The E Commerce Company's Strategy

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%

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

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

Ebay has a big advantage over Taobao.com , they have years of experience ahead, brand awareness because they are pioneers .EBay’s success lies in being the first ones on providing a major web auction, which could be identified as a lock-in effect, even though there are other auction sites nowadays eBay is still leading. Ebay is always looking at its competitors to make sure they provide the consumer what the competitor is offering, they are innovating and this is why they are still leading.

The re-expansion of eBay into China seems to be a viable probability and a part of the companies plan for the near future. In 2002, eBay established a presence in china with the acquisition of leading auction site Eachnet to form eBay Eachnet. Up until 2005 eBay Eachnet was the leader of the ecommerce market due to their C2C platform. However, with the emergence of Alibaba owned subsidiary Taobao.com (Taobao), eBay Eachnet soon lost its stronghold on the market. This factor combined with a rigid Chinese ecommerce market drove eBay to withdraw business dealings in the country in 2006.

    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 percentage of stake

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

This market is home to more than 50% of the world's population whose internet usage has skyrocketed 248% in recent years. In order to capitalize on this area for growth eBay must develop a strategy and adapt to these markets so they can compete with local competitors such as Taobao and GMarket. Up to now they have not succeeded. In 2000, eBay pulled out of Japan due to high costs and competition with Yahoo!. They purchased Eachnet, a Chinese startup, but failed to properly manage it. Many see eBay's joint venture with Tom Online as Eachnet's failure to compete with Taobao. The joint venture gave Tom Online a 51% stake in Eachnet and control of its management. Critics, including the CEO of Taobao's parent company, Alibaba.com, feel that a major part of eBay's failure is due to their replacement of local management with foreigners. This inability to create a community feeling has become a tremendous hindrance to their attempts at penetrating the Asia Pacific market.

On the other hand, the strategic partnerships formed by eBay's competitors in foreign markets pose a serious threat in its future ability to expand in new countries and increase share in growing markets such as China. Yahoo's strategic alliance with Alibaba's TaoBao has captured 58% of the Chinese online auction market. EBay's EachNet has attained roughly 35% of that market. Amazon strategic alliances with other brick-and-click retailers will allow it to continue bringing more value to the customer in terms of convenience, selection, and availability, which in turn will continue its competitive pressure on eBay.

Alibaba focused on SME’s and became its WTO to help small and medium Enterprises grow. Because the internet was getting well liked by the people of china, Alibaba became known to be the largest online business to business trading platform for the small businesses. Their products and services included electronics, apparel, auto and transportation 's, electronic payment services, logistics operations, etc. 1688.com, was their chinese portal that offered domestic business to business trade internally in China. AliExpress.com, was their transaction based reati website that gave buyers the opportunities to buy small goods at a wholesale prices.. With their operations based in China, although it has grown to be a global organizational platform, it focused on china as their main target.

As opposed to Europe and the Unified States, China is overwhelmed by online business commercial centers that regroup the offers of numerous free traders. Customary physical retailers who have made a fruitful move online in those business sectors have no counterparts in China, where autonomous traders represent just 10% of e-following deals.

Alibaba Group, even only with 12years history, is one of the biggest e-commerce platforms for small businesses in the world. Its business includes: Alibaba.com, which is for small firms to find customers and suppliers without going through middlemen, has 57million users, nearly in every country. Another marketplace, Taobao.com, is for individuals buying goods from each other; it has 300million customers and $29 billion-worth of goods. Also, China Yahoo!, One of China's leading Internet portals, was acquired by Alibaba in 2005 as part of its

Abstract—The improvement and the development of internet technologies have triggered the rapid development of E-commerce applications since 21st century. A number of E-commerce sites have been rising in China. But with the bursting of the

Over a year ago, China’s track to e-commerce management would have been tough to predict, even as the tech boom in the US and new markets saw the improvement of e-commerce as an important B2C and C2C channel.

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