Objectives Of HK Toys

Objectives Of HK Toys
Objectives
Recognizing the incredible potential of the internet, HK Toys is planning to expand its business in
Hong Kong through e–commerce. Businesses of all sizes in all sectors are using the Internet in
many different ways – to work with partners and suppliers, for procurement, for internal activities
such as knowledge sharing and new product development, and much more. E–commerce in general
can be divided into Business–to–Business and Business–to–Consumer.
To cope with this new business challenge, HK Toys is planning to establish a website and to
upgrade its sales and marketing systems, while adopting electronic business at the same time. It is to
increase overall market profit by moving some of their operations online and integrate online ...
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Taobao built the leading domestic net–market and the personal transaction net–community, by its
flexible operating trade. It also provides online business services to the members in the world.
Taobao had become the largest E–commerce trading platform in Asia.
It is often a cost–effective alternative for SMEs because those e–marketing places charge a small fee
relative to the price of the products which setting by seller and the items are sold directly to
consumers. Seller can set up a web store and display a list of product with fully descriptions and
specification to help customers understand the product details before purchasing. Customers can
also compare the prices of similar products provided by different merchants and search for the best
price easily. Furthermore, they can order products anytime, even after office hours. The e–marketing
places have their own online trading tools, such as Taobao's 'Alipay', eBay's 'Escrow' for easy online
transaction. Customers can post reviews after received the products and potential customers can
study these reviews before buying a
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Ebay in China
21/11/2011
E–Bay Strategy In China Alliance or Acquisition? Case Study Strategic Management
Gabriela Šalamonová Barbora Jandová Pierrick Boissel Julien Meunier Alexandre Godet
SUMMARY
I. The Input Stage
     CAGE VRIO Analysis CPM matrix EFE matrix IFE matrix
II. The Matching Stage
   BCG matrix SPACE matrix GSM matrix
III. The Decision Stage
  Matrix Analysis QSPM matrix
IV. Questions
    Assessment of eBay´s choice of market entry strategy for China, listing both the
advantages and disadvantages of its acquisition strategy Assessment of the potential benefits and
risks of eBay´ s joint venture with Tom Online Assessment of both companies: eBay and Tom
Online, decisions on their respective ... Show more content on Helpwriting.net ...
Information system is analyzed as the parity. The reason is lack of a customer service hotline on
eBay´s websites. But on the other side they try to meet needs their customer, e.g. facilitate payment
system. eBay´s executives do not adopt the management style to Chinese conditions. For the
majority of population was the only option to pay by cash, because of non–users of credit cards.
Also there are problems with the system of auction, because Chinese people like face to face
purchases and they are used to deal the lowest price and in auction– selling format usually the prices
went up. These issues caused the evaluation of marketing and customer service as the parity. E–Bay
had adopted various expansion strategies, both locally in the US and globally in new international
markets. It builds a brand image in the US as an industry leader and tries to expand to other foreign
countries. Additional temporary advantage related to the purchase protection because respondents
extremely agreed that eBay did the best job in monitoring and protecting its users from purchasing
counterfeit items from its site.


Competitive Profile Matrix
In CPM is important to identify eBay ´s major competitors, their strengths & weaknesses in relation
to a sample company ´s strategic position. Proposed CPM shows the clear insight to the eBay about
its

Taobao Established Shopping from Home with Online Shopping
Question 1
History
In 2003 Taobao was established by Ma Yun, a man with wildest ambition in ecommerce and also the
founder of Alibaba. Taobao, is the biggest network retailer marketplace in Asia. It is a Chinese
language website for online shopping, similar to eBay and Amazon. Currently, Taobao marketplace
focus on C2C (Consumer to Consumer) and B2C (Business to Consumer). With around 760 million
product listings as of March 2013, Taobao Marketplace is one of the world's top 20 most visited
websites according to Alexa. The combined gross merchandise volume (GMV) of Taobao
Marketplace and Tmall.com exceeded RMB1 trillion in the end of 31 March 2013.
Introduction Online shopping is a form of electronic commerce which provides the way consumers
go shopping and purchase services and goods with reasonable price on the Internet. For some
consumers, shopping and purchasing online have become part of their daily lives, while others may
not even care about it. Taobao online shopping system has provide consumers to directly buy goods
or services from a seller over the internet using a web browser. Users can shop from your home
comfort. They not need to go to crowd supermarket or shopping mall to buy their necessity items.
Items can be get from online shopping include cars, books, apparel, jewelers, baby care, gifts, tools,
etc. Besides that, user can shop from foreign countries with a few clicks. Furthermore, online
shopping system could make your

Marketing Tools For The Chinese E Commerce Markets
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e–
commerce markets, some of the factors explained in the case are:
First mover advantage was created when Alibaba enter the e–commerce market with the business to
business transactions for small and medium business. This give the advantage for the firm to gain
greater market share, obtain specialized sources and human capital, and it gain a great part of
customers that are loyal to the company.
Local knowledge was a really important factor for Alibaba because by knowing what are desires,
interest and customs of their customers, Alibaba created an advantage over its competitors.
Marketing tools created a great advantage for Alibaba because ... Show more content on
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2. Discuss the rationale behind Ma establishing Taobao.com. What are the factors that led to
Taobao's success as compared to eBay in the Chinese online auctions market?
Ma established Taobao.com because he want to compete against eBay, and take the leadership in the
auction market, he team up with Son to overthrow eBay that at this time got about 80% of the
market share in China. Ma as a visionary leader for Alibaba, launched Taobao because of the market
growing of the Costumer to Customer service in the the internet. This was a great opportunity to
expand its service line, which they were dominants in the Business to Consumers market. Some of
the factors that led to Taobao's were:
The understanding of local language, culture and consumers preferences.
The acquisition of the local knowledge which is a great factor for success, with this Ma can target
the features that customers desire the most and facilitate the usage. Which he approached the local
markets.
Ma differentiated Taobao from its competitor, he did not wanted to be a follower and he find new
ways to create value for its service, Taobao did it by not charging for its services. After strong critics
from eBay, this approach was successful and eBay had to adopt it.
Alibaba created a payment system called Allipay which helped transactions to have more credibility
because the consumer will pay for the product, and an intermediary keep

Shopping : The Pros And Cons Of Online Shopping
As the fast growth of technology, people prefer online shopping more than shopping in the physical
store. A lot of surveys show us there's a great increase in online shopping. For people to choose to
shop online, pros should be more valuable than cons in their beliefs. The most attractive advantages
of online shopping include: Purchase with almost anytime; receive a lot of information at the same
time; without the expense of renting the physical store and hiring employees, the price may be
cheaper; to marketing economy, this new mode of shopping can lead to a more efficient resource
using; online shopping benefits in shorting time and space resources. It's a business occurs in
virtual.
The largest online shopping day in China is ... Show more content on Helpwriting.net ...
The price of the product is so low that many people go to the physical store to do window shopping
and buy the product online. Communication dissatisfaction might occur in online shopping, and
more patient is the way to satisfy the shoppers. Face–to–face communication is always a quicker
and better way to solve the problem.
There are some disadvantages of online shopping: Shoppers can't guarantee the product is the same
as the picture that show on the website; It's difficult for shoppers to distinguish the legality of the
websites; Customers sometimes can't find the server to solve their problem.
Although people can buy products with a really low price on Taobao, no one can guarantee the
product to be real, and that's the biggest problem for online shopping. Countries legislate laws to
avoid customers purchase fake products; online shopping flatforms such like Taobao also set rules
for customers to supervise the online store.
For the legality of online shopping websites, Chinese people usually shop on Taobao so that they
don't get cheated on the fake websites, and this makes Taobao a gigantic flatform and it's like a
monopoly. People shop on Taobao and the stores get franchised to put their products on Taobao.
Online store save their expense of hiring people, but it also cause the problem of no one responding
online. Customers may have some questions of the product, and it's easy to solve this problem in
physical store, but online store sometimes

