...Ankit Singh and Juan Alberto Calero Part A – e-Commerce in China vs USA 1. Overall, what are some key opportunities and challenges (obstacles) that confront ecommerce in China? How are these challenges similar / different from those confronting e-commerce in the US (or other countries that you are more familiar with)? Some of the key opportunities of e-commerce in China are: The internet penetration rate in China is growing at a much faster rate as compared to other countries. 25.5% users in China have engaged in e-commerce, while in US 71% has done so. This represents an enormous opportunity for e-commerce services, given that there is room for growth in China. The market is China is still in the beginning of its growth stage. The manufacturing prowess of china provides an excellent complement to the ecommerce market. Online shopping market has grown 64.1% over last year to $1.5 Billion. Online B2B market is valued at 65.7 B 69.8% yearly growth. With these accelerated growth rates, the e-commerce market will developed very quickly, players need to be aware of the stage of e-commerce in China and address the market accordignly. Small and medium sized enterprises (SMEs) contribute to 68.8% of nation gross industrial output. Only 28% of SMEs utilised third-party B2B e-commerce platform. The government has a plan to increase it to 80% by 2012. Given this, the projected demand for e-commerce is known. In addition , players also known which type of businesses are using e-commerce...
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...Introduction: Yahoo Inc. in the last three months has been in the news, and the news has not been about investment in research and development (R&D), new products introduction and shareholders’ value creation strategy. On November 24, 2015, Standard and Poor’s (S&P), a credit-rating firm announced the cutting of Yahoo rating outlook to negative (BB+) from stable citing the decline in revenue growth and higher cost of attracting traffic to its website (CNBC, November 24, 2015). The rate cut will increase the cost of capital, reduce profit and reduce shareholders wealth. On November 9, 2015, Reuter’s News reported the hiring of the consulting firm McKinsey & Co. The focus of the consulting firm was to assist with the reorganization of the company’s core business (Reuters, November 9, 2015). The decision was a surprise development to the shareholders in that the current management under the leadership of Ms. Marissa Meyer had been at the helms of Yahoo affairs for almost four years and had spent about $7 billion on R&D, Merger and Acquisition. The turnaround initiatives expected with Ms. Meyer’s appointment as the Chief Executive Officer has not come into being, for there has been a high turnover of senior executives. The board of directors and senior management has failed in their attempts to turn around the firm. Yahoo share price has declined year to date by 34% as of November 25, 2015, whereas its’ main competitors Facebook, Goggle, and Microsoft...
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...E-bay’s Downfalls with Asian Markets It has been said that E-bay has not been very successful with the Asian markets. Should E-bay have gone on a mission to expand into the Asian markets? There a lot of things to consider when trying to succeed outside of our country. E-bay was not prepared for the Asian market. More research should have been done prior to trying to expand in Asian marketing. When E-bay decided to expand in the Asian market, they did not take everything into consideration. More research should have been done in order for E-bay to know how to gain the attention of the Asian marketers. An example of that would be the fact that even though E-bay’s CEO Meg Whitman had spent time in China, she was not prepared to cater to their needs. The Chinese executives had more experience in dealing with the specific needs of Chinese consumers shopping online. Another problem that E-bay didn’t expect was Internet accessibility and the inability of local networks to connect to their site outside of Asian countries. E-bay may have been alright had they just did more research prior to jumping into the market. Because E-bay was having problems with the Internet accessibilities, Chinese students opted to use local companies instead. E-bay is not the only brand image. There are more brands out there, such as Google. When you are competing with others, you want to try and beat their price just enough that you won’t shoot yourself in the foot. E-bay did...
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...Trading Data 52-Wk Range Market Cap. Shares Out. Dividend Yield Avg Daily Vol. Float Yahoo! Corp. $18.58 - $34.08 $25,459 MM 1,336.4 MM 0.0% 27,140,000 NA Source: FactSet It’s not often that management of a company sees its stock skyrocket ~50% in one day and have to ask themselves “Is this the best day in company history or the worst?” We believe Yahoo!'s valuation has being hampered by near-term investment concerns which weighed on investor realization of the long-term potential and value of the company. As we pointed out in our 4Q earnings note, we thought the near-term investor disappointment created an opportunity for any suitor that was remotely serious. Fundamental Data EV/EBITDA Enterprise Value LT Debt to Total Cap. Book Value 16.4x $24,681.6 MM 0.0% $7.00 • Implications to Traffic and Search Market Share. Domestically, Yahoo! and MSN together command 11% in page views market share, more than double Google’s 5% market share. In the international market, however, Yahoo! and MSN jointly account for 8% of total page views, still slightly lower than Google at 9%. On Search, the combination of Yahoo! and MSN would represent 33% of query market share in the domestic market and 17% in the international markets, still significantly behind Google at 58% in the U.S. and 70% internationally. • Implications to Advertising Market Share. Yahoo! and MSN together add up to $5.3B in 2007 domestic ad revenues, assuming no synergies,...
