This four-part case series follows Taobao, part of the Alibaba Group – the leading business-to-business (B2B) e-commerce company in China – from 2003 to 2006. The A-case begins in April 2003 as Jack Ma, the 39-year-old CEO of Alibaba, worries. According to the latest market data, eBay, the global leader in online auctions had reached almost total dominance of the local consumer-to-consumer (C2C) market – only about a year after its entry into China.
While Alibaba was not active in the Chinese C2C market, and eBay’s expansion did not impact its current business, looking forward, there was cause for concern. What if eBay decided to use its C2C power to attack Alibaba in its traditional B2B domain? Jack wondered if anything could be done to prevent this from happening?
The B-case documents how Taobao competes with eBay in China’s C2C market. It describes Taobao’s strategy to increase its market share. The C-case discusses Taobao’s business model. Although they gained market share at the expense of eBay, the question remains—what business model should they adopt so they can make money in the future? The D-case is an update on the competitors’ strategies and the events that took place between 2006 and 2010.
Alibaba vs. eBay (D)
Summary
This four-part case series follows Taobao, part of the Alibaba Group – the leading business-to-business (B2B) e-commerce company in China – from 20...
Reference
IMD-3-2187
Copyright
©2010
Copyright owner
IMD Copyright
Organization
Taobao, Alibaba Group
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Alibaba vs. eBay: Competing in the Chinese C2C market (A)
Summary
This four-part case series follows Taobao, part of the Alibaba Group – the leading business-to-business (B2B) e-commerce company in China – from 20...
Reference
IMD-3-1842
Copyright
©2007
Copyright owner
IMD Copyright
Organization
Taobao, Alibaba Group
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Alibaba vs. eBay: Competing in the Chinese C2C market (B)
Summary
This four-part case series follows Taobao, part of the Alibaba Group – the leading business-to-business (B2B) e-commerce company in China – from 20...
Reference
IMD-3-1843
Copyright
©2007
Copyright owner
IMD Copyright
Organization
Taobao, Alibaba Group
Available Languages
English
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Alibaba vs. eBay: Competing in the Chinese C2C market (B) (Abridged)
Summary
This is an abridged version of the "Alibaba vs eBay" B-case. The original four-part case series follows Taobao, part of the Alibaba Group – the lea...
Reference
IMD-3-2319
Copyright
©2012
Copyright owner
IMD Copyright
Organization
Taobao, Alibaba Group
Available Languages
English
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Alibaba vs. eBay: Competing in the Chinese C2C market (C)
Summary
This four-part case series follows Taobao, part of the Alibaba Group – the leading business-to-business (B2B) e-commerce company in China – from 20...
Reference
IMD-3-1844
Copyright
©2007
Copyright owner
IMD Copyright
Organization
Taobao, Alibaba Group
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Here’s what we predicted for 2024… how did we do?
Summary
Did our predictions for 2024 come true, a turbulent election year, bitcoin and CBDC, COP29 and electric cars, China, EU integration and Euro football
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The strategic imperative
Summary
In a world where change is the only constant, the strategic imperative for sustainability is not just a theoretical construct – it’s a call to action. This section of the book delves into the core strategies that will enable businesses to thrive i...
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Framing the conversation
Summary
In late 2020, as the world began to emerge from the worst
of the COVID-19 pandemic, Wärtsilä, a Finnish corporation
specializing in power systems, made a bold decision.
Despite being a well-established company with a strong
track record in...
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Hostage at the table: How leaders can overcome conflict, influence others, and raise performance (2nd edition)
Summary
In the newly revised second edition of Hostage at the Table: How Leaders Can Overcome Conflict, Influence Others and Raise Performance, clinical psychologist, distinguished leadership professor, and veteran hostage negotiator George Kohlrieser com...
Copyright
©2024
Copyright owner
External Copyright
Available Languages
English
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Access to the Chinese market: An obsolescing bargain?
Summary
With stagnant import volumes since 2021, and import prices at levels below those suggested by fundamentals, foreign exporters face an uphill battle to convert access to the Chinese market into revenues. Notably, the volume stagnation predates the ...
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©2024
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External Copyright
Available Languages
English
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NTT at a crossroads (A): Quest for growth
Summary
NTT Corporation, Japan’s information and communication technologies (ICT) leader since 1953, was the first to commercialize internet usage on mobile phones in the 1990s, which resulted in NTT achieving much success in Japan. However, by the end of the 2000s, Japan faced challenges with an aging population and a stagnant economy. Recognizing disruption in the ICT sector, CEO Satoshi Miura understood the need for the dominant players in the ICT industry to integrate emerging business domains beyond their existing frameworks. To secure leading global positions in ICT and the new paradigm of cloud computing, Miura needed to make strategic choices to revive growth. Case A provides information on NTT, its rivals, the global market and cloud computing disruptions. The case ends with NTT’s CEO exploring strategic growth options to prepare NTT for the future.
