–outskirt online business advertise by 2020, as indicated by China internet Watch. China's cross–border
e–commerce business has been developing quickly as of late as far as both volume and esteem. This improvement has conveyed new and creative
approaches to get to business sectors, displaying huge potential for neighboring nations, particularly slightest least developed countries (LDCs) in Asia,
to ... Show more content on Helpwriting.net ...
Through the Asia–Pacific Economic Cooperation (APEC) CEO Conference of 2015, Alibaba director Jack Ma was cited as saying, 'E–commerce is like
a dessert in the US, yet the main course in China' (Ma, J. (2016).
Alibaba's Success Story As opposed to Europe and the Unified States, China is overwhelmed by online business commercial centers that regroup the
offers of numerous free traders. Customary physical retailers who have made a fruitful move online in those business sectors have no counterparts in
China, where autonomous traders represent just 10% of e–following deals.
Around 90% of Chinese electronic retailing happens on virtual commercial centers – sprawling web based business stages where makers, substantial
and little retailers, and people offer items and administrations to purchasers through online customer facing facades on mega sites like eBay or Amazon.
The destinations incorporate PayPal, Taobao and Tmall, which thusly are possessed by greater web based business gatherings. An extensive and
developing system of outsider specialist co–ops offers dealers showcasing and configuration administrations, installment satisfaction, conveyance and
coordination's, client administration and data innovation bolster.
Alibaba was established in Hangzhou in 1999 as a stage for coordinating fare and import brokers. In the mid–1990s, the Chinese Government was
advancing paperless exchange advancement. Amid that period, Alibaba author Jack

Case Study on Ebay
Question Paper Integrated Case Studies – I (MB3J1): January 2009
Case Studyв€
— (100 Marks)
This section consists of questions with serial number 1 – 5. Answer all questions. Marks are indicated against each question.
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e–commerce market, controlling
more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can
be attributed to Taobao's edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995
which was later called eBay. By mid 1997, eBay received one million page hits per ... Show more content on Helpwriting.net ...
Alipay's core service is an escrow service which solves the concerns related to settlement risk between buyer and seller. In this system, after a buyer
commits himself/herself to an online transaction, his/her payment is held in an Alipay account until he receives the product ordered. After the product
is received the buyer notifies Alipay and the payment is then forwarded on to the seller. As of December 2006, Alipay had 33 million registered users.
(Source: "Alipay – 33 Million Registered Users," www.imnewswatch.com, February 5, 2007) PayPal was a leading online payment company
purchased by eBay in mid–2002. In June 2007, PayPal had 143 million user accounts across the world. Through PayPal, individuals and businesses
could send or receive money over the Internet. PayPal supported payments in US Dollars, Canadian Dollars, Australian Dollars, Euros, Pounds
Sterling, and Japanese Yen. Buyers could also pay for their online purchases on various e–commerce websites and auction sites like eBay using the
balance in their PayPal account. Though this mode of transaction was quick, there were also a number of complaints from disgruntled PayPal
users. Most of the complaints were related to the dispute resolution procedures of PayPal. In eBay China, transaction fees used to be charged as a
percentage of the value of completed sales. This ranged from RMB 10 for a sale worth RMB 500 to RMB 115 for one worth RMB 20,000 (Source:
"EBay China

Who Is Walmart's Biggest Competitor
Walmart has many competitors in the world. There are many competitors in foreign countries that Walmart must overcome, but also the supermarket
companies in the United States. Walmart has so many products that they have a lot of competition with a lot of different industries. In the supermarket
type region, Target, Costco, Aldi, Kroger, Whole Foods Market, Publix, and Harris Teeter are there main competitors. Walmart has a slight advantage
over Target when it comes down to cost. Costco on the other hand outperform both Walmart and Target. Aldi may not be the biggest threat, they do
have very low prices. Kroger is Walmart's biggest competitors, as they are a very well–known company all over the world. Walmart and Whole Foods
Market did a blind taste test and Walmart had the... Show more content on Helpwriting.net ...
Harris Teeter have been rivals for a while, and Walmart just passed Harris Teeter to be the #1 grocer. Walmart has many other competitors for other
products that they have in store. Amazon and Google are their main competitors for the online aspect. Amazon really has the upper hand on
Walmart as they have the same day delivery. Walmart has now started to test same day delivery as their way to compete with Amazon. Google on
the other hand, is just bigger than Walmart plain in simple. It is very hard to compete with one of the best companies to ever be created. A new
and upcoming online website is called Taobao, which is like a Chinese eBay. Jack Ma Yun said that Taobao will overtake Walmart at one day.
Walmart's other competitors are Apple, as they overtook them in Music sales, Netflix because Netflix is instant, and you do not have to wait. Best
Buy and GameStop, because of the video game and electronics section, and Dollar stores, for their dollar prices they have. Sears is also a competitor
as they sell a lot of home products, just like

Case Study Of Alibaba
1.0 Introduction
1.1 Overview of Alibaba
In year 1999, Jack Ma who was a former teacher and his 18 friend in his Hangzhou apartment built up Alibaba group. At first, Alibaba working for the
small manufacturers set up a B2B (business to business) website. But then Alibaba group was quickly expanded until seven different group, for
example, Alibaba International Business Operations, Alibaba Small Business Operations, Tmall, Taobao, Alibaba Cloud Computing, Juhuasuan and
Etao.
Alibaba is the largest leading e–commerce companies of B2B online retailer in China and it is giving a trading platform that associates worldwide
purchasers to huge number of small medium enterprises to conduct business in their network. The market operate by Alibaba ... Show more content on
Helpwriting.net ...
Alibaba currently operate mobile and online commercial center in the form of wholesale trade and retail trade, cloud computing and other information
technology services, for example, Taobao, Tmall, Juhuasuan, Aliyun, Ant Financial Services Group, Cainiao Logistics, AliExpress, Alibaba.com,
1688.com and Alimama.
4.0 Analysis of Alibaba's Strategic Capabilities
In this following section aims to analysis how Alibaba build its competitive advantage. Alibaba will be analyzing usingvalue chain and then carried out
VRIN evaluation.
4.1 Value Chain
Value chain is an approach to know how an item or activities create value for consumers. The most of value provides to consumers, the most of
competitive advantage an organization build. In this analysis, value chain model has separated into primary and support activities. Primary activities
are included in the physical creation of the item and service. On the other hand, support activities give the inputs and infrastructure that enable the
primary activities to happen. This value chain model can be refer to below figure 5.
Figure 5: Michael Porter's Value

