Preview

Taobao's Success

Powerful Essays
Open Document
Open Document
1871 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Taobao's Success
Taobao’s Success 1

Taobao’s Success
The most successful C2C E-business platform in China

Chenlei Shi
865313

IT IS 600
Professor Robert Testa, Jr.
September, 18, 2010
Taobao’s Success 2

Abstract
With the great speed of economic globalization, E-Business is developing in a surprising speed through the wide-spread of information technology. Nowadays, there are a lot of big E-business corporations such as Amazon, E-bay focus on different E-business model and field. However when these international companies carving up the global market, some local enterprises also growing up and want to share this big cake.
Taobao (www.taobao.com), a Chinese-based company which is a leading platform for C2C personal transactions, was founded in 2003 by the 450 million investment from world’s best B2B company——Alibaba. Taobao is a typical example of China E-business style. Taobao paid a lot of efforts in order to China and Asia’s market dominance, during a lot of difficulties and challenges especially in the competition with E-bay.
But some problems still exist in Taobao’ credit system and logistics model. These tough problems also exist in each E-business companies. Hence, how to fix these problems still needs development of information technology.

Taobao’s Success 3

Taobao’s background and business model
In May 10, 2003, Taobao was founded by Alibaba Group and specialized in C2C e-commerce (Consumer to Consumer Model). Alibaba was founded in Hangzhou in 1999, after nearly a decade of development, has grown into the world's largest online trading exchange market and the business community. Up to now, Taobao is the biggest Internet retail and business district in Asia, own more than 200 million registered users, accounting for 80% of online shopping market in China. Merely in 2009, transactions amounted to 50 billion dollar. However, if the Taobao’s success only attribute to its excellent “pedigree”, it would be ridiculous.
Today’s Taobao E-business is more than just


References: Annie Wei (Sept. 09) Taobao fights reputation spam in e-business boom Beijin Today website: http://english.qianlong.com/article.jsp?oid=56107784&pageno=1 Clayton M. Christensen(2004) Seeing What 's Next: Using the Theories of Innovation to Predict Industry Change, co-authored by Scott D. Anthony, Erik A. Roth. Harvard Business School Press Jicong Zhang (Dec. 09) Taobao is a media platform, from China IT Review website: http://chinaitblog.com/tag/taobao/ Yin Lu (Jan. 01) Analysis of the situation of C2C E-commerce development with ebay Yiqu & Taobao
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Best Essays

    Is535 Final Course Project
    • 3651 Words
    • 15 Pages

    Is535 Final Course Project

    The first key to starting a successful online business is to first understand ecommerce and how it operates. Most people understand that ecommerce or electronic commerce refers to the buying and selling of products or services over electronic systems such as the Internet and other computer networks. However, it stretches beyond just the buying and selling of goods; it also includes an online process of developing, marketing, selling, delivering, servicing and paying for products and services. “The use of commerce is conducted in this way, spurring and drawing on innovations in electronic funds transfer, supply chain management, internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction 's life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices and telephones as well”. (Electronic Commerce, modified November 2011, Wikipedia). Today it is said to be over 29.7 billion pages on the World Wide Web. Ecommerce today has gained so much popularity because its core technologies are constantly evolving and keeping up with a technology based world. Each year the number of ecommerce deals grows tremendously. The sales volumes of on-line stores run in a more than comparable race with physical retail stores.…

    • 3651 Words
    • 15 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    EBay First Entered The Chinese Market
    • 546 Words
    • 2 Pages

    EBay First Entered The Chinese Market

    As we know, eBay’s China expansion strategy can be considered as failure, despite the fact that eBay entered this potentially rewarding market with caution. This cautious strategy was very unusual for eBay, because they used full-forced, head-on,…

    • 546 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Ebay Case Study
    • 2747 Words
    • 8 Pages

    Ebay Case Study

    With exceeding 3.7 billion, more than a half of the world’s population, and Internet usage in the region rapidly growth at 406 percent, Asia became an attractive and lucrative marketplace for eBay to expand their business. Since 1995, eBay enjoyed strong revenue growth and was a dominant player in online auction industry. With previous experience of extending their business in Europe, North America, Latin America and failure in China and Japan, eBay was once again struggling to compete in the Asian market.…

    • 2747 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Ebay in China
    • 462 Words
    • 2 Pages

    Ebay in China

    The joint venture with Tom Online will allow eBay to enter the Chinese rapidly growing market. In 2007, China experienced a technology boom in which more people were using the Internet than ever before. Besides the rocket increase of Internet usage in China, E-Commerce is growing as well. With the power and influence of Tom Online, eBay has a unique opportunity to grab the market share of a billion people in China.…

    • 462 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Alibaba: Making inroads to become second largest e-commerce player surpassing eBay.
    • 5436 Words
    • 17 Pages

    Alibaba: Making inroads to become second largest e-commerce player surpassing eBay.

