1. 1

2. 2  Founded by Alibaba Group in 2003 Chinese website for online shopping  Undisputed market leader in China Giant of retail platform in Asia  Facilitates B2C and C2C retail Consumers from Mainland China, HK, Macau, Taiwan  In June 2011, Alibaba CEO Ma Yun revealed that Taobao would be split into 3 different companies: eTao (shopping searches), Tmall (a B2C platform), and Taobao Marketplace(a C2C platform)

3.  IT Infrastructure  Database Management System  Customer Community  Security System  ……  E-Commerce 3

4.  Taobao Marketplace  Tmall  eTao  Alipay  AliWangWang  Happy Taobao  Others 4

5.  Ubiquity  Global reach  Universal standards  Richness  Interactivity  Information density  Personalization/Customization  Social technology 5

6.  Ubiquity Internet/Web technology available everywhere: work, home, etc., and anytime  Information density Vast increases in information density – the total amount and quality of information available to all market participants

7. Promotion : Micro blog Renren station Web portals EDM (Email Direct Marketing)

8. A large number of advertisement outside : Underground Video Bus shelter Source: http://www.asiaoutdoor.net/pub/show_detail.jsp?id=8040

9.  Customers and potential customers can get the up-to-date news and information  Understand more about the products and sellers as well as suppliers  To be known by more and more people  Use different kinds of promotion like EDM

10. Increasing growth in the Search volume in Google as well as in the reports. Source: http://www.google.com/tr ends/?q=taobao

11. Vast increase in information density: Amount Quality Mushroom Street Tmall

12.  Customers can get a lot of information in Taobao  Can quickly determine if a product is good or defective  Increase the quality and selling amount of products

13. Source: http://www.techweb.com.cn/news/2009-01-20/385096.shtml Own a large share of market A big amount of trades Higher efficiency of deals

14.  Modules for setting up online marketplaces is the same for all sellers – easy for new sellers to enter and lower entrance cost  Design cost is also lower because of the build-in model of Taobao and can be easy modified to meet customer’s needs  More seller will choose Taobao as the platform of doing business

15.  Modules for searching, scanning and purchasing the goods is the same for all shops opened in Taobao  Easier to find desired goods and more convenient to buy things  More Internet Users will use Taobao to purchase things online

16.  Innovate its products with core business unchanged  Introduction of new features “group purchase” and T-mall  In conclusion:  Larger customer base  Increase in profit

17.  Interaction between seller and customer  Customization of goods enabled  Interaction between customers helps customers to better identify the quality of the products  Frequent information exchange with limited time

19.  “ALIWANGWANG” for general users and sellers  The instant messenger provided by Taobao  Built-in with the whole system of Taobao  Enable detail and informal communication  Long-term seller-customer relationship

20.  Low communication cost with high efficiency in customization and information screening  More Customer Welfare  Larger Customer Base  Higher Profit

21. 1. logistic issue (common for B2C & C2C)  Logistics is the fundamental guarantee to realize e-commerce.  Although e-commerce rises up in China, logistics could not respond relatively at the same speed. Source: http://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=5532123

22. 1. logistics issue (cont.)  Inadequate logistics infrastructure in China e.g. may take longer time to get access to small cities– may limit market reach.  Inefficient and unprofessional delivery e.g. Goods broken during delivery– consumers’ complain; Serious block during prime period (golden week, 11.11) – consumers dissatisfaction! Source: http://www.chinadaily.com.cn/china/201203/16/content_14845509.htm

23. 1. logistics issue (cont.) Since Taobao does not have its own distribution channel  Bargaining power from logistics companies– may push up the price of goods sold on Taobao  Lose control of service level

24.  2. Credibility of online vendors (especially for C2C) e.g. Rating and so-called discounts may be misleading; large amount of goods disappointing consumers Source: http://news.itxinwen.com/internet/inland/2012/0315/399872.html

25.  2. Credibility of online vendors _especially for C2C (cont.) Possible reasons:  The nature of E-commerce: lack of touch and feel; higher risk in customers’ perception  Large amount of online shops– hard to ensure a high level of credibility

26.  3. Conflict between online shops and Taobao_ especially for B2C in Taobao mall e.g. “Anti-Taobao” Source: http://www.chinanews.com/it/2011/10-15/3391242.shtml

27.  3. Conflict between online shops and Taobao_ especially for B2C in Taobao mall Possible reason:  Improve service quality and credibility? -- How to deal with those middle and small sized shops?

