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 online
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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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eBay The dominant online trading platform‚ eBay‚ is having a difficult time expanding into the Asian markets‚ especially in China. Despite eBay’s previous failure to penetrate the Chinese market‚ the company needs to develop an effective strategy to compete in China’s markets against existing local competitors. 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
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Business: Taobao online trading platform Strengths: 1. The leading individual trading online platform in Asia provided B2C and C2C e-commerce business model. 2. Create (Lead) a convenient and easy online shopping channel for consumer without using traditional retail channels. 3. Connect with a reliable payment method and online trading & paying system (Alipay支付寶) 4. A well-known brand for online trading platform in business field that can attract businesses to join and be the alliance with
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eBay and Online Auction Industry Analysis eBay was founded in 1995 and has grown into a multibillion dollar corporation. The online auction industry has grown dramatically since the 1990s. Like its competitors‚ eBay does not produce any goods. eBay’s business model is to make money from the movement of information through the Internet. It does not produce a tangible product but provides the service of joining independent sellers and buyers together. It makes its revenue by charging sellers commissions
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HARVARD BUSINESS CASE: ALIBABA’S TAOBAO (A) GROUP 2 – GMBA Question 1: What are the major differences in the web designs of Taobao and eBay in China? Which is preferred to on-line buyers and sellers in China? Why? Taobao sought to distinguish itself from eBay in numerous ways. So Taobao’s web designs were imbued with a strong local culture that reflected a deep understanding of Chinese consumers and an attitude of informality. First of all‚ the website was designed like a Chinese department store
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contributed to the success of eBay using the value-chain analysis or RBV concept? In 21st century the internet population started rising across various countries of Asia and eBay is the largest and leading provider of online auction for consumer-to-consumer in the world. Using the Resource-Based View concept‚ we will first identify the three key types of resources that eBay possess‚ and these are the competitive advantages that contributed to the success of eBay. 1. Tangible Resources
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eliminated. As a new site with holding the idea of localization‚ the successful strategies of Taobao are worth our thinking and emulating. This paper mainly discusses Taobao’s success and its inspiration to the development of the domestic E-commerce. Index Terms—Taobao‚ E-commerce‚ successful strategies 1 Taobao’s successful experience is worth emulating by the domestic enterprises. II. ESTABLISHMENT OF TAOBAO I. INTRODUCTION With the rapid development of the Internet‚ Ecommerce attracts more and
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4. eBay is positioned well to successfully compete with its top three competitors‚ Amazon‚ Google and Overstock. Table 1 provides a financial comparison of eBay with its top three competitors. eBay is a distant third from Google with a market capitalization of $64 billion but is first or second in key ratio comparisons (eBay Direct Competitor‚ 2012). Specifically‚ eBay is first or second in several key ratios such as Gross Margin‚ Operating Margin‚ Earnings Per Share and Price/Earnings. The Operating
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Taobao Online Shopping People describe what markets should do in four Ps: product‚ which means they should design a product that people will be satisfied with; price‚ which means they should set up different price for different products; place‚ which means they should choose a place where people will buy it; and promotion‚ a strategy to promote their products to attract people to buy. Taobao is an online shopping website‚ which is described as Chinese largest online shopping mall. It allows
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