1. What was Alibaba Group’s motivation for diversifying into the consumer business with the launch of Taobao? Does it make sense?
Alibaba Group’s motivation for diversifying into the consumer business with the launch of Taobao was mainly because of the rise of eBay in China. Jack Ma, the founder of Alibaba, observed that the entry of eBay through EachNet, which held an 85% market share, was a threat to Alibaba. He was especially concerned that the rise of eBay would encroach their existing B2B business. Jack also noted that the line between individuals and small businesses are blurry, meaning that he knew that once eBay had hold of the individual sellers or consumers in the market, it would be easier for them to get a foothold and They also offered pay-for-performance contracts. Sellers would have to pay their bid only if a customer actually bought the advertised product. In my opinion, Ma should not implement Zhao Cai Jin Bao. This is because Taobao prided them by the notion of free service. If by implementing Zhao Cai Jin Bao, users might feel this service is a hidden service fee that go against Taobao’s promise to provide e-commerce services for free. The buyers were also concerned that sellers would pass on the cost to them through increasing prices of the items.
Additionally, some sellers had misused Zhao Cai Jin Bao service to attract customers to their storefront. This is done by aggressively bidding on keywords but listed the relevant products at unreasonably high prices. This attracted buyers to their website where they would find other products that were more competitively priced. At the same time, the seller did not need to pay Taobao for their bids because no one would buy the overpriced items.
4. What do you think is the most appropriate way to monetize Taobao?
To maintain its original free e-commerce services and diversify from it, Alibaba launched Tmall, which is similar to an offline mall, where different categories are on different virtual floors. The difference between Taobao is that the merchants must be authenticated, pay both registration and transaction fees. This allows Alibaba group to monetize the traffic from Taobao. Many branded suppliers have
TAOBAO traded as high as 400 billion yuan in 2010, this is an amazing number. Online huge market will undoubtedly attract more and more people set up shop in TAOBAO. So, running a successful TAOBAO online store, need a kind of team. An efficient team of TAOBAO shop should be equipped with at least the following people: an operations manager, in charge of the shop as a whole and operations management; A planning personnel, responsible for product of document description, online marketing and sales…
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…
health. First, in financial terms, biking is more economical then driving cars. “In a general way, the cost of buying a simple bicycle is between $10~$100 in the Chinese market, and the cost of buying a simple car is between $4,000~$20,000” (Taobao, 2013). That just is the expense for buying. After that, cars also need to be paid for fuel charges, maintenance and repairs. So, according this information, buying bicycles is more worth. Second, biking is more environmentally friendly then…
coming. So what is Alibaba?, it is a marketplace ,a mobile ,a shipping company, a search engine and a bank , all in one giant group. “Alibaba is China’s — and by some measures, the world’s — biggest online commerce company. Its three main sites — Taobao, Tmall and Alibaba.com — have hundreds of millions of users, and host millions of merchants and businesses. Alibaba handles more business than any other e-commerce company. Alibaba is the most popular destination for online shopping, in the world's…
The local company Taobao gets today 60% of the market share against 29% for EachNet. If EachNet failed with the Taobao success, it’s because of the Taobao service offering trustful platform and has extended its CtoC activity to the BtoC activity as well. Today, E-Bay is losing market share and need to react; the company’s plan is to…
marketplace in U.S. 2002 entered China purchasing 33% of EachNet for about $30M 2003 eBay acquired the remaining shares for about $150M re-branding as eBay EachNet Competitor TaoBao was founded in 2003 2005 eBay acquires Skype expanding into online communications sector 2005 Alibaba forms partnership with Yahoo resulting in TaoBao becoming wholly owned subsidiary of Alibaba 2006 eBay announces joint venture with TOM Online Problem Statement In 2006, eBay was in the midst of merging with a Chinese based…
was founded in 1999 and now Alibaba.com has become the world's largest business-to-business e-commerce platform. Taobao was established in 2003. Its main business was to provide a payment platform for merchants and buyers, and this platform made people more quick and convenient to shop on line. By the end of 2009, Taobao had registered 170 million members. According to statistics, Taobao transactions amount in 2012 went beyond 1000 billion RMB yuan. Jack has been honored with many awards and honors…
Main content: From a social capital perspective, this study investigated factors that cultivate a VC member’s sense of belonging and their effects on facilitating his participation in the VC in terms of the intentions to get and share experiences and knowledge. Given the importance of both the sense of belonging and participation in VC success, the author’s research reported here attempts to answer the following two research questions. First, what factors would cultivate the sense of belonging…
529 Instructor: Gregg Arnold T-mall Introduction T-mall.com is a business to customer market place which is owned by Alibaba Group. At the begging, it was introduced via Taobao as “Taobao Mall” in 2008. While T-mall became an independent company after Alibaba reorganized Taobao into three companies in 2011, including Taobao Mall (a C2C online shopping platform), eTao (an online price comparison search tool) and T-mall. T-mall has played an important role to deliver products to their domestic and…