28. 1. Logistic Issue  A. Set up a logistic credit rating system * base on the consumers’ satisfaction  Monitor the performances of the logistic companies 28 Source: http://en.wikipedia.org/wiki/Credit_rating

29. 1. Logistic Issue  B. Integrate the logistic system * Centre management and control: Taobao can collect all the goods to a large store and transport them  Reduce the sellers’ operation cost 29 Source: http://wenku.baidu.com/view/d8c7c95077232f60ddcca1b5.html

30. 2. Credibility of online vendors -especially for C2C  Return the unsatisfied goods within a period of time without any extra cost  Rely on the feedback mechanism: * Heavy penalty for selling faked goods 30

31. 3. Conflict between online shops and Taobao-especially for B2C in Taobao mall  The third party should involve (e.g. SAIC) *negotiate to both parties *enact or modify the related rules and regulations on E-commerce in China 31 Source: http://www.wlyxjd.com/tao/newinfo.asp?classid=33&id=387

32. 3.Conflict between online shops and Taobao- especially for B2C in Taobao mall  Rather than raising the operation cost for the sellers: * Increase credibility and quality +improve credit rating system +encouragement - refund part of the annual fee for the technical 32 Source: http://it.people.com.cn/BIG5/15857669.html

33.  Introduction- Market leader in China  Features of E-Commerce in Taobao * Ubiquity *Information Density * Universal Standard *Interactivity  Bring many advantages  The problems Taobao faces  The suggested solutions related to those problems 33

34. References: Jin, Z. (2010). Online group buying to be regulated. Retrieved March 25, 2012 from: http://www.chinadaily.com.cn/china/2012-03/16/content_14845509.htm Kenneth C. Laudon, & Jane P. Laudon, (2011), Management Information System, Sino (2011). 商务部就淘宝商城事件表态：矛盾化解待转机. Retrieved March 25, 2012 from http://finance.sina.com.cn/g/20111016/163710629703.shtml Wikipedia(2012)Taobao,Retrived March 27,from http://en.wikipedia.org/wiki/Taobao Xu, Y. & Yue, P. X. (2010). Online consumer-to-consumer market in China - A study of Taobao. Retrieved March 27, 2012 from http://ieeexplore.ieee.org/stamp/stamp.jsp?tp=&arnumber=5532123 Yang, X. L. (2010). Research on the Problems and Countermeasures of C2C Credit Evaluation System - A Case of Taobao. Retrieved March 27, 2012 from http://wenku.baidu.com/view/0bb985170b4e767f5acfcef3.html Zhong Tian (2011). 淘宝商城线下广告营 销. Retrieved March 29, 2012 from http://www.asiaoutdoor.net/pub/show_detail.jsp?id=8040 Zhang, W. (2011). 淘宝网物流配送问题研究. In Work & Study Abroad. Retrieved March 29, 2012 from http://www.doc88.com/p-951290546059.html 易观国际：淘宝网 2008 年市场份额达到 86% (2009). Retrieved March 29, 2012 from http://www.techweb.com.cn/news/2009-01- 20/385096.shtml 中国电子商务研究中心 (2012). 诚信缺失是网购投诉根源 淘宝和京东投诉最多. Retrieved March 26, 2012 from http://news.itxinwen.com/internet/inland/2012/0315/399872.html 中国新闻网 (2011). 淘宝商城称围攻事件可能是多方利益集团纠结所致. Retrieved March 26, 2012 from http://www.chinanews.com/it/2011/10-15/3391242.shtml