E Commerce Powerhouse Ebay Is Known Internationally As A...
E–Commerce powerhouse Ebay is known internationally as a leader in the market. The company
was founded by Pierre Omidyar in 1995 in San Francisco Originally eBay went by the name
Auction Web and was launched with the purpose of enabling site users/consumers with the ability to
trade unique items with each other. Under eBay's business model, of the time a seller would place an
item on eBay's site with a minimum bid set for the buyer and the duration specified for auctioning
that item. The services were provided by eBay free of charge. The free services however, did not last
long as the site quickly gained popularity and garnered a lot of web traffic. As interest in eBay and
conducting business on the site began to grow eBay started ... Show more content on
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eBay, thereby had become one of the most visited sites on the web.
With the company growing at an exponential rate Skoll and Omidyar knew that they need to garner
venture capital. So, in 1997, Omidyar and Skoll approached the U.S venture capital firm
Benchmark. They were able to broker a deal and Benchmark endowed eBay with $ 5 million with
the stipulation that Benchmark be given a 22 percent stake in the company. With the help of
Benchmark Omidyar and Skoll were able to bring onboard David Beirne and Robert Kagle to
service operations, as well as Meg Whitman an MBA Harvard graduate as CEO for the company.
As CEO of the Company, Whitman spearheaded the eBay Initial Public Offering (IPO) where the
company sold over 4 million shares of the business to the public at $18 per share. With new found
revenue and continued success, eBay decided to expand the scope of its business and acquired
Butterfield & Butterfield. Butterfield & Butterfield is one of the world's largest and most prestigious
auction houses specializing in fine arts and irreplaceable collectables. Acquisition of Butterfield &
Butterfield allowed eBay to launch another segment of their business called eBay Great
Collections'. EBay Great Collections' abetted eBay in capitalizing on a very unique but very
lucrative segment of consumers which was antique collectors. This deal between eBay and
Butterflied and Butterflied also ushered in a brand new era of mega deals between eBay and several

Ebay Expansion in China
Question 1: eBay's (diversification) expansion modes in China included acquisition and joint
venture. Critically evaluate each mode of diversification by identifying the advantages and
disadvantages for EBay given the competitive environment within the overall industry and
specifically in China.
By the year of 2006, eBay's combined international investments in Latin American, Europe and Asia
Pacific has totaled revenues of 2.1 billion, representing 49% of aggregate revenues of the company
at the time. Seeing the great potential of the Chinese C2C online auction market which back then
comprised of 250 million customers, eBay has launched various attempts majoring the acquisition
of EachNet in 2003 and the later joint venture with TOM ... Show more content on Helpwriting.net
...
In a currently implicit business environment culture where guanxi plays a substantial role in
conducting business, such networks with government agencies, officials and personnel would
enhance the chance of the eBay's success in its Chinese business sector. * The rebranding of "eBay
EachNet" to "TOM EachNet" is likely to go along with the Chinese market's tendency to embrace
familiar and domestically successful brand names and abandon newcomers except for the ones that
are already globally well–known like Nike Inc.
Disadvantage:
* The strong presence of Taobao and its parent company Alibaba is still hard to compete with. eBay
lacks both customer base and customer faith compared to Taobao and thus might suffer the pain in
terms of lost sales to Taobao in m–commerce sector as well. * In addition to its alliance with the
alliance with the wireless service provider TOM, Taobao has yet to build collateral relationships
with other major domestic service providers like China Mobile and China Unicom, many of which
are partially state–owned and thus has prevailing impact in the

China Cross Border Trade Case Study
China's internet business showcase is enormous, developing quick, and progressively open to
merchandise from abroad. Because of the mix of abroad travel, expanded Internet utilization,
presentation to remote brands and surging interest for outside items from Chinese customers, China
is anticipated to end up plainly the world's biggest cross–outskirt online business advertise by 2020,
as indicated by China internet Watch. China's cross–border e–commerce business has been
developing quickly as of late as far as both volume and esteem. This improvement has conveyed
new and creative approaches to get to business sectors, displaying huge potential for neighboring
nations, particularly slightest least developed countries (LDCs) in Asia, to ... Show more content on
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Through the Asia–Pacific Economic Cooperation (APEC) CEO Conference of 2015, Alibaba
director Jack Ma was cited as saying, 'E–commerce is like a dessert in the US, yet the main course
in China' (Ma, J. (2016).
Alibaba's Success Story As opposed to Europe and the Unified States, China is overwhelmed by
online business commercial centers that regroup the offers of numerous free traders. Customary
physical retailers who have made a fruitful move online in those business sectors have no
counterparts in China, where autonomous traders represent just 10% of e–following deals.
Around 90% of Chinese electronic retailing happens on virtual commercial centers – sprawling web
based business stages where makers, substantial and little retailers, and people offer items and
administrations to purchasers through online customer facing facades on mega sites like eBay or
Amazon. The destinations incorporate PayPal, Taobao and Tmall, which thusly are possessed by
greater web based business gatherings. An extensive and developing system of outsider specialist
co–ops offers dealers showcasing and configuration administrations, installment satisfaction,
conveyance and coordination's, client administration and data innovation bolster.
Alibaba was established in Hangzhou in 1999 as a stage for coordinating fare and import brokers. In
the mid–1990s, the Chinese Government was advancing paperless exchange advancement. Amid
that period, Alibaba author Jack

China E Commerce Market Analysis
Alibaba Case
1. Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese
e–commerce market.
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e–
commerce markets, some of the factors explained in the case are:
First mover advantage was created when Alibaba enter the e–commerce market with the business to
business transactions for small and medium business. This give the advantage for the firm to gain
greater market share, obtain specialized sources and human capital, and it gain a great part of
customers that are loyal to the company.
Local knowledge was a really important factor for Alibaba because by knowing what are desires,
interest and customs of their customers, Alibaba created an advantage over its competitors.
Marketing tools created a great advantage for Alibaba because by using different sources the
company penetrate different markets, and it even help the company to overthrown eBay from the
customers to customers business.
The company created a good environment to succeed because it minimize the political risk by
working with the government, and creating a mutual benefit between the country and the firm.
The leadership that Ma created was exceptional because by starting with his pears without any hope
from other people to be successful, he follow what he desire. At the end he has created a great
company with exceptional values, which is a great legacy for

A Short Note On The E Commerce Market
1. Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese
e–commerce market. During the late 1990's and early 2000's, the internet was not very popular in
China and people were ignorant to its proper use. Knowing this, Jack Ma decided to start this
internet user–friendly company that would allow his clients to perform business transactions with
other businesses/suppliers in China. He first started the company on a local level and as Alibaba has
seen success it has been expanding to the global market. Some of the factors that contributed to the
success of Alibaba in the Chinese e–commerce industry were:
First mover advantage: "Alibaba has a first–mover advantage that makes it very hard for
competitors to chip away at their lead in the market." (Dick Wei, Analyst, J.P. Morgan Securities
Inc.,2 in 2007). Alibaba started its operations when e–commerce in China was in its infancy stage.
Considering the potential of the budding e–commerce market, Alibaba started with operations that
concentrated on providing B2B services to SMEs that were aspiring to go global.
Smart competitive and marketing strategies: From an early stage, Alibaba had been focusing on
differentiating itself by providing better services to its customer. It put an innovative business model
in place where customers could try out its services without any cost. Over time, it was able to
generate revenue from alternative streams and increase revenue as

What Did Jack Ma Was So Different From Other Company Leaders
Discussion Question:
1. What did Jack Ma do that was so different from other company leaders? In what ways is he a
revolutionary?
The difference between Jack Ma and the other companies' leaders is Jack Ma focus more to the
customers compared to the shareholders. His philosophy can be proved when he states that an IPO
was never have been their goal and he said "We will continue to adhere to the principle of customer
first, employees second, shareholders third". Even Alibaba has become one of the greatest
companies after they made a new IPO record in the history of New York Stock Exchange, but they
will continue to protect the benefit of customers and shareholders and also to support their
employees.
Next, Jack Ma chose to run a publicly listed company by hiring six major banks ... Show more
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Jack Ma's sudden emergence "rocked the boat" in China and around the globe. Are lots of other
business leaders likely to follow his example, and challenge the status quo?
What did Jack Ma until his emergence called "rocked the boat" is his Alibaba Group's stock had just
started trading and it immediately jumped in value. His company also set the record for the largest
initial public offering in history. Jack Ma's risk taking that resulted in the super–successful company.
Because of that, Jack Ma is one of China's most influential business leaders and one of the 100
people who "most affect our world" according to Time magazine. This shows lots of other business
leaders likely to follow his example and challenge the status quo.
Status qua is a Latin phase meaning the existing state of affairs, particularly with regards to social or
political issues. It applies to maintain or change existing social structure and values. The status qua
must be challenged by every leader, company and organization in order to create greatness and
success. Thus, Jack Ma challenged the governance status qua. Although he met more decision and
criticism, he never gave up. He always trying to achieve his

