IMD-3-1842 © 2007
Xin, Katherine; Nie. Winter; Pucik, Vladimir
This three-part case series follows Taobao; part of the Alibaba Group – the top business-to-business (B2B) e-commerce company in China – from 2003 to 2006. The A-case commences as Jack Ma; the 39-year old CEO of Alibaba; stresses in April 2003. Based on the most recent market data; eBay; the worldwide leader in online auctions had accomplished nearly absolute dominance of the local consumer-to-consumer (C2C) market – just about a year after its entry into China.
EBay’s growth did not impact its current business; looking forward; 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 attack Alibaba in its traditional B2B domain name? Jack wondered if anything could be done to prevent this from occurring? The B case documents Taobao competes with eBay in China's C2C market. Taobao’s strategy to raise its market share is described by it. The C-case discusses Taobao's business model. Although they gained market share at the expense of eBay; the question remains— what business model should they adopt so that they can earn money later on? Learning objectives to compete in China’s B2C and C2C internet market local Chinese companies and multinational corporations can compete; the way to construct 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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