Taobao vs. Ebay China Essay

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TAOBAO VS. EBAY CHINA Introduction In order for people to survive and thrive it is crucial for them to be connected and interdependent. Working together makes it possible for people to achieve great goals. From the beginning of time people were trading and bartering. Then people began using money for selling and purchasing goods. More recently people began using debit cards and credit cards. Nowadays it is very popular for people to use internet for transactions. Internet makes it possible for businesses and individuals to sell and purchase goods without ever leaving their houses. Like in any other industry, internet created competition between online businesses. EBay is an international online consumer-to-consumer business. Through EBay people can purchase and sell variety of goods. EBay began their business in United States of America and expended their business to many other countries. Usually EBay was very successful at expending their business to other countries. However at times EBay failed. EBay was unsuccessful in running their business in Japan. Even though EBay failed in Japan, EBay saw great potential in China. Eventually in late 2002 and early 2003, EBay began acquiring EachNet, through whom it entered the Chinese market. Once EBay China began their business in China they had to deal with their competitor Taobao. Taobao is also an online consumer-to-consumer business. Taobao and Ebay China both wanted to number one for the people of China. EBay China and Taobao began competing for customers. Both of the companies had different strategies and approaches. EBay China having the advantage of being a first mover as a result in the beginning dominated seventy percent of the market, but later lost the market to Taobao. EBay faced many challenges when doing business in China. External and Internal Analysis In China, the online customer-to-customer market

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