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...Comparison I Google & Yahoo! Financial Analysis & Comparison I. II. INTRODUCTION CASH III. ACCOUNTS RECEIVABLE IV. REVENUE V. VI. VII. VIII. IX. LIABILITIES CONTINGENT LIABILITIES FIXED ASSETS MERGERS & ACQUISITIONS CONCLUSION II Google & Yahoo! Financial Analysis & Comparison I. INTRODUCTION Google Larry Page and Sergey Brin, two Stanford graduates, are the founders of Google. It was incorporated in California in September 1998 and reincorporated in Delaware in August 2003, the IRP raised an initial $1.67 billion. In October 2000, it launched Google AdWords, which forms the company’s primary source of revenue till date. Its advertising services include performance advertising and brand advertising. While Google is the internet search giant, it still has to keep innovating to ensure that it grows and doesn’t stagnate or go down the curve. This is the reason Google spends a considerable share of its revenue on acquisitions and research and development. Yahoo! Jerry Yang and David Filo, two Stanford graduates, are the founders of Yahoo!. It was incorporated in March 1995 and raised $33.8 million during its IPO. Yahoo began its operations as a Web Directory and its primary source of revenue has been advertising since then. It was a successful in 1990s, until Google started dominating the search engine industry starting mid 2000's Since then, Yahoo! has been concentrating on reinventing...
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...Comparison of eBay.com and Alibaba.com Thomas Liquori o h T a m i L s o u q . i r e m Digitally signed by Thomas Liquori DN: cn=Thomas Liquori, email=thomasliquori@a ol.com, o=thomasliquori.me, l=New York, NY Date: 2010.09.05 16:57:16 -04'00' 12/16/2009 Professor Reddi: BUS451 By: Thomas Liquori, Danauda Benjamin, and Anca Barbu EBay.com Introduction ................................................................................................................................. 3 EBay.com Products and Services .................................................................................................................. 5 TABLE OF CONTENTS Comparison of eBay.com and Alibaba.com Ebay.com Financial analysis .......................................................................................................................... 6 Ebay.com Last Three Year Financial Graphs ................................................................................................. 7 EBay.com TOWS Matrix Analysis .................................................................................................................. 9 EBAY.com TOWS Matrix Graph ................................................................................................................... 13 Competitive Forces for ebay.com ............................................................................................................... 14 EBay.com Industry Rivalry...
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...E-Commerce Ecosystem Connecting Half of China; Initiate at Buy Key Takeaway China's changing Internet user demographics and mobile development support our favorable view on e-Commerce for the next decade. Alibaba is the largest Chinese ecommerce player, with 80%+ GMV market share, but is only selling to less than 25% of the population now. We estimate well over half of Chinese population will be shopping on Alibaba’s platforms in 10 years. Initiate with Buy; PT USD118. Changing demographics & mobile support ecommerce in the next decade. As discussed in our sector note, "A Taste of Domestic Consumption: The Unleashing of China's E-Commerce Power" published on Sept 19, 2014, China’s e-Commerce growth for the next decade benefit from: 1) changing Internet user demographics towards 30+ year old age groups; 2) accelerating structural shift to online from traditional retail; 3) Chinese government’s massive support for urbanization and domestic consumption; 4) proliferation of affordable smart devices; 5) improving wireless and transport infrastructures in lower tier and rural markets, and 6) rising consumer demand for better quality, design & fashion, authenticity and timely delivery. Growth driven by mix shift towards Tmall, and improving mobile monetization. We expect Alibaba, as the largest e-Commerce player, to sell to well over half of the Chinese population in 10 years, up from less than 25% now. We estimate FY14-17E revenue CAGR of 36%, driven by continued commission...
