China Cross Border Trade Case Study

The advent of Internet has allowed companies to offer their goods and services throughout the world. Not only has the Internet opened up the floodgates of International marketing, it has also brought with it many other challenges such as cultural, political, and geo-economics challenges. In order to be successful in these global markets, companies must be very diligent in handling these challenges.

Nowadays, high-speed development of the technology has changed the daily life and the computer and the Internet have become the mainstream in China markets. The expansion of the Internet rapidly leads the e-commence to develop and change the operation way of Chinese business. At present, there are many people who want to start-up a business on their own. Ma seizes the opportunity to establish a great stage ‘Alibaba’ for

Legal issues – the legal framework for e-commerce is still in its early stage. China has little experience for drafting e-commerce legislation for topics like intellectual property rights protection and tax. There aren’t any regulations supporting the privacy, recognition of digital signatures, consumer rights and validation of electronics contracts yet.

In today’s world, science and technology are increasing at an exponential rate; in turn, we now live in a world where instant answers and fast-paced lifestyles are typical. To be a strong competitor in today’s markets, a company must have the technology and online programs to match the increasing demand of 21st-century consumers. The China Development Team must commit to finding technological services that would support a wide range of international and national payment methods, different currencies, records of international funds and inventory numbers, and strong supply-chain visibility. Although Cottage Inn may already have these programs, they must be adapted to fit the economic and financial differences in China. If Cottage Inn China’s technological capabilities do not match the needs of the local market, the business will have much more difficulty becoming successful. Again, I and the China Development Team can resolve this issue and ensure success by partnering with technological providers who can give Cottage Inn internationally-efficient programs. With a system that supports both American and Chinese financial regulations and other business methods, Cottage Inn China will

Nowadays, China, the emerging market in Asia, contains huge business opportunities. At the same time, because of the different culture and history, the characteristics of Chinese society including its source of power, social order, and solidarity, is actually very different from the West. The big difference is that China is a relationship-oriented society. For this reason, how can Westerner adapt the ways of doing business in China? Here are three recommendations for the entrepreneurs that want to enter the Chinese market.

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

Being the most populated country in the world, China is yet to undergo a complete E-commerce awareness.

Alibaba.com has 1.7 million users worldwide, the value provided by Alibaba.com for customers is by a click, customer will find many suppliers in China and find a large variety of products such as computers, electronics, etc. Alibaba provides its customers with a large base of suppliers and most of the sectors are included on one site. Alibaba provides customer with the companies' information section, 27 industrial categories, and 700 products with sub categories. So we notice that Alibaba customers can buy and trade whatever they want and need on one site. (essay, 2003-2015) www.ukessays.com

As Tencent announced to take 15% stake of JD.com[1], which is the largest online retailer of China, in March 2014, it also implicated the failure of Tencent’s previous e-commerce strategy. In the

Alibaba.com provides online sales services around the world from 1999 (Alibaba Group, 2015). Currently, this platform represents a huge, innovative and accessible way to business. Its website allows an effective connection between small and medium sized Chinese companies with international customers. The core concept was to create straightforward links to communicate each party in a trustable and reliable alternative. Revenues came from suppliers who purchased a premium subscription that permitted creation of an online storefront on Alibaba.com featuring “detailed product information, a virtual tour of the company, and TrustPass verification.” The company changed the traditional way of bargaining and also boosted the Chinese production to be well-know worldwide.

The potential for Internet growth is huge in China, giving foreign computer companies, such as Dell the opportunities to expand into a new market. Computer companies need to acknowledge that in the Chinese culture, people are still unsure about credit card sales because of the huge expense of computers. Companies, such as Dell, then have to invest in door-to-door or face-to-face operations, initially, to gain consumers ' faith and consumer 's trust in the company.

Convenience: Through the internet, Alibaba has connected the buyers and suppliers around the world without having to leave their countries of

Mr. Ma was born in China in 1964 and graduated in English 1988 to become a teacher. He was exposed to several opportunities for instance going to America to gain knowledge about the use of internet. Ma borrowed 2000$ from his relatives to launch China’s commercial website called China Pages. He moved to Beijing in 1998 to work for the Ministry of Foreign Trade and Economic Cooperation as the head of International Department of the China international electronic COmmerce Center and designed their first government website for China. By gathering a total of 18 friends, he explained to them what he visioned and compensated them Rimini- which is the currency chinese use. In 1999, Alibaba was launched registered in Hong Kong with the 60000$

“Selling your products online allows for immediate entry into the global marketplace. However, shipping your product overseas presents a few challenges if you have little experience with taxes, duties, customs laws, and consumer protection issues involved with international commerce” (International Online Sales). While many countries are finding their economies succumb to a more level global playing field, their governments will continue to have the best interest of their people in mind, and reaching these new target markets will still raise difficulties for potential international businesses even as the playing field levels. This will also pose issues for countries who are not only seeking to sell merchandise to new markets, but who aim to move operations to these countries. While technological advancements have made this entirely possible with relative ease, political leaders governing countries with battered economies will be more cautious over the next decade in regards to any decisions to allow or deny international operations to be set up within their borders.