TaobaoEbay Composition


Case: Taobao VS eBay China

This case deals with your competition of dominant position in China's on-line market between domestic participant Taobao and global internet C2C services leader eBay. EachNet was copyed coming from eBay's business model. As it presented the difficulties elevating capital, amazon entered Cina with its purchase of the EachNet in 2002. The previous Chinese language operation was changed significantly to align that with auction web sites worldwide devices including listing categorization, area of machines, pricing, structure of management. Ma, the founder of Alibaba. com Inc - the leading BUSINESS-ON-BUSINESS website in China by simply 2002, noticed the serious danger from auction web sites. Taobao was launched secretly till July the year 2003 when Ma thought it was all set to compete with auction web sites China. Inside the various contests, Taobao took over eBay's business gradually. Firstly, eBay acknowledged advertising through investing heavily in its marketing strategies and sighing exclusive deals with just about all major China website On the contrary, Taobao had taken advantage of BBS and placed messages to introduce Taobao to Online users. Secondly, Taobao's entirely no-fee model helped itself won a significant range of eBay China's users. Thirdly, management of Taobao introduced an integrated payment system, Alipay, within just three months in 2003. In addition , Taobao as well provided value added services like escrow services for purchasers, discounted prices to users. In comparison to the high efficiency of Taobao, eBay launched Protected Pay in Oct 2005, and Paypal, even later on, in July 2005. A whole lot worse still, PayPal was restricted from giving international transactions and flexible credit rating services. Furthermore, the partnerships between Taobao and Sohu/MSN China increased its profile. Meanwhile, auction web sites successfully received Global Assets as partner. The problem of counterfeit products also presented big burden to craigs list while Taobao faced zero such hole. There are elements making amazon failed in China. The complexity of eBay's global platform...