Preview

Alibaba.Com.

Better Essays
Open Document
Open Document
1412 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Alibaba.Com.
C1. Alibaba.com

1. Alibaba.com was an early entrant into the B2B portal market in China. In about 100 words, explain how this might have created a lock-in effect, especially given the types of businesses he site attracts.

Alibaba.com does translation as well as listings for small to mid-sized businesses who want to do business. In so doing there is a lot of time and effort put into this business venture by these businesses. Once they are established and have spent the money to get there they wouldn’t be looking at changing their site unless this one wasn’t working for them. Since this site really concentrates its efforts towards these businesses and it is working they are pretty much a lock-in. Other businesses startups that would try and gain their business would have to provide something they are not already getting in order to lure them away.

2. Alibaba.com currently charges foreign sellers an annual fee of about $400 for a TrustPass membership, but Chinese companies pay $8000 or more for their annual listings as China Gold Suppliers. In about 200 words, explain why the site has different listing charges for the two types of members and critically evaluate this practice. Foreign sellers are limited to the amount of items they can list on the site. The TrustPass isn’t necessary for them to buy it only pays for a credit check that assures companies wanting to buy for them that they have been checked out. It would be advantageous for companies to pay the fee for a TrustPass in order for the companies wanting to buy from them to know they are someone who can be trusted. Whereas, the money paid by the Chinese companies is paying for the translation and the listing of all their information on the site as well as marketing. Chinese companies are not limited to the amount of items they can list. Alibaba.com is also connecting small and mid-sized businesses from around the world with those small and mid-sized businesses in China who subscribe to

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Ap Us Summer Crap

    • 308 Words
    • 2 Pages

    RESPONSE-geography was the primary factor in shaping the development of the British colonies in North America.…

    • 308 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    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, listing both the advantages and disadvantages of its acquisition strategy.…

    • 546 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Oedipus Rex is full of people searching for justice. Throughout the play Oedipus acts upon what he believes is justice.…

    • 378 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Alibaba Case Study

    • 628 Words
    • 3 Pages

    2. List, in separate columns, the benefits and costs of using sites like Alibaba to trade internationally. What does your analysis say to companies like SpinCent (our opening case) as they develop an export plan?…

    • 628 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    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, listing both the advantages and disadvantages of its acquisition strategy.…

    • 1642 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Alibaba.com has four business-to-business (B2B) marketplaces. The company’s English language international marketplace (www.alibaba.com) serves to bring together importers and exporters from more than 240 countries and regions. The China marketplace (www.1688.com) is developed for domestic business-to-business trade in China. It also has a Japanese marketplace (www.alibaba.co.jp), which is focused on facilitating trade to and from Japan through an associated company. In addition, Alibaba.com offers a transaction-based wholesale platform, AliExpress (www.aliexpress.com), which serves smaller buyers seeking fast shipment of small quantities of goods. Launched in April 2010, AliExpress provides an escrow service and supports payments through Visa, MasterCard or bank transfer. Formerly customers could also use PayPal, but PayPal terminated its partnership with the company in 2011.…

    • 625 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    When business transactions take place across international borders, they carry additional risks not present in domestic transactions. Foreign Direct Investment is the most risk bearing way of entering into a market. A foreign direct investment entails sole responsibility to the proprietor. From a political and economic standpoint, the CCP, Chinese Communist Party, has been known as an autocratic party that has imposed strict control over the country (Lawrence & Weber, 2010, p 470). Within the past thirty years, the CCP allowed for the free flow of money while maintaining a tight control of all institutions. With the imposing regulations of the censorship regime by the CCP, Google will be…

    • 2616 Words
    • 11 Pages
    Powerful Essays
  • Best Essays

    Google's Failure in China

    • 1288 Words
    • 6 Pages

    It has been 9 years since Google entered China Market officially, and 5 years since Google established Google China. Despite having a brand value of an amazing $66.4 billion, Google.cn still fails to dominate the search engine market in mainland China and faces stiff competition from bitter rival Baidu. In other words, Baidu’s market share in China is nearly 75 percent to Google China’s 25 percent. The secret to Baidu’s success and Google’s failure is largely positioning. Chinese authorities blocked Google because it allowed through some pornographic search results but many of these same results were also available on Baidu. Moreover, the government allowed Baidu to operate illegal music search while Google was not. Baidu was also creating a social community that is a way of ensuring Baidu’s long-term dominance. Indeed, Baidu 's entire business strategy is tailored to Chinese governmental, legal, business, and social culture -- and that is what has set it apart from Google. Baidu 's market share could be more than 90 percent. Although Google might be one of the most well-known brand names in the world, most people outside big cities like Beijing and Shanghai have never heard of it. The combination of a great market strategy and government favoritism means that Baidu will likely not fall from the top. Google might be success almost everywhere else but that was not happen in China.…

    • 1288 Words
    • 6 Pages
    Best Essays
  • Satisfactory Essays

    The setting up a business of this sort can be cheaper in China compared to US as the interest rates could be lower which will result low financial costs for the companies. Therefore their operating costs can be very much lower in China compared to US.…

    • 573 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    Forough Raoufiboroujeni

    • 3328 Words
    • 10 Pages

    Easier to compare prices and access to stores located remotely, no need for a physical store as well as lots of choices are further advantages that the firm can gain from B2B e-commerce.…

    • 3328 Words
    • 10 Pages
    Better Essays
  • Satisfactory Essays

    The Norwegian company Schibsted (owner of leboncoin.fr) is willing to develop his influence in China. They already developed 2 websites meant to be used by Chinese people with the same recipe as leboncoin.…

    • 7359 Words
    • 30 Pages
    Satisfactory Essays
  • Good Essays

    Taobao/Ebay

    • 981 Words
    • 4 Pages

    EachNet was copyed from eBay's business model. As it confronted the difficulties raising capital, eBay entered China with its acquisition of the EachNet in 2002. The previous Chinese operation was changed significantly to align it with eBay worldwide systems including listing categorization, location of servers, pricing, structure of leadership. Ma, the founder of Alibaba.com Inc - the leading B2B website in China by 2002, realized the serious threat from eBay. Taobao was launched secretly until July 2003 when Ma thought it was ready to compete with eBay China.…

    • 981 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Alibaba

    • 6794 Words
    • 73 Pages

    offering (“IPO”) in 2004. A frenzied purchase of the stock pushed prices up by 193% on the…

    • 6794 Words
    • 73 Pages
    Powerful Essays
  • Powerful Essays

    competitors in China are Alibaba and JD.com, they account for almost 75% of the e-commerce…

    • 1572 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Online Shop

    • 450 Words
    • 2 Pages

    Internet has developed in new delivery channels electronic transactions are increasing rapidly. This need has arisen to understand how they perceive directly to buy consumers. Most of the people who use the internet to purchase goods online, but that there are still some reasons for which consumers are reluctant to buy online. The attitudes of people toward the purchase online are different in Pakistan. The purpose of this study is to review the factors felt reservation of consumers in online shopping.…

    • 450 Words
    • 2 Pages
    Satisfactory Essays

Related Topics