Taobao case study composition

Q1) What was Alibaba Group’s motivation for diversifying into the customer business while using launch of Taobao? Will it make sense?

Alibaba group believed that it was under threat via eBay because eBay a new large market share in C2C business. Alibaba felt that eBay may go into the BUSINESS-ON-BUSINESS business which usually Alibaba is at, and their business may be below threat. Hence Alibaba decided to go into the C2C business with Taobao to compete with eBay for the fear of eating into Alibaba business.

That made perception because Taobao managed to overtake eBay’s talk about of the C2C business and turn the dominant market share intended for C2C to make Alibaba a really rich company.

Q2) Just how did Taobao beat eBay?

Taobao overcome eBay through its free of charge services, whereelse eBay fees buyers and sellers a fee for transacting through craigs list. Also, Taobao was able to understand the local context and tradition better, and created brilliantly colored and localized webpage in order that local Cina users just like Taobao more than eBay.

Taobao likewise established trust with its users such as requiring users to join up using their actual identity cards and bank-account in order to set up authentic identity. Also, Taobao rated it is sellers and buyers to determine a sort of good the trustworthiness of the buyer and seller. It also had Alipay, an earnest service which in turn enables sellers and buyers to transact their money with peace of mind.

The money will be held in the Alipay escrow account until the merchandise are actually being received prior to money is released. Taobao also had an instant messenger known as Wang wang that enables its users to communicate with each other to formulate greater trust in the Taobao portal.

Q3) Should Mother implement Zhao Cai Jin Bao? How come or why not?

Ma must not implement Zhao Cai Jin Bao as it did not work nicely. Many sellers became irritated because even though paid to have their entries prioritized, a large number of buyers would not buy their particular listings yet however shopped from other potential buyers instead whenever they find a cheaper price. Hence the sellers did not get yourself a fair package from this assistance.

Q4) So what do you think is among the most appropriate method to monetize Taobao?

Taobao should be generate income from through many other means, just like through paid advertising. Taobao might also consider branching into additional value added software program as mobile phone commerce, Businessto Consumer orders, charging a tiny transaction payment from vendors who sold on Taobao portal, or creating value added services and products including cloud companies or digital wallet services.

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