Essay On Alibaba
Alibaba Group Holding Limited is a publicly traded in HangZhou, China. It start operate from 4
April 1999. Alibaba.com Limited, primary company of Alibaba Group, is the world's largest online
business–to–business trading platform for small businesses. Alibaba Group is a HangZhou–based
group of Internet–based e–commerce businesses, including business–to–business online web
portals, online retail and payment services, a shopping search engine and data–centric cloud
computing services. Alibaba.com is a global website for members to find suppliers and buyers.
Consumers can both sell and buy products on Alibaba.com. The company began in 1999 when Jack
Ma founded the website Alibaba.com, a business–to–business portal to connect Chinese
manufacturers ... Show more content on Helpwriting.net ...
Moreover, Baidu offers audio and image files, along with Chinese–based search engines for
different websites and 57 other community and search services. Two years ago, Baidu was ranked as
one of the top 5 Internet sites with the highest Alexa ranking. Regarding the files and services
provided by Baidu, it must be said that the company offers over 90 million images and multimedia
files, in addition to the over 740 million web pages. The multimedia content of Baidu covers MP3
music, movies and even a personal digital assistant mobile search. The company has even released a
low–cost smart phone recently.
During Q4 of 2010, it is estimated that there were 4.02 billion search queries in China of which
Baidu had a market share of 56.6%. China's Internet–search revenue share in second quarter 2011
by Baidu is 76%. In December 2007, Baidu became the first Chinese company to be included in the
NASDAQ–100 index. In May 2014, Baidu ranked 5th overall in the Alexa Internet

Business Analysis : E Shop
Key Partners
E–shop offers both products and services that can be used by consumers that are not only health–
conscious but also culturally curious. Tea is alternative product which is beneficial to human 's
health. As a result, customers can come and enjoy our categories of tea offered without feeling self–
conscious. They could also try new types of tea that they have not tried before. E–shop also educates
our customers about the cultural aspects of traditional art of Chinese tea making along with the
benefits of tea. By broadening our customers ' understanding of tea, E–shop offers them a place to
obtain knowledge in terms of health and culture. Below are the names of each team member, their
role in the organization, and highlights of ... Show more content on Helpwriting.net ...
They can visit us for social reasons like business meetings or networking.
E–shop also will provide a culturally sophisticated and intellectual atmosphere for customers.
Moreover, this will allow our customers to enjoy our offered teas compared to our business.
Key Resources
Our e–shop mainly is exported Chinese tea from China to UK. We have sold all kinds of Chinese tea
which customers like. And also, we sell tea products such as teapots, tea cups, tea sets, tea trays.
Moreover, we also try to teach customers to learn and appreciate the art of traditional tea making in
a place of serenity, which is the value we provide to our customers.
Our Chinese tea e– shop got a website to let the customer easy to know our e–shop and contact with
us. Moreover, the main for buy our e–shop's tea is using Taobao platfrom to online trading. Because
Taobao online trading is most popular for use in China and more safeguard. Taobao major
promotion C2C (consumer to consumer) online trading, individuals or small businesses are sellers in
taobao open online stores. The electronic commerce field in China is the most popular consumer
welcome and the most influential one of e–commerce sites.
Value Propositions
There is an increase demand for healthier beverages like tea. This current trend of consuming health
to maintain a better lifestyle has increased over the past years. Thus, as an antioxidant, tea is
beneficial to one 's health. Furthermore, by offering tea, we are also aiding to our

The Benefits Of Pipelines
Pipelines are the most traditional way of operating businesses, and are often straightforward. The
market is fairly one–sided, as producers and consumers tend to undertake specific, rigid roles. Cable
television, launched in the mid–90s (Desjardins, 2017), emerged quickly as the direct pipeline for
delivering content to home viewers. Various cable companies have managed to maintain competitive
advantage primarily through the offering of sports content packages. Cable subscription grants not
only access to local matches, but also to those from all around the world ranging from NBA to NFL.
Cable TV is advantageous as it is not restricted by regional limitations that may be imposed on
broadcasting services online (Thompson, 2015). For ... Show more content on Helpwriting.net ...
With the rise of information systems and the internet, new opportunities have opened up for
businesses, contributing significantly to the rise of platforms. The vigorous development of platform
businesses has become a new pillar of contemporary global economy, as they occupy half of today's
top ten groups through market capitalisation (Woelderen & Pan, 2017). This is often done through
using interactions and information to maximise and transform engagement into key value growth
drivers. For instance, Alibaba Group, which dominates China's online retailing market with the
customer–to–customer platform Taobao, has seen a 56% increase in annual profit due to the rapid
growth of mobile users (La Monica, 2017). According to Smith (2017), Taobao owns 529 million
mobile monthly active users and 61.7% of transactions are made on mobile. Grasping the
opportunity brought by extensive use of mobile application, Taobao satisfied the growing social
demand for shopping convenience. This illustrates platforms' flexibility and ability to better meet
the developing needs for expanding ecosystems and to survive in demand–side economies. Alibaba
Group (2017) has stated that Taobao aims to target the younger population as a lifestyle destination
platform for both shopping and sharing product knowledge, as information acts as key value
generators and assets for platforms. Additionally, Taobao offers low costs for both sellers and
customers

Who Is Walmart's Biggest Competitor
Walmart has many competitors in the world. There are many competitors in foreign countries that
Walmart must overcome, but also the supermarket companies in the United States. Walmart has so
many products that they have a lot of competition with a lot of different industries. In the
supermarket type region, Target, Costco, Aldi, Kroger, Whole Foods Market, Publix, and Harris
Teeter are there main competitors. Walmart has a slight advantage over Target when it comes down
to cost. Costco on the other hand outperform both Walmart and Target. Aldi may not be the biggest
threat, they do have very low prices. Kroger is Walmart's biggest competitors, as they are a very
well–known company all over the world. Walmart and Whole Foods Market did a blind taste test
and Walmart had the ... Show more content on Helpwriting.net ...
Harris Teeter have been rivals for a while, and Walmart just passed Harris Teeter to be the #1 grocer.
Walmart has many other competitors for other products that they have in store. Amazon and Google
are their main competitors for the online aspect. Amazon really has the upper hand on Walmart as
they have the same day delivery. Walmart has now started to test same day delivery as their way to
compete with Amazon. Google on the other hand, is just bigger than Walmart plain in simple. It is
very hard to compete with one of the best companies to ever be created. A new and upcoming online
website is called Taobao, which is like a Chinese eBay. Jack Ma Yun said that Taobao will overtake
Walmart at one day. Walmart's other competitors are Apple, as they overtook them in Music sales,
Netflix because Netflix is instant, and you do not have to wait. Best Buy and GameStop, because of
the video game and electronics section, and Dollar stores, for their dollar prices they have. Sears is
also a competitor as they sell a lot of home products, just like

