Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market. Alibaba’s contributing factors include: Smart competitive and marketing strategies, first mover advantage, leadership and vision, local knowledge, and navigation of regulatory hurdles. The e-commerce company’s strategy focus allowed it to differentiate itself by providing better services to its customers. The company put an innovative business model in which customers would try out the company’s services without any cost. As time progressed, the company was able to generate revenue from alternative means. In addition, the company began to generate revenue from an increase in the willingness of its users to pay for additional …show more content…
Factors that led to Taobao’s success include: growth strategy, differentiation, trusted and established payment method, customer interaction and customer preferences. Taobao used aggressive and promotional strategies to grow the business. Taobao placed ads online and on billboards located in major Chinese cities. Furthermore, Taobao’s easy-to-use feature features allowed it to attract new consumer, while at the same time attract EachNet users to shift to Taobao. Ma differentiated Taobao by allowing users to post free product listings, while EachNet charged for its services. Taobao’s business model was called unsustainable by EachNet, who was later forced to adopt a similar model. EachNet’s growth was halted by Chinese consumers’ lack of trust of selling and buying online. Consumers were required to pay with credit card (not trusted by Chinese then) by EachNet, while many Chinese preferred to pay by cash. Thus, Taobao held an advantage having access to Alibaba’s established AliPay, a payment system that held the money in an escrow account before the transaction. Taobao was more open to interacting with its customer than EachNet was. A big complaint against EachNet was that the company did not offer much customer service, as well as not providing a phone number in case of queries. Thus, Taobao attracted customers by enabling the seller and buyer to communicate through instant messaging. Furthermore, EachNet was not designed properly to tailor to the Chinese public. On the other hand, Taobao’s layout was more in tune to Chinese preferences by having a layout similar to Chinese department
The growth of online business has grown enormously over the years. Cliptomania is a family operated and owned small e-business that primarily sells clip on earrings (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012, p. 308). Cliptomania early developments were very modest, and as such the company experienced copious strategic dilemmas. An initial strategic dilemma that the company encountered when establishing and building their new e-business undertaking was to create a website for the business operations and essentially to have it fully operable. The owners, Jim and Candy elected to hire a vendor to host the website and additionally utilize the IT systems resources of the vendor to sustain their business. At the very beginning they exploited the offerings of the Yahoo Store. However, continuing down this avenue of using the services of the Yahoo Store inevitably became too costly. By using the services and business offerings of a vendor made it convenient and effortless for Jim and Candy to start their e-business store. Unfortunately the couple did not have much in the way of professional help, and so they had to create and put together the website by themselves. Additionally they also had to deal with establishing their online credibility as many customers preferred to call in their orders just to talk with a real person before being comfortable enough to place their orders via the webpage.
This report investigates and evaluates the reasons for ASOS failed in China market. ASOS, standing for “as seen on screen”, is a British online fashion and beauty retailer firstly operating in 2000 in UK. To become the top 1 fashion brand, one of the ASOS’s strategies is to be truly global. With the confidence of being successful in China market, ASOS entered China market in 2013. Two years later, having suffered a loss of profit, ASOS discontinued to operate in China and prepared to exit China market. A general background of general ASOS and ASOS China is given and the main reasons for ASOS to enter China market are justified. Next is the comparison of operation performance between ASOS UK and ASOS China will be demonstrated.
