Taobao's Success

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

Consumer to consumer e-commerce industry is a worldwide stage for any purchaser or customer. While most income originates from colossal number of exchanges, they increase enough from ads, auctions, reviews and so forth. Samples of such e-business incorporate Amazon, Etsy, Craigslist, Kickstarter, Taobao and so forth.

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.

The name “eBay” (http://www.ebay.com) is synonymous with “online auctions”. Founded in September 1995, the company qualifies as a genuine cultural and economic phenomenon (Bunnell, 2000, p.vii). The site can be credited with creating and defining an entire industry and has remained the dominant force in the online auction world, with anywhere from 70 to 90 percent of the person-to-person online auction market. eBay is also the 15th most visited site (http://www.MediaMetrix.com) on the web. In the face of large competitors such as eBay, internet powerhouse, Amazon.com Auctions (http://www.amazon.com/auctions), is battling for online auction dominance over eBay. Amazon is not just a bookseller but also a genuine e-commerce platform for

By the year of 2006, eBay’s combined international investments in Latin American, Europe and Asia Pacific has totaled revenues of 2.1 billion, representing 49% of aggregate revenues of the company at the time. Seeing the great potential of the Chinese C2C online auction market which back then comprised of 250 million customers, eBay has launched various attempts majoring the acquisition of EachNet in 2003 and the later joint venture with TOM

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

retailer and opened its first Chinese store under its name in Shanghai, soon followed by eight others. With

Alibaba.com was launched in 4 of April in year 1999 in Hangzhou, Zhejiang in China. There are few phase that affected Alibaba’s growth. In year 1998 to year 2001, This is the period that Alibaba starts to recruit suppliers by providing them information and platform for entering the global market. Free online information and services were provided to the suppliers during that period. Jack Ma even hired experts from foreign country to assist the company to go into globalization. (Yazdanifard, 2014)

eBay.com, “the world’s online marketplace”, is an online auction and shopping website in which people and business buy and sell a wide variety of goods and services worldwide. It is managed by eBay Inc, which is founded in 1995 by Pierre Omidyar. eBay’ mission was to provide a robust trading platform where practically anyone could trade anything. It was recognized as the largest and most popular person-to-person trading community on the Internet. (eBay Case, 2006) eBay posted US $8.7 billion in revenue with a net income at $2.4 billion in 2009. eBay is

In year 1999, Jack Ma who was a former teacher and his 18 friend in his Hangzhou apartment built up Alibaba group. At first, Alibaba working for the small manufacturers set up a B2B (business to business) website. But then Alibaba group was quickly expanded until seven different group, for example, Alibaba International Business Operations, Alibaba Small Business Operations, Tmall, Taobao, Alibaba Cloud Computing, Juhuasuan and Etao.

EBay Inc. (EBAY) is a leading global commerce platform that enables individuals and businesses to buy and sell products online. Over the past 20 years, it has become one of the largest online marketplaces, with over 159 million active users around the world and more than 800 million items for sale. EBay’s vision is “one that is enabled by people, powered by technology, and open to everyone” (What We Do). EBay runs a more decentralized commerce system than Amazon and other e-commerce companies. Their purpose is to act as a facilitator of peer-to-peer commerce rather than maintain their own inventory and sell directly to consumers. This gives more power to eBay marketplace sellers and allows for both auctions and fixed price sales. (EBay vs Amazon) With new startups on the rise such as Etsy, SellSimple, and Threadflip, along with e-commerce veterans such as Amazon or Alibaba, eBay has to continuously work to improve its services to maintain its sellers and continue to attract a larger consumer base. (Thomas) Using information technology and improved information systems has helped eBay achieve their goals and differentiate the platform in an increasingly competitive market.

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.