Alibaba Essay
Alibaba serves as a middleman. It's the platform where sellers go to sell things and buyers go to buy
things. It runs websites where millions of merchants sell their products. Products are sold through
Alibaba, not by Alibaba. It makes money on e–commerce services by taking the commission on
sales, by advertising on its site. It is into B2B, B2c, and C2C.
Its verticals in China are Taobao, Tmall, and Juhuasuan serving as the marketplace. It technology
deployment in China is AutoNavi and Weibo. Alipay, CSN, Haier Gooddaymart, Cainiao Network,
and Intime are the facilitator for online transaction. It has invested in Vendio, Auctiva, Quixey, and
Tango Me. Lyft and Shoprunner are another investments made by Alibaba.
Alibaba.com, AliExpress, Taobao Overseas, TMallGlobal, Australian Post, and Singapore Post are
the marketplace for cross–border consumers.
Execution and ... Show more content on Helpwriting.net ...
Realizing this view to be sure that online payments were safe Alibaba created Alipay, an online
payment service.
Experiment with new business models
Alibaba started continually experimenting new business models since its inception. To tap the
growing B2C market, it began building Taobao Mall, a platform for established brands to reach
Chinese consumers, which eventually became Tmall and is a major part of the group portfolio today.
To catch the software–as–a–service wave, it started Alisoft, which probably entered the market too
early. Alisoft could not find a killer app that generated enough customers. The business was shut
down in 2009.
Adopt blue–ocean strategy
When Jack Ma is asked "When are you coming to invade America? When are you going to compete
with Amazon, when are you going to compete with eBay? He quotes "we show great respect for
eBay and Amazon, but I think the opportunity and the strategy for us is helping small business in
America go to China; sell their products to China" by opening storefronts on Alibaba's

Analysis on the Success of Taobao
ISBN 978–952–5726–00–8 (Print), 978–952–5726–01–5 (CD–ROM) Proceedings of the 2009
International Symposium on Web Information Systems and Applications (WISA'09) Nanchang, P.
R. China, May 22–24, 2009, pp. 202–205 Analysis on the Successful Strategies of Taobao's E–
Commerce Yang Lixia 1, Liu Xun 2 College of Arts, Hebei University of Engineering, Handan,
China Email: claireyang123@yahoo.com.cn 2 College of Mechanical Engineering, Hebei
University of Engineering, Handan, China Email: cnliuxun@yahoo.com.cn Abstract–The
improvement and the development of internet technologies have triggered the rapid development of
E–commerce applications since 21st century. A number of E–commerce sites have been rising in
China. But with the bursting of the ... Show more content on Helpwriting.net ...
III. TAOBAO'S SUCCESSFUL STRATEGIES Taobao can be the top of E–commerce market in just
two years, people may think it lies on the characteristics of the Internet economy, but the most
important is its effective business strategies, including operation strategies and service strategies. A.
Operation Strategies 1. Capturing the market by No Fees In order to create brand, Taobao made a
plan that it wouldn't receive any charging transaction fees and 202 listing fees in the first three
years. Taobao believes that only allows users to get real benefits in online transactions, and then
there will be more loyal network dealers. With this belief, Taobao captured the market rapidly and
took more than 60% market share in two years. Free is a huge investment, it reduces the threshold of
personal transactions and protects the interests of both sides [3]. 2. Strengthening the comprehensive
cooperation with banks On October 27, 2003, Taobao and Zhejiang branch of ICBC (the Industrial
and Commercial Bank of China) signed a comprehensive cooperation agreement, which is a guard
against default and fraud. It reflected the integrity of online transactions and payment. The mode of
payment and settlement on the online bank was born. This is a new mode which puts the bank
intermediaries into the Internet and E–commerce, and it creates a precedent on the national credit
guarantee cooperation. The introduction of this service has greatly increased the users' confidence
on

Re Expansion Of Ebay Into China
The re–expansion of eBay into China seems to be a viable probability and a part of the companies
plan for the near future. In 2002, eBay established a presence in china with the acquisition of
leading auction site Eachnet to form eBay Eachnet. Up until 2005 eBay Eachnet was the leader of
the ecommerce market due to their C2C platform. However, with the emergence of Alibaba owned
subsidiary Taobao.com (Taobao), eBay Eachnet soon lost its stronghold on the market. This factor
combined with a rigid Chinese ecommerce market drove eBay to withdraw business dealings in the
country in 2006.
Yet, the goal of a successful longstanding ecommerce venture has never been far from the
companies plan. In 2013 the ecommerce giant announced plans ... Show more content on
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As interest in eBay and conducting business on the site began to grow eBay started applying a
nominal fee for listing items on the site, and a percentage of proceeds after sales had concluded.
Application of nominal fees on each transaction enabled Omidyar to garner revenue from his
venture. In 1996 Omidyar appointed Jeff Skoll as president of eBay. Skoll's first order of business as
president of eBay was to grow the customer support team for e–bays market place and in 1997. This
entailed appointing people to eBay's customer service department to settle disputes, attract new
customers and keep current customers happy. By September of 1997 the company officially
changed its name to the now well–known moniker eBay Inc. It was in this same year that eBay was
receiving one million page hits per week and at minimum 15,000 item listings per day. eBay,
thereby had become one of the most visited sites on the web.
With the company growing at an exponential rate Skoll and Omidyar knew that they needed to
garner venture capital. So, in 1997, Omidyar and Skoll approached the U.S venture capital firm
Benchmark. They were able to broker a deal and Benchmark endowed eBay with $ 5 million with
the stipulation that Benchmark be given a 22 percent stake in the company. With the help of
Benchmark Omidyar and Skoll were able to bring onboard David Beirne and Robert Kagle to
service operations, as well as Meg Whitman an MBA Harvard

Marketing Strategies For Alibaba Group Holding Limited
Abstract: Alibaba has become the largest online commerce company in the world in just a few years
and barely anyone expected it to be so successful. It has provided numerous business opportunities
for small and medium enterprises to leverage the innovative technology to compete more efficiently
domestically and globally. This study discusses the marketing strategies, promotion, distribution
channels and some important lessons that were carried out by Jack Ma to achieve success in this
world of online trading.
Introduction: Alibaba Group Holding Limited is a Chinese e–commerce company that provides
consumer–to–consumer, business–to–consumer and business–to–businesssales services via web
portals. It also provides electronic payment services, a shopping search engine and data–centric
cloud computing services. The group began in 1999 when Jack Ma founded the website
Alibaba.com, a business–to–business portal to connect Chinese manufacturers with overseas buyers.
In 2012, two of Alibaba's portals handled 1.1 trillion yuan ($170 billion) in sales. The company
primarily operates in the People's Republic of China (PRC), and at closing time, on the date of its
initial public offering (IPO), 19 September 2014, Alibaba 's market value was measured as US$231
billion. However, the stock has traded down and market cap was $145 billion at the end of
September 2015.
In September 2013, the company sought an IPO in the United States after a deal could not be
reached with Hong Kong

Taobao
Abstract
In this case, it mainly defines how eBay enter the Chinese market and state problems why eBay
failure problems in China compare to Tao Bao. We will introduce EBay, compare and contrast
between eBay and Tao Bao, also, we talk about reasons failure in China.
Introduction to EBay
EBay which is a management that allows people from all over the world to buy and sell items,
auctions and shopping online. EBay was founded on 4th September 1995 and by name Auction web
of Pierre Omidyar in California. People can sell goods on EBay over the network.
As an online auction site, eBay created a buyer but also the seller of unprecedented business model
which was C2C mode. EBay has differences from traditional marketing because e Bay make a ...
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Tao Bao has another payment, such as, cash on delivery, bank transfer. But if trade dispute occur,
Tao Bao will difficult to provide the same assistance. On the other side, eBay offer variety of
payment methods, including PayPal which is leading online payment and they responsible for the
completion of buyers and sellers money. (Jeffeny Kow, 2010)
Issues of eBay
In 2004, eBay acquired by Each Net to enter the Chinese market, many analysts believe eBay will
become leader in Chinese market. Tao Bao and eBay both have a wealth of experience in
international and domestic markets and to maintain close contact with consumers. By the end 2006,
eBay has invested three hundred million US dollars for the Chinese business but with little success.
Market share of eBay continue to decline each year and fell pitifully until 2006, Alibaba's Tao Bao
leapt on it. After the completion of the acquisition Bo Shao and other eBay executives have been
chosen to leave eBay. With Tao Bao online, EBay has difficulty situation in China and market share
began declining. The biggest problem is the user experience and defining aspect of the product, at
beginning which get global platform to China. Because of eBay's global platform is grid, according
to the situation in China, localization is hard, which limits the prospects for our development in
China fundamentally.
Kathy Burns, n.d. What Is an eBay Business Model. Retrieved on

