Whoever the writes this article is completely missing the point. This article seems to focus only on the only retail market so let’s talk about exactly just that. First of all, TaoBao’s business model is never new to the US. Remeber theee is still a company called eBay? Besides, the strongest advantage of Amazon’s online retail business is (which the article never even mentions) its consistent best of the best customer experience enabled by a) its scale of business operations, and b) its complex web of logistic system including a huge network of warehouses in the US. The first is hard to do for TaoBao in the US because they are so far behind and the latter is something that TaoBao can never do unless it wants to completely overhaul its business model. In fact, if you have been a customer of both TaoBao in China and Amazon in the US, you will feel that the experience of TaoBao is so much worse that you would start wondering how there could have no other alternatives in China. TaoBao is successful in China not because it has the best business model but because it grew so fast (with the resources available from its original B2B business) and monopolied the entire market becfore anyone else had a chance. However, whatever it does in China will never ever even remotely threaten Amazon in the US. Too late. And the business model is inferior at least I. The context of the online retail market in the US.
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