Marketing Tools For The Chinese E Commerce Markets

There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e-commerce markets, some of the factors explained in the case are: †¢ First mover advantage was created when Alibaba enter the e-commerce market with the business to business transactions for small and medium business. This give the advantage for the firm to gain greater market share, obtain specialized sources and human capital, and it gain a great part of customers that are loyal to the company. †¢ Local knowledge was a really important factor for Alibaba because by knowing what are desires, interest and customs of their customers, Alibaba created an advantage over its competitors. †¢ Marketing tools created a great advantage for Alibaba because†¦show more content†¦2. Discuss the rationale behind Ma establishing Taobao.com. What are the factors that led to Taobao’s success as compared to eBay in the Chinese online auctions market? Ma established Taobao.com because he want to compete against eBay, and take the leadership in the auction market, he team up with Son to overthrow eBay that at this time got about 80% of the market share in China. Ma as a visionary leader for Alibaba, launched Taobao because of the market growing of the Costumer to Customer service in the the internet. This was a great opportunity to expand its service line, which they were dominants in the Business to Consumers market. Some of the factors that led to Taobao’s were: †¢ The understanding of local language, culture and consumers preferences. †¢ The acquisition of the local knowledge which is a great factor for success, with this Ma can target the features that customers desire the most and facilitate the usage. Which he approached the local markets. †¢ Ma differentiated Taobao from its competitor, he did not wanted to be a follower and he find new ways to create value for its service, Taobao did it by not charging for its services. After strong critics from eBay, this approach was successful and eBay had to adopt it. †¢ Alibaba created a payment system called Allipay which helped transactions to have more credibility because the consumer will pay for the product, and an intermediary keep