Case Study Of Alibaba
1.0 Introduction
1.1 Overview of Alibaba
In year 1999, Jack Ma who was a former teacher and his 18 friend in his Hangzhou apartment built
up Alibaba group. At first, Alibaba working for the small manufacturers set up a B2B (business to
business) website. But then Alibaba group was quickly expanded until seven different group, for
example, Alibaba International Business Operations, Alibaba Small Business Operations, Tmall,
Taobao, Alibaba Cloud Computing, Juhuasuan and Etao.
Alibaba is the largest leading e–commerce companies of B2B online retailer in China and it is
giving a trading platform that associates worldwide purchasers to huge number of small medium
enterprises to conduct business in their network. The market operate by Alibaba ... Show more
content on Helpwriting.net ...
Alibaba currently operate mobile and online commercial center in the form of wholesale trade and
retail trade, cloud computing and other information technology services, for example, Taobao,
Tmall, Juhuasuan, Aliyun, Ant Financial Services Group, Cainiao Logistics, AliExpress,
Alibaba.com, 1688.com and Alimama.
4.0 Analysis of Alibaba's Strategic Capabilities
In this following section aims to analysis how Alibaba build its competitive advantage. Alibaba will
be analyzing using value chain and then carried out VRIN evaluation.
4.1 Value Chain
Value chain is an approach to know how an item or activities create value for consumers. The most
of value provides to consumers, the most of competitive advantage an organization build. In this
analysis, value chain model has separated into primary and support activities. Primary activities are
included in the physical creation of the item and service. On the other hand, support activities give
the inputs and infrastructure that enable the primary activities to happen. This value chain model can
be refer to below figure 5.
Figure 5: Michael Porter's Value

The E Commerce Company's Strategy
The e–commerce company's strategy focus allowed it to differentiate itself by providing better
services to its customers. The company put an innovative business model in which customers would
try out the company's services without any cost. As time progressed, the company was able to
generate revenue from alternative means. In addition, the company began to generate revenue from
an increase in the willingness of its users to pay for additional services. First mover advantage is
referred to as a competitive advantage because it allows the first company to acquire superior brand
recognition and customer loyalty, while allowing the company to perfect its product or service.
Alibaba's operations stated when e–commerce was at infancy stage in ... Show more content on
Helpwriting.net ...
Credit cards may have been used in China, but they had yet to be trusted by the community, the
Chinese were not comfortable with them and preferred different mediums of transaction. Thus,
Alibaba established the payment system to provide the Chinese with a sense of safety, contributing
to the Chinese willingness to participate in online transactions. Regulations can pose a challenge for
businesses operating in emerging markets like China. For example, the internet was highly regulated
and was a reason why some foreign companies struggled to succeed in China. Alibaba navigate the
posed challenges well and took advantage of the opportunities while at the same time mitigating the
risks of operating. The popularity of Alibaba and the growth of e–commerce in China attracted
foreign e–commerce companies. In 2002, eBay entered the Chinese e–commerce market through an
acquisition of 33% of EachNet, creating eBay EachNet. That same year eBay EachNet merged as
the leader in online auctions, leading to the capture of 79% of the online auction market by 2003. In
consideration of the growth in the online auction market, Alibaba launched Taobao.com as a rival to
eBay EachNet. Taobao.com was launched to capture the opportunities in C2C e–commerce market
in China. Having already established a dominance in B2B e–commerce, Alibaba was hoping its
local knowledge would help it dominate the C2C e–commerce market, toppling the newcomer eBay

Taobao vs. Ebay China
CASE: IB–88 DATE: 01/04/10
TAOBAO VS. EBAY CHINA
Ten to 15 years from now, I think China can be eBay 's largest market on a global basis.... We think
China has tremendous long–term potential and we want to do everything we can to maintain 1 our
No. 1 position. – Meg Whitman, eBay CEO, 2004
By 2008, Jack Ma, CEO of Alibaba.com Inc., was in a position to consider how to fortify Taobao's
dominant position in China's online consumer–to–consumer (C2C) market. Ma and his company
had come a long way since May 2003, when they first launched the Taobao website. Back then,
eBay China dominated the fledgling market, holding over 70 percent share. It had entered China
with its acquisition of the start–up EachNet, and was actively building upon ... Show more content
on Helpwriting.net ...
Debit cards were common in China, with about 300 million cards issued by mid–2001. However,
each city had a separate payment gateway to process these cards, so a card from one city often could
not be used at the issuing bank's system in another city. 4 This lack of integration made it very
difficult for auction sites to handle debit card payments online. The credit card option was even
worse. Because China's credit system was not developed, Chinese banks were cautious about
issuing cards and the application process was complicated. By 2001, there were only about 25
million credit cards issued in China, accounting for less than 1 percent of consumer spending
(compared to about 25 percent in the U.S.), and credit cards were accepted at only about 3 percent
of China's shops. As the need for better credit card services intensified in the early 2000s, various
institutions responded. In 2001, Bank of China and China Construction Bank started accepting
credit card applications online. At the same time, a large number of credit verification companies
emerged to help banks work around the lack of a personal credit scoring system in China. These
companies checked the backgrounds of applicants through various channels, including meeting the
applicants in person. In February 2002, the People's Bank of China, China's central bank, announced
a project to enable the four largest banks to process cards across cities and banks. In the wake of
these changes, China's

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 ... Show more content on Helpwriting.net ...
Until 2005, this
Taobao's Success 5 problem was solved by eBay–Each, but without doubt, eBay–Each lost its
advantage in credit transaction.
Third, eBay–Each used advertisement blocking tactics to fight Taobao. In 2003, the biggest three
portal in China (Sohu, Sina, 163) made a deal with e–Bay that they would never use Taobao's
advertisement. To fix this problem, Taobao use a lot of traditional medium such as newspaper, TV or
subway stops, bus, road advertising. Moreover, Taobao also made a co–operation with Yahoo, using
Yahoo's search bid, investing 2 million keywords. Then Taobao increased the keywords to 3 million,
and the hits up to 6million in one day. That made Taobao beyond its opponent in two key indicators,
accounting for the initiative in future competition. Furthermore, another difference in Taobao's
advertisements, their membership in the trading process could feel lively culture of family. Fourth,
eBay–Each and Taobao had a significant understianding gap in market positioning. EBay–Each
have their global strategy and want to do business with the people who are 30–40years old. While
Taobao's strategy is localization, and its target population was also younger than its counterpart.

Last but not least, Taobao encouraged their buyer and seller makes private transaction, and
supported a convenient platform. One example is the communication tool for members in a timely
manner – Live Messenger. If the user enters a shop, just the owner is also

Swot Analysis Of Alibao As A Commercial Venture
Company Establishment Alibaba.com
In early 1999, Jack Ma and 17 other founders set up Alibaba.
Alibaba first commercial venture is Alibaba.com, an online platform that linked SME of Chinese
and international manufacturers and buyers. The main reason of Alibaba success development was
improving customers' satisfaction by listening closely to them. The proof is Alibaba had attracted
32m members in 2007, with operating profits and revenues of $105.3m and of $289.5m
respectively. Customers satisfaction and trust are believed to be the secret recipe of Alibaba's
success. Taobao
Competition has begun as early as 2002. eBay entered China and immediately started expanding. In
response, on 11th May 2003, Alibaba launched its second commercial ... Show more content on
Helpwriting.net ...
Listing – From Hong Kong to New York On the 19th of September 2014 a history made. Alibaba
became Alibaba Group Holding Limited through New York Stock Exchange (NYSE). There were
unique reasons why Alibaba listed on the NYSE instead of on Shanghai Stock Exchange (SSE) and
Hong Kong Stock Exchange (HKEx) since it is a China–domiciled company. SSE found to be too
restrictive, that it imposed limits on trading, size, timing, and speed of foreign capital flows. Alibaba
had also attempted to be listed on the HKEx. Since Alibaba embraces dual–class share structure, this
was the main reason HKEx rejected Alibaba's proposal to be listed as HKEx does not authorize
dual–class share structure, it allows "one–share–one–vote" principle instead. Jack Ma, the
determined and charismatic leader, did not stop after being rejected. Alibaba proposed to Nasdaq
and the NYSE. Eventually, on September 19, 2014, it was listed on the NYSE, being the largest
U.S. IPO of common stock, raised $21.8 billion, with $68 per share. It was obvious that the
restrictions on SSE and HKEx's ban on dual–class share structure had led Alibaba to land on the
NYSE and trading up until today. Dual–Class Share Structure
In dual–class share, there are two groups of shareholders, where one group has excess voting rights
disproportionately to the shares they hold. In this case,