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...! ! ! ALIBABA!VS.!AMAZON! Does!Amazon!need!to!worry!about!the!aspiring! Alibaba?! Fundamentals!of!Corporate!Finance! ZHONG!Ninghua! written!by!BOULANGER!Guillaume,!DAM!Thuy!Mi,!MAIKATH!Joline! October!09,!2015! Fundamentals!of!Corporate!Finance,!ZHONG!Ninghua! ! ! ! Alibaba!vs.!Amazon! Which%company%has%the%better%conditions%to%be%the%leader%of%the%electronic%commerce%market% in%the%world?%To%answer%this%question,%we%need%to%look%at%some%important%facts%about%those% two%companies%first.% This%report%will%compare%the%latest%financial%statement%from%the%annual%reports%of%Alibaba%Group% Holding% Ltd.% with% the% peer% company% Amazon.com.% In% order% to% understand% the% difference% or% similarity%between%these%two%companies,%we%will%introduce%their%main%business%model%and%of% course%the%financial%statements.%Subsequently,%the%report%is%closed%with%our%own%conclusion% and%the%appendix.%% % Introduction*of*Alibaba*and*Amazon* Alibaba%Group%Holding%Ltd.%was%founded%in%China,%Hangzhou%by%the%former%English%teacher% Jack%Ma%in%1999.%In%China's%eLcommerce%market,%Alibaba%with%its%many%network%platforms%is% already% the% dominant% company.% Its% business% model% consists% of% its% largest% platform% Taobao% which%is%a%customerLtoLcustomer%(C2C)%marketplace%cooperating%in%China%(brings%small%and% private%sellers%with%private%buyers%together%on%a%free%platform),%Tmall%L%a%businessLtoLcustomer% (B2C)%marketplace%in%China%for%larger%retailer%(Nike...
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...CASE: A-197 DATE: 02/05/09 BAIDU.COM, INC.: VALUATION AT IPO Since its official launch in January 2000, Baidu.com, Inc. (Baidu) quickly grew to become the leading Internet search engine in China. After three rounds of private funding, Baidu registered to go public on the NASDAQ Stock Market (Ticker Symbol: BIDU) on August 5, 2005. (See Exhibits 1 and 2 for a listing of Baidu’s private funding sources and pre-IPO share allocations.) The initial public offering (IPO) turned out to be one of the highest-profile debuts since the Internet bubble burst in 2000. The stock price jumped 354 percent on the first day of trading and closed at $122.54, valuing the company at about $3.96 billion based on 32.3 million shares outstanding. While the market showed strong enthusiasm for the stock, Baidu’s public offering nevertheless generated much debate in the investment community about the underlying value of the firm. Furthermore, concerns were raised about whether or not Baidu was able to sustain its growth rate and exceed investor expectations after the IPO. Factors leading to this uncertainty included: the state of the Internet-paid search market in China, the expected growth in the marketplace, the competitive landscape, and the strength of Baidu’s business model and strategic position. BACKGROUND ON CHINA’S ADVERTISING AND ONLINE ADVERTISING MARKETS Advertising Market From 1995 to 2005 China’s advertising market grew at a compounded annual growth rate (CAGR) of 17 percent, which was...
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...CASE: A-197 DATE: 02/05/09 BAIDU.COM, INC.: VALUATION AT IPO Since its official launch in January 2000, Baidu.com, Inc. (Baidu) quickly grew to become the leading Internet search engine in China. After three rounds of private funding, Baidu registered to go public on the NASDAQ Stock Market (Ticker Symbol: BIDU) on August 5, 2005. (See Exhibits 1 and 2 for a listing of Baidu’s private funding sources and pre-IPO share allocations.) The initial public offering (IPO) turned out to be one of the highest-profile debuts since the Internet bubble burst in 2000. The stock price jumped 354 percent on the first day of trading and closed at $122.54, valuing the company at about $3.96 billion based on 32.3 million shares outstanding. While the market showed strong enthusiasm for the stock, Baidu’s public offering nevertheless generated much debate in the investment community about the underlying value of the firm. Furthermore, concerns were raised about whether or not Baidu was able to sustain its growth rate and exceed investor expectations after the IPO. Factors leading to this uncertainty included: the state of the Internet-paid search market in China, the expected growth in the marketplace, the competitive landscape, and the strength of Baidu’s business model and strategic position. BACKGROUND ON CHINA’S ADVERTISING AND ONLINE ADVERTISING MARKETS Advertising Market From 1995 to 2005 China’s advertising market grew at a compounded annual growth rate (CAGR) of 17...
