An Analysis of China'a E-Commerce Industry

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

However, most consumers of China do not trust e-commercial retailers since e-commerce market still has a rather shorter history in China. Most researchers found out that prices of most Dotcoms

According to the LA Times (2014), 3 billion people have access to the internet. Facebook reaches 250 million users and as I demonstrated in Chapter 5, 95 million people are shopping online in the USA alone. The most amazing thing is that these numbers will only get bigger because most of the world still has to get online. These figures only represent 60% of the world population who are using the internet. Still, the experts say that worldwide e-commerce sales are growing by 19% a year and will represent US$1.4 trillion by the end of 2015. In the USA those sales are increasing by 10% every year and this will be the trend as people understand what they save in effort, gas, and how there is more variety online than in the stores. Furthermore, it is true that more than 80% of the online population has used the internet to purchase something, and more than 50% of the online population has shopped online more than once. In every region of the world people are understanding how easy, fast and efficient it is to shop online and they like this convenience and the safety. There is no reason why part of this phenomenal growth should not be yours.

Conducting business online using the internet has continued to experience significant growth over the last two decades. According to the Internet World Stats (2014) the number of worldwide internet users has grown from an estimated 16 million users in 1995 to 2.9 billion users in 2014. This world of interconnectivity has provided a way for people all around the world to communicate with one another in a real time format. The internet has removed the distance between governments, industries, businesses and individuals. This interconnectivity is helping to establish the foundation for a globalized community.

Many market opportunities have helped the Alibaba Group thrive in the recent years. The location is the first advantage because China has over 560 million users of internet spending over 20 hours online a week. China is the biggest internet market globally (Bhasin, 2016). This is twice the size of internet users in United States of America. China is gradually shifting the traditional retailing in favor of latest trend of e-tailing. The good relationship with the government of China has enabled it to carry its operations so well in the market. For example, Alibaba Group was among the companies selected by the government of China to join the Internet banking. This is a huge opportunity especially where banks are state owned (Shiying & Avery, 2009). The cost cutting associated with the huge volume of sales. For example, Tmall and Taobao accounted for over 50 percent of all the Chinese delivered parcels. Tmall’s and Taobao’s combined transaction volume in 2012 was about one trillion yuan. This figure was more than eBay and Amazon transaction volumes combined.

This study will prove that e-commerce has grown because it adds value to people’s lives. It will show that e-commerce will not disappear but evolve into something even greater than what it is right now.

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

Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile

China has the world’s largest online populations with 130 million residential broadband accounts. E-tailing produced more than $180 billion in sales in 2012. The e-tailing industry in China has registered 120% compound growth rate since 2003. At the heart of this e-tailing revolution lies the Alibaba group, which is slated to go public in the United States as early as next month.

It is without a doubt that e-commerce has become a part of life for most of us. The E-commerce industry has grown and has truly taken the world by storm. It has faced numerous challenges from its initial stages and has surpassed a ton of them, making it a successful innovation in how we shop. However, there definitely still is room for improvement, as there are challenges that are left to be addressed.

This report comprises of the information concerning the e-shopping and other website business, the findings are compared to two nations (U.S and China) concerning the familiarity and use of various tools that will help enhance the e-shopping businesses. In addition to this, the recommendations provided openly give some nitty-gritty details on how this business can be improved in order to attract

Marketing firms had predicted that China (PRC) would overtake Japan as the leading Asian country in Internet use by 2004.

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.

Today, consumers steadily use multiple devices for online shopping and mobile transactions rise steeply. The e-commerce market has transformed the way businesses are managed, conducted and executed, locally or globally. Earlier with the Internet, success in retail was said to be depending on location. But at present, the Internet is said to be a global marketplace, and have come up with even the tiniest retailer a national - if not a global existence. The span of the e-commerce marketplace is tough to measure. The e-commerce market has become such a dynamic part of the economy that is hard to identify precisely where e-commerce commences and the old world economy ends.

The Internet has undergone a revolutionary reform in industry, changing the manufacturing sector and trading methods in China. It has brought new opportunities and challenges to traditional physical industries. Digital electronic products have accelerated the popularity of the network and changed consumer behaviour. According to Statista - The Statistics Portal the Penetration rate of online shopping in China from 2006 to 2016 was rising every year, the statistic shows around 28.1 percent of internet users in China had consumed online and in 2016 it reached around 63.8 percent. The Internet connects people to the market while increasing the demands of consumers. However, Traditional physical industries face a reduced number of consumers,