Taobao

Abstract

In this case, it mainly defines how eBay enter the Chinese market and state problems why eBay failure problems in China compare to Tao Bao. We will introduce EBay, compare and contrast between eBay and Tao Bao, also, we talk about reasons failure in China.

Introduction to EBay

EBay which is a management that allows people from all over the world to buy and sell items, auctions and shopping online. EBay was founded on 4th September 1995 and by name Auction web of Pierre Omidyar in California. People can sell goods on EBay over the network.

As an online auction site, eBay created a buyer but also the seller of unprecedented business model which was C2C mode. EBay has differences from traditional marketing because e Bay make a large number of small business and individuals through its sales platform to interact with small items, so creating amazing trading volume and profit. Also, its great value and market energy generated is sufficient to counterbalance the traditional business model. As a third party transaction, eBay itself does not directly involved in the transaction, but specifically for consumers with business information and value- added services. Through this e-commerce information intermediary platform, information can flow between the buyer and the seller each other. EBay collected information through selling; charged fees to users store and get huge revenue (Kathy Burns-Millyard, n.d.). Thus, eBay overthrown smaller flea market in the past, though the network, buyers and sellers pull together to create a never- break market.

Comparative on EBay and Tao Bao

1. Target strategy

Beginning of the establishment Tao Bao in 2003, they use four months to analyze customer to consumer market, and finally decide to put market position between ages of 20-30 years old. Because this part of population is currently the most active online populations and they have courage to try new things. On the other side of EBay, in order to meet customer needs,...