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Marktforschung

Rutgers, New Brunswick NJ

2016

Katharina R. ©
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Course:Business to business marketing

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Date:February 18th, 2016


B2B E-commerce in China: The Story of Alibaba.com


  1. Does the “bird cage” theory when applied to China´s Internet policy consitute a serious threat to the development of the B2B e-commerce industry?


The “bird cage” theory developed by Chen Yun, consists that “the economy should be allowed to fly free like a bird but only within the confines of a good strong cage”.1 This theory is similar to one of the possible scenaries of the telecommunication industry which has in consideration the demand and how consolidated is the market: Paradise lost (low demand, fragmented market), Gold Rush (high demand, fragmented market), Wars of attrition (low demand, consolidated market) and finally Gilded cage (low demand, consolidated market).

In this industry being in a gilded cage scenario means being protected by the goverment with laws, regulations and privilegies. Phone companies were served with a market and the protection to basically do as they pleased. Also because of the service they were providing and the high costs of infraestructure, they goverment granted them with contracts for 30 years.

The “bird cage” theory posits a limitation on the growth for e-commerce in China, instead of providing settings for a fair competition between companies.

Not only the policies are slowing down the development of the industry but also the entry barries such as high start-up costs, the lack of technology bidders and the human resources are not helping the industry.

To add more conditions to the list, China has a history for internet censorship.

But on the other hand for B2B e-commerce, the goverment is trying to promote it accelerating regulations and taxation to make it more safe for costumers and suppliers.

To summarize it seems that at first China´s policies where trying to regulate and maybe become a threat to the growth of the industry as it happened with other industries, but manufacturing industry represents 70% of China´s GDP which makes more sense to create a safe enviroment for traders through e-commerce to facilitate exportation of China´s products, which they did.


  1. What is the focus of Alibaba´s business and what makes it so different from some .....

In many articles written about him, each one of them highlights his leadership role and also his way of understanding business and life. There are many stories about his failures and getting back up again to keep fighting. So there are many ideas he shared through his leadership that are different from everything we are used to:

  • Make something that has a higher motive (helping people)

  • Stay innocent and naïve when it comes to ideas

  • Never give up because that´s the real failure

  • Hire people that you could learn from

  • Be tenacious and have the right attitude

  • Unite people under one goal

  • Don’t make up enemies, make them friends and learn from them


    1. What are the benefits of the strategic cooperation with China Post?


    Before the agreement between Alibaba and China Post, the options for the buyers for Alibaba.com and Taobao.com were private delivery companies that did not cover the whole country and also did not offer a good service for losses and damages of the goods.

    With this strategic cooperation, costumers could use China Post´s locations to fund there Alipay accounts instead of using debit card or a bank account. They created a new service called “e-Youbao” which made the costumers feel more safe with their online purchases. Also buyers could use China Post´s green card debit service.

    The association with this brand gave Alibaba a better reputation and confidence, because China Post was one of the .....

  • (source:

    With this market conditions is not hard to understand why they won´t expand their business to the US.

    To achieve the ambition of becoming the site for trading globally, they started where the exporting companies are which is Asia, which make them successful so far.

    To move forward and take over the world one of the strategies can be to partner up with companies like Alibaba but more locally. For example, there is a lot of manufacturers in Brazil. If Alibaba wants to get those buyers and sellers to participle in Alibaba´s business model, a good strategy would be understanding how business is handle in Brazil and connect with small and medium companies and associations of the SMEs.

    Ma´s idea for Alibaba´s future is to concentrate on profitable add-on features like shipping, financing, quality control and insurance. To achieve his goals acquiring or partner up with companies that have the know how of this services. Including a CRM strategy could make their customers more loyalty to the b.....






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