Agenda

1. Alibaba.com was created in 1999, so by the time dot com crisis hit, the B2B customers that were accustomed to alibaba.com were compelled to not jump ship. By jumping ship, these B2B customers would risk losing their investing in registration/membership fee, as well as lose their comfort level, report and reputation with the other customers/patrons who frequented alibaba.com.

2. The $8,000 membership fee for China Gold Suppliers could because the Chinese market is very saturated with small and medium SMBs. Charging a higher fee may be a way weed out businesses that are not financially stable or committed to do legitimate B2B type of business.

The $400 membership fee for foreign businesses could be a set fee based on what the foreign market can handle as a membership fee entering into this type of business as small businesses (outside of China).

It may seem a bit exploitive, but if the market allows for the difference in prices and there is little competition, then it fine.

3. Alibaba.com could become an intermediary where they charge a fee to assist in negotiating supplier terms on behalf of the Chinese SMBs. This would allow alibaba.com to create a more in-depth customer benefit package to offer to its customers. Additionally, alibaba.com could find other opportunities to leverage their intermediary assistance that Chinese and/or foreign SMBs cannot provide themselves.

4. Answer

Advantages | Disadvantages |

Focused cultural knowledgeWell-established local business infrastructure | Cost of starting up the business (i.e. building the systems)Gaining marketshare in a market that may already have well-establish market leaders |

| Non-expert of the online auctioning business |

5. Alibaba.com was well-established in China. It understood (to a certain) the Chinese browsing habits, cultural knowledge and may be well aware of any unique circumstances that may be surrounding Internet offerings in China.