IMD-3-2187 © 2010
Nie, Winter
The A-case starts in April 2003 as Jack Ma, the 39-year old CEO of Alibaba, stresses. Based on the most recent market data, eBay, the global leader in online auctions had achieved nearly total dominance of the local consumer-to-consumer (C2C) marketplace – only about a year after its entry into China. EBay’s growth didn't impact its present business, looking ahead, and while Alibaba was not active in the Chinese C2C marketplace, there was cause for worry.
What if eBay made a decision to use its C2C power to assault Alibaba in its traditional B2B domain name? The B-case files Taobao competes with eBay in the C2C marketplace in China. It describes Taobao’s strategy to increase its market share. The C-case discusses Taobao's business model. Although they gained market share at the expense of eBay, the question remains— so that they can generate income in the future what business model should they adopt? The D-case is an update on the adversaries’ strategies and the events that happened between 2010 and 2006. Learning objectives to compete in China’s B2C and C2C internet market; how 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 ; 53.4 million registered users by June 2010 ; 2006-2010
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