1. What was Alibaba Group’s motivation for diversifying into the consumer business with the launch of Taobao? Does it make sense? The motivation came from the fear of the rise of eBay in China. It invested US$30 million in EachNet in 2002‚ and at that time‚ EachNet commanded an 85% market share. Just in the following year‚ acquired the remaining 67% stake in EachNet‚ rebranding the site as eBay EachNet. EBay has very big ambition in Chinese market and it is another company that understood Chinese
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ALI FARHOOMAND rP os t HKU776 ALIBABA.COM op yo China is a place where miracles are made. - Jack Ma‚ founder and chairman of Alibaba Group1 tC On 6 November 2007‚ Alibaba.com debuted on the Hong Kong Stock Exchange‚ raising US$1.5 billion to become the world’s biggest internet offering since Google’s initial public offering (“IPO”) in 2004. A frenzied purchase of the stock pushed prices up by 193% on the first trading day‚ making it the fourth-largest first-day gain in Hong Kong’s stock exchange
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Why eBay failed in China The main reason eBay failed in China was because eBay failed to recognize that the Chinese market and the business environment are very different from that of the West. EBay sent a German manager to lead the China operation and brought in a chief technology officer from the United States. Neither one spoke Chinese or understood the local market. It was eBay’s biggest mistake. Second‚ because the top management team didn’t understand the local market‚ they spent a lot of
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Case: Taobao VS eBay China This case deals with the competition of dominant position in China’s online market between domestic player Taobao and global internet C2C service leader eBay. 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
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1. How does Alibaba create a competitive advantage? Is this advantage sustainable? a) Alibaba hoped to pool enough stable transaction volume to negotiate bulk discounts from service providers and capture part of that discount for itself. As Ma put it‚ “If one million users are transacting daily‚ Citibank and UPS will come to me. We can offer a discount to customers in exchange for a commission. b) It also helped that Alibaba Group offered a host of services promoting online trade including:
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Alibaba Group and its Impact towards Business & Society Alibaba Group is an e-commerce company founded by Jack Ma in year 1999. As an entrepreneur‚ one must be willing to take the risk in starting a business. Being an entrepreneur‚ Jack Ma has vision‚ innovation and determination. He foresaw the potential of the Internet that is going to help in business growth in China. He took a risk and began his entrepreneur journey. He started the business of Alibaba to help other small businesses
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Case write-off Alibaba Group Introduction: Jack Ma‚ who has a foreseen‚ started the Alibaba Company after his visit to U.S. He found that China jump into the online commerce market really soon. The company was focused on B2B business and its initial goal is to help small Chinese manufacturers connect with buyers. Alibaba grew quickly and still growing. It launched several wholly owned subsidiaries‚ such as Taobao‚ Alipay‚ Alisoft. Alibaba group is considered to be a huge success among
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of Yahoo to Alibaba changed over time since 2005? 2005 was a tough year for Alibaba. Because of the US$100 million investment in China by eBay‚ Alibaba and its subsidiary – Taobao fell into a severe price war against eBay which hindered the profitability of the group and much more capital was needed for operational and technological improvement in order to win the battle. Under this circumstance‚ Alibaba formed a partnership with Yahoo! Inc. Yahoo invested US$1 billion in Alibaba and transferred
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Choose an online business and point out its EC activities and mechanism TAOBAO Brief introduction of TAOBAO TAOBAO is an online shopping websites in China. Any product could be sold and bought in this website. For example‚ clothes‚ food‚ insurances and so on. All people can sell or buy through Taobao. EC activities and Mechanism of Taobao EC Mechanism EC Activities Electronic Markets 1. Presence and Discovery‚ Find information Search Engines Shopping Carts 2. Buy‚ Sell
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Community Long Term Vision To Make It Easy To Do Business Anywhere To Be an Essential Partner to All Businesspeople To Build a Company that Lasts “102 Years” Products and Services • B2B (market place): alibaba.com‚ divided into china.alibaba.com (serving Chinese customers)‚ japan.alibaba.com (serving Japanese customers)‚ alibaba.com (serving global customers) • C2C: taobao.com (founded in May 2003)‚ free website‚ business volume in 2005 is USD 967 M. •
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