Reference
IMD-7-2351
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Nippon Telegraph and Telephone
Industry
Services, Telecommunications;Information Technology
Available Languages
English
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NTT at a crossroads (B): Mapping growth options
Summary
Building on NTT (A), the case starts with NTT’s CEO having narrowed down strategic growth options with the board to prepare NTT for the future. Past international investments in AT&T Wireless and KPN to tap into foreign markets had resulted in billion $ write offs and stopped international acquisitions. However, after reviewing the disruptive changes facing the ICT industry and considering the shareholders’ views, CEO Miura committed to internationalization. The B case details NTT’s growth strategy focused on internationalization, while considering the need for new capabilities and technologies. It provides more insights into NTT, its opportunities and the Japanese experience with M&As and ends with Miura’s determination to quickly grow through international expansion to prepare NTT for the future.
Reference
IMD-7-2352
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Nippon Telegraph and Telephone
Industry
Services, Telecommunications;Information Technology
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Feeding the dragon: Revisiting ChemChina’s acquisition of Syngenta
Summary
Basel (Switzerland), March 2024. The acquisition of Syngenta by ChemChina in 2017 was a major event for the agricultural industry and, with a price tag of $43 billion, the largest ever foreign acquisition by a Chinese firm. A number of issues were flagged by analysts as key concerns, including governance, post deal integration, culture conflicts and a lack of synergies. With hindsight, were those concerns valid or had they failed to capture the overarching rationale for the Syngenta deal? Why did the Syngenta board support the transaction when so many other western firms rejected such approaches? More remarkable even was the fact that the CEO brought in to manage the complex acquisition, Eric Fyrwald, was still in place seven years after the transaction, an inordinately long tenure for a chief executive in any setting. What were the keys to this remarkable longevity? How did Eric manage to combine these two hugely different entities into an even more formidable giant? What did it take to balance the cultural sensitivities of Swiss and Chinese shareholders and managers? Could lessons be learned for other executives put in charge of complex, multicultural, transformational acquisitions? The success rate of M&A transactions was notoriously poor: What made this such a different animal?
Reference
IMD-7-2577
Copyright
©2024
Copyright owner
IMD Copyright
Industry
Food Production, Agriculture;Food Production, Agricultural Services
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Overcoming adversity through innovation – Daikin at 100 (B): Sustainability lessons
Summary
This case study examines the remarkable evolution of Daikin Industries, a company that demonstrated resilience and innovation over nearly a century. Founded in 1924 by Akira Yamada in Osaka, Japan, Daikin originally focused on manufacturing aircraft components. However, the company pivoted towards refrigeration technology in response to emerging market demands, notably during Japan’s post-World War II economic boom. By leveraging R&D in fluorocarbons and innovative cooling technologies, Daikin established itself as a leader in the air conditioning sector. The case highlights key leadership eras, notably the transformative periods under Noriyuki Inoue. Under Inoue’s stewardship, the company emphasized execution capabilities, prioritizing operational excellence alongside technological advancement. His leadership drove Daikin’s globalization strategy, enabling the company to become the second-largest fluorocarbon producer globally and the foremost player in the air conditioning market. As Daikin approaches its 100th anniversary, it faces contemporary challenges such as climate change and increasing consumer demands for energy-efficient products. The company’s commitment to innovation remains pivotal as it seeks to balance profitability with environmental responsibility. This case prompts discussion on Daikin’s strategic responses to evolving market conditions and the importance of leadership in sustaining growth.
Reference
IMD-7-2619
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Daikin Industries
Industry
Consumer Goods, Home Appliances
Available Languages
English
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Research Information & Knowledge Hub for additional information on IMD publications
Overcoming adversity through innovation – Daikin at 100 (C): China market lessons
Summary
Daikin’s success in the Chinese air conditioning market serves as a compelling case study in strategic adaptation and collaboration. Following its entry into the market in the 1990s, Daikin faced formidable competition from well-established domestic brands like Gree and Midea. Despite the initial challenges of breaking through in a fragmented and competitive landscape, Daikin’s innovative inverter technology became a distinguishing feature of its product offerings. The watershed moment in Daikin’s trajectory occurred in 2008 when it formed a strategic partnership with Gree, China’s largest air conditioner manufacturer. This collaboration enabled Daikin to tap into Gree’s expansive distribution network and manufacturing expertise, significantly enhancing its own market reach. The partnership proved mutually beneficial; Gree capitalized on Daikin’s advanced inverter technology while Daikin secured a foothold in a market driven by increasing consumer demand for energy-efficient solutions. By 2012, inverter air conditioners claimed over 60% of the Chinese market share, a figure that surged to over 90% by 2024, illustrating the success of their joint efforts. Furthermore, Daikin’s commitment to sustainability was manifested in its pioneering use of HFC-32 refrigerant, known for its low global warming potential. By openly licensing HFC-32 patents globally, Daikin not only positioned itself as an environmental leader but also fostered industry-wide innovation. This case highlights the critical importance of strategic partnerships and innovation in overcoming competitive challenges and underscores Daikin’s role as a transformative force in the global air conditioning market.
Reference
IMD-7-2620
Copyright
©2024
Copyright owner
IMD Copyright
Organization
Daikin Industries
Industry
Consumer Goods, Home Appliances
Available Languages
English
Contact
Research Information & Knowledge Hub for additional information on IMD publications