Comparative Ebay and Taobao
A Comparative Study between eBay and Taobao in Chinese Online Auction Market
BSAD 415:66 Electronic Business
Prof. G. Trites
Jie Yue (Kathy)
200706289
June 10, 2008
1 Introduction
Being the largest online trading company, eBay has launched websites across the world, including
thirty other countries in addition to its original U.S. website. China, with its large online market, is
one of these countries. In 2003, after its cooperation with Eachnet, the first C2C online company in
China, eBay became the largest online trading company in China, controlled 90 percent of the
Chinese C2C market (Zazaian, 2006). The success continued until Taobao, a completely free online
C2C platform, established in China by the ... Show more content on Helpwriting.net ...
Also, eBay has lowered listing fee a lot since 2005, but this didn't slow down Taobao's growth.
Therefore, free listing is not the key reason for Taobao's success. Indeed, feeling they are benefiting,
customers may even willing to pay.
Target Market
The first action for both eBay and Taobao in China is to identify their target markets. When eBay
launched in China, it identified its target customers as those "well educated, familiar with the
Internet, earning a monthly payment over 3,000 RMB, and 20–40 years old" (Chen et al., 2007).
Indicated by Shixiong Wu, CEO of eBay China, these mainstream customers are very important to
eBay as they help with the healthy growth of electronic market (as cited in Chen et al., 2007). On
the other side of the Chinese online market, Taobao decided to focus on Chinese customers who are
between 20 and 30 years old with good education levels, after analyzing China's C2C market for
four months. They believe that in a decade, these online shoppers will become mainstream
consumers who will influence the buying habits of the whole country (Alibaba, 2006). Comparing

the target markets of eBay and Taobao, it is clear that though they all target at young people,
Taobao's target market is much broader and includes students, while eBay's target customers are
professionals who have salaries. Shown by the survey results, in 2007, student buyers made up a
quarter of all customers,

Personalised Social Media Endorsements For Online Products
Recommendations and Referrals: these usually refer to personalised social media endorsements for
online products. They help potential customers to know the referral value. Social recommendations
include the information given by customers on what to read, see, buy, and so on; while referral
programs involve some material or non–material rewards provided by sellers (Moe & Trusov 2011).
Ratings and Reviews: these indicate the original social commerce toolset used for customers to
share their shopping and user experience. In a business view, these help the companies to integrate
community features and customer feedback into their websites. In a customer based view, these help
potential customers to reach more credible and useful information ... Show more content on
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3 3.oppotunities and risks Based on above statements, it is found that social commerce brings new
opportunities for retailers compared with traditional business model. Compared with traditional
business model, which emphases 4ps market mixes, social commerce is based on advanced
information technologies such as e–commerce tools. Thus, social commerce naturally shares
advantages of e–commerce, such as: overcoming geographical limitations, low costs, saving time,
and so on (Spotswood & Tapp 2013). Then, compared with e–commerce, social commerce
emphasises communication and social interactions among users. Compared with e–commerce,
social commerce also provide new opportunities for communication and interaction functions
creates more ties between retailers and customers then e–commerce. On one hand, social commerce
creates friendship ties between e–retailers and customers as offline social networks do. However,
the nature of Internet means that social commerce will has more more partners online. It implies that
e–retailers will be more socially. On the other hand, social commerce creates outgoing advice ties
through sharing advice and knowledge. For example, e–retailers would build better reputation and
brand image when they shared knowledge with peer sellers. Also, individuals who contribute
information and

Marketing Strategies For Alibaba Group Holding Limited
RESEARCH ASSIGNMENT
ECONOMICS 510
BY:
ABHISHEK MISTRY
ID: 1102542
Abstract: Alibaba has become the largest online commerce company in the world in just a few years
and barely anyone expected it to be so successful. It has provided numerous business opportunities
for small and medium enterprises to leverage the innovative technology to compete more efficiently
domestically and globally. This study discusses the marketing strategies, promotion, distribution
channels and some important lessons that were carried out by Jack Ma to achieve success in this
world of online trading.
Introduction: Alibaba Group Holding Limited is a Chinese e–commerce company that provides
consumer–to–consumer, business–to–consumer and business–to–businesssales services via web
portals. It provides electronic payment services, a shopping search engine and cloud computing
services. Jack Ma founded Alibaba.com in 1999, a business–to–business portal to connect Chinese
manufacturers with overseas buyers. In 2012, two of Alibaba's portals handled 170 billion in sales.
The company primarily operates in the People's Republic of China (PRC), and at closing time, on
the date of its initial public offering (IPO), 19 September 2014, Alibaba 's market value was
measured as US$231 billion. However, the stock has traded down and market cap was $145 billion
at the end of September 2015.
In September 2013, the company sought an IPO in the United States after a deal could not be
reached with Hong Kong

Case Study on Ebay
Question Paper Integrated Case Studies – I (MB3J1): January 2009
Case Study∗ (100 Marks)
This section consists of questions with serial number 1 – 5. Answer all questions. Marks are
indicated against each question.
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the
leader in the Chinese e–commerce market, controlling more than half of it. But eBay EachNet soon
lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that
can be attributed to Taobao's edge over eBay. 2.a. To enable people to trade with each other, Pierre
Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay
received one million page hits per ... Show more content on Helpwriting.net ...
Alipay's core service is an escrow service which solves the concerns related to settlement risk
between buyer and seller. In this system, after a buyer commits himself/herself to an online
transaction, his/her payment is held in an Alipay account until he receives the product ordered. After
the product is received the buyer notifies Alipay and the payment is then forwarded on to the seller.
As of December 2006, Alipay had 33 million registered users. (Source: "Alipay – 33 Million
Registered Users," www.imnewswatch.com, February 5, 2007) PayPal was a leading online
payment company purchased by eBay in mid–2002. In June 2007, PayPal had 143 million user
accounts across the world. Through PayPal, individuals and businesses could send or receive money
over the Internet. PayPal supported payments in US Dollars, Canadian Dollars, Australian Dollars,
Euros, Pounds Sterling, and Japanese Yen. Buyers could also pay for their online purchases on
various e–commerce websites and auction sites like eBay using the balance in their PayPal account.
Though this mode of transaction was quick, there were also a number of complaints from
disgruntled PayPal users. Most of the complaints were related to the dispute resolution procedures
of PayPal. In eBay China, transaction fees used to be charged as a percentage of the value of
completed sales. This ranged from RMB 10 for a sale worth RMB 500 to RMB 115 for one worth
RMB 20,000 (Source: "EBay China

Customer's Behaviour in E-Commerce in China
CUSTOMER'S BEHAVIOUR IN E–COMMERCE IN CHINA
Case: taobao
Thesis
Xinxing Hong Yanlong Chen
Degree Programme in International Business International Marketing Management
SAVONIA UNIVERSITY OF APPLIED SCIENCES Business and Administration, Varkaus
Degree Programme, option
Bachelor of Business Administration, International Business, International Marketing Management
Author(s)
Hong Xinxing & Chen Yanlong
Title of study
CUSTOMER'S BEHAVIOUR IN E–COMMERCE IN CHINA
Type of project Date Pages
Thesis
Supervisor(s) of study
15th Nov. 2010
59 + 16
Executive organisation
Virpi Oksanen, Tuula Linnas
Abstract
As nowadays communication bandwidths rise with the increase of broadband connections in China,
and as ... Show more content on Helpwriting.net ...
This newly developed type of marketing function is more and more popular nowadays, but the

customer‟s behaviour and psychology in this situation have not been focused on enough. Especially
in China, where e–commerce has developed a peak, an increasing number of people are eager to
learn about e–commerce. In this case, a good analysis of customer‟s behaviour and psychology can
help companies adapt to this new environment well and divide the target market. The thesis is
researching customer behavior, how the customers make their purchasing decisions, variation of the
consumption structure and customer psychology in ecommerce. E–business is not a product or
service; it is the technology applied to the company‟s work to innovate the experiences and qualities
surrounding the product. The ebusiness activities over the internet are a tool or engine to improve
the domestic economic well being through the liberalization of domestic services, more rapid
integration into the globalization of production. (Taylor & Murphy 2004, 286)
The research problem in the thesis is: what are the internal and external elements that affect
customer‟s purchasing behavior. The internal elements may include customer‟s mental activity,
personality, and thinking, while the external elements may include the social elements, purchasing
environment, customer group and marketing functions and

