Transcript
ALIBABA’STAOBAO
1KEYISSUEThe company wants to find the best way to monetize their business model without losing
large market share they have achieved in these years of operation.
2 ExternalAnalysis
P E S T•Communist regime
•Business Tax: between 3% - 20% depending on the business (Real Estate, sports, Telecommunications Services, etc..)
•Customs duties between 10% - 20%
•Second superpower as nominal GDP
•Is believed to overtake USA in 2016.
•Depends heavily on exports.
•Country with the highest
economic growth
•Economic growth: China will slow even more in 2012.
•Population: 1338.3 million inhabitants by 2012.
•Owns 50% rural and 50% Urban approximately.
•513 million Internet users by 2012.
•Internet users in China will reach 50% of the population in 2015 (670 million).
•The revenues of the industry from
Internet will grow 25% annually projected 2012.
•70% of internet users purchased by
internet
•Technological growth: 41.8%
•Growth of 50% per year in cyber sales.
HIGHThreats of new competitors
HIGHBargaining power of suppliers
LOWRivalry among existing competitors
HIGHThreat of products and substitute services
HIGH
PORTER’S5MODEL
Bargaining power of customers
5PORTER’SMODEL
WEIGHT RATE VALUE
Threat of substitute products and services 40% 3 1.2
Threats of new entrants 25% 2 0.5
Bargaining power of customers 15% 4 0.6Bargaining power of suppliers 15% 4 0.6
Rivalry among existing competitors 5% 5 0.25
AVERAGE 3.15
High Quality
Low Cost
PerceptualMap
High Cost
Low Quality
COSTS - QUALITY
High Income
LowMarketShare
PerceptualMap
HighMarketShare
Low Income
MARKET SHARE - REVENUE
High Security
LowCost
PerceptualMap
HighCost
Low Security
SAFETY – COST
OPPORTUNITIES•50% annual growth in cyber sales
•Internet users in China will reach 50% of the population by 2015.
•Revenues from the Internet industry will grow 25% annually projected 2012.
•70% of internet users purchased by internet
•World's largest population
•Fastest growing and emerging economy in recent years
•Priority of the Government to promote and encourage technology
THREATS•Low barriers to entry for new competitors
•No custom fee payment
3 INTERNALANALISIS
· Mktg y Vtas: mas omenos porque en areamktg se dan a conocerbien como marca, peroen ventas al no tenerganancias estan mal.· Servicios: no es 5 porquehay insatifiscacion enservicio, según tablascaso.
SUPPLY
TECHNOLOGICAL DEVELOPMENT
HUMAN RESOURCES
ENTERPRISE INFRASTRUCTURE
--
54
VALUECHAIN5
INTERNAL LOGISTICS
5
OPERATIONS
5
EXTERNALLOGISTICS
5
MARKETINGS
ERVICESAND SALES
2 4
VALUECHAIN WEIGHT RATE VALUE
Supply 0% - 0
Technological Development 20% 5 1
Human Resources 5% 4 0.2Infrastructure 5% 5 0.25Internal Logistics 25% 5 1.25Operations 15% 5 0.75
External Logistics 5% 5 0.25
Marketing and Sales 10% 2 0.2Services 15% 4 0.6
AVERAGE 4.5
STRENGTHS•The second largest Chinese Retailer.
•Full understanding of Chinese culture and economic behavior.
•Own 84% of market share.
•More than 55 million registered users.
WEAKNESSES•Not generating large revenues with the current business model.
•Sale Alipay payment service (competitive advantage).
BENCHMARKINGSatisfaction Percent
TAOBAO EBAY
Very Satisfied 24.3 10.9
Satisfied 52.2 51.5
More or Less Satisfied 21.4 31.3
Not Satisfied 2.1 6.3
Market Share of Companies responsible for C2C
2002 2003 2004 2005 2006 2007
Taobao 7.8 29 59 65 84
Ebay 85 72.4 65 36 26 7
PaiPai 4 9
Others 15 19.8 6 5 5 0
MATRICES
BCGMATRIX
SHARE MARKET PERCENTAGE
IND
US
TR
Y G
RO
WT
H
COMPETITIVENESSLow
SelectiveDevelopment
Divest
Medium High
Invest
Protect
LowProfile
GEMATRIX
AT
TR
AC
TIV
EN
ES
S
Low
Med
ium
Hig
h
PRODUCT
ANSOFFMATRI
X
Existing
MarketPenetration
MarketDevelopment
New
ProductDevelopment
Diversification
Exis
ting
New
MA
RK
ET
4 STRATEGICALTERNATIVES
Vision
Being number one in e-commerce in each country of the Asian continent.
Mission
Provide a secure e-commerce service and quality, which understands the culture and local needs.
OBJECTIVES
SHORT TERM 1 YEAR
Develop a business model that has higher marginsProfitability (15% annually)
Begin to raise awareness of payment (Measured by number transactions)Increase market size by 12%.
MEDIUM TERM 3 YEARS
Start expansion to India and Japan, and their similar cultures with highly developed online medium.
LONG TERM 5 YEARS
Consolidate presence in neighboring countries mentioned above.Possessing the largest share of e-commerce in Asia (51% of the total market).
UPPSALARISK
CONTRACTUAL LICENSING
TIME
5 IMPLEMENTATION
PRODUCT
E-commerce service that deliversSearch space and offer Products Or Services in Chinese market.
PRICE
The price is charged differently according to two segments:
•Small purchases (C2C): It charged 2% of the total sales, charging 1% to Seller and 1% to the buyer.
•Big Purchases (B2C): It charged a 3% of the total sales, To the whole seller.
COMPANY REVENUES : $ 3,762,774,612,000
PLACE
Website:
www.taobabo.com
PROMOTION
•Banners that highlight benefits of using the payment throughsafe "Alipay”.
• Advertising on the busiest China streets.
•Presence in newspapers and magazines where it is specified to educate Consumers about the new System.
•TV commercials explaining the new system, Payment and insurance benefits.
4 P`S
COUNTRY OFORIGIN EFFECT
Emphasize that our company is China,so we understand the needs, demands and so same tastes, different consumers of our nation.
http://www.prensa.com/uhora/tecnologia/usuarios-de-internet-en-china-llegaran-800-millones-en-2015/89920
http://www.geekets.com/2012/04/consumidores-online-china-superan-europeos/
http://datos.bancomundial.org/pais/china#cp_prop
http://www.doingbusiness.org/data/exploreeconomies/china#paying-taxes
http://portal.lacaixa.es/deployedfiles/particulars/Estaticos/PDFs/InfolineaAbierta/El_regimen_impositivo_en_China_es.pdf
http://www.laprensagrafica.com/el-salvador/lodeldia/252046-china-reduce-su-prevision-de-crecimiento-y-cambiara-su-modelo-de-desarrollo.html
http://www.eco-finanzas.com/noticias/Eco-Finanzas/201203/China-reduce-proyecciones-de-crecimiento-para-el-2012.html
ALIBABA’STAOBAO
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