An Analysis of China'a E-Commerce Industry
An Analysis of China's E–Commerce Industry Introduction A little more than 10 years ago, China's path to e–commerce leadership would have been
difficult to foresee, even as the tech boom in the US and other markets saw the development of e–commerce as an important B2C and C2C channel. In
2000, China had yet to develop any e–commerce applications, and had only 2.1 million total internet users. Payment systems and physical delivery
mechanisms to facilitate the development of e–commerce transactions were well–developed in other markets, but were simply lacking in China. Fast
forward to the end of 2013: with Chinese internet users quickly approaching 600 million, China is on pace to pass the US and become the largest
e–commerce... Show more content on Helpwriting.net ...
We can see from the chart below that by looking at the total e–commerce sales per country, China is the second–largest player in the global market,
losing out only to the United States. Market trends Within the e–commerce industry in China, we are able to identify several market trends that shape
the nature of the industry and also give us insights into how the industry will evolve in the near future. By comparing C2C and B2C transaction
value over the pst few years, we can see that B2C has been gaining market share gradually, and will reach about 50% by 2016E. Also, we notice that
there is rapid growth of mobile shopping, which is defined as customers who shop online using their mobile devices. Also, we notice that the amount
of transactions that are processed using mobile devices has been slowly increasing over the past few years as well. Mobile Data from CNNIC indicate
that mobile phones had become the number one terminal for surfing instead of computers by June

Core Business Strategy: Alibaba, Bobao And Tmall
Alibaba
Price or Output: The core business includes three e–Commerce websites which are Alibaba, Taobao and Tmall, which can connect and cover multi
ranges of buyers and sellers and Allibaba serves as a middleman and collect annual fees, deposit or commission fees from merchants for their
transactions. Therefore, it focuses more on price as it does not contribute products or manage warehouse. It attracts customers by offer best price and
opportunity of for venture.
Advertising and Marketing: Alibaba invests hugely on marketing expense. USD 403 million had spent in advertising and marketing in 2015, accounted
for 11% of the revenue (Alibabagroup, 2015). The budget of marketing increases yearly due to stringer competition. Alibaba also blocks... Show more
content on Helpwriting.net ...
Therefore, eBay focuses on a large volume of produced output. In addition, it focuses on products which can effectively respond to the huge customers,
better speed, stability and security of its website.
Advertising and Marketing: the expenditure on marketing is significantly high at about USD 2 billion in 2012 and keeps increasing every year. This
encourages the sales to grow. eBay developed a massively successful eBay Deal offering special promotion and discount which could reached the sales
of USD 1 billion in the US in 2014(Garner, 2015).
Product Differentiation: eBay's differentiation is its auction–based style C2C and B2B. Its selling point is that eBay connect sellers and buyers to trade
by auctioning or the set price and generate revenue from the transactions and fees. Another differentiation is that the company does not have same–day
delivery service unlike competitors as customers do not want to pay for extra charge for the shipping.
R&D: eBay spent USD 1.5 billion in 2012 including innovations such as database system and mobile applications. For example, Venmo allow users
transfer money among their social contacts in their smartphones (Zucchi,

Marketing Strategies For Alibaba Group Holding Limited
RESEARCH ASSIGNMENT
ECONOMICS 510
BY:
ABHISHEK MISTRY
ID: 1102542
Abstract: Alibaba has become the largest online commerce company in the world in just a few years and barely anyone expected it to be so successful.
It has provided numerous business opportunities for small and medium enterprises to leverage the innovative technology to compete more efficiently
domestically and globally. This study discusses the marketing strategies, promotion, distribution channels and some important lessons that were carried
out by Jack Ma to achieve success in this world of online trading.
Introduction: Alibaba Group Holding Limited is a Chinese e–commerce company that provides consumer–to–consumer, business–to–consumer and
business–to–businesssales services via web portals. It provides electronic payment services, a shopping search engine and cloud computing services.
Jack Ma founded Alibaba.com in 1999, a business–to–business portal to connect Chinese manufacturers with overseas buyers. In 2012, two of
Alibaba's portals handled 170 billion in sales. The company primarily operates in the People's Republic of China (PRC), and at closing time, on the
date of its initial public offering (IPO), 19 September 2014, Alibaba 's market value was measured as US$231 billion. However, the stock has traded
down and market cap was $145 billion at the end of September 2015.
In September 2013, the company sought an IPO in the United States after a deal could not be reached with Hong Kong

Swot Analysis Of Alibao As A Commercial Venture
Company Establishment Alibaba.com
In early 1999, Jack Ma and 17 other founders set up Alibaba.
Alibaba first commercial venture is Alibaba.com, an online platform that linked SME of Chinese and international manufacturers and buyers. The
main reason of Alibaba success development was improving customers' satisfaction by listening closely to them. The proof is Alibaba had attracted
32m members in 2007, with operating profits and revenues of $105.3m and of $289.5m respectively. Customers satisfaction and trust are believed to
be the secret recipe of Alibaba's success. Taobao
Competition has begun as early as 2002. eBay entered China and immediately started expanding. In response, on 11th May 2003, Alibaba launched its
second commercial ... Show more content on Helpwriting.net ...
Listing – From Hong Kong to New York On the 19th of September 2014 a history made. Alibaba becameAlibaba Group Holding Limited through New
York Stock Exchange (NYSE). There were unique reasons why Alibaba listed on the NYSE instead of on Shanghai Stock Exchange (SSE) andHong
Kong Stock Exchange (HKEx) since it is a China–domiciled company. SSE found to be too restrictive, that it imposed limits on trading, size, timing,
and speed of foreign capital flows. Alibaba had also attempted to be listed on the HKEx. Since Alibaba embraces dual–class share structure, this was
the main reason HKEx rejected Alibaba's proposal to be listed as HKEx does not authorize dual–class share structure, it allows "one–share–one–vote"
principle instead. Jack Ma, the determined and charismatic leader, did not stop after being rejected. Alibaba proposed to Nasdaq and the NYSE.
Eventually, on September 19, 2014, it was listed on the NYSE, being the largest U.S. IPO of common stock, raised $21.8 billion, with $68 per share.
It was obvious that the restrictions on SSE and HKEx's ban on dual–class share structure had led Alibaba to land on the NYSE and trading up until
today. Dual–Class Share Structure
In dual–class share, there are two groups of shareholders, where one group has excess voting rights disproportionately to the shares they hold. In this
case,

