Dissertation Introduction - Taobao vs eBay - Essay Example

In terms of outline, this chapter will then offer a Background and rationale for the study, which is based upon existing work in the area. Several studies have recently been made of the eBay and Taobao phenomena, and the results documented. These will be used as a springboard towards the contribution of this study. The Aims and Objectives section of the chapter will offer the overall objective of the study. The aim is to scrutinize the current situation of eBay in China, and how a comparison with the more successful Taobao can be used in order to improve its situation.

This section will also clarify the concepts of e-Commerce and C2C e-Commerce. The e-Commerce business model that eBay is currently using in China will also be evaluated. A comparative analysis will be performed of eBay and Taobao. Initial recommendations will be formulated in order to optimize eBay’s Chinese market presence, while the objectives identified will be related to the achievement of the overall aim. The methodological framework will be explained, while the chapter concludes with a brief outline of the dissertation structure.

Despite a promising beginning, eBay has been experiencing a recent drop in growth in its Chinese market. Its main competitor in this market is the local company, Taobao. This study is then conducted in order to identify possible ways in which eBay can remedy its market position in China. Several important studies have been conducted to compare Taobao with companies such as eBay in order to identify the success factors of the former. One such study has been conducted by Chen et al. (2007). According to the outcome of this investigation, three main factors have differentiated Taobao from its American counterpart, and been responsible for the success of the former.

The first factor is that China’s C2C (consumer to consumer) market is young and experience-seeking. The customers are price sensitive, in concomitance