    It was in the year 1999 that 18 people under the leadership of Jack Ma, a teacher from Hangzhou, China, were to begin a journey known as Alibaba Group. Its headquarter lies in Hangzhou itself. Alibaba group have established, as of December 2013, 73 offices in China and 16 outside its borders. At the end of the 2014, it was reported to employ over 22,000 people from across the world. It was initially conceived as an online wholesale channel for enabling small traders to get in touch and conduct business with global entities. The group operates several businesses such as Juhusuan, Aliexpress, Tmall.com, Alimama, Taobao marketplace,1688.com, Alipay and Alibaba cloud computing. At its heart, the core objective of Alibaba is to provide a platform via internet to small enterprises so as to benefit from modern innovation and communication technology in growing into profit centres, both domestically as well as internationally. The name “Alibaba” was chosen for its simplicity and catchiness and easy recognisability world over.…

    • 5436 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    eBay
    • 592 Words
    • 3 Pages

    eBay

    The company eBay was found in 1995 and since then they have had much growth and success over the years. They became the dominant player in the online auction house industry through their unique business model. Their business model united buyers and sellers in an online marketplace and attracted 221 million registered users. Their unique business model enabled e-commerce at multiple levels including local, national, and international through an array of websites that they have acquired. eBay acquired several online competitors such as PayPal, Rent.com, Shopping.com and most recently a partnership with Xiu.com, eBay Style. These trading platforms allowed eBay to offer distinct services and target-specific market niches. This allowed them to penetrate new market spaces and attract a range of users. The company also expanded internationally and have been successful in certain markets. eBay was considered a leader in each of its market with the except of Japan and China. eBay’s first attempt into China’s market was through the acquisition of a Chinese online auction company, Eachnet. They integrated their global strategy platform to Eachnet’s Chinese operations, essentially changing how the website originally operated. Since then, the company has lost most of their market share to local competitor Taobao. After several years eBay then decided to partner with Beijing-based Tom Online. This indicated that eBay failed to adapt to local needs and successfully compete with China’s online auction market leader, Taobao. This shows that eBay failed to create a community effect in China as they did with their other international markets through their…

    • 592 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Case Study “Ebay in China”
    • 1642 Words
    • 5 Pages

    Case Study “Ebay in China”

    Each Net in essence was an imitation of eBay, adjusted to fit Chinese customer needs, but with much greater recognition in China…

    • 1642 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    ebay failure in china
    • 268 Words
    • 2 Pages

    ebay failure in china

    eBay China was centralized to eBay headquarters in the U.S. which turned the table for Ebay in the Chinese market as this led to change of one of the factors mentioned as ownership and also a new COO was appointed with german origin and resignment of Shao Yibo came as mistrust for the people towards the company. Although eBay’s market entry strategies such as joint ventures, licensing, and acquisition are very effective and made eBay successful in global market and become the world’s largest online market place, the situation in Chinese market was totally different. EBay was popular and had a very good reputation in the U.S. and international market, but Chinese people did not know much about…

    • 268 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Ebay.S Strategy in China: Alliance or Acquisition
    • 3198 Words
    • 13 Pages

    Ebay.S Strategy in China: Alliance or Acquisition

    So in this paper we will see a presentation of E-Bay and the Chinese market. Then we will focus on the main problem with EachNet acquisition in order to enter on the market. To finish we will present the Tom EachNet joint venture which was a solution of E-Bay in order to increase its market share and we will conclude with some recommendations.…

    • 3198 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Alibaba
    • 2471 Words
    • 10 Pages

    Alibaba

    In December 1998, the establishment of “Alibaba Online” marked the birth of the Alibaba Company. At this period, Alibaba group set up their special B2B business model and affirmed their main development strategy.…

    • 2471 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Swot of Taobao
    • 651 Words
    • 3 Pages

    Swot of Taobao

    4. A well-known brand for online trading platform in business field that can attract businesses to join and be the alliance with Taobao.…

    • 651 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Best Essays

    shopping motivation towards online
    • 2261 Words
    • 10 Pages

    shopping motivation towards online

    With the development of Internet technology, people 's way of shopping has undergone tremendous changes, more and more people began to prefer shopping online. This promoted the rapid development of online shopping. And the development of e-commerce also attract all levels of commodity rushing forward, even luxury gradually occupy the market. Taobao, As China 's largest online shopping site, issued the first " luxury products online shopping industry analysis report" in 2013.The report shows that overseas purchasing has been achieved from a luxury to a comprehensive expansion of health care and beauty products. The turnover of luxury products increases 100% per year, in 2012 the market has reached 15 billion yuan. It is expected that in 2013 nationwide luxury e-commerce market turnover will exceed 20 billion yuan.(Taobao,2013). This dramatic change again proved the vigorous development of Internet shopping.…

    • 2261 Words
    • 10 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    Alibaba Swot Essay Example
    • 339 Words
    • 2 Pages

    Alibaba Swot Essay Example

    Alibaba.com, the world’s largest ecommerce organization, is one that generates income from influencing business to buy and sell through their site.…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Mr Ma
    • 1924 Words
    • 8 Pages

    Mr Ma

    E-commerce can be defined as use computers with internet to aid the trade of goods and services. The emergence of e-commerce is seen as a new wave of IT. E-commerce provide a trading platform without the distance between products and consumers. Online trading activities continually increase in these years and will dramatically grow in the future (Nardal and Sahin, 2011). Bette and Jackie (2001) notes people will change their common consumer behaviour to the Web. The gap between e-commerce and commerce is going to disappear swiftly. As a result of this huge market, a lot of companies ceaselessly found the way to succeed in this competition (Stead and Gilbert,2001).…

    • 1924 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Online Hotel reservation
    • 481 Words
    • 2 Pages

    Online Hotel reservation

    E-commerce has become a standard method of providing distributed information to many different platforms. It is being implemented by a growing number of companies to be more completive in corporate world. All companies need to make a step forward towards a new technology. To be able to compete with the global market, e-commerce was a good answer (Lanvin and Maggarqul, 2006).…

    • 481 Words
    • 2 Pages
    Good Essays
    Read More

Related Topics