Alibaba Case
1. Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market.
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e-commerce markets, some of the factors explained in the case are:
• First mover advantage was created when Alibaba enter the e-commerce market with the business to business transactions for small and medium business. This give the advantage for the firm to gain greater market share, obtain specialized sources and human capital, and it gain a great part of customers that are loyal to the company.
• Local knowledge was a really important factor for Alibaba because by knowing what are desires, interest and customs of their customers, Alibaba created an advantage over its competitors.
• Marketing tools created a great advantage for Alibaba because by using different sources the company penetrate different markets, and it even help the company to overthrown eBay from the customers to customers business.
• The company created a good environment to succeed because it minimize the political risk by working with the government, and creating a mutual benefit between the country and the firm.
• The leadership that Ma created was exceptional because by starting with his pears without any hope from other people to be successful, he follow what he desire. At the end he has created a great company with exceptional values, which is a great legacy for
eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%
The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s
This paper explores seven references that report the results from research conducted on-line regarding the 2013 Target breach. According to the website “Timeline of Target 's Data Breach And Aftermath: How Cybertheft Snowballed For The Giant Retailer” (2015), the breach occurred November and December 2013 in which customers who shopped at Target locations credit and debit cards were breached and their personal information was exposed. Upon their investigation, it was determined their point of sale system was hacked. “Wikipedia” states point of sale system which is used by third party vendors has cash registers as well as barcodes which stores customer’s information. The website “What is Packet Sniffer” (2016), Packet Sniffing may have been a way the attacked happened. “RAM Scraping Attack” website indicates what RAM means and how this type of attack happens. “What is a Firewall in Networking and How They Protect Your Computers” (2014), “What is Endpoint Security? Data Protection 101” and “Why SSL? The Purpose of using SSL Certificates” websites each provide ways to reduce and/or prevent future attacks.
Q1. Calculate the variability (standard deviation) of the stock returns of California REIT and Brown Group during the past 2 years. How variable are they compared with Vanguard Index 500 Trust? Which stock appears to be riskiest?
its position in the market and competitive advantage over other players in the same industry,
Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile
Nowadays, high-speed development of the technology has changed the daily life and the computer and the Internet have become the mainstream in China markets. The expansion of the Internet rapidly leads the e-commence to develop and change the operation way of Chinese business. At present, there are many people who want to start-up a business on their own. Ma seizes the opportunity to establish a great stage ‘Alibaba’ for
By taking a look at Van Gogh’s Starry Night, and further researching into it, we are able to notice the meaning behind it. Van Gogh’s first creations were earth-toned scenes of nature and peasants. However, after his well-known breakdown, he was put in an asylum, and his art style changed severely (National Gallery of Art.). One of the paintings he created in this period of poor mental health was the famous Starry Night, a painting made with oil on canvas (MoMA Learning) with heavy brushstrokes that, in my opinion, look similar to the ocean waves. The most common interpretation of the meaning of this painting is associated with Van Gogh’s isolation and insanity. However, the meaning of this painting is deeper than that. Each detail in Starry
4. In 2003, Alibaba.com launched Taobao.com to compete in the general consumer online auction market against eBay in China. After four years of an intensive and expensive battle, eBay withdrew from China completely. In about 200 words, describe the advantages Alibaba.com might have had over eBay in this new market, and then describe the advantages eBay might have had over Alibaba.com. Be sure to discuss lock-in effects where appropriate.
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per
McDonald and Burton clarify that infant industries can feel supported into growth (and sometimes beyond) by the trade policy of protectionism and tariff barriers. This form of strategic protectionism enables industries seeking to grow to enjoy the benefits of first mover advantages, a concept of specialising in producing and exporting only those goods and services which it can produce more efficiently (Investopedia) and the benefits of economies of scales. A prime example of this is Amazon, the first online bookstore. By gaining the first mover advantage into the markets, it has gained and maintained dominance over many firms. Firms have adopted the concepts and practices such as retailers like Barnes and Nobles. Professer Marvin Lieberman and David Montgomery, Stanford University, conclude that first mover advantage can be gained from technology leadership, control of resources and buyer switching costs after gaining the opportunity to access the pioneering stage of a concept.
Alibaba’s sites have currently reached over 65 millions of registered users, hosted over millions of merchants and businesses globally. In 2005, its revenue had reached over approximately US$100 millions. Although China’s gross domestic product
Alibaba is the largest leading e-commerce companies of B2B online retailer in China and it is giving a trading platform that associates worldwide purchasers to huge number of small medium enterprises to conduct business in their network. The market operate by Alibaba
Price or Output: The core business includes three e-Commerce websites which are Alibaba, Taobao and Tmall, which can connect and cover multi ranges of buyers and sellers and Allibaba serves as a middleman and collect annual fees, deposit or commission fees from merchants for their transactions. Therefore, it focuses more on price as it does not contribute products or manage warehouse. It attracts customers by offer best price and opportunity of for venture.
One major flaw built within the business model of Alibaba is its ability on controlling the merchants and their quality of goods. Since both Taobao and Tmall relied on third party sellers to provide goods and services, it lacks the ability to enforce strong quality control and eliminate counterfeit goods. In fact, consumers were well aware of it and this issue had already been damaging Alibaba’s reputation in online retailing markets. However, its major competitor, JD.com would be having much stronger abilities and incentives to eliminate these