Ebay in China
21/11/2011 E–Bay Strategy In China Alliance or Acquisition? Case Study Strategic Management Gabriela ЕalamonovГЎ Barbora JandovГЎ Pierrick
Boissel Julien Meunier Alexandre Godet SUMMARY I. The Input Stage п‚· п‚· п‚· п‚· п‚· CAGE VRIO Analysis CPM matrix EFE matrix IFE
matrix II. The Matching Stage п‚· п‚· п‚· BCG matrix SPACE matrix GSM matrix III. The Decision Stage п‚· п‚· Matrix Analysis QSPM matrix IV.
Questions п‚· п‚· п‚· п‚· Assessment of eBayВґs choice of market entry strategy for China, listing both the advantages and disadvantages of its
acquisition strategy Assessment of the potential benefits and risks of eBayВґ s joint venture with Tom Online Assessment of both companies: eBay
and Tom Online, decisions on their respective percentage of stake... Show more content on Helpwriting.net ...
Other example can be technical support hotline, Customer Loyalty – eBay had not made much effort in building trust both towards the company itself
and between buyers and sellers further exacerbated the problem (linked with previous – AliPay). Company need to provide security every step of the
way during a sales transaction to ensure that consumers feel comfortable making their purchases. This point discouraged buyers and it resulted into
switching to competitors, Management – eBayВґ s executives hold on US management style, there is a lack of effort in adaptation to Chinese market,
also eBay entered China with the assumption that its brand image in the US as an industry leader would transfer to the Chinese market without any
modification, Global Expansion – eBay is more extended because of its global presence, TaoBao focus on Chinese market what is in this case
competitive advantage because of peopleВґ s trust to domestic companies, Website Design– eBay provides topic–specific guidelines and links, both of
which are meant for self help, this is considered bad thing by consumers in China where do–it–yourself is not as popular as in Western countries. In
comparison to TaoBao, its website design suits more because of loaded with п‚· п‚· п‚· п‚· п‚· п‚· information, links, graphics, banners and
multimedia. Chinese people also appreciate a customer service and technical support hotline. In conclusion, we

Comparative Ebay and Taobao
A Comparative Study between eBay and Taobao in Chinese Online Auction Market
BSAD 415:66 Electronic Business
Prof. G. Trites
Jie Yue (Kathy)
200706289
June 10, 2008
1 Introduction
Being the largest online trading company, eBay has launched websites across the world, including thirty other countries in addition to its original U.S.
website. China, with its large online market, is one of these countries. In 2003, after its cooperation with Eachnet, the first C2C online company in
China, eBay became the largest online trading company in China, controlled 90 percent of the Chinese C2C market (Zazaian, 2006). The success
continued until Taobao, a completely free online C2C platform, established in China by the ... Show more content on Helpwriting.net ...
Also, eBay has lowered listing fee a lot since 2005, but this didn't slow down Taobao's growth. Therefore, free listing is not the key reason for
Taobao's success. Indeed, feeling they are benefiting, customers may even willing to pay.
Target Market
The first action for both eBay and Taobao in China is to identify their target markets. When eBay launched in China, it identified its target customers as
those "well educated, familiar with the Internet, earning a monthly payment over 3,000 RMB, and 20–40 years old" (Chen et al., 2007). Indicated by
Shixiong Wu, CEO of eBay China, these mainstream customers are very important to eBay as they help with the healthy growth of electronic
market (as cited in Chen et al., 2007). On the other side of the Chinese online market, Taobao decided to focus on Chinese customers who are

between 20 and 30 years old with good education levels, after analyzing China's C2C market for four months. They believe that in a decade, these
online shoppers will become mainstream consumers who will influence the buying habits of the whole country (Alibaba, 2006). Comparing the target
markets of eBay and Taobao, it is clear that though they all target at young people, Taobao's target market is much broader and includes students, while
eBay's target customers are professionals who have salaries. Shown by the survey results, in 2007, student buyers made up a quarter of all customers,

Alibaba Strengths And Weaknesses
We would like to analyse the key issues from the business environment and the strategic capability of Alibaba group that are most likely to impact on
strategy development by the model of SWOT.
3.6.1 S(Strength)
Business integration
Alibaba provides both business clients and individual clients with an all–included service. It integrates all the separate procedures of purchase,
payment, logistics, information release, deal negotiation and order signing. Thus reinforce the competition ability of its service. This all–included
service is like an "ecosystem" which ensure all the participants can help and work well in this system. Nowadays, Alibaba group control the business
information(alibaba, taobao), payment service(Alipay), search engine(Yahoochina)... Show more content on Helpwriting.net ...
Government's support to e–business
From 2004, Chinese government began to support the development of e–business sector and encouraged more state owned enterprises to participate in
it. With new laws enacted, the competition will be normalized.
Go public and internationalization
After Alibaba went public in September, the group faces more opportunities like more efficient to get finance. With domestic reputation, Alibaba will
get into international market more easily. As also, with support of international market, the group can do better in domestic market.
3.6.4. T(threats)
Competitors inside and outside
Though currently there is no competitor who represents a substantial threat to Alibaba in China, as this sector develops, more and more company wish
to share the profit in e–business. With an increasing number of new competitors in China and strong competitors like Amazon, Ebay abroad, Alibaba
should not ignore the competition pressure it faces.
Economic slowdown in