Core Business Strategy: Alibaba, Bobao And Tmall
Alibaba
Price or Output: The core business includes three e–Commerce websites which are Alibaba, Taobao
and Tmall, which can connect and cover multi ranges of buyers and sellers and Allibaba serves as a
middleman and collect annual fees, deposit or commission fees from merchants for their
transactions. Therefore, it focuses more on price as it does not contribute products or manage
warehouse. It attracts customers by offer best price and opportunity of for venture.
Advertising and Marketing: Alibaba invests hugely on marketing expense. USD 403 million had
spent in advertising and marketing in 2015, accounted for 11% of the revenue (Alibabagroup, 2015).
The budget of marketing increases yearly due to stringer competition. Alibaba also blocks ... Show
more content on Helpwriting.net ...
Therefore, eBay focuses on a large volume of produced output. In addition, it focuses on products
which can effectively respond to the huge customers, better speed, stability and security of its
website.
Advertising and Marketing: the expenditure on marketing is significantly high at about USD 2
billion in 2012 and keeps increasing every year. This encourages the sales to grow. eBay developed
a massively successful eBay Deal offering special promotion and discount which could reached the
sales of USD 1 billion in the US in 2014(Garner, 2015).
Product Differentiation: eBay's differentiation is its auction–based style C2C and B2B. Its selling
point is that eBay connect sellers and buyers to trade by auctioning or the set price and generate
revenue from the transactions and fees. Another differentiation is that the company does not have
same–day delivery service unlike competitors as customers do not want to pay for extra charge for
the shipping.
R&D: eBay spent USD 1.5 billion in 2012 including innovations such as database system and
mobile applications. For example, Venmo allow users transfer money among their social contacts in
their smartphones (Zucchi,

Alibaba
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–––––––––––––––––––––––––––––––––––––––––––––––––
Alibaba Group
From Wikipedia, the free encyclopedia
For the character from the Arabian folk tale, see Ali Baba.
Coordinates: 30°11′31.12″N 120°11′9.79″E Alibaba Group Holding Limited | | Type | Public
Company | Traded as | NYSE: BABA | Founded | 4 April 1999; 17 years ago
Hangzhou, Zhejiang, China | Headquarters | Hangzhou, Zhejiang, China | Area served | Worldwide |
Founder(s) | Jack Ma | Key people | * Jack Ma (Chairman) * Daniel Zhang (CEO) * Joseph Tsai
(Executive ... Show more content on Helpwriting.net ...
* 2.11Aliwangwang * 2.12Laiwang * 2.13Alibaba Pictures * 2.14Youku Tudou * 2.1511 Main *
2.16Alibaba Group R&D institute * 2.17Xia Mi * 2.18365fanyi.com * 2.19South China Morning
Post * 2.20Ali Health * 3Corporate governance * 4Controversies * 4.1Gold Supplier membership *
4.2Uranium sales * 5See also * 6References * 7External links
–––––––––––––––––––––––––––––––––––––––––––––––––
History[edit]
Founding[edit]
The company was founded in Hangzhou[16] as Ma explained:
"Taobao City", the main corporate campus for Alibaba Group at Xixi,Hangzhou.
Alibaba Binjiang Campus in Hangzhou, headquarters for Alibaba's B2B service.
One day I was in San Francisco in a coffee shop, and I was thinking Alibaba is a good name. And
then a waitress came, and I said, "Do you know about Alibaba?" And she said yes. I said, "What do
you know about ?", and she said, "Open Sesame". And I said, "Yes, this is the name!" Then I went
onto the street and found 30 people and asked them, "Do you know Alibaba?" People from India,
people from Germany, people from Tokyo and China ... they all knew about Alibaba. Alibaba – open
sesame. Alibaba is a kind, smart business person, and he helped the village. So ... easy to spell, and
globally known. Alibaba opens sesame for small– to medium–sized companies. We also registered
the name "Alimama", in case someone

Alibaba- Corporate Advantage and Competiton
How does Alibaba group create corporate advantage? (Why are the businesses under one roof?) Is
this corporate advantage sustainable?
Is the current degree of competition amongst the business units appropriate? Do you think Jack Ma
should encourage more cooperation? If so how?
The Alibaba group has thrived in the Chinese e–commerce sector from its inception in 1998. They
currently account for over 70% of online shopping in China and delivered annual revenues of $636
million in the 12month period ending June 2009 (case p1–2). Alibaba's successes are due to multiple
factors that have allowed them to create corporate advantage, and thus establish market leadership
in China (Case p1). The configuration and coordination of Alibaba's ... Show more content on
Helpwriting.net ...
Ma has created corporate advantage through championing internal competition between
subsidiaries, which although report directly to himself, are run as separate business units under the
Alibaba Group. Ma provides each subsidiary with its own board of directors, operating managers
and executive team to encourage competition (case p.7). Executives are rewarded through business
autonomy, in conjunction employees are incentivised through stock options linked to group
performance (case p.9).
The principal way in which Alibaba Group's organisational structure creates corporate advantage is
the flexibility gained from its decentralised nature. Paired with this structure, Alibaba's shared value
of 'embrace change' puts emphasis on innovative and adaptive practice (exhibit 11 case). This notion
is best explained by CFO Joseph Tsai who stated "We sacrificed forced synergies in order to quickly
pursue subsidiary opportunities" (case p.9). Alipay provides a prime example of the strength of
Alibaba's decentralised structure. Launched in 2004 as part of Taobao, Alipay held consumer's
payments until purchased goods were received, thus eliminating settlement risk. Initially incubated,
Alipay became fundamental to Taobao's growth and soon reached critical mass, this presented
opportunities beyond the internal organisation leading to Ma's decision to separate Alipay from
Taobao as an independent

An Analysis of China'a E-Commerce Industry
An Analysis of China's E–Commerce Industry Introduction A little more than 10 years ago, China's
path to e–commerce leadership would have been difficult to foresee, even as the tech boom in the
US and other markets saw the development of e–commerce as an important B2C and C2C channel.
In 2000, China had yet to develop any e–commerce applications, and had only 2.1 million total
internet users. Payment systems and physical delivery mechanisms to facilitate the development of
e–commerce transactions were well–developed in other markets, but were simply lacking in China.
Fast forward to the end of 2013: with Chinese internet users quickly approaching 600 million, China
is on pace to pass the US and become the largest e–commerce ... Show more content on
Helpwriting.net ...
We can see from the chart below that by looking at the total e–commerce sales per country, China is
the second–largest player in the global market, losing out only to the United States. Market trends
Within the e–commerce industry in China, we are able to identify several market trends that shape
the nature of the industry and also give us insights into how the industry will evolve in the near
future. By comparing C2C and B2C transaction value over the pst few years, we can see that B2C
has been gaining market share gradually, and will reach about 50% by 2016E. Also, we notice that
there is rapid growth of mobile shopping, which is defined as customers who shop online using their
mobile devices. Also, we notice that the amount of transactions that are processed using mobile
devices has been slowly increasing over the past few years as well. Mobile Data from CNNIC
indicate that mobile phones had become the number one terminal for surfing instead of computers
by June

