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

2. Agenda 1.Background 2.Buying Process 3.Featured Functions of Taobao 4.Porter’s Five Forces 5.Promotion Strategies 6.Problems and Recommendation 7.Reference

3. 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: www.tmall.com C2C platform: Taobao.com Free of charge

4. Company Background ● Market Share in Chinese e-commerce market sources: http://data.eguan.cn/dianzishangwu_172432.html http://data.eguan.cn/dianzishangwu_172432.html http://www.smejs.com/chuangyepingtai/chuangyptwschuangy/6001477142.htm

5. Buying Process Step 1: Get Taobao ID Step 2: Activate Alipay

6. Buying Process Step 3: Search Items & Communicate with seller

7. Buying Process Credit rating Hearts Blue Diamonds Blue Crowns Gold Crowns

8. Buying Process Step 4: Choose Payment Methods

9. Buying Process Step 5&6: Receiving & Feedback

10. Featured Functions of Taobao

11. Searching functions Gallery Sales transaction volume credibility price range Locations Tmall Second handed Auction Wangwang Online

12. Trade Safety Guarantee

14. Aliwangwang

15. 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.

16. 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)

17. 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

18. 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

19. 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)

20. Promotion Strategy Advertising -TV commercials -Outdoor Advertisements Public relations -Sponsoring highly publicized events

21. Cooperation with Banks -Protect against defaults and deceives -Increase the confidence of customers -Provide a convenient way for vendors

22. Problems Problems Immature tax policy not provide official receipts and invoice Lack technical innovations copied by other counterparts Counterfeit merchandise destroy Taobao’s reputation

23. Recommendation Make use of information technology and resources Provide safety and scientific system Improve limited payment system

24. References ● http://en.wikipedia.org/wiki/Taobao http://en.wikipedia.org/wiki/Taobao ● http://www.taobao.com/about/intro.php?spm=1.22350.21637.8 http://www.taobao.com/about/intro.php?spm=1.22350.21637.8 ● http://www.authorstream.com/Presentation/martinzhang73-1637615- taobao-english/ http://www.authorstream.com/Presentation/martinzhang73-1637615- taobao-english/ ● http://data.eguan.cn/dianzishangwu_172432.html http://data.eguan.cn/dianzishangwu_172432.html ● http://www.smejs.com/chuangyepingtai/chuangyptwschuangy/6001477142.h tm http://www.smejs.com/chuangyepingtai/chuangyptwschuangy/6001477142.h tm ● http://www.dwastell.org/MSc/Group6.pdf http://www.dwastell.org/MSc/Group6.pdf

25. Thank you!