Website Design, Trust And Customer Service
Technology is developing so rapidly that it has started to affect different aspects of the society especially business. Online business was invented in
20th century in the UK and has quickly spread all over the world. With an increasing popularity of the online shopping, more and more retailers start to
sell online, which makes the marketplace become more competitive. In order to be successful, it is important for the retailers to understand the most
important factors that satisfy the customers when they purchase online. Once the level of the e–satisfaction increases, the purchase intention will
increase and online retailers can gain more profit. Among all the factors that will potentially affect online satisfaction, the aim of this essay... Show
more content on Helpwriting.net ...
In order to show the importance of website design and its flow, Amazon is taken as an example. Amazon has spent millions of dollars on the design of
their website; and finally succeeded in creating the Amazon brand. Because of its ability to attract the customers' attention and satisfy the customers,
many companies adopted the Amazon website design when designing their own websites (Rosen & Purinton, 2004). Although the product, product
descriptions, cover images, and editorial content from their vendors are the same between Amazon and its competitors such as Barnesandnoble.com,
Amazon engages its users better by making use of the customer activity to produce better search results; unlike other website searches which only lead
with the company's own products or sponsored results (O'Reilly, 2007). Involving more user participation in its website design is one of the most
important reasons why Amazon gains a higher level of satisfaction from customers and a greater success than its competitors.
Apart from website design, perceptions of online trust play an important role in e–satisfaction. Trust is used in this essay because it includes both
security and privacy. According to the finding of Koufaris and Hampton–Sosa (2004), although the number of the web users grows at a fast speed, only
approximately 15% of those surfers buy online. Besides, an increasing

What Did Jack Ma Was So Different From Other Company Leaders
Discussion Question:
1.What did Jack Ma do that was so different from other company leaders? In what ways is he a revolutionary?
The difference between Jack Ma and the other companies' leaders is Jack Ma focus more to the customers compared to the shareholders. His
philosophy can be proved when he states that an IPO was never have been their goal and he said "We will continue to adhere to the principle of
customer first, employees second, shareholders third". Even Alibaba has become one of the greatest companies after they made a new IPO record in
the history of New York Stock Exchange, but they will continue to protect the benefit of customers and shareholders and also to support their
employees.
Next, Jack Ma chose to run a publicly listed company by hiring six major banks ... Show more content on Helpwriting.net ...
Jack Ma's sudden emergence "rocked the boat" in China and around the globe. Are lots of other business leaders likely to follow his example, and
challenge the status quo?
What did Jack Ma until his emergence called "rocked the boat" is his Alibaba Group's stock had just started trading and it immediately jumped in value.
His company also set the record for the largest initial public offering in history. Jack Ma's risk taking that resulted in the super–successful company.
Because of that, Jack Ma is one of China's most influential business leaders and one of the 100 people who "most affect our world" according to Time
magazine. This shows lots of other business leaders likely to follow his example and challenge the status quo.
Status qua is a Latin phase meaning the existing state of affairs, particularly with regards to social or political issues. It applies to maintain or change
existing social structure and values. The status qua must be challenged by every leader, company and organization in order to create greatness and
success. Thus, Jack Ma challenged the governance status qua. Although he met more decision and criticism, he never gave up. He always trying to
achieve his

Taobao's Success
Taobao's Success 1
Taobao's Success
The most successful C2C E–business platform in China
Chenlei Shi
865313
IT IS 600
Professor Robert Testa, Jr.
September, 18, 2010
Taobao's Success 2
Abstract
With the great speed of economic globalization, E–Business is developing in a surprising speed through the wide–spread of information technology.
Nowadays, there are a lot of big E–business corporations such as Amazon, E–bay focus on different E–business model and field. However when these
international companies carving up the global market, some local enterprises also growing up and want to share this big cake.
Taobao (www.taobao.com), a Chinese–based company which is a leading platform for C2C personal transactions, was founded in 2003 ... Show more
Until 2005, this
Taobao's Success 5 problem was solved by eBay–Each, but without doubt, eBay–Each lost its advantage in credit transaction.
Third, eBay–Each used advertisement blocking tactics to fight Taobao. In 2003, the biggest three portal in China (Sohu, Sina, 163) made a deal with
e–Bay that they would never use Taobao's advertisement. To fix this problem, Taobao use a lot of traditional medium such as newspaper, TV or
subway stops, bus, road advertising. Moreover, Taobao also made a co–operation with Yahoo, using Yahoo's search bid, investing 2 million keywords.
Then Taobao increased the keywords to 3 million, and the hits up to 6million in one day. That made Taobao beyond its opponent in two key indicators,
accounting for the initiative in future competition. Furthermore, another difference in Taobao's advertisements, their membership in the trading
process could feel lively culture of family. Fourth, eBay–Each and Taobao had a significant understianding gap in market positioning. EBay–Each have

their global strategy and want to do business with the people who are 30–40years old. While Taobao's strategy is localization, and its target population
was also younger than its counterpart. Last but not least, Taobao encouraged their buyer and seller makes private transaction, and supported a
convenient platform. One example is the communication tool for members in a timely manner – Live Messenger. If the user enters a shop, just the
owner is also

