This is a solution of Online Marketing Assignment Help in which we discuss Developing business

This is a solution of Online Marketing Assignment Help  in which we discuss Developing business

Introduction

To date, internet marketing technology has spilled intothe social, economic, political and cultural areas of the lives of people of all cultures and creed.  The online shopping is one ramificationof the advent of internet technology. With the development of the economy, more and more people join online shopping. In China, the first online shopping is start in year 1998, now the Chinabiggest online shopping website is Taobao/Tmall which own by Alibaba Group, in Year 2014 Singes Day which is largest online shopping day in China same in the world, and that day Alibaba have reached 57.1 billion RMB sales which equal to 9.3 billion US dollar. (Custer, 2014) Although Alibaba and its online shopping mall and shopping event have bring a huge economic benefit to the China situation, but the negative news also increase fast and most of news are related to counterfeit and shoddy products. According to the 2014 analysis data from the State Administration of Industry and Commerce of the China, they state the rate of graded product in Taobao only have 37.2%, which mean there have 62.8% product is fake and inferior products. (SAIC, 2015) Therefore in this thesis will focus on the Chinese e-commerce and target on the online shopping area, at same time will give the case study with Taobao to fully understand why Taobao have so much problem, but still drive fast development speed in Chinese online shopping area. And this chapter will provide overview of this thesis, and certain research will show in below.

Research Background

The online shopping hasadvantagesdue to its low-cost, high speed and high coverageresulting in unprecedented revolution and development opportunities for small and medium-size enterprise.(Frąckiewicz and Grzesiuk, 2013) With fast development on the online shopping and popularization of its concept and usage, more and moreSMEs are joining the online shopping. But with booming in the online shopping, there have a lot of problems have prominent. The global e-commerceisdeveloping fast, and China e-commerce are also develop fast and good which throughmany ups and downs. Since the Customer-to-Customer (C2C) e-commerce started from 21^st Century, it brought a lots of economy benefit for China economy(Chen et al, 2007), therefore lots of company have entry Chinese C2C market because they have to see a huge economy interest, here include Taobao, eBay and Amazon. In Chinese C2C market, eBay is first company, but in few years later Taobao have easily overcome eBay, even have so much problem happen with Taobao, but till now don’t have any other can shake Taobao’s position in online shopping. This has generated a far-reaching influence in Chinese online shopping market. In this case, compare the commercial model between the Taobao and eBay have significance for whole Chinese e-commerce development. Since year 2005, there have many scholars have compared the development between the Taobao and eBay. Therefore the researcher base on this situation also processes a contrast study with Taobao and eBay. (Alibaba own Taobao and Tmall two online shopping mall, but usuallygeneral name call Taobao, therefore in below writing will just use Taobao as main research project)

With the fast development in Chinese science and technology, the internet is developing fast and the C2C e-commerce market in recent years has made great progress.The Alibaba established the Taobao in year 2003 in 3 year later which is 2006 has become a top brand in online shopping market (Xiaojuanou and Davison, 2009),can the Figure 1 is show Taobao and eBay situation till 2007 eBay exit chinese market, it not only because its marketing strategy fit the demand of the Chinese social development, as same time it have an e-commerce model which fit Chinese consumption crowds. (Jing,2014)

In contrast to that, eBay sales are appear a falling tendency when Taobao arise in online shopping market, it deserve to make a reflection. Although Taobao are growing quite rapidly but still remain certain issue, and current profit model is not a really suitable profit model, therefore discuss e-commerce model between the Taobao and eBay, is not only can help Taobao improve its business model and defect, but also can take example by the result of Taobao to help eBay to ensure what correct business model for future development, the researcher will through the current development status and future analysis to support the business model comparison between the Taobao and eBay.

With respect tocompetitive power, it is an important factor in any industry, especially in online shopping market.Usually in online shopping market have included certain competitive power:regional competitiveness, enterprise competitiveness, core competitiveness,brand competitiveness, quality competitiveness,management competitiveness, andservices competitiveness(Forman et al, 2009).In this case, the researcher only consider about regional competitiveness,core competitiveness, and services competitiveness, because these tee competitiveness are more direct reflect the commercial model, but other competitiveness area are more management level. For the online shoppers, they are care about is this online shopping mall can buy any product they want, is online shopping mall have good service, therefore these are impact regional and services competitiveness(Weiyin, et al, 2004). For the core competitivenessin fact is marketing and extension, because for an online shopping mall, make people buy product through online shopping mall rather than physical store, the marketing and extension are important. And above element is driven by the commercial model, if a company want find a correct commercial model, they must ensure the service, product, marketing and other element, also this element will impact the commercial model, it can be say they are influence each other.( Grochal-Brejdak and Szymura-Tyc, 2013)

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