Alibaba taobao

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Alibaba taobao

  1. 1. ALIBABA’STAOBAO
  2. 2. 1KEYISSUEThe company wants to find the best way to monetize their business model without losinglarge market share they have achieved in these years of operation.
  3. 3. ExternalAnalysis
  4. 4. 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.
  5. 5. HIGHThreats of newcompetitorsHIGHBargaining power ofsuppliersLOWRivalry amongexisting competitorsHIGHThreat of products andsubstitute servicesHIGHPORTER’S5MODELBargaining power ofcustomers
  6. 6. 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
  7. 7. High QualityLowCostPerceptualMapHighCostLow QualityCOSTS - QUALITY
  8. 8. High IncomeLowMarketSharePerceptualMapHighMarketShareLow IncomeMARKET SHARE - REVENUE
  9. 9. High SecurityLowCostPerceptualMapHighCostLow SecuritySAFETY – COST
  10. 10. 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
  11. 11. THREATS•Low barriers to entry for new competitors•No custom fee payment
  12. 12. INTERNALANALISIS
  13. 13. · 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
  14. 14. VALUECHAIN WEIGHT RATE VALUESupply 0% - 0Technological Development 20% 5 1Human Resources 5% 4 0.2Infrastructure 5% 5 0.25Internal Logistics 25% 5 1.25Operations 15% 5 0.75External Logistics 5% 5 0.25Marketing and Sales 10% 2 0.2Services 15% 4 0.6AVERAGE 4.5
  15. 15. STRENGTHS•The second largest Chinese Retailer.•Full understanding of Chinese culture and economic behavior.•Own 84% of market share.•More than 55 million registered users.
  16. 16. WEAKNESSES•Not generating large revenues with the current business model.•Sale Alipay payment service (competitive advantage).
  17. 17. BENCHMARKINGSatisfaction PercentTAOBAO EBAYVery Satisfied 24.3 10.9Satisfied 52.2 51.5More or Less Satisfied 21.4 31.3Not Satisfied 2.1 6.3Market Share of Companies responsible for C2C2002 2003 2004 2005 2006 2007Taobao 7.8 29 59 65 84Ebay 85 72.4 65 36 26 7PaiPai 4 9Others 15 19.8 6 5 5 0
  18. 18. MATRICES
  19. 19. BCGMATRIXSHARE MARKET PERCENTAGEINDUSTRYGROWTH
  20. 20. COMPETITIVENESSLowSelectiveDevelopmentDivestMedium HighInvestProtectLowProfileGEMATRIXATTRACTIVENESSLowMediumHigh
  21. 21. PRODUCTANSOFFMATRIXExistingMarketPenetrationMarketDevelopmentNewProductDevelopmentDiversificationExistingNewMARKET
  22. 22. STRATEGICALTERNATIVES
  23. 23. 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.
  24. 24. 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).
  25. 25. UPPSALARISKCONTRACTUAL LICENSINGTIME
  26. 26. IMPLEMENTATION
  27. 27. 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
  28. 28. COUNTRY OFORIGINEFFECTEmphasize that our company is China,so we understand the needs, demandsand so same tastes, differentconsumers of our nation.
  29. 29. http://www.prensa.com/uhora/tecnologia/usuarios-de-internet-en-china-llegaran-800-millones-en-2015/89920http://www.geekets.com/2012/04/consumidores-online-china-superan-europeos/http://datos.bancomundial.org/pais/china#cp_prophttp://www.doingbusiness.org/data/exploreeconomies/china#paying-taxeshttp://portal.lacaixa.es/deployedfiles/particulars/Estaticos/PDFs/InfolineaAbierta/El_regimen_impositivo_en_China_es.pdfhttp://www.laprensagrafica.com/el-salvador/lodeldia/252046-china-reduce-su-prevision-de-crecimiento-y-cambiara-su-modelo-de-desarrollo.htmlhttp://www.eco-finanzas.com/noticias/Eco-Finanzas/201203/China-reduce-proyecciones-de-crecimiento-para-el-2012.html
  30. 30. ALIBABA’STAOBAO

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