Taobao vs Taobaobao

In: Other Topics

Submitted By huoshao
Words 5554
Pages 23
E-commerce in China:Taobao
Group SIX
The report on an E-commerce company-Taobao, researching on its web-pages, operates strategies, products and business model. Assessing its success in China on-line trading market and proposing business strategies featuring IT that help improve its performance.

By Xiaochen,Li; Bingtian,Zhang; Tianshu,Lu; Hui,Niu;
Yuguo,Hou;

Lin,Zhu

Table of Contents
Introduction............................................................................................................................... .3
Taobao Information Systems Strategic Alignment .................................................................. 4
Business Strategies of Taobao’s E-commerce ........................................................................... 5
SWOT Analysis of Taobao......................................................................................................... 6
Payment security........................................................................................................................ 8
Credit Valuation ......................................................................................................................... 9
Credit Rating............................................................................................................................ 13
Decision Support Function of Taobao ..................................................................................... 16
Information Asymmetry in e-commerce.................................................................................. 19
Conclusion ............................................................................................................................... 21
Appendix.................................................................................................................................. 23
Bibliography…...

Similar Documents

Taobao

...Management Information Systems Homework: Alibaba’s Taobao Angela Mae Jean Sy 12210690780 November 17, 2012 1. What was Alibaba’s motivation for diversifying into the consumer business with the launch of Taobao? Does this make sense? Jack Ma was alarmed at eBay’s entry into the online selling market, fearing that it would soon encroach on Alibaba’s existing B2B success. Ma knew that once eBay had a firm hold on their individual consumers and sellers, it would be easy for them to transition into a bigger, SME-targeted type of e-commerce. Given eBay’s worldwide dominance, Ma’s fears were not completely unfounded. It was this that motivated Ma to do something to stop eBay in its tracks. Ma’s reaction to eBay’s arrival, however, was not just to find a way to ensure their position as the leading B2B online goods provider. Before eBay could even begin to consider moving horizontally to B2B to facedown the Chinese giant, Alibaba became proactive and decided to expand into C2C, and thus Taobao was born. 2. How did Taobao beat eBay? Taobao was clearly ahead of eBay in many aspects. And while one may argue that eBay had exhibited participation in these aspects as well, they clearly did not do it as well as Taobao did. a. Familiarity with Chinese aesthetics and preference Alibaba had been founded by a Chinese man, in China, and has ben serving the Chinese market for years. It is only understandable that Taobao had a better concept of what the market wanted. When...

Words: 1077 - Pages: 5

Why Ebay Lost Taobao

...BY CAROL XIAOJUAN OU, ROBERT M. DAVISON Why eBay Lost to TaoBao in China: The Global Advantage electronic commerce involves electronically-facilitated transactions between consumers through third parties.9 In China, a number of C2C platforms have emerged, such as eBay (China), TaoBao and PaiPai. TaoBao, established in 2003, has quickly assumed a dominant position in this market, underlined by the December 2006 decision by eBay to quit the C2C market in China altogether,4, 8 merging its China operations with those of telecoms provider TOM Online. In China, C2C platforms encourage buyers to contact sellers so as to build up the necessary trust and confidence to engage in online transactions, as well as negotiate product, financial and logistical details. In this article, we focus on the way C2C platforms compete and in particular how buyers are stimulated to be both aware and trustful of sellers through buyer-seller communication channels. CONSU M ER-TO-C O NS UME R ( O R C 2C ) Following this introduction, we present brief case descriptions of TaoBao and eBay (China). These descriptions are supplemented with information gleaned from interviews with active buyers and sellers from these two platforms. The significance of the competitive issues is then the focus of discussion, where we also draw in the literature on awareness and trust. Finally, we suggest how the C2C market is likely to develop in China. TaoBao TaoBao (www.taobao.com) founded in 2003, is a wholly owned......

Words: 2807 - Pages: 12

From Etailing to Taobao

...New Insight of Taobao affecting the Etailing in China 1. INTRODUCTION E-retailing is the concept of selling of retail product via electronic platform such as media especially internet. E-retailing is same meaning with business-to-consumer (B2C) transaction model of e-commercial even though E-retailing is an independent business pattern with particular specific components such as trust model, electronic trading process. E-retailing stores are sell online promote for products that can be sold out easily via internet method. For successful example as Taobao. The online retailing platform provided a wide variety and to make the buyer convenience to buy the product. E-retailing means of retailing through and over the internet. Hence, an E-retailing are B2C (Business to customer) and C2C (Customer to customer) business patterns that to enforce a transaction business and customer or consumer. E-retailers’ business can be provided businesses like E-bay only or develop from traditional business such as Testco.com. Taobao is more popular e-retailing platform since the Internet has become an indispensable part in people's lives. Taobao-Rapid and successful development of a few short years, the success of popular products categories such as men’s and women’s fashion and bags. It search function is easy to search their desire product as well as find relevant buyers through the search engine. In customer service, it has Taobao “call center” which is effective......

