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1Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
Alibaba vs eBay:
COMPETING IN THE
CHINESE C2C MARKET
February 23rd, 2015
Alberto Della Giustina – 152114188
Adrian Piegsa – 152114164
Andrea Restelli – 152114105
Fabian Kutschera – 152114107
Robert Kriegl – 152114106
Maximilian Schlechtriem – 152114183
2Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
Question 3
• What advantages did Taobao find regarding
EachNet by looking at eBay from an handstand
position? Are there strategic advantages (i.e.
core competences)?
3Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
4Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
• Better addressing the Chinese market:
– Strong cultural expertise and market knowledge (Chinese
teahouse and kung-fu avatars)
• Faster decision making:
– Local and quick decision channels
5Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
• Online and offline community:
– Aliwangwang: instant communication tool (combining business
and making friends)
– Taobao University: online and offline knowledge sharing
– Sellers’ unions: activities and events involving also Taobao
employees
• Free-of-charge policy:
– Originally for 3 years, then extended until 2008
6Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
• Innovative and unusual ideas:
– Advertisement campaign: including traditional media
– Alliances with small and medium sized websites
• Alipay:
– Easier to use and more trustable
• Good relations with Chinese government
7Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
Question 4
• Do you believe that Taobao won because of
the "free-of-charge" policy? Are Taobao
revenues compromised for good?
8Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
• Not the only reason, but crucial.
Why?
9Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
– Incentive for sellers: as it is a C2C, number of sellers  number
of products  better product portfolio  more customers 
MONEY
– Without free-of-charge policy, this development might have
been slower, or it might have not started at all.
10Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
– The other strategic advantages are important to maintain
customers and to successfully compete with eBay EachNet.
– eBay EachNet was facing managerial and operational difficulties
(migration of systems and high turnover in top management)
11Management Information Systems 2015 | Paulo Amaral
Alibaba vs eBay
THANK YOU!

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Alibaba presentation

  • 1. 1Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay Alibaba vs eBay: COMPETING IN THE CHINESE C2C MARKET February 23rd, 2015 Alberto Della Giustina – 152114188 Adrian Piegsa – 152114164 Andrea Restelli – 152114105 Fabian Kutschera – 152114107 Robert Kriegl – 152114106 Maximilian Schlechtriem – 152114183
  • 2. 2Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay Question 3 • What advantages did Taobao find regarding EachNet by looking at eBay from an handstand position? Are there strategic advantages (i.e. core competences)?
  • 3. 3Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay
  • 4. 4Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay • Better addressing the Chinese market: – Strong cultural expertise and market knowledge (Chinese teahouse and kung-fu avatars) • Faster decision making: – Local and quick decision channels
  • 5. 5Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay • Online and offline community: – Aliwangwang: instant communication tool (combining business and making friends) – Taobao University: online and offline knowledge sharing – Sellers’ unions: activities and events involving also Taobao employees • Free-of-charge policy: – Originally for 3 years, then extended until 2008
  • 6. 6Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay • Innovative and unusual ideas: – Advertisement campaign: including traditional media – Alliances with small and medium sized websites • Alipay: – Easier to use and more trustable • Good relations with Chinese government
  • 7. 7Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay Question 4 • Do you believe that Taobao won because of the "free-of-charge" policy? Are Taobao revenues compromised for good?
  • 8. 8Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay • Not the only reason, but crucial. Why?
  • 9. 9Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay – Incentive for sellers: as it is a C2C, number of sellers  number of products  better product portfolio  more customers  MONEY – Without free-of-charge policy, this development might have been slower, or it might have not started at all.
  • 10. 10Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay – The other strategic advantages are important to maintain customers and to successfully compete with eBay EachNet. – eBay EachNet was facing managerial and operational difficulties (migration of systems and high turnover in top management)
  • 11. 11Management Information Systems 2015 | Paulo Amaral Alibaba vs eBay THANK YOU!