Taobao Case Analysis

Dembosky, A. (2012). Ebay moves beyond its dotcom roots. Available:http://www.ft.com/cms/s/0/df3723ca-1773-11e2-8cbe-00144feabdc0.html#axzz2EbzDqb5Y. Last accessed 10th Dec 2012

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 Group is one of the world’s most successful Chinese multinational corporations originally based in China. It is an e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business services through web portals for both international and domestic China trade. Alibaba launched various sites including Alibaba.com which was the first China’s commercial website launched in 1999. The purpose of Alibaba.com site is not just to connect Chinese supplier

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The experience is very different compared to the brick-and-mortar business in the United States. Things are more flexible over there because a business is more based on relationships and not strict contracts. What is most surprising is when shopping most Chinese will barter when they buy goods. That means you can make an offer for the things you buy. For example, in the United States, you’re required to pay the full amount of the goods that you buy. In China, you can bargain with the employees to lower the price of the item(s) you purchase. It’s a common tradition over there and is quite unbelievable as something of that kind would be frowned upon United States. The return policy is also a mysterious matter in China as they seem to not care much for customer’s satisfaction. Whereas in America, the customers are always right and their happiness always comes first. Currency is another open matter in both countries. Most people in America use their credit or debit cards to pay most of their goods, whereas China mainly uses paper money to pay for their needs. Shopping in either country has a very unique experience that can bring a lot of confusion and happiness.

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.

In today’s world, economic power is the prime moving force in determining how much a country can produce, buy, or sell their products or services. One notable economic powerhouse is China. Over the years, the Chinese business climate has grown from a centrally planned economy to a socialist market economic system. Having this new economic system gives foreign investors many market opportunities. However, one must not forget the differences in political and cultural environment that can create risk and uncertainty for foreign investors. According to a 2010 survey by the US-China Business council, companies are reporting strong growth and profitability despite the economic downturn. China has a large market and their purchasing power is ranked second in the world. Although companies are profiting, there are fourteen business issues in China. They are: administrative licensing barriers, competition with PRC state-owned enterprises or national champions, intellectual property rights enforcement, cost increases for labor and raw materials, restrictions on foreign investments, restrictions on market access in services companies, transparency, government procurement standards and conformity assessment, protectionism risks in China, lack of equal treatment from domestic companies, lack of consumer awareness/understanding about products, miscommunications due to language barriers and ethical issues, and the difference in human resource practices. In the United States, managers tend

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

A common international business discussion in America today, is the assumption of an ominous Chinese power play in business. Americans assume that the combination of industry leverage and sheer number in population gives China a global advantage that they can exploit at will, a card they are sitting on, waiting to play. To help explore this concept, I will focus on China’s tech industry. We will examine some of China’s behemoth corporations in this market segment and compare them to their equivalents in the United States. Chinese corporations are subject to government oversight and many are restricted to the size of their economies due to relationships the government has created with the rest of the global economy. If the oversight and restrictions did not exist, would these corporations dominate the tech industry, or will they dominate regardless?

Yes I agree with Donahoe’s decision on his turnaround strategy. Change can be difficult but adapting and innovation is the key to success. “ The “power of mass procurement” can be utilized to ensure that only those systems that meet the defined criteria for sustainability are considered for purchase” (Fichter, 2003). Change is something all companies have to go through and the ones that make the transitions the most smooth are the ones that excel.” Given that expert projections suggest that mobile commerce will top $119 billion by 2015, being on top of this trend s a great place to be” (Armstrong, 2013). This is exactly what eBay did, they found a new leader and he lead them through new changes and it is paying off. Yes at first there was “growing pains” but their profits are increasing in areas do to their innovation and changes they had to make.” We have gone from turnaround to offensive” (Armstrong, 2013)

The company eBay Inc. is an American multinational Internet consumer-to-consumer corporation. Founded in 1995 by Pierre Omidyar in San Jose, California, it is now a multi-billion dollar business with operations localized in over thirty countries including China and India. It’s main enterprise is eBay.com, an online auction and shopping website that allows people and businesses to buy and sell a broad variety of goods and services internationally. Millions of collectibles, décor, appliances, computers, furnishings, equipment, domain names, vehicles, services, intangibles and other miscellaneous items are listed, bought, or sold daily on eBay. Anything can be auctioned on the site as long as it is not illegal and does not violate the eBay’s Prohibited and Restricted Items policy.