That was what happened for Alibaba. It was a smart attempt however the plan collapsed when facing with Chinese price sensitive consumers. Taobao is a Chinese platform. Symbolic is very important to doing business in China unlike in the occidental world. Amazon Comparing with big failures of U. Other than the cyber control government implements physical controls especially on internet cafes. But the American giant eBay failed in China.

Want to know more about Chinese e-market, click here. China is a net importer of services products. This project is implemented by the Ministry of Public Security and incharge of blocking harmful and unfavorable contents so that many networks are under the control of one administration. The ways that the government uses to detecting and dismissing the dangerous user can be listed as: It is important that business partners have an affective bond. People consider hiring and promoting closer in-groups.

Thus, both buyers and sellers have to build and maintain a good reputation being honest if they want keep selling or buying on Taobao.

In terms of production side, China has a strong power in terms of low cost and skilled labor and developed telecommunications infrastructure. And also, due to the improvements in the technology, Chinese companies facilitate their business value chain.

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China scores 24 in this dimension, showing that is is a restrained society, which has tendency to pessimism. Zhang Yu, vice president in charge of C2C marketplace operations at Taobao, explains: The monitoring system is run by a hardware system and workers. Decisionmakers spend time to be compliant with the regulations.


Moreover, in a collectivist society people like sharing and it is human trusting a person who has a good reputation. It is a Chinese eBay especially made for Chinese consumers and consumers like to be considered. Thus Alibaba presented Taobao, a C2C e-commerce platform aiming not to make profit but not allowing eBay to conquer the market.

People consider hiring and promoting closer in-groups.

case study how taobao bested ebay in china

Chinese government constantly monitors, filters and limits the data which can be an alternative or opposite to the ideas of their own. But in China, affect- and cognition-based trusts are highly intertwined, even in business.

Why Taobao Succeeds in China Unlike eBay?

In May stury, Taobao went online. AliWangWang interface — Taobao sellers have to use their national identity card and their bank account to do their registration on the site. That is a reason for using local search engines or not using online banking.

Plus piracy and illegal download is very common in China as many mobile reading market has reached up to 5,6 billion yuan in bexted They like to surf on the internet and read the blogs before make a shopping decision. It was a smart attempt however the plan collapsed when facing with Chinese price sensitive consumers.

There is a considerable increase by whereas this increase can be seen by in U. Taobao is an e-tailing platform created by Alibaba group stuudyone year after the coming of eBay on the Chinese market.

case study how taobao bested ebay in china

In Marchafter doing a joint-venture with EachNet. They are proud to be Chinese and as China is a collectivist country, this kind of identification is stronger than identifying themselves as individuals. Due to the growing income level of the citizens, changes can be observed in their spending patterns.


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Factor Conditions With regards to the factor conditions, China enjoy the advantages of their know-how on imitation business. It is not in the occidental culture to create one separated navigation tab for men and women at all, even if differences of men and women thinks have been proved. Infrastructure is also sophisticated, that is one of the most crucial factor for the internet business.

Chinese Internet User 2.

case study how taobao bested ebay in china

On the contrary, the local competitor, Taobao that was created in had and still has a big success in China. The Failure of Amazon? Rating info of a registered user — Alipay, lauched in is an escrow service of Taobao.

This is not surprising as we compare the Chinese highly protectionist and sensitive approach with Western freedom of speech and information. People started to switch from eBay to Taoboa. Chinese laws allows online downloading content so many people use internet for downloading music and video.

However Chinese people could not even pronounce the name of Google and keep its name in their mind.