China E Commerce Market Analysis

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

eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%

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

One major flaw built within the business model of Alibaba is its ability on controlling the merchants and their quality of goods. Since both Taobao and Tmall relied on third party sellers to provide goods and services, it lacks the ability to enforce strong quality control and eliminate counterfeit goods. In fact, consumers were well aware of it and this issue had already been damaging Alibaba’s reputation in online retailing markets. However, its major competitor, JD.com would be having much stronger abilities and incentives to eliminate these

Alibaba.com always has their core competency that customers are the most important and the employees, because customers are the one who pay and employees are the one who contribute hard work for building what it is now. [45] Alibaba.com comprehends the needs of customers in Chinese and international market by providing localized website with customer-centered products and services. As for its employees, attractive remuneration, benefits, training are given and they work as team to grow Alibaba.com in a sustainable e-commerce market.

Alibaba’s sites have currently reached over 65 millions of registered users, hosted over millions of merchants and businesses globally. In 2005, its revenue had reached over approximately US$100 millions. Although China’s gross domestic product

For most multinational corporations, one common challenge goes with the business expansion into other countries – the localization effort to enable implementation of their business strategy and value proposition into targeted country. Amazon is no exception while trying to enter the China market. Attracted by the outstanding 1.3 billion populations, stronger consumption ability, and increasing acceptability of online shopping, China has become the most potential market in the world. The key to achieve international e-commerce success lies in understanding the critical factors that affect customers’ decision of whether to adopt the services. Generally speaking, they are product selection, service

McDonald and Burton clarify that infant industries can feel supported into growth (and sometimes beyond) by the trade policy of protectionism and tariff barriers. This form of strategic protectionism enables industries seeking to grow to enjoy the benefits of first mover advantages, a concept of specialising in producing and exporting only those goods and services which it can produce more efficiently (Investopedia) and the benefits of economies of scales. A prime example of this is Amazon, the first online bookstore. By gaining the first mover advantage into the markets, it has gained and maintained dominance over many firms. Firms have adopted the concepts and practices such as retailers like Barnes and Nobles. Professer Marvin Lieberman and David Montgomery, Stanford University, conclude that first mover advantage can be gained from technology leadership, control of resources and buyer switching costs after gaining the opportunity to access the pioneering stage of a concept.

its position in the market and competitive advantage over other players in the same industry,

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

As for Alibaba.com, it earns secondary revenue through its Gold suppliers accreditation which promises reliability. Though Alibaba Group is famous for its primary site Alibaba.com, its first business now accounts for only a small part of its portfolio (Osawa, 2013), and is often dogged by criticisms from the finance world, notably referred to as “the worst asset that [Alibaba Group] has” (CNBC, 2012). On the other hand, Amazon sells its own products such as its Kindle and offers additional services such as streaming (Rayburn, 2011). It also deals with web design for external companies looking into e-commerce (Layton, n.d.).

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.

8. Key success factors: •First mover advantage •Experience of E-commerce trade •Investments •Cash on delivery •Customer orientation

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

4. In 2003, Alibaba.com launched Taobao.com to compete in the general consumer online auction market against eBay in China. After four years of an intensive and expensive battle, eBay withdrew from China completely. In about 200 words, describe the advantages Alibaba.com might have had over eBay in this new market, and then describe the advantages eBay might have had over Alibaba.com. Be sure to discuss lock-in effects where appropriate.