Decathlon China case report
2013 [DECATHLON CHINA: USING SOCIAL MEDIA TO PENETRATE THE INTERNET MARKET] CASE 2 INDIVIDUAL REPORT K 603
–
Information Systems Table of Content: Executive Summary2Key Issues3 SWOT Analysis5 Porter's Five Forces6 Strategic Alternatives 7
Recommendations9 Implementation Strategy10 Additional Costs12 Conclusion13 Bibliography14 Appendix 1 15 Appendix 216 Executive Summary
Decathlon, established in 1976, is a French manufacturer and retailer of sporting... Show more content on Helpwriting.net ...
Strategic Alternatives: Alternative 1– Optimise Social Media Strategy and introduce Online Store on www.decathlon.com.ch Pros: In order to create
positive brand experience, become the leader in the Chinese sporting goods market and develop customer trust, powerful social media strategy was
needed to help the brand to increase its presence online through optimised social media channels like Renren, Kaixin001 and 8264.com to create online
community, promote its products and compete powerfully with its rivalries. Chinese consumers of sporting goods are very socially active online. They
like to purchase products while consulting with others. Social media outlets are perfect to create positive buzz around the brand and strengthen the it's
reputation online as well as introduce the customer to purchasing the product on–line through www.decathlon.com.ch by creating the same 'look and
feel' as in retail store. Taobao, being the biggest retailer in China, has high consumer 'stickiness' due to its bargain prices, stellar customer service, high
level of trust among consumers, is uniquely positioned to optimise sales of Decathlon products online. Cons: Managing multiple social media outlets in
a timely manner can be costly and time consuming. Decathlon must be prepared to adopt "always on" strategy when interacting with customers, which
must start with internal preparedness in eCommerce and IT departments. Alternative 2 – Focus on

Ebay Expansion in China
Question 1: eBay's (diversification) expansion modes in China included acquisition and joint venture. Critically evaluate each mode of diversification
by identifying the advantages and disadvantages for EBay given the competitive environment within the overall industry and specifically in China.
By the year of 2006, eBay's combined international investments in Latin American, Europe and Asia Pacific has totaled revenues of 2.1 billion,
representing 49% of aggregate revenues of the company at the time. Seeing the great potential of the Chinese C2C online auction market which back
then comprised of 250 million customers, eBay has launched various attempts majoring the acquisition of EachNet in 2003 and the later joint venture
with TOM ... Show more content on Helpwriting.net ...
In a currently implicit business environment culture where guanxi plays a substantial role in conducting business, such networks with government
agencies, officials and personnel would enhance the chance of the eBay's success in its Chinese business sector. * The rebranding of "eBay EachNet"
to "TOM EachNet" is likely to go along with the Chinese market's tendency to embrace familiar and domestically successful brand names and abandon
newcomers except for the ones that are already globally well–known like Nike Inc.
Disadvantage:
* The strong presence of Taobao and its parent company Alibaba is still hard to compete with. eBay lacks both customer base and customer faith
compared to Taobao and thus might suffer the pain in terms of lost sales to Taobao in m–commerce sector as well. * In addition to its alliance with the
alliance with the wireless service provider TOM, Taobao has yet to build collateral relationships with other major domestic service providers like
China Mobile and China Unicom, many of which are partially state–owned and thus has prevailing impact in the

Objectives Of HK Toys
Objectives
Recognizing the incredible potential of the internet, HK Toys is planning to expand its business in Hong Kong through e–commerce. Businesses of all
sizes in all sectors are using the Internet in many different ways – to work with partners and suppliers, for procurement, for internal activities such as
knowledge sharing and new product development, and much more. E–commerce in general can be divided into Business–to–Business and
Business–to–Consumer.
To cope with this new business challenge, HK Toys is planning to establish a website and to upgrade its sales andmarketing systems, while adopting
electronic business at the same time. It is to increase overall market profit by moving some of their operations online and integrate online ... Show more
Taobao built the leading domestic net–market and the personal transaction net–community, by its flexible operating trade. It also provides online
business services to the members in the world. Taobao had become the largest E–commerce trading platform in Asia.
It is often a cost–effective alternative for SMEs because those e–marketing places charge a small fee relative to the price of the products which setting
by seller and the items are sold directly to consumers. Seller can set up a web store and display a list of product with fully descriptions and
specification to help customers understand the product details before purchasing. Customers can also compare the prices of similar products provided
by different merchants and search for the best price easily. Furthermore, they can order products anytime, even after office hours. The e–marketing
places have their own online trading tools, such as Taobao's 'Alipay', eBay's 'Escrow' for easy online transaction. Customers can post reviews after
received the products and potential customers can study these reviews before buying a

Alibaba
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Upload your photographs of our unique natural environment, help improve Wikipedia and win some great prizes along the way!
–––––––––––––––––––––––––––––––––––––––––––––––––
Alibaba Group
From Wikipedia, the free encyclopedia
For the character from the Arabian folk tale, see Ali Baba.
Coordinates: 30В°11вЂІ31.12вЂіN 120В°11вЂІ9.79вЂіE Alibaba Group Holding Limited| | Type| Public Company| Traded as| NYSE: BABA|
Founded| 4 April 1999; 17 years ago
Hangzhou, Zhejiang, China| Headquarters| Hangzhou, Zhejiang, China| Area served| Worldwide| Founder(s)|Jack Ma| Key people| * Jack Ma
(Chairman) * Daniel Zhang (CEO) * Joseph Tsai (Executive... Show more content on Helpwriting.net ...
* 2.11Aliwangwang * 2.12Laiwang * 2.13Alibaba Pictures * 2.14Youku Tudou * 2.1511 Main * 2.16Alibaba Group R&D institute * 2.17Xia Mi *
2.18365fanyi.com * 2.19South China Morning Post * 2.20Ali Health * 3Corporate governance * 4Controversies * 4.1Gold Supplier membership *
4.2Uranium sales * 5See also * 6References * 7External links
–––––––––––––––––––––––––––––––––––––––––––––––––
History[edit]
Founding[edit]
The company was founded in Hangzhou[16] as Ma explained:
"Taobao City", the main corporate campus for Alibaba Group at Xixi,Hangzhou.
Alibaba Binjiang Campus in Hangzhou, headquarters for Alibaba's B2B service.
One day I was in San Francisco in a coffee shop, and I was thinking Alibaba is a good name. And then a waitress came, and I said, "Do you know about
Alibaba?" And she said yes. I said, "What do you know about ?", and she said, "Open Sesame". And I said, "Yes, this is the name!" Then I went onto
the street and found 30 people and asked them, "Do you know Alibaba?" People from India, people from Germany, people from Tokyo and China ...
they all knew about Alibaba. Alibaba– open sesame. Alibaba is a kind, smart business person, and he helped the village. So ... easy to spell, and
globally known. Alibaba opens sesame for small– to medium–sized companies. We also registered the name "Alimama", in case someone

