IMD-3-2319 © 2012
Xin, Katherine; Nie. Winter; Pucik, Vladimir
This is an abridged variant of the "Alibaba vs eBay" B-case. The initial four-part case series follows Taobao, part of the Alibaba Group – the leading business-to-business (B2B) e-commerce company in China – from 2003 to 2006. The A-case begins in April 2003 as Jack Ma, the 39-year-old CEO of Alibaba, stresses. According to the latest market data, eBay, the global leader in online auctions had accomplished nearly total dominance of the neighborhood consumer-to-consumer (C2C) market – only about a year after its entry into China. EBay’s expansion didn't affect its current company, looking ahead, and while Alibaba was not active in the Chinese C2C market, there was cause for worry. What if eBay made a decision to use its C2C power to assault Alibaba in its conventional B2B domain? Jack wondered if anything could be carried out to prevent this from happening? The B-case files how Taobao competes with eBay in China's C2C marketplace.
It describes Taobao’s strategy to increase its market share. The C - case converses the business model of Taobao. Although they gained market share at the expense of eBay, the question remains— so they are able to make money in the foreseeable future, what business model should they adopt? The D-case is an update on the events that happened between 2006 and 2010 and the competitors’ strategies. Learning objectives to compete in China’s B2C and C2C internet marketplace local Chinese companies and multinational corporations can compete; the best way to build a unique organizational culture.
Subjects: Strategy; Entering new markets; Emerging markets; Building a unique organizational culture; Corporate culture; B2C; C2C; Business models; Online business; Online marketplace; Internet portal
Settings: China ; E-business; E-retailing; Internet ; 1.8 million registered users by 2003 ; 2003-2006
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