2. 1KEY
ISSUE
The 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.
4. 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.
5. HIGH
Threats of new
competitors
HIGH
Bargaining power of
suppliers
LOW
Rivalry among
existing competitors
HIGH
Threat of products and
substitute services
HIGH
PORTER’S
5MODEL
Bargaining power of
customers
6. 5PORTER’S
MODEL
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 0.6
Bargaining power of suppliers 15% 4 0.6
Rivalry among existing competitors 5% 5 0.25
AVERAGE 3.15
10. 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
13. · Mktg y Vtas: mas o
menos porque en area
mktg se dan a conocer
bien como marca, pero
en ventas al no tener
ganancias estan mal.
· Servicios: no es 5 porque
hay insatifiscacion en
servicio, segĂşn tablas
caso.
SUPPLY
TECHNOLOGICAL DEVELOPMENT
HUMAN RESOURCES
ENTERPRISE INFRASTRUCTURE
--
5
4
VALUE
CHAIN5
INTERNAL
LOGISTICS
5
OPERATIONS
5
EXTERNAL
LOGISTICS
5
MARKETING
SERVICES
AND SALES
2 4
14. VALUE
CHAIN WEIGHT RATE VALUE
Supply 0% - 0
Technological Development 20% 5 1
Human Resources 5% 4 0.2
Infrastructure 5% 5 0.25
Internal Logistics 25% 5 1.25
Operations 15% 5 0.75
External Logistics 5% 5 0.25
Marketing and Sales 10% 2 0.2
Services 15% 4 0.6
AVERAGE 4.5
15. 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.
25. 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.
26. OBJECTIVES
SHORT TERM 1 YEAR
Develop a business model that has higher margins
Profitability (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).
29. PRODUCT
E-commerce service
that delivers
Search 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 through
safe "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.
4P`S