Taobao's Success
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 by the 450 million investment from world’s best B2B company——Alibaba. Taobao is a typical example of China E-business style. Taobao paid a lot of efforts in order to China and Asia’s market dominance, during a lot of difficulties and challenges especially in the competition with E-bay.
But some problems still exist in Taobao’ credit system and logistics model. These tough problems also exist in each E-business companies. Hence, how to fix these problems still needs development of information technology.
Taobao’s Success 3
Taobao’s background and business model
In May 10, 2003, Taobao was founded by Alibaba Group and specialized in C2C e-commerce (Consumer to Consumer Model). Alibaba was founded in Hangzhou in 1999, after nearly a decade of development, has grown into the world's largest online trading exchange market and the business community. Up to now, Taobao is the biggest Internet retail and business district in Asia, own more than 200 million registered users, accounting for 80% of online shopping market in China. Merely in 2009, transactions amounted to 50 billion dollar. However, if the Taobao’s success only attribute to its excellent “pedigree”, it would be ridiculous.
Today’s Taobao E-business is more than just
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 by the 450 million investment from world’s best B2B company——Alibaba. Taobao is a typical example of China E-business style. Taobao paid a lot of efforts in order to China and Asia’s market dominance, during a lot of difficulties and challenges especially in the competition with E-bay.
But some problems still exist in Taobao’ credit system and logistics model. These tough problems also exist in each E-business companies. Hence, how to fix these problems still needs development of information technology.
Taobao’s Success 3
Taobao’s background and business model
In May 10, 2003, Taobao was founded by Alibaba Group and specialized in C2C e-commerce (Consumer to Consumer Model). Alibaba was founded in Hangzhou in 1999, after nearly a decade of development, has grown into the world's largest online trading exchange market and the business community. Up to now, Taobao is the biggest Internet retail and business district in Asia, own more than 200 million registered users, accounting for 80% of online shopping market in China. Merely in 2009, transactions amounted to 50 billion dollar. However, if the Taobao’s success only attribute to its excellent “pedigree”, it would be ridiculous.
Today’s Taobao E-business is more than just
References: Annie Wei (Sept. 09) Taobao fights reputation spam in e-business boom Beijin Today website: http://english.qianlong.com/article.jsp?oid=56107784&pageno=1 Clayton M. Christensen(2004) Seeing What 's Next: Using the Theories of Innovation to Predict Industry Change, co-authored by Scott D. Anthony, Erik A. Roth. Harvard Business School Press Jicong Zhang (Dec. 09) Taobao is a media platform, from China IT Review website: http://chinaitblog.com/tag/taobao/ Yin Lu (Jan. 01) Analysis of the situation of C2C E-commerce development with ebay Yiqu & Taobao