P E S T•Communist regime•Business Tax: between 3% -20% depending on the business(Real Estate, sports,Telecommunications Services,etc..)•Customs duties between10% - 20%•Second superpower as nominalGDP•Is believed to overtake USA in2016.•Depends heavily on exports.•Country with the highesteconomic growth•Economic growth: China will sloweven more in 2012.•Population: 1338.3 millioninhabitants by 2012.•Owns 50% rural and 50% Urbanapproximately.•513 million Internet users by2012.•Internet users in China will reach50% of the population in 2015(670 million).•The revenues of the industry fromInternet will grow 25% annuallyprojected 2012.•70% of internet users purchased byinternet•Technological growth: 41.8%•Growth of 50% per year in cybersales.
HIGHThreats of newcompetitorsHIGHBargaining power ofsuppliersLOWRivalry amongexisting competitorsHIGHThreat of products andsubstitute servicesHIGHPORTER’S5MODELBargaining power ofcustomers
5PORTER’SMODELWEIGHT RATE VALUEThreat of substitute products and services 40% 3 1.2Threats of new entrants 25% 2 0.5Bargaining power of customers 15% 4 0.6Bargaining power of suppliers 15% 4 0.6Rivalry among existing competitors 5% 5 0.25AVERAGE 3.15
High QualityLowCostPerceptualMapHighCostLow QualityCOSTS - QUALITY
High IncomeLowMarketSharePerceptualMapHighMarketShareLow IncomeMARKET SHARE - REVENUE
High SecurityLowCostPerceptualMapHighCostLow SecuritySAFETY – COST
OPPORTUNITIES•50% annual growth in cyber sales•Internet users in China will reach 50% of the population by 2015.•Revenues from the Internet industry will grow 25% annually projected 2012.•70% of internet users purchased by internet•Worlds largest population•Fastest growing and emerging economy in recent years•Priority of the Government to promote and encourage technology
THREATS•Low barriers to entry for new competitors•No custom fee payment
· Mktg y Vtas: mas omenos porque en areamktg se dan a conocerbien como marca, peroen ventas al no tenerganancias estan mal.· Servicios: no es 5 porquehay insatifiscacion enservicio, según tablascaso.SUPPLYTECHNOLOGICAL DEVELOPMENTHUMAN RESOURCESENTERPRISE INFRASTRUCTURE--54VALUECHAIN5INTERNALLOGISTICS5OPERATIONS5EXTERNALLOGISTICS5MARKETINGSERVICESAND SALES2 4
VisionBeing number one in e-commerce in each country of the Asian continent.MissionProvide a secure e-commerce service and quality, which understands the culture and local needs.
OBJECTIVESSHORT TERM 1 YEARDevelop a business model that has higher marginsProfitability (15% annually)Begin to raise awareness of payment (Measured by number transactions)Increase market size by 12%.MEDIUM TERM 3 YEARSStart expansion to India and Japan, and their similar cultures with highlydeveloped online medium.LONG TERM 5 YEARSConsolidate presence in neighboring countries mentioned above.Possessing the largest share of e-commerce in Asia (51% of the total market).
PRODUCTE-commerce servicethat deliversSearch space and offer ProductsOr Services in Chinese market.PRICEThe price is charged differentlyaccording to two segments:•Small purchases (C2C): Itcharged 2% of the total sales,charging 1% to Seller and 1%to the buyer.•Big Purchases (B2C): Itcharged a 3% of the total sales,To the whole seller.COMPANY REVENUES :$ 3,762,774,612,000PLACEWebsite:www.taobabo.comPROMOTION•Banners that highlight benefitsof using the payment throughsafe "Alipay”.• Advertising on the busiest Chinastreets.•Presence in newspapersand magazines where it isspecified to educateConsumers about the newSystem.•TV commercials explaining thenew system, Payment andinsurance benefits.4P`S
COUNTRY OFORIGINEFFECTEmphasize that our company is China,so we understand the needs, demandsand so same tastes, differentconsumers of our nation.