Taobao Established Shopping from Home with Online Shopping
Question 1
History
In 2003 Taobao was established by Ma Yun, a man with wildest ambition in ecommerce and also the founder of Alibaba. Taobao, is the biggest
network retailer marketplace in Asia. It is a Chinese language website for online shopping, similar to eBay and Amazon. Currently, Taobao
marketplace focus on C2C (Consumer to Consumer) and B2C (Business to Consumer). With around 760 million product listings as of March 2013,
Taobao Marketplace is one of the world's top 20 most visited websites according to Alexa. The combined gross merchandise volume (GMV) of
Taobao Marketplace and Tmall.com exceeded RMB1 trillion in the end of 31 March 2013.
Introduction Online shopping is a form of electronic commerce which provides the way consumers go shopping and purchase services and goods with
reasonable price on the Internet. For some consumers, shopping and purchasing online have become part of their daily lives, while others may not
even care about it. Taobao online shopping system has provide consumers to directly buy goods or services from a seller over the internet using a
web browser. Users can shop from your home comfort. They not need to go to crowd supermarket or shopping mall to buy their necessity items. Items
can be get from online shopping include cars, books, apparel, jewelers, baby care, gifts, tools, etc. Besides that, user can shop from foreign countries
with a few clicks. Furthermore, online shopping system could make your

Shopping : The Pros And Cons Of Online Shopping
As the fast growth of technology, people prefer online shopping more than shopping in the physical store. A lot of surveys show us there's a great
increase in online shopping. For people to choose to shop online, pros should be more valuable than cons in their beliefs. The most attractive
advantages of online shopping include: Purchase with almost anytime; receive a lot of information at the same time; without the expense of renting the
physical store and hiring employees, the price may be cheaper; to marketing economy, this new mode of shopping can lead to a more efficient resource
using; online shopping benefits in shorting time and space resources. It's a business occurs in virtual.
The largest online shopping day in China is ... Show more content on Helpwriting.net ...
The price of the product is so low that many people go to the physical store to do window shopping and buy the product online. Communication
dissatisfaction might occur in online shopping, and more patient is the way to satisfy the shoppers. Face–to–face communication is always a quicker
and better way to solve the problem.
There are some disadvantages of online shopping: Shoppers can't guarantee the product is the same as the picture that show on the website; It's difficult
for shoppers to distinguish the legality of the websites; Customers sometimes can't find the server to solve their problem.
Although people can buy products with a really low price on Taobao, no one can guarantee the product to be real, and that's the biggest problem for
online shopping. Countries legislate laws to avoid customers purchase fake products; online shopping flatforms such like Taobao also set rules for
customers to supervise the online store.
For the legality of online shopping websites, Chinese people usually shop on Taobao so that they don't get cheated on the fake websites, and this
makes Taobao a gigantic flatform and it's like a monopoly. People shop on Taobao and the stores get franchised to put their products on Taobao.
Online store save their expense of hiring people, but it also cause the problem of no one responding online. Customers may have some questions of the
product, and it's easy to solve this problem in physical store, but online store sometimes

Alibaba Taobao's
Alibaba Taobao
Introduction
Founded by Alibaba Group on May 10, 2003, Taobao Marketplace facilitates consumer–to–consumer (C2C) retail by providing a platform for small
businesses and individual entrepreneurs to open online stores that mainly cater to consumers in Chinese–speaking regions (Mainland China, Hong
Kong, Macau and Taiwan) and also abroad.
Taobao Marketplace (formerly "Taobao") was launched in May 2003 by Alibaba after eBay acquired Eachnet, China's online auction leader at the
time, for USD 180 million and became a major player in the Chinese consumer e–commerce market. To counter eBay's expansion, Taobao offered free
listings to sellers and introduced website features designed to act in local consumers' best interests, ... Show more content on Helpwriting.net ...
For instance, the screen names of online moderators were derived from characters in popular Chinese kung–fu novels.
It also introduced the online payment system Alipay a year later. Online credit card or debit card payment was very rare in China and customers
usually paid cash on delivery. Alipay formed partnerships with leading Chinese banks and signed a long–term agreement with China Post, which meant
customers without a debit or bank card could fund their Alipay accounts at any of its 66,000 offices.
Taobao provided services and solved problems for the smaller businesses that are the driving force behind China's economic boom. For instance, Alipay
enabled people to pay for goods and services easily.
Also, Taobao identified how to help people buy and sell. By makingonline shopping easy, safe and fun it helped many first–time online buyers build
confidence in e–commerce.
On the other hand, EBay in China was charging users to list products and services which will discourage sellers to set up online shops on its website.
This will thus cause a decrease in goods and services provided on eBay and buyers will look for alternatives because of the lack of choices. Despite
eBay announcing that it will no longer charge a transaction fee on sellers on its Chinese Web site in 2006, it was already too late as Taobao had
already made use the period of time (where eBay still collects fees) to garner a loyal base of

Customer's Behaviour in E-Commerce in China
CUSTOMER'S BEHAVIOUR IN E–COMMERCE IN CHINA
Case: taobao
Thesis
Xinxing Hong Yanlong Chen
Degree Programme in International Business International Marketing Management
SAVONIA UNIVERSITY OF APPLIED SCIENCES Business and Administration, Varkaus
Degree Programme, option
Bachelor of Business Administration, International Business, International Marketing Management
Author(s)
Hong Xinxing & Chen Yanlong
Title of study
CUSTOMER'S BEHAVIOUR IN E–COMMERCE IN CHINA
Type of project Date Pages
Thesis
Supervisor(s) of study
15th Nov. 2010
59 + 16

