Comparative Ebay and Taobao

    Assessment of eBay´s 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 eBay´ s joint venture with Tom Online Assessment of both companies: eBay and Tom Online, decisions on their respective

Amazon and Ebay are two well-known brands of online shopping sites. They have evolved and grown from small firms to the giants of e-commerce today. In this essay, a comparison would be made between the two firms.

Ebay is one of the world's largest e-commerce and multinational corporation. Here are some facts, the company was launched in 1995 as " Auction Web," on labor day weekend by Pierre Omidyar. Later the name was officially changed to ebay in 1997 because many customers and media coverage referred the website as ebay. It has over 200 million registered users by 2015 and branched out into twenty five countries. There are thirty five thousand employees working on eBay in that 42% are female. The company net revenue by 2014 is 17.9 billion dollars. There are about 25 million sellers and the number of items listed in the market places are 800 million. The daily search on eBay is 250 million and the hourly search is 11 million. 60% of company revenue comes from

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

Its dominance in the Chinese online retailing market was achieved through Taobao(C2C), China’s version of eBay, and Tmall(B2C), another popular shopping destination where major international brands like Nike and Samsung have online Stores.

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

When looking at eBay’s target market, the segmentation of users appears to be majority males, ranging from 25-34 years old. Over half of the users don’t have kids and also lack college experience. The majority of the people are Caucasian and have a household income of $100,000. After looking at this information there are some good opportunities that eBay could capitalize on.

eBay.com began with auction type selling but eventually the company expanded into the “buy-it-now” mode of selling as well. This gives eBay, a competitive advantage over companies such as Amazon, which only provide “buy-it-now” services. Thus, the company has a mixed blend of business sellers and individual sellers.

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

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.

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

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

Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market.