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Amazon&Taobao

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by

心貝 王心貝

on 8 January 2013

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Transcript of Amazon&Taobao

Enter Taiwan in 2012 The way that similar to “Joint venture” Financing: looking for Taiwan’s financing companies. Let the finance between Taiwan and China be simpler and more convenient. International credit cards Logistics: cooperating with Taiwan’s logistics company. Pay-at-pickup on Family mart Online Retail Industry In China Five-force Competitive
Rivalry Threat of
Substitutes Threats of
New Entrants Buyer
Power Supply
Power Competitive Rivalry Buyer Power - High (-) Not concentrated

(+) High transparency of information

(+) Low switching cost

(+) Sensitive to price Supplier Power - Low (-) Lots of substitute suppliers

(-) Hard for suppliers to integrate

(-) Suppliers tend to cooperate with
large online retailer Threat of New entrants - High Low entry barrier (-) Low capital requirement

(-) Weak consumer loyalty Threat of Substitutes
- Moderate (+) More secure

(+) Get product immediately

(-) Less convenient

(-) Less discount on product Physical stores 1994
Found as Cadabra 2003
Alibaba found Taobao 2004
Launched “Alipay” 2004
Acquired Joyo.com Entry Mode 2006
Become Asia ‘s largest
shopping web site World’s largest online retailer Largest online retail in China Entry mode - Amazon Amazon's Entry Mode Licensing Investment Taobao Entry Mode Amazon Acquired Joyo.com in 2004 Built a logistic center called “Amazon China” Restriction from Chinese government
Online retail industry is not well-developed in China Similarities Key Resource > IT infrastructure development and maintenance Value Proposition Cost structure > convenience
> offering intermediation service
> aggregation customer demand
> pay great attention customer experience
> Amazon has Mass-customized web services > Marketing

> IT development and maintenance

> logistic expense Differences Key Partner Key Activities Customer Relationship > Amazon has logistic partners. > real-name verification
and has Alipay. > personality recommendation
& trade-manager Channels Customer segments Revenue stream > The amount of capital on advertising. > Range of customers including
general customers and suppliers > Sellers use value-add service
& sales margins & commission. Value Curve Strategy Activity System-Amazon Strategy Activity System-Taobao Similar competitive advantage Different competitive advantage Amazon Taobao > Mass-customised web service > Alibaba trade manager
> Wanpu Amazon > Fulfillment by Amazon (FBA)
> Process of fulfillment by Amazon Taobao > Free transaction fees policy
> Virtual payment tool Forecast Amazon Taobao Staying and consolidate its position in China. Cooperating with Taobao. Business Model Business Model - Amazon Business Model - Taobao Key
Partner Value
Proposition Key
Activities Key
Resources Customer
Relationship Channel Customer
Segments Thanks for
your listening. Cost Structure Revenue Stream Key Partner Logistic partners
Affiliates (publishers, authors, bookstores…)
Companies (online & traditional)
Hardware manufactures Key Activities Fulfillment & IT infrastructure development and maintenance
Product development and promotion Key Resource IT infrastructure, software & experts
Global fulfillment infrastructure Value Proposition Low price
Convenience
Wide selection
Customer experience
Intermediation servicesAggregation demand (long tail)FulfillmentMass-customized web servicesPortable device Customer
Relationship Automated services & co-creation (customized online profile & recommendations)Partnerships & alliances Amazon.com (& overseas sites)Affiliates programLogistic networkAPIs Channel Customer
Segments Global market (consumers)
Global market (sellers & consumers)
Sellers (companies & traditional retailers)
Companies (online & traditional retailers)
Developers Cost Structures MarketingTechnology & contentFulfillments Sales margin
Commissions Revenue Stream Key Partner Key Activities Key Resource Value Proposition Customer
Relationship Channel Customer
Segments Cost Structures Revenue Stream eDynamics (Taiwan)
Family Mart (Taiwan)
Yahoo! JapanBusiness Model - AmazonBusiness Model - AmazonBusiness Model - AmazonBusiness Model - Amazon Entering Taobao’s platform is free to attract sellers
Real-name verification
Public evaluation
Alipay IT (for trade safety system of internet flat-top) Offer safety and honest trade

Convenience

Customer experience

Intermediation services

Aggregation demand Alibaba trademanager Car body Ad, Newspapers, Outdoor Ad, and internet media. (With huge amount of capital on advertising) Online retailers
General sellers Marketing
IT development and maintenance
Logistic expense Sellers use value-add service from Taobao. (mostly derived from Alibaba subsidiary) Group Member Enter Japan in 2010 The way that similar to “Strategic alliance”and “Franchising” cooperating with yahoo japan
Full transcript