Executive organisation
Virpi Oksanen, Tuula Linnas
Abstract
As nowadays communication bandwidths rise with the increase of broadband connections in China, and as ... Show more content on Helpwriting.net ...
This newly developed type of marketing function is more and more popular nowadays, but the customerвЂџs behaviour and psychology in this
situation have not been focused on enough. Especially in China, where e–commerce has developed a peak, an increasing number of people are eager to
learn about e–commerce. In this case, a good analysis of customerвЂџs behaviour and psychology can help companies adapt to this new environment
well and divide the target market. The thesis is researching customer behavior, how the customers make their purchasing decisions, variation of the
consumption structure and customer psychology in ecommerce. E–business is not a product or service; it is the technology applied to the
companyвЂџs work to innovate the experiences and qualities surrounding the product. The ebusiness activities over the internet are a tool or engine to
improve the domestic economic well being through the liberalization of domestic services, more rapid integration into the globalization of production.
(Taylor & Murphy 2004, 286)
The research problem in the thesis is: what are the internal and external elements that affect customerвЂџs purchasing behavior. The internal elements
may include customerвЂџs mental activity, personality, and thinking, while the external elements may include the social elements, purchasing
environment, customer group and marketing functions and

Alibaba- Corporate Advantage and Competiton
How does Alibaba group create corporate advantage? (Why are the businesses under one roof?) Is this corporate advantage sustainable?
Is the current degree of competition amongst the business units appropriate? Do you think Jack Ma should encourage more cooperation? If so how?
The Alibaba group has thrived in the Chinese e–commerce sector from its inception in 1998. They currently account for over 70% of online shopping
in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1–2). Alibaba's successes are due to multiple
factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and
coordination of Alibaba's ... Show more content on Helpwriting.net ...
Ma has created corporate advantage through championing internal competition between subsidiaries, which although report directly to himself, are run
as separate business units under the Alibaba Group. Ma provides each subsidiary with its own board of directors, operating managers and executive
team to encourage competition (case p.7). Executives are rewarded through business autonomy, in conjunction employees are incentivised through
stock options linked to group performance (case p.9).
The principal way in which Alibaba Group's organisational structure creates corporate advantage is the flexibility gained from its decentralised nature.
Paired with this structure, Alibaba's shared value of 'embrace change' puts emphasis on innovative and adaptive practice (exhibit 11 case). This notion
is best explained by CFO Joseph Tsai who stated "We sacrificed forced synergies in order to quickly pursue subsidiary opportunities" (case p.9). Alipay
provides a prime example of the strength of Alibaba's decentralised structure. Launched in 2004 as part of Taobao, Alipay held consumer's payments
until purchased goods were received, thus eliminating settlement risk. Initially incubated, Alipay became fundamental to Taobao's growth and soon
reached critical mass, this presented opportunities beyond the internal organisation leading to Ma's decision to separate Alipay from Taobao as an
independent

Personalised Social Media Endorsements For Online Products
Recommendations and Referrals: these usually refer to personalised social media endorsements for online products. They help potential customers to
know the referral value. Social recommendations include the information given by customers on what to read, see, buy, and so on; while referral
programs involve some material or non–material rewards provided by sellers (Moe & Trusov 2011). Ratings and Reviews: these indicate the original
social commerce toolset used for customers to share their shopping and user experience. In a business view, these help the companies to integrate
community features and customer feedback into their websites. In a customer based view, these help potential customers to reach more credible and
useful information... Show more content on Helpwriting.net ...
3 3.oppotunities and risks Based on above statements, it is found that social commerce brings new opportunities for retailers compared with traditional
business model. Compared with traditional business model, which emphases 4ps market mixes, social commerce is based on advanced information
technologies such as e–commerce tools. Thus, social commerce naturally shares advantages of e–commerce, such as: overcoming geographical
limitations, low costs, saving time, and so on (Spotswood & Tapp 2013). Then, compared with e–commerce, social commerce emphasises
communication and social interactions among users. Compared with e–commerce, social commerce also provide new opportunities for communication
and interaction functions creates more ties between retailers and customers then e–commerce. On one hand, social commerce creates friendship ties
between e–retailers and customers as offline social networks do. However, the nature of Internet means that social commerce will has more more
partners online. It implies that e–retailers will be more socially. On the other hand, social commerce creates outgoing advice ties through sharing
advice and knowledge. For example, e–retailers would build better reputation and brand image when they shared knowledge with peer sellers. Also,
individuals who contribute information and

The E Commerce Company's Strategy
The e–commerce company's strategy focus allowed it to differentiate itself by providing better services to its customers. The company put an
innovative business model in which customers would try out the company's services without any cost. As time progressed, the company was able to
generate revenue from alternative means. In addition, the company began to generate revenue from an increase in the willingness of its users to pay
for additional services. First mover advantage is referred to as a competitive advantage because it allows the first company to acquire superior brand
recognition and customer loyalty, while allowing the company to perfect its product or service. Alibaba's operations stated when e–commerce was at
infancy stage in... Show more content on Helpwriting.net ...
Credit cards may have been used in China, but they had yet to be trusted by the community, the Chinese were not comfortable with them and preferred
different mediums of transaction. Thus, Alibaba established the payment system to provide the Chinese with a sense of safety, contributing to the
Chinese willingness to participate in online transactions. Regulations can pose a challenge for businesses operating in emerging markets like China.
For example, the internet was highly regulated and was a reason why some foreign companies struggled to succeed in China. Alibaba navigate the
posed challenges well and took advantage of the opportunities while at the same time mitigating the risks of operating. The popularity of Alibaba and
the growth of e–commerce in China attracted foreign e–commerce companies. In 2002, eBay entered the Chinese e–commerce market through an
acquisition of 33% of EachNet, creating eBay EachNet. That same year eBay EachNet merged as the leader in online auctions, leading to the capture
of 79% of the online auction market by 2003. In consideration of the growth in the online auction market, Alibaba launched Taobao.com as a rival to
eBay EachNet. Taobao.com was launched to capture the opportunities in C2C e–commerce market in China. Having already established a dominance
in B2B e–commerce, Alibaba was hoping its local knowledge would help it dominate the C2C e–commerce market, toppling the newcomer eBay

