A nascent women's clothing online store on Tmall, China's greatest business-to-consumer retail platform run by Alibaba Group, was just beginning to create itself on the online market using the tools and services provided by Tmall operate and to develop its business. Within four months following the company was established, Tmall unexpectedly released a brand new policy which substantially raised cash deposit and the yearly service fee for individual shops.
This new policy, which was to come into effect in less than three months following the announcement, could leave the business of small- and medium-sized e-commerce shops, like the new women's apparel start up, on Tmall unprofitable. The management team of the fledgling clothing company had to reconsider whether to renew their contract with Tmall or transfer their shop to one of the alternative on-line platforms, including Alibaba Group's Taobao Marketplace, Tencent Group's Shop.QQ or Amazon.com's Amazon.cn.
The Entrepreneur's Dilemma Alibaba, Tencent and Amazon as e-Commerce Platforms case solution
PUBLICATION DATE: August 13, 2015 PRODUCT #: W15355-PDF-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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