C1 Alibaba.Com

642 Words3 Pages
1. Creating other successful portal in the future will be hard given that the lock-in effect makes the task difficult. Alibaba.com as an early entrant into the B2B portal market in China has built a strong advantage over its competitors; anyone who would want to challenge them will face some barriers to enter the market because as a starter, people will show preference for Alibaba.com, because of the experience, some people also develop loyalty or simply because they know the company.

2. Alibaba.com charges foreign sellers a lower annual fee for a TrustPass membership because Ma, the owner wants to attract the global companies, which spend most of their efforts on business with large companies, by giving them a good
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4. Taobao.com can take advantage of the awareness people have of this type of business, people already know how this works, and they don’t need to educate the consumer. Ebay as a pioneer has already showed the way on how to do this kind of business; Taobao.com can improve or cover what Ebay hasn’t been able to cover. They can also innovate or transform the business.
Ebay has a big advantage over Taobao.com , they have years of experience ahead, brand awareness because they are pioneers .EBay’s success lies in being the first ones on providing a major web auction, which could be identified as a lock-in effect, even though there are other auction sites nowadays eBay is still leading. Ebay is always looking at its competitors to make sure they provide the consumer what the competitor is offering, they are innovating and this is why they are still leading.

5. Alibaba.com’s reputation can help Yahoo reach the Chinese market because people already know this site, people are aware of the web site, they know they have been doing things right, people can trust them. People also know this website is from China, they will feel more identified with them, because of the language, traditions and the most important, their interests .Alibaba.com will meet in a better way their needs
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