Tao Bao Swot

Strengths 1. Leading in China’s online shopping market 2. Excellent customer relationship management 3. Diversification- variety of products and huge number of choices available 4. Cheaper- no middleman, no c2c transaction costs, products sold are cheaper than retail 5. Stable server and high performance technical support 6. Secure online payment systems 7. Efficiency- provides excellent search engine to buyers, can communicate directly with sellers via a chatting tool 8. After-sales refund/return policies- full refund within seven days if unsatisfactory, one-time free maintenance 9. Convenient- one-stop shopping without the hassle of travel, crowds, and stand in line.
Weakness:
1. Only available in local market
2. Limitation in controlling counterfeit products. Another weakness is fake goods and scam artists/deceptive sellers.
3. Most of its revenue only came from advertising
4. Falsity of online advertisement on taobao without effective control 5. Businesses might withdraw from Taobao when they expand to have their own trading platform/ they will distribute their resources in different online trading platform
6. Credit evaluation system may not be reliable- sellers can easily delete a bad comment or evaluation from users
7. China’s tax policy- unfair tax treatments
8.
Opportunities 1. China’s emerging market- huge consumer group and purchasing power 2. Growing demand for online shopping 3. Government/policy support- development of e-commerce will be highly encouraged and protected 4. Globalization
Threats
1. Strong competitors - ebay, amazon, gmarket, paipai nets, baidu youa nets, dangdang nets. Sina, Sohu and Netease. 2. Higher logistics costs – shipping of products

Success
Taobao controls 80% of China's online retail market with 370 million registered members.
It only took Taobao 2 years to become China’s number top retail site. One of the reason is because China is the