Imagine an older, online business where everyone was happily buying and selling from it. People are auctioning off valuables and goods while buying a range of items for a cheaper price. It stays this way on the same black and white website to this very day. EBay has been around since it was “Formed as a sole proprietorship in September 1995," via California. Its platform is meant to allow buyers and sellers with internet access to connect globally. It determines its success by the success of the people buying and selling through it. Unfortunately, today more people are choosing other online sellers. These competitors, similar to eBay, have bolder advertisements, offer well-matched bargains, as well
Amazon.com operates in the Online Retail Industry. The sector is one of the fastest growing globally and is outperforming the ordinary retail marketplace. It was created after 1995 and it was only the Internet that made it possible for such an industry not only to be established but to become one of the most flourishing sectors in the business environment. What is interesting is that Amazon.com, together with eBay is the pioneer in the field. Both companies were launched in 1995 and are still extremely successful. The creation of e-mail in 1996 had a huge impact on the development of online retail by introducing a fast and easy way to communicate with customers. For this two-year period Internet usage doubled annually, thus, allowing for the expansion of the industry. Google is launched a year later, in 1998, only to become the most used search engine in the world and an essential partner for the online retailers by helping them tailor their websites to customer’s personal preferences and by advertising. After that, more and more people see the opportunity in the growing industry and enter it. By 2001 there are more than 513 million Internet users globally, which calls for action in terms of creating regulations and laws to protect the users and personal property. In 2003, Apple launches iTunes, and provides a platform for low-cost digital downloads. Another major change is the appearance of social media from 2004, which is one of the biggest influencer on the state of the industry. With the launch of iPhone in 2007, this trend strengthens as people get to enjoy the Internet anywhere they want to. From then on, technological advancements have made it extremely easy and fun to shop online, making it ...
The future of economic competitiveness for most enterprises relies on entrance and active participation in the e-commerce market. An essential problem with e-commerce is that the controls and organization are different for each site. There is no standard way of building t...
A further reason why should focus on second and third tier cities of south-east part China is the rapid growth and penetration of Internet which would bring a booming development to the e-commerce implication in these market. Since TESCO has been successfully implement the on-line shop system in UK, it got technology advanced in this part.
A little more than 10 years ago, China’s path to e-commerce leadership would have been difficult to foresee, even as the tech boom in the US and other markets saw the development of e-commerce as an important B2C and C2C channel.
Zappos is an online clothing and shoe shop in Las Vegas, which has become one of the world’s largest online stores since its inception in 1999.The case discusses in detail the reason that a small entrepreneur became a world class entrepreneur to establish such a successful business model. Zappos was not a business model that floated and vanished after a while, but the principles and values inculcated in its roots by the founders made it a successful model. It touched the pinnacle of glory, when the company announced that Amazon would acquire it in a stock deal worth around 1.2 billion Dollars.
Jack Ma founded Alibaba Group, together with his 17 friends in 1999. Jack Ma was just an English teacher when he developed the idea of establishing an e-commerce site that will help sellers and buyers alike, as a platform for them to communicate, advertise and make transactions. The Internet was still not at the peak of its popularity yet back then, but Jack Ma had a vision. With a fund of he knew that he could help businesses in China to develop and compete competitively in the local and international markets. Today, Alibaba Group has grown so much and has created multiple platforms for the business-to-business, business-to-customer, and customer-to-customer trading site and been one of the largest e-commerce sites that ever established.
the global leader in online retail. By taking advantage of the opportunities to capture the market
This paper describes the various aspects of the Zappos case. The objective is to evaluate the depth analysis of the Zappos strategy. It enables to determine the Zappos strategy, business model & marketing strategy, and smartness of the Zappos acquisition.
...d to excel in internet search industry , which is the major source for revenue and attracting users, because Yahoo was lacking the agility in adapting new technologies while other competitors were able to.Yahoo was struggling in integrating new technologies acquired through acquisition. Yahoo presence inside china ,through its chinese subsidiary and later on merging with chinese company , forced the Yahoo to comply to chinese government. This exposed the company to human right condemnations and it was serious threat for the company reputation.
A dominant position is held by eBay due to the trust that is built on the safety of the consumers and sellers. The trust is gained by consumers and sellers through the knowledge that eBay monitors fraud. This gives eBay user’s security and peace of mind knowing that eBay has such high security and a stringent and trustworthy trading regulations. Other than the trust built from security, eBay also maintains a dominant position due to it catering to such a large demographic. It caters to all wants and needs through its ability to sell a large range of items.
The basic assumption of Jack ma is that he provides efficient business to business solutions through e-commerce to Small Medium Enterprises (SMEs) in China. In the recent year, Alibaba group has claimed the record for the largest US-listed initial public offering and has