CASE STUDY HOW TAOBAO BESTED EBAY IN CHINA

China is a net importer of services products. They want to receive a pool of data rather than a qualified and refined data so that they can look and choose from it. Sometimes they become even hostile to out-groups. More specifically, we would like to examine the U. Considering the competition and launch of new competitor in the market, the fear of losing market share boosted the innovation of the local company. The buyer put the money on Alipay which inform the seller the money was given.

It is especially correct for China, which has a unique culture. Considering the competition and launch of new competitor in the market, the fear of losing market share boosted the innovation of the local company. Chinese society has a score 87 in this aspect, which indicates that they have a pragmatic orientation with a strong propensity to save and invest. Hilal Yalman Summary Many case studies of global companies that wanted to enter in China market with big hopes end in a tragedy. Consequently, they rarely conducted enough market research or developed content to suit the Chinese taste.

Diamond Framework of U. Alibaba case They do not prefer online banking and online payment system because they do not trust on internet.

(PDF) Why US Internet Firms Fail in China? | Ezgi Çakmak –

Applying this theory to this case, US is quite productive in high-tech and internet industries. In terms of understanding local culture, Groupon txobao failed to understand collectivist dimension of Chinese society. They rather prefer clicking from the pool. Their localization efforts only went as far as translating their websites and mobile phone applications into Chinese.

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Due to the growing income level of the citizens, changes can be observed in their spending patterns.

case study how taobao bested ebay in china

US firms widely use differentiation business strategy when they have competitive advantage. In the West, we tend to reserve trust from the hurt affect-based trust for family and friends and trust from the head cognition-based trust for business partners.

It reflected how Chinese shoppers think.

case study how taobao bested ebay in china

Cultural dimensions of China, comparing with US Source: Because of the nature of their language, they do not like to type.

S e-commerce companies in China but for all international products sold in all around the world. Thus Alibaba presented Taobao, a C2C e-commerce platform aiming not to make profit but not allowing eBay to conquer the market.

Uber Uber is another US internet company, which failed to understand local economic, political and cultural conditions. Plus piracy and illegal download is very common in China as many mobile reading market has reached up to 5,6 billion yuan in jow Rating info of a registered user — Alipay, lauched in is an escrow service of Taobao. The second advantage is that people can directly ask their questions about the product to the seller or asking bestsd assistance.

People consider hiring and promoting closer in-groups.

Why Taobao Succeeds in China Unlike eBay?

Table of Contents Summary 1. Netflix Netflix is another example, which suffers from Chinese government permissions. China is the largest trading nation in the world and plays the most important role in international trade,and has increasingly engaged in trade organizations and treaties in recent years.

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S, nearly a decade after. Consumers prefer cheaper made-in-China book-readers rather than paying Amazon Kindle. This message is important because Chinese people are very nationalist. On the contrary, the local competitor, Taobao that was created in had and xtudy has a big success in China.

Be a global citizen.

This was a disadvantage for eBay considering the fee-averse Chinese consumers. The second chlna is choosing nickname is giving an informal attitude, which is the key to allow people to feel welcoming and being a member of a community. It means that people can negotiate prices with sellers.

Under those pressures, in Google found its way by directing its traffic to Hong Kong site where its it more comfortable to operate but its usage dropped considerably in China.

But the American giant eBay failed in China. Ranking and Categories of Internet Applications Source: Zhang Yu, vice president in charge of C2C marketplace operations at Taobao, explains: Taobao is a Chinese platform. This concept is related with being success tsudy. The buyer put the money on Alipay which inform the seller the money was given.

case study how taobao bested ebay in china