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...HKU701 JIANGYONG LU ZHIGANG TAO EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION In December 2006, eBay Inc., a US company that offered e-commerce, e-payments and internet communication services globally, announced its plan to form a joint venture with China-based online portal and wireless operator, TOM Online, in which eBay would have 49% ownership.1 The move reflected the increasing difficulties foreign internet companies were facing in their attempts to snatch a share of the Chinese market amid fierce competition and a changing market environment. eBay first set foot in China in 2002 by acquiring 33% interest in EachNet—a domestic online auction company, followed by a full acquisition in 2003.2,3 In 2005, eBay acquired Skype4 to expand into the online communication sector. While Skype was a wholly owned subsidiary of eBay globally, it operated indirectly in China via a joint venture with TOM Online. Due to this existing relationship between the two companies,5 TOM Online seemed to be a natural choice of partner for eBay’s subsequent decision with regards to its online marketplace business. Recognising TOM Online’s local knowledge and political connections, eBay believed that a joint venture would benefit its failing business in China and help the company further develop its Chinese market.6 Some analysts questioned whether political connections alone were the answer and suggested that eBay focus on its product and service offerings.7 Vara, V. and Chao, L. (20 December...
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...gaining the market share, although Google did a fair amount of research before entering China but still wasn’t able to beat the local competitor Baidu which is the biggest in terms of search engine in China and accounts for nearly 60% of the market share.(Appendix 4) • Chinese Government rules and regulations related to the censorship in China which was against the Google’s Mission of providing the information. • Cyber attack on Google China which mainly target the gmail accounts of the users who were Human Right activists which forced Google on considering its exit from China. • A brief analysis of the internet search market in China by discussing the market share of various players such as Google, Baidu, Microsoft, Yahoo and other local Players. • Possible strategy which Google could use in order to grow and sustain its market share(Ivey Case B) Introduction: Google started its operations in China in 2005 earlier to that it provided search engine to Chinese...
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...Pablo Luarca I092080 Índice de libertad económica en China. China es un país con un solo partido político y se define como un estado comunista. Se mantienen estrictas limitaciones sobre la libertad política, de expresión, de religión y de asociación. China liberó algunas partes de su economía en las décadas del 70 y el 80, lo cual logró un crecimiento económico impresionante. El índice de libertad económica de China es el mostrado en la gráfica 1. El país se encuentra por debajo del promedio mundial. Esto indica que China está lejos de brindarle a sus habitantes la adecuada libertad económica. En la gráfica siguiente podemos ver que casi tres cuartas partes de la población mundial viven en naciones mayormente controladas y reprimidas. La gran mayoría de esas tres cuartas partes vive en dos países, India y China. Entrando en detalles. Una mirada rápida a las libertades económicas en China. La fundación Heritage realiza una agrupación de las libertades económicas en cuatro áreas. Estado de derecho. Figura 1: Indicadores de China en el área de estado de derecho del índice de libertad económica. Pablo Luarca I092080 En el área de estado de derecho, el sistema judicial de China es muy vulnerable a influencia política y corrupción, sobre todo en las áreas de banca, finanzas, compras gubernamentales y construcción. Todas las propiedades deben tener arrendamientos a largo plazo debido a que la tierra es propiedad del estado y estos arrendamientos ...
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...ACKNOWLEDGEMENT I express my sincere thanks to Mr. Vineet Kumar (Regional Manager), Mr. Vikram Mishra (Sales Head) for giving me the opportunity to do training and to learn and upgrade my skills in this esteemed company. I want to express my gratitude and sincere thanks to Mr. Ravi Kumar (Sales Manager) for his valuable guidance and support in planning, organizing and structuring the conduct of my summer training and in compilation of final of final report. Under his able and close supervision was able to successfully complete this work. The present work reflects at every part his valuable and wise suggestions, discussions and criticism. I am also very much Thank full to Mr.Gaurav Mishra (ASM) & Mr. Ajay Pratap(ASM) for his great guidance witch got in the period of summer training and to the other employs of marketing department of “Indiamart Intermesh Ltd”. I am very thankful to my faculty Guide Ms. Sonia Singh who guided me to accomplish the project and I dedicate this project report to my faculties. ANUPAM MANGLIK MBA(M&S) A0102207022 PREFACE Quiet frequent these days, people talk of Marketing & Sales both in academic institution and industries. Several project works are undertaken and accomplished year after year. But in most cases, very little attention has been paid to an important dimension relating to project work. The result is that much of the project research, particularly in social science, contains endless word spinning and too many quotations...
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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