Taobaos Success - 1860 Words

Taobao’s Success 1 Taobao’s Success The most successful C2C E-business platform in China Chenlei Shi 865313 IT IS 600 Professor Robert Testa, Jr. September, 18, 2010 Taobao’s Success 2 Abstract With the great speed of economic globalization, E-Business is developing in a surprising speed through the wide-spread of information technology. Nowadays, there are a lot of big E-business corporations such as Amazon, E-bay focus on different E-business model and field. However when these international companies carving up the global market, some local enterprises also growing up and want to share this big cake. Taobao (www.taobao.com), a Chinese-based company which is a leading platform for C2C personal transactions, was founded in 2003†¦show more content†¦Until 2005, this Taobao’s Success 5 problem was solved by eBay-Each, but without doubt, eBay-Each lost its advantage in credit transaction. Third, eBay-Each used advertisement blocking tactics to fight Taobao. In 2003, the biggest three portal in China (Sohu, Sina, 163) made a deal with e-Bay that they would never use Taobao’s advertisement. To fix this problem, Taobao use a lot of traditional medium such as newspaper, TV or subway stops, bus, road advertising. Moreover, Taobao also made a co-operation with Yahoo, using Yahoo’s search bid, investing 2 million keywords. Then Taobao increased the keywords to 3 million, and the hits up to 6million in one day. That made Taobao beyond its opponent in two key indicators, accounting for the initiative in future competition. Furthermore, another difference in Taobao’s advertisements, their membership in the trading process could feel lively culture of family. Fourth, eBay-Each and Taobao had a significant understianding gap in market positioning. EBay-Each have their global strategy and want to do business with the people who are 30-40years old. While Taobao ’s strategy is localization, and its target population was also younger than its counterpart. Last but not least, Taobao encouraged their buyer and seller makes private transaction, and supported a convenient platform. One example is the communication tool for members in a timely manner - Live Messenger. If the user enters a shop, just the owner is alsoShow MoreRelatedComparative Ebay and Taobao3114 Words   |  13 Pagesonline market, is one of these countries. In 2003, after its cooperation with Eachnet, the first C2C online company in China, eBay became the largest online trading company in China, controlled 90 percent of the Chinese C2C market (Zazaian, 2006). The success continued until Taobao, a completely free online C2C platform, established in China by the founder of Alibaba.com. 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