LOGOReportonAnImprovementforTaobao’sdrawbacksandstrengths4Therecommendationsforeffectivemarketingstrategies.3Theanalysisofthecompetitors1GeneralsituationinTaoBao5ConclusionTaoBao,foundedinMay2003andwasfinancedbythebestB2BwebsideAlibaba,whichisthebiggestnetworkretailingbusinessinChina.TaoBaocommittedtobuildingaleadingglobalnetworkretailingbusinesscircleandtheworld‘slargestpersonaltradingwebsite.ItsbusinessacrossC2C(consumertoconsumer),B2C(businesstocustomer)Theoriginalmoneyofc2carechargedfrom:TransactionservicechargeCharacteristicservicechargeValue-addedservicechargeOnlineadvertisingchargeIn2003,TaoBaoisformallyestablished.In2004,TaoBaoachievedbreakthroughgrowthintheintensivecompetition.In2005,TaoBaotooktheplaceofitsrival--eBay,anditistop1inthenetworkretailbusiness.In2006,In2007,TaoBaodevelopedintothebiggestnetworkretailbusinessinAsia.Itsannualvolumeofbusinessbreakthrough400billion.In2008,itstartedBigTaoBaostrategy.In2009,Thesumofbusinesstransactionsclosedto100billion.Ontheotherhand,theregisteredusersofAliPayover100million.In2010,TaobaostartedtheChina-JapannetworkplatformwithSOFTBANKCorporation.Inthesameyear,TaoBaostartedareform.:Buildbusinessecosystemsellermanufacturerpurchaser’sstrengths:PerfectpaymentsystemTheuniquephysicaldistributiongatewaysConvenienttradingcommunicationmethodTaoBaohasbuildeditsownbusinessecosystemThesecurityofTaoBao’sPaymentSystem(byAlipay)isclosetothebankingsystem:SecuritycontrolsofpasswordMobilevalidationofpaymentAccountvalidationVarietyofpaymentmethod:E-currencypaymentCreditcardpaymentCashondelivery(C.O.D.)OutletspaymentPleaseseethetable(Alipay)PaiPaiEbayInternetBank(Debitcard)14banks22banks23banksInternetBank(Creditcard)10banks7banks11banksFullpaymentbycreditcard1banks0banks12banksInstalmentbycreditcard0banks5banks2banksEnterprise3banks0banks3banksSignedentrustdeductions10banksinBeijing13banksinShanghai14banksinHangzhou……4banks0banksPostalremittancesupportsupportsupportOutletsremittanceSevenpartners,Open27citiesInternetbarCooperativesandbankoutletsDoor-to-doorcolloctionnonsupportsupportnonsupportC.O.DsupportsupportsupportShoppingcardLianHuaokCardnonsupportNonsupportTaoBaohasitsownlogisticsservice.ThesellerscandirectlychoicelogisticscompanyandcomparethepricethroughtheTaoBao.Thelogisticscompanywillofferpreferentialtreatmenttothesellers.BothsidescanmonitorthelogisticsstatethroughTaoBao.TaoBaoallowthesellerstoprovidetheircontactinformationtothebuyers.Taobaoprovideinstantmessagingtools(WangWangtool)totheroundturn.ThecustomerwhobuytheproductbeforetheytalkoverwiththesellerschangeThecustomercanknowtheproductwhattheywanttobuybeforetheypayment’sShoppingprocess:AlipaynoticethesellerstoshipmentThesellersshipthegoodsThebuyerstakedeliveryofgoodsAndinformtheAlipayAlipaypaythesellersTradesuccessfulMerchandiseselectionThebuyerspaythemoneytotheAlipay’sdrawbacks:ThesecurityofAlipayTherisingcostofthesellersinrunningonlineshopsLackoftransparencyintheevaluationsystemUnabletofullyguaranteeafter-salesserviceExistingproblemsToofferanewnetworktradingserviceplatform.AlongwiththedevelopmentofTaobao,newvendorshavetopaymoreandmore.ItwillbeoneofthebarriersinthedevelopmentofTaoBao.Thesellersneedtoputhundredstothousandsofyuanintothefalsecreditrating500~2000yuaninplanmarginHundredstothousandsofyuanfordecoratingonlinestorefrontThemoneyonshoppromotionShopservicechargeaccordingtotheyears(limitingTaoBao)Handin2percentsoftheturnover(limitingTaoBao)Handinthird-partytechnicalse