Information Computing Technology and Customer Relationship Management

Abstraction: With the success of information and communicating engineerings ( ICT ) -particularly the internet-organizational transmutations are taking topographic point in industries and companies ( Martinez, 2000 ; Tapscott et al. , 2000 ; Timmers, 2000 ) . “ The Internet allowed the creative activity of a new retailing engineering: Electronic commercialism ” ( Mazon, 2001 ) . Several companies runing electronic commercialism have achieved success and made great net income. The intent of this study is to analyze their schemes and the consequences the schemes have brought to the companies. Taobao which chiefly focuses on the C2C concern is selected to analyse, three enterprises are given to allow Taobao do more net income and supply the better service.


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Taobao web site was established by the biggest trade goods merchandising site-Alibaba in 2003. It provides a great platform depended on Alibaba ‘s market experience and service capablenesss of B2B for 1000000s of Chinese those who prefer do shopping on-line ( Yang & A ; Liu, 2009 ) . Taobao, whose motto is: Tao! I like it, is the Asia- Pacific ‘s largest web of retail and concern territory, taking to construct the universe ‘s prima web of retail and concern territory. Taobao has two parts of concern: C2C and B2C ( B2B ) , the sum of staff is around 1200.

On 7th Jan,2011, Taobao released the 2010 one-year Festival online shopping informations. Data shows that in 2010, Taobao has 370 million registered users, the figure of on-line merchandises reaches 8 million. Meanwhile, Taobao Mall which is the representative of B2C concern minutess fourfolded in 2010, this growing rate will stay in the following few old ages. Data besides shows that Taobao daily top out turnover is 19.5 billion kwais. In footings of users, Taobao figure of minutess per user on norm than in 2009 increased by 35 % , while the inner Taobao last month more than 5 minutess on the user to make 1350 million.Figure 1 shows the users figure, turnover and market portion from 2007 to 2010.





User figure

53 million

98 million

170 million

370 million

Employee turnover

43.3 billion

99.9 billion

208.3 billion


Market Share

74.7 %

80 %

83 %

94.71 %

Figure 1

2. Operational prosodies:

2.1 “ Free Lunch ”

Sellers need non pay any fee when they open on-line stores, and both Sellerss and purchasers need non pay a service charge when they have trades ( Wang & A ; Chen,2006 ) .

2.2 Customer Relationship Management ( CRM )

Chen Al. ( 2007 ) argued that “ CRM, as an effectual and efficient manner of carry oning concern has been proven to assist companies serve their clients better and obtain core competency in market pattern ( ( Peppers & A ; Rogers, 2004 ) , Boulding et Al. 2005 ) . ” CRM theory contends that the optimum long-run maneuver for houses is to construct and pull off strong relationships and to develop trueness with mark clients through creative activities of double value ( Boulding et al. 2005, Payne & A ; Frow 2005 ) .

2.3 Secure trading platform

Yang & A ; Liu ( 2009 ) claimed that “ Taobao reached an understanding with the Ministry of Public Security in July 2004 in order to construct a “ national citizen designation figure enquiry service centre ” , which provides a more unafraid trading environment for Taobao. ” The users ‘ enrollment information would be submitted to the Ministry of Public Security to look into the cogency and the consequences so will be returned to Taobao. Meanwhile, Taobao has besides strengthened its illegal misdemeanors of the crackdown, when making the cooperation with the important sections. This cooperation has greatly enhanced the popularity of Taobao ( Yang & A ; Liu, 2009 ) .

3. IT prosodies:

3.1 Excellent quality in web site

Taobao has high quality web site, if it is non the best, it will better than most of the others. The web site can supply great aid to new users allowing them acquire familiar with the interface. Taobao insists on doing advancement and invention to do its website concise and apprehensible. The pilotage saloon which locate in the right corner is simple, the interface is truly user-friendly.

3.2 Instant communicating system

Ali Wangwang helps instant communications between Sellerss and purchasers. It is convenient for a purchaser to cognize the features of the goods, and for both the purchaser and the marketer to happen out more information straight through interaction ( Wang & A ; Cheng, 2006 ) .

3.3 Online repute system

Li & A ; Lin ( 2006 ) argued that the on-line repute system in Taobao counts repute tonss based on bargainers ‘ feedback. There are three options for a purchaser to hit his trading spouse with positive, impersonal, or negative points every bit good as go forthing brief remarks. These accrued tonss are available publically.

4. Fiscal prosodies:

4.1 Fundss from parent company Alibaba

In 2005, harmonizing to the Chinese Business News study, Alibaba invested one billion RMB in keeping the operation of Taobao. In 2008, Jack Ma announced that Alibaba would put five billion RMB to go on to implement the free service scheme in Taobao.

