Group members yuan lu ling zhang xiao chen sha ye
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Group Members: Yuan Lu, Ling Zhang, Xiao Chen, Sha Ye. Agenda. Background Buying Process Feature d Functions of Taobao Porter’s Five Forces Promotion Strategies Problems and Recommendation Reference. Company Background. History Founded by Alibaba Group in 2003

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Group members yuan lu ling zhang xiao chen sha ye

Group Members: Yuan Lu, Ling Zhang, Xiao Chen, Sha Ye


  • Background

  • Buying Process

  • FeaturedFunctions of Taobao

  • Porter’s Five Forces

  • Promotion Strategies

  • Problems and Recommendation

  • Reference

Company background
Company Background

  • History

    Founded by Alibaba Group in 2003

    A Chinese website for online shopping; online auction leader

    Became the largest online shopping website in Asia in 2006

    Lanuched eTao (searching engine) in 2010

    760 million product listings as of March 2013

    500 million memberships; 6 million visitors per day

  • Business Model

    B2C platform:

    C2C platform:

    Free of charge

Company background1
Company Background

  • Market Share in Chinese e-commerce market


Buying process
Buying Process

Step 1: Get Taobao ID Step 2: Activate Alipay

Buying process1
Buying Process

Step 3: Search Items & Communicate with seller

Buying process2
Buying Process

Credit rating


Blue Diamonds

Blue Crowns

Gold Crowns

Buying process3
Buying Process

Step 4: Choose Payment


Buying process4
Buying Process

Step 5&6:




Searching functions
Searching functions

Gallery Sales transaction volume credibility price range Locations

Tmall Second handed Auction Wangwang Online

Trade safety guarantee
Trade Safety Guarantee

3 times refund for counterfeits

Threat of new e ntrant medium
Threat of New Entrant(Medium)

Too many companies that have their own product. They could also enter into the B2C market by adding the B2C functions into their official websites

- They are more professional and targeted.

In order to construct an efficient online

shopping platform

-The capital requirements are a kind of high.

Buyer bargaining power medium
Buyer Bargaining Power(Medium)

There are many buyers usually buy products in online are belong to normal goods

and they can buy goods at different sellers easily with no switching cost by choosing different webs(high)

The amount for buyer to purchase is too small

Buyer cannot credibly threaten to back-integrate

into the industry(Low)

Supplier bargaining power low
Supplier Bargaining Power (low)

Taobao is not a manufacture firm but an e-service one.

- Major suppliers are those advertiser ( such as, some famous brands,or websites)

Suppliers are not a union and the price is generally based on the market

The supplier bargaining power is limit

and stable

Threat of substitutes high
Threat Of Substitutes (High)

The most important substitutes services are:

(1)the self-websites of large companies

(2)the traditional way to shop

(3) TV shopping

The intensity of rivalry among competitors low
The Intensity of Rivalry among Competitors(low)

Keep market share and has increasing trend in each year

Major competitors: Paipai , JD.

Oligopoly Pattern

The industry is dominated by Tao Bao( 83.5% of C2C, 50% B2C)

Promotion strategy
Promotion Strategy


-TV commercials

-Outdoor Advertisements

Public relations

-Sponsoring highly publicized events

Cooperation with banks
Cooperation with Banks

-Protect against defaults and deceives

-Increase the confidence of customers

-Provide a convenient way

for vendors


Immature tax policy not provide official receipts and invoice

Lack technical innovations copied by other counterparts

Counterfeit merchandise destroy Taobao’sreputation


Make use of information technology and resources

Provide safety and scientific system

Improve limited payment system