Words: 2290 - Pages: 10

Ebay vs. Taobao

...    TAOBAO VS. EBAY CHINA   In this essay I am going to analyze the competition about the dominant position in China's online market between the domestic player Taobao and the global Internet C2C service leader eBay. Therefore we focus on the following questions: 1.) Why did eBay succeed in the US but fail in China? What could have eBay done to avoid the defeat? 2.) Do you think Ebay should continue developing its business in China and competing against Taobao? If yes, how? If no, why? 3.) What sustainable revenue models can you suggest for the C2C business of Taobao? (1) EBay US had the big advantage of being the first mover. At the early stage of the market ebay didn’t face a market with great competition. The company was in a market and culture that they knew and also their customers were ready for the transaction service, because of the wide internet penetration and highly developed technological and financial infrastructure. Furthermore the norms and laws were well developed. If we look at the various competitions between Taboa and Ebay, Taobao took over eBay's market share gradually successfully1 based on market as on strategic reasons. The main reason according to the case study were: • Based on research of the C2C market in China, the user (seller) of the website are price sensitive. Since Taobao launched no-free model, eBay lost their customers. (2003-2007) • Low Internet penetration rate as low C2C Transaction Volume2 – for eBay it is advantageous to......

Words: 1232 - Pages: 5

Unix vs Ms vs Mac

...Running head: UNIX vs. MS vs. MAC 1 CIS-155 Final - UNIX vs. MS vs. MAC UNIX vs. MS vs. MAC 2 Abstract This paper will explore the history of UNIX, Microsoft (MS), and Macintosh (MAC) operating systems. Not only will I discuss the history of these systems, but I will also dive into the pros and cons of each. The benefits of each over its rivals will also be discussed. Keywords: open source, UNIX, Windows, UNIX vs. MS vs. MAC 3 The topic of what operating system is best has been a long and heated one. But, in the long run, UNIX will beat its rivals in most categories hands down. As the reader will see throughout this paper, undisputed evidence will be presented that will detail exactly how UNIX based operating systems are superior. Operating systems (OS‘s) are a means for users to communicate with the computer. Each OS provides a set of commands for directing the operation of the computer. Without these operating systems to help as interfaces, each user would have to learn the command syntax, which can be very difficult. These operating systems can be menu-driven, which provides a set of menus and lets users choose desired functions from then, or they can be icon-driven, known as a graphical user interface (GUI). GUIs are very common these days and with them, users can choose an icon, usually with a mouse, to......

Words: 1794 - Pages: 8

Amazon and Taobao

...As Amazon, Taobao is the biggest competitor in China. It has 70% market share in China. Of course, Amazon is a very successful online business but in China it is not. Quick search—Amazon Using a fast 64 500M memory Alpha servers and excellent Internet links. Amazon's site functionality is very convenient and fast. A general product description pages about 38K, can be used in an ordinary Modem Download within 13 seconds. Customers such as the Internet provides a great convenience. In addition to searching for options, customers can also browse 23 different topics, saving time online, increasing search speed. Although there is no tradition of the online bookstore presence, but the opportunities are much easier to shop around. Taobao has the largest Hadoop Distributed computing clusters, one day add data 50TB, there 40PB mass data storage. Distributed throughout the country more than 80 nodes CDN network to support traffic over 800Gbps. Taobao search engine capable of billions of product data in real-time search, in addition to their own research and development of storage systems and file caching system, and Java middleware and messaging middleware system, which all form a huge e-commerce operating system. October 2003, Taobao on the line above a feature called "secure transactions", the seller choose to support this functionality, the buyer would give the money to Taobao, etc. After he received the goods, then money Taobao to the seller. This is now Alipay. For Amazon,......

