Because library space is finite, they also removed certain traditional character books to make room for the simplified character books. Cheng said that this was brainwashing of the next generation. Cheng called on citizens to spontaneously remove the simplified character books.
Suggested Assignments for Students. The additional readings and references given will help the students to get a thorough understanding of the case. The groups can discuss the basic issues and the questions given to facilitate further discussion.
The analysis of the discussion questions can be presented by one of the groups, to be followed by an interactive session. The moderator can lead the discussions and then conclude with a summary of the highlights of the case.
Introduction of the case — 10 min Class discussion to identify the basic issues of the case: Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market. Discuss the rationale behind Ma establishing Taobao.
Do you think it is sustainable? After having captured the Chinese e-commerce market, what steps should Alibaba take to expand globally? The students may be given the following assignments before the actual discussion of the case.
They can be formed into groups and asked to prepare a note on any of the two questions given here. Prepare a brief note analyzing the opportunities and threats faced by Chinese e-commerce companies. Analyze the factors that led to the success of Alibaba in the Chinese e-commerce market.
Give reasons justifying your choice of targets. It has been compiled by the authors from published sources.
Some of the factors that contributed to the success of Alibaba in the Chinese e-commerce industry were: Alibaba started its operations when e-commerce in China was in its infancy stage. Considering the potential of the budding e-commerce market, Alibaba started with operations that concentrated on providing B2B services to SMEs that were aspiring to go global.
Smart competitive and marketing strategies: From an early stage, Alibaba had been focusing on differentiating itself by providing better services to its customer.
It put an innovative business model in place where customers could try out its services without any cost. Over time, it was able to generate revenue from alternative streams and increase revenue as the willingness of the users to pay for additional services increased.
For instance, its decision to start a payment system in collaboration with a reputed bank in China was due to its local knowledge. Though credit cards were used in China, they were not the preferred medium of transaction as the Chinese were not comfortable using it.
It was also able to provide a simple yet efficient website that helped SMEs which were not too tech savvy to navigate the site effectively. Negotiating regulatory and other hurdles: Regulatory hurdles could pose huge challenges to companies operating in emerging markets like China.
The Internet was highly regulated in the country and that was one of the reasons that foreign companies found it difficult to succeed in China. It can be said that Alibaba had negotiated the challenges posed by the emerging market quite well — it had taken advantage of the opportunities while mitigating the risks of operating in such a market.
Finally, the leadership and vision of Jack Ma cannot be underestimated. He was able to build up an Internet business in China from scratch and this led to the flourishing of the Internet market in China. His approach to competition was almost playful, but effective nevertheless.
China and weaning away customers from eBay Eachnet at a time when eBay was bullish on the Chinese market was indeed laudable. In the same year, eBay EachNet emerged as the leading player in the Chinese online auctions market.
ByeBay EachNet had captured a market share of 79 percent in the Chinese online auctions market. Considering the growth outlook of the Chinese online auctions market, Alibaba launched a rival website Taobao.
Alibaba launched Taobao to tap the opportunities in the fast growing C2C e-commerce market in China.
The company already held a dominant position in the B2B arena and felt that its local knowledge would help it topple eBay and dominate the C2C market as well. Taobao leveraged on its knowledge of the local market to wean customers away from eBay EachNet.Alibaba is the biggest B2B and B2C e-commerce company in China; it has leading position for past years.
However, the situation has changed in recent 3~4 years, more and more users access the internet including buying goods and services via cell phones. At a Glance. Healthcare private equity had another banner year. Total disclosed deal value reached $ billion, the highest level since , and deal count rose to from in About Fredrik Gronkvist Fredrik Gronkvist has been based in Shanghai since and is our main contributor.
In addition, his content has also been featured in Bloomberg, Quartz Magazine, Global Sources, Alibaba, China Chief Executive and monstermanfilm.com can send him an email on [email protected] or via Linkedin. When deciding whether content is appropriate for China, companies should seek the counsel of a service provider with experience delivering a broad range of web content into China.
6 Alibaba: Competing in China & Beyond OTHER ISSUES Nature of the case This is a case study prepared through secondary research. It has been compiled by .
Lara Hull Alibaba: Competing in China and Beyond Analysis of factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce Market.