China E Commerce Market Analysis
Alibaba Case
1.Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e–commerce market.
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e–commerce markets, some of the factors explained in the
case are:
First mover advantage was created when Alibaba enter the e–commerce market with the business to business transactions for small and medium
business. This give the advantage for the firm to gain greater market share, obtain specialized sources and human capital, and it gain a great part of
customers that are loyal to the company.
Local knowledge was a really important factor for Alibaba because by knowing what are desires, interest and customs of their customers, Alibaba
created an advantage over its competitors.
Marketing tools created a great advantage for Alibaba because by using different sources the company penetrate different markets, and it even help the
company to overthrown eBay from the customers to customers business.
The company created a good environment to succeed because it minimize the political risk by working with the government, and creating a mutual
benefit between the country and the firm.
The leadership that Ma created was exceptional because by starting with his pears without any hope from other people to be successful, he follow
what he desire. At the end he has created a great company with exceptional values, which is a great legacy for

Alibaba Essay
Alibaba serves as a middleman. It's the platform where sellers go to sell things and buyers go to buy things. It runs websites where millions of
merchants sell their products. Products are sold through Alibaba, not by Alibaba. It makes money on e–commerce services by taking the commission
on sales, by advertising on its site. It is into B2B, B2c, and C2C.
Its verticals in China are Taobao, Tmall, and Juhuasuan serving as the marketplace. It technology deployment in China is AutoNavi and Weibo. Alipay,
CSN, Haier Gooddaymart, Cainiao Network, and Intime are the facilitator for online transaction. It has invested in Vendio, Auctiva, Quixey, and Tango
Me. Lyft and Shoprunner are another investments made by Alibaba.
Alibaba.com, AliExpress, Taobao Overseas, TMallGlobal, Australian Post, and Singapore Post are the marketplace for cross
–border consumers.
Execution and ... Show more content on Helpwriting.net ...
Realizing this view to be sure that online payments were safe Alibaba created Alipay, an online payment service.
Experiment with new business models
Alibaba started continually experimenting new business models since its inception. To tap the growing B2C market, it began building Taobao Mall, a
platform for established brands to reach Chinese consumers, which eventually became Tmall and is a major part of the group portfolio today. To catch
the software–as–a–service wave, it started Alisoft, which probably entered the market too early. Alisoft could not find a killer app that generated
enough customers. The business was shut down in 2009.
Adopt blue–ocean strategy
When Jack Ma is asked "When are you coming to invade America? When are you going to compete with Amazon, when are you going to compete
with eBay? He quotes "we show great respect for eBay and Amazon, but I think the opportunity and the strategy for us is helping small business in
America go to China; sell their products to China" by opening storefronts on Alibaba's

Re Expansion Of Ebay Into China
The re–expansion of eBay into China seems to be a viable probability and a part of the companies plan for the near future. In 2002, eBay established
a presence in china with the acquisition of leading auction site Eachnet to form eBay Eachnet. Up until 2005 eBay Eachnet was the leader of the
ecommerce market due to their C2C platform. However, with the emergence of Alibaba owned subsidiary Taobao.com (Taobao),eBay Eachnet soon
lost its stronghold on the market. This factor combined with a rigid Chinese ecommerce market drove eBay to withdraw business dealings in the
country in 2006.
Yet, the goal of a successful longstanding ecommerce venture has never been far from the companies plan. In 2013 the ecommerce giant announced
plans ... Show more content on Helpwriting.net ...
As interest in eBay and conducting business on the site began to grow eBay started applying a nominal fee for listing items on the site, and a
percentage of proceeds after sales had concluded.
Application of nominal fees on each transaction enabled Omidyar to garner revenue from his venture. In 1996 Omidyar appointed Jeff Skoll as
president of eBay. Skoll's first order of business as president of eBay was to grow the customer support team for e–bays market place and in 1997. This
entailed appointing people to eBay's customer service department to settle disputes, attract new customers and keep current customers happy. By
September of 1997 the company officially changed its name to the now well–known moniker eBay Inc. It was in this same year that eBay was
receiving one million page hits per week and at minimum 15,000 item listings per day. eBay, thereby had become one of the most visited sites on the
web.
With the company growing at an exponential rate Skoll and Omidyar knew that they needed to garner venture capital. So, in 1997, Omidyar and
Skoll approached the U.S venture capital firm Benchmark. They were able to broker a deal and Benchmark endowed eBay with $ 5 million with the
stipulation that Benchmark be given a 22 percent stake in the company. With the help of Benchmark Omidyar and Skoll were able to bring onboard
David Beirne and Robert Kagle to service operations, as well as Meg Whitman an MBA Harvard

A Short Note On The E Commerce Market
1. Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e–commerce market. During the late 1990's and
early 2000's, the internet was not very popular in China and people were ignorant to its proper use. Knowing this, Jack Ma decided to start this internet
user–friendly company that would allow his clients to perform business transactions with other businesses/suppliers in China. He first started the
company on a local level and as Alibaba has seen success it has been expanding to the global market. Some of the factors that contributed to the
success of Alibaba in the Chinese e–commerce industry were:
First mover advantage: "Alibaba has a first–mover advantage that makes it very hard for competitors to chip away at their lead in the market." (Dick
Wei, Analyst, J.P. Morgan Securities Inc.,2 in 2007). Alibaba started its operations when e
–commerce in China was in its infancy stage. Considering the
potential of the budding e–commerce market, Alibaba started with operations that concentrated on providing B2B services to SMEs that were aspiring
to go global.
Smart competitive and marketing strategies: From an early stage, Alibaba had been focusing on differentiating itself by providing better services to its
customer. It put an innovative business model in place where customers could try out its services without any cost. Over time, it was able to generate
revenue from alternative streams and increase revenue as

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