Words: 1217 - Pages: 5

Epigenetics-vs-Nature-vs-Nurture

...Epigentics vs Nature vs Nurture Santina Wood ENG101 Argosy University 03/4/2014 Instructor Benjamin Atkins Epigenetics -vs- Nature -vs- Nurture The nature vs nurture debate is still ongoing, and within this debate, the world of science and psychology are faced with two new questions. Today we find some researchers asking; "Is development predetermined at birth, by hereditary factors, or do experience and other environ -mental factors affect it?", and "Can the two work together in shaping human development and behavior?" Developmental psychologists still attempt to find the answers to these questions in order to discover the sources of growth in children's cognitive, language, and social skills. Most developmental psychologists believe that nature and nurture combine to influence biological factors playing a stronger role in some aspects, such as physical development, and environmental factors playing a stronger role in others, such as moral development. They are also beginning to acknowledge the role of a variable combination of both inborn factors and social experiences when explaining children's behavior. Scientists and Psychologists have a name for such an occurrence; epigenetics/epigenesis. In this essay, I will be presenting to my audience information on this highly, and sometimes heated debate, as well as the reasons as to why the belief of this dual influence called epigenetics is becoming more fact than theory. For...

Words: 1643 - Pages: 7

Mac vs Microsoft vs

...for the process. Each task also holds the execution state, which can be running, interruptible, uninterruptible, stopped, zombie. Linux takes the user level threads for the tasks and can map them to kernel level processes with the same group ID. This offers resources sharing and security. Mac operating systems handle the execution of processes even differently than Windows and Linux. Mac has Grand Central Dispatch, which contains a pool of available threads. “Thread pools are automatically sized by the system to maximize the performance of the applications using GCD while minimizing the number of idle or competing threads” (Stallings 2012). Programs are intended to create blocks, which contain data and code on how to perform. “Windows vs. MAC vs. Linux OS will provide as much concurrency as possible based on the number of cores available and the thread capacity of the system” (Stallings, 2012). The development of these blocks is formatted in files and will run in concurrency using first-in-first-out processing. The merging process in the Grand Central Dispatch is well-organized in most cases compared to manually handling threads. Looking at UNIX/Linux it has one advantage over other operating systems on the market. It is less used than other operating systems. That fact alone improves the security of the operating system because the less hackers are trying to attack the system, the more secure it will be. Linux utilizes a firewall to block anyone trying to hack into the......

Words: 2337 - Pages: 10

Taobao

...Supplementary Material for Taobao In 2002, the population of Chinese internet users was, although small compared to the US, around 59 million, representing a 4.6% penetration rate. By 2006, China already had 137 million internet users or had a 10.5 % penetration rate--about 43.1 million (31.5%) of them shopped online by the end of the year, transaction from C2C e-commerce had reached US $2.9 billion. In 2003, Alibaba.com, one of China's biggest business-to-business e-commerce firms, invested 100 million yuan (US $12 million) into the consumer-targeted e-commerce web company Taobao.com By the time Taobao entered the C2C segment, eBay’s global revenue were US$ 2,165 million and the company had about 5,700 employees. In addition to its dominant position in the U.S., eBay had established a local presence in 19 countries. Since its founding in 2003, Taobao has created an e-commerce ecosystem consisting of 80 million registered users and over 1 million sellers, as well as third-party service providers in payment, logistics. With 200 million items in selection, Taobao gives Chinese consumers the most comprehensive product choice on the Internet Taobao is the most trusted online commerce platform for Chinese consumers. 33% of China's Internet users have shopped online and 76% of these users have purchased items on Taobao. In 2002, eBay paid US$ 150 million to buy a two-thirds stake in Eachnet Inc to enter China. In 2003, eBay paid US$ 30 million for one-third of Eachnet's shares. At......

Words: 1294 - Pages: 6

Taobao

...Taobao launch in SG http://e27.co/taobao-officially-launches-in-singapore-heats-up-e-commerce-land-grab/ Weird “products” selling in Taobao http://www.asianewsnet.net/The-weird-world-of-Taobao-66515.html Taobao in SG, gov website http://www.edb.gov.sg/content/edb/en/news-and-events/news/singapore-business- news/Industry/Taobao-marketplace-arrives-in-Singapore.html Taobao fake problem http://www.scmp.com/news/china/article/1694077/state-commerce-regulator-releases-damming- account-tabaocom-day-alibaba http://www.straitstimes.com/news/opinion/more-opinion-stories/story/taobao-the-king-fakes- china-e-commerce-20150202 Taobao cooperate with sgshop n mbb http://www.aspirantsg.com/maybank-sgshop-brings-china-taobao-bargains-to-singapore/ Wiki Taobao http://en.wikipedia.org/wiki/Taobao http://www.techinasia.com/tag/taobao/ Taobao team up with signpost http://sg.news.yahoo.com/taobao-teams-singpost-pore-shoppers-030023580.html http://www.chinainternetwatch.com/tag/taobao/ http://www.crunchbase.com/organization/taobao http://www.bomodagroup.com/differences-tmall-taobao/ CNBC news http://www.cnbc.com/id/102007039#. http://english.cntv.cn/2015/01/29/VIDE1422462360357940.shtml taobao lawsuit http://english.cntv.cn/2015/01/29/VIDE1422462360528952.shtml http://www.google.com.sg/search? biw=1249&bih=675&noj=1&tbs=qdr%3Ay&q=taobao+business+disadvantage&oq=taobao+busines s+disadvantage&gs_l=serp.3...31549.65805.0.66050.33.23.1.0.0.1.580.2011.0j4j2j0j1j1.8.0.msedr........