Decathlon China case report
2013 [DECATHLON CHINA: USING SOCIAL MEDIA TO PENETRATE THE INTERNET
MARKET] CASE 2 INDIVIDUAL REPORT K 603 – Information Systems Table of Content:
Executive Summary 2 Key Issues 3 SWOT Analysis 5 Porter's Five Forces 6 Strategic Alternatives
7 Recommendations 9 Implementation Strategy 10 Additional Costs 12 Conclusion 13 Bibliography
14 Appendix 1 15 Appendix 2 16 Executive Summary Decathlon, established in 1976, is a French
manufacturer and retailer of sporting ... Show more content on Helpwriting.net ...
Strategic Alternatives: Alternative 1 – Optimise Social Media Strategy and introduce Online Store
on www.decathlon.com.ch Pros: In order to create positive brand experience, become the leader in
the Chinese sporting goods market and develop customer trust, powerful social media strategy was
needed to help the brand to increase its presence online through optimised social media channels
like Renren, Kaixin001 and 8264.com to create online community, promote its products and
compete powerfully with its rivalries. Chinese consumers of sporting goods are very socially active
online. They like to purchase products while consulting with others. Social media outlets are perfect
to create positive buzz around the brand and strengthen the it's reputation online as well as introduce
the customer to purchasing the product on–line through www.decathlon.com.ch by creating the
same 'look and feel' as in retail store. Taobao, being the biggest retailer in China, has high consumer
'stickiness' due to its bargain prices, stellar customer service, high level of trust among consumers, is
uniquely positioned to optimise sales of Decathlon products online. Cons: Managing multiple social
media outlets in a timely manner can be costly and time consuming. Decathlon must be prepared to
adopt always on strategy when interacting with customers, which must start with internal
preparedness in eCommerce and IT departments. Alternative 2 – Focus on

Alibaba Strengths And Weaknesses
We would like to analyse the key issues from the business environment and the strategic capability
of Alibaba group that are most likely to impact on strategy development by the model of SWOT.
3.6.1 S(Strength)
Business integration
Alibaba provides both business clients and individual clients with an all–included service. It
integrates all the separate procedures of purchase, payment, logistics, information release, deal
negotiation and order signing. Thus reinforce the competition ability of its service. This all–included
service is like an ecosystem which ensure all the participants can help and work well in this
system. Nowadays, Alibaba group control the business information(alibaba, taobao), payment
service(Alipay), search engine(Yahoochina) ... Show more content on Helpwriting.net ...
Government's support to e–business
From 2004, Chinese government began to support the development of e–business sector and
encouraged more state owned enterprises to participate in it. With new laws enacted, the
competition will be normalized.
Go public and internationalization
After Alibaba went public in September, the group faces more opportunities like more efficient to
get finance. With domestic reputation, Alibaba will get into international market more easily. As
also, with support of international market, the group can do better in domestic market.
3.6.4. T(threats)
Competitors inside and outside
Though currently there is no competitor who represents a substantial threat to Alibaba in China, as
this sector develops, more and more company wish to share the profit in e–business. With an
increasing number of new competitors in China and strong competitors like Amazon, Ebay abroad,
Alibaba should not ignore the competition pressure it faces.
Economic slowdown in

Website Design, Trust And Customer Service
Technology is developing so rapidly that it has started to affect different aspects of the society
especially business. Online business was invented in 20th century in the UK and has quickly spread
all over the world. With an increasing popularity of the online shopping, more and more retailers
start to sell online, which makes the marketplace become more competitive. In order to be
successful, it is important for the retailers to understand the most important factors that satisfy the
customers when they purchase online. Once the level of the e–satisfaction increases, the purchase
intention will increase and online retailers can gain more profit. Among all the factors that will
potentially affect online satisfaction, the aim of this essay ... Show more content on Helpwriting.net
...
In order to show the importance of website design and its flow, Amazon is taken as an example.
Amazon has spent millions of dollars on the design of their website; and finally succeeded in
creating the Amazon brand. Because of its ability to attract the customers' attention and satisfy the
customers, many companies adopted the Amazon website design when designing their own websites
(Rosen Purinton, 2004). Although the product, product descriptions, cover images, and editorial
content from their vendors are the same between Amazon and its competitors such as
Barnesandnoble.com, Amazon engages its users better by making use of the customer activity to
produce better search results; unlike other website searches which only lead with the company's
own products or sponsored results (O'Reilly, 2007). Involving more user participation in its website
design is one of the most important reasons why Amazon gains a higher level of satisfaction from
customers and a greater success than its competitors.
Apart from website design, perceptions of online trust play an important role in e–satisfaction. Trust
is used in this essay because it includes both security and privacy. According to the finding of
Koufaris and Hampton–Sosa (2004), although the number of the web users grows at a fast speed,
only approximately 15% of those surfers buy online. Besides, an increasing

Alibaba Taobao's
Alibaba Taobao
Introduction
Founded by Alibaba Group on May 10, 2003, Taobao Marketplace facilitates consumer–to–
consumer (C2C) retail by providing a platform for small businesses and individual entrepreneurs to
open online stores that mainly cater to consumers in Chinese–speaking regions (Mainland China,
Hong Kong, Macau and Taiwan) and also abroad.
Taobao Marketplace (formerly Taobao) was launched in May 2003 by Alibaba after eBay
acquired Eachnet, China's online auction leader at the time, for USD 180 million and became a
major player in the Chinese consumer e–commerce market. To counter eBay's expansion, Taobao
offered free listings to sellers and introduced website features designed to act in local consumers'
best interests, ... Show more content on Helpwriting.net ...
For instance, the screen names of online moderators were derived from characters in popular
Chinese kung–fu novels.
It also introduced the online payment system Alipay a year later. Online credit card or debit card
payment was very rare in China and customers usually paid cash on delivery. Alipay formed
partnerships with leading Chinese banks and signed a long–term agreement with China Post, which
meant customers without a debit or bank card could fund their Alipay accounts at any of its 66,000
offices.
Taobao provided services and solved problems for the smaller businesses that are the driving force
behind China's economic boom. For instance, Alipay enabled people to pay for goods and services
easily.
Also, Taobao identified how to help people buy and sell. By making online shopping easy, safe and
fun it helped many first–time online buyers build confidence in e–commerce.
On the other hand, EBay in China was charging users to list products and services which will
discourage sellers to set up online shops on its website. This will thus cause a decrease in goods and
services provided on eBay and buyers will look for alternatives because of the lack of choices.
Despite eBay announcing that it will no longer charge a transaction fee on sellers on its Chinese
Web site in 2006, it was already too late as Taobao had already made use the period of time (where
eBay still collects fees) to garner a loyal base of

Ebay in China
21/11/2011 E–Bay Strategy In China Alliance or Acquisition? Case Study Strategic Management
Gabriela Šalamonová Barbora Jandová Pierrick Boissel Julien Meunier Alexandre Godet
SUMMARY I. The Input Stage      CAGE VRIO Analysis CPM matrix EFE matrix IFE
matrix II. The Matching Stage    BCG matrix SPACE matrix GSM matrix III. The Decision
Stage   Matrix Analysis QSPM matrix IV. Questions     Assessment of eBay´s choice of
market entry strategy for China, listing both the advantages and disadvantages of its acquisition
strategy Assessment of the potential benefits and risks of eBay´ s joint venture with Tom Online
Assessment of both companies: eBay and Tom Online, decisions on their respective percentage of
stake ... Show more content on Helpwriting.net ...
Other example can be technical support hotline, Customer Loyalty – eBay had not made much effort
in building trust both towards the company itself and between buyers and sellers further exacerbated
the problem (linked with previous – AliPay). Company need to provide security every step of the
way during a sales transaction to ensure that consumers feel comfortable making their purchases.
This point discouraged buyers and it resulted into switching to competitors, Management – eBay´ s
executives hold on US management style, there is a lack of effort in adaptation to Chinese market,
also eBay entered China with the assumption that its brand image in the US as an industry leader
would transfer to the Chinese market without any modification, Global Expansion – eBay is more
extended because of its global presence, TaoBao focus on Chinese market what is in this case
competitive advantage because of people´ s trust to domestic companies, Website Design – eBay
provides topic–specific guidelines and links, both of which are meant for self help, this is
considered bad thing by consumers in China where do–it–yourself is not as popular as in Western
countries. In comparison to TaoBao, its website design suits more because of loaded with    
  information, links, graphics, banners and multimedia. Chinese people also appreciate a
customer service and technical support hotline. In conclusion, we

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