Words: 514 - Pages: 3

Internet vs Store

...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................

Words: 44028 - Pages: 177

Taobao

...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 17/10/2015, from http://smallbusiness.chron.com/ebay-business-model-839.html Jeffeny Kow, 2010, A Comparative Study Between eBay and Taobao. Retrieved on 17/10/2015, from http://zh.scribd.com/doc/45609210/A-Comparative-Study-Between-eBay-and-Taobao...

Words: 940 - Pages: 4

Nature vs. Nurture vs. Tofu

...Nature vs. Nurture vs. Tofu 2 Without conducting any research, I realize that I have never really thought about the subject of nature vs. nurture. By knowing a little of what the controversy is about, I am able to ask myself the right questions to complete my thoughts and come to a proper opinion. Usually I am an extremist by going with one side and not lingering with thoughts in the middle. However, this is a subject that does not deserve one end. By looking and observing those around me, many may notice that people share similar traits. Some traits are the result of nature and others are the result of nurture. There is no 50:50 ratio that is involved in the deciding factor of how much of each side contributes to the individuals we are today. Because biological factors and conformity are two different subjects, there is no scientific way to measure an accurate ratio of nature to nurture. Instead, I believe that each and every person is the product of 100 percent nature as well as 100 percent nurture. As my boyfriend and I are out to lunch, I throw my thoughts at him about nature vs. nurture and he makes me realize that tofu is a great example of both nature and nurture. He asks me how I am able to eat something so bland and tasteless. I tell him that tofu does have sort of a creamy nutty taste to it and is delicious plain uncooked. However, when tofu is cooked, it conforms to and picks up the flavor of the food or sauce that is being cooked......

Words: 1274 - Pages: 6

Taobao Amazon

...2016-06-13 Outline Title:What influence did Taobao bring to China? Thesis statement With the rapid development of Internet, shopping online has become an indispensable choice. Taobao is, absolutely, a true winner in China. Except for the great achievement they had made, for example, enriching the variety of commodity and offering job opportunities, Taobao has also brought a lot of problems which cannot be ignored. Para1. Taobao brings convience to people. * Variety of commodity; * Different ways of shopping; * Cheaper price. Para2. Economy growth and industry transform * Job opportunities; * Express delivery industry; * The double 11 shopping festival in China made by Taobao. Para3. Express delivery created a lot of pollution. * Excessive packaging; * A plenty of trees were cut to make cardboard boxes; * Increasing carbon dioxide. Para4. Shoddy goods and Taobao has stimulated the action of hurting intellectual property right. * Price disorder, malign competition make sellers tend to sell fake or shoddy goods. * Taobao gives pirated copies a convenient way to flood into the market. Conclusion: Taobao aims at creating the world’s preferred online retail shopping district. For the purpose of an environmentally friendly promotion of Taobao e-commerce, Taobao should change and improve their future strategies. Bibliography 2016-05-19 1. Some information about......

Words: 378 - Pages: 2

Taobao

...October 11 October 11 Case 1: Taobao vs. eBay China E-Business Professor Qiu Ivy Yuwen Cai Case 1: Taobao vs. eBay China E-Business Professor Qiu Ivy Yuwen Cai 08 Fall 08 Fall Ivy Yuwen Cai E-Business Professor Qiu Case 1 Taobao vs. eBay China Due Date: October 11, 2011 A Lesson of “Doing Business in China” eBay had failed to recognize that the Chinese market and its business environment are very different in comparison to the United States. In any country, having local knowledge of your market is good; having local leadership on the ground is better. However, eBay assigns its high management positions to people who are not from Mainland China, who lack understanding of the local market. The fact that eBay had a strong brand in the United States didn’t mean it would be a strong brand in China. Security and Payment One of the most important factors, which let customers make purchase decisions, is security, and security issues are mostly related to payment process. When competing in payment services, Jack Ma and his team use their Chinese “guanxi” with key government officials and leaders in the Chinese banking industry to secure and process payment transactions. eBay has introduced its traditional payment method, Paypal, while Taobao has introduced a similar one, Alipay. Before 2007, the difference between Paypal and Alipay is the process of payment. Through Paypal, buyers pay directly to sellers, without any third party......

Words: 1238 - Pages: 5