4.2 Ad

BDA ( 2010 ) claims that in 2009, over 80 % of Taobao ‘s grosss came from advertisement, largely ‘pay for public presentation ‘ advertizements every bit good as ‘pay for dealing ‘ and trade name advertizements.

4.3 Charges from Taobao Mall

Taobao charges on its new ( launched in 2008 ) Taobao Mall – a B2C country within its C2C platform – and value added services for merchandisers ( BDA, 2010 ) .

5. Enterprises

Charge the Sellerss and standardisation are refering the C2C portion of concern, because the B2C ( B2B ) concern have already began to bear down and the affecting Sellerss in B2C ( B2B ) are ever large makers or physical shops, they hire professional people to plan their web pages on Taobao.

5.1 Charge the Sellerss ( E-marketing )

On 8th Oct, 2010, ZhangYong, the CEO of Taobao declaimed that it is the first clip to accomplish the

Balance of patments in this twelvemonth ‘s August. He did non unwrap the specific figure about cost and income. However we can deduce from Zhang ‘s address that although Taobao has big volume of minutess and the biggest market portion, Taobao did non bring forth net income until 2009. Harmonizing to my research, Taobao did non take important actions to raise income or alter their concern scheme in the past old ages, hence the income and the net income can non turn rapid in 2010 and the coming old ages. Consequently, the net income growing is the end of my first enterprises.

From the really beginning, Taobao utilizing “ free tiffin ” scheme in order to busy the market portion cause they knew that people do non desire to pay any fees in progress without any protection, the marketer ‘s hazard cut down to zero as a consequent that Taobao does non bear down naming fee from the first twenty-four hours.

In these twenty-four hours, Taobao have occupied the biggest market portion for a really long clip, many costumiers are really loyal to this trade name. Additionally, Taobao has been proved to be a good platform that Sellerss can do net income once they have quality and good services. So, I assume Taobao should get down to bear down shop fee, ware listing fee and dealing fee from marketer. However, it should be realized that one time all the fee begins to bear down, the addition rate of Sellerss who want to open a store on Taobao would drop, even those who already have a store might shut the store because the net income can non run into the fees. Apparently, the lessening of Sellerss decidedly will take to decrease the type and measure of merchandises that can be chose by clients, as a consequence the clients find it is difficult to happen certain merchandises when this lessening make a certain degree. Therefore, the scheme of bear downing fee should be diverse and flexible, bear down different sum of fees to different types of Sellerss.

5.2 Standardization ( web page techniques and content direction system )

The word standardisation has several significance here, the first 1 is to standardise the interface of marketer ‘s personal store web page. As we have discussed above, the web site of Taobao is really simple and functional which is a important factor that contribute to the success of Taobao. However the marketer ‘s personal store web page is rather different from one to another ( Figure 2 ) . These web pages might hold different colourss, layouts, clogs and size of founts. The variegation is non negative, dissimilar web page can arouse different feeling that when clients browse between one to another, they will non experiencing drilling, but some of the web pages are wholly in a mass, it is hard for clients to happen a certain merchandise. So the Taobao has the duty to do rectification or recommendation to those web page. The 2nd significance of standardisation is that the item of merchandises should be standardized. For illustration, a white Jersey might turn out to be xanthous in the image due to the light impact. Another illustration, the size 38 is different in different store, the size 38 might be larger in one store than another. The clients must be really defeated when they find that the colour or size of merchandise is non the 1 they want. I consider that Taobao should take some actions to alter the state of affairs, such as deploying 3D engineering to expose merchandises, the costumiers can hold close contact with the merchandises they want to purchase. As I have stated in the first enterprise, it is rather sensible that Taobao supply service and engineering to do the show of marketer ‘s merchandises more accurate when they begin to bear down the Sellerss.

Figure 2. Chaos and excessively much information

5.3 Security ( Digital signature and other security methods )

E-commerce which utilizing electronic money dainty security as the top precedence. The Taobao should go on look into money and energy onto the security, non merely maintaining the security of the dealing but besides the personal information of Sellerss and costumiers. Once the Sellerss and costumer uncertainty about the Taobao ‘s ability to keep security, they would give up Taobao and turn to other safer e- commercialism web site. With the rapid development of computing machine and engineering, the viruses and choping techniques are besides progressing rapidly. Therefore Taobao must be non content what they have achieved and go on to advance the security. On the other manus, the users should input several information to corroborate the individuality, the information is easy to be forgot, for illustration watchword, or the whole procedure of inputting is non convenient, Taobao should give to do a balance between security and convenience.

6. Evaluation:

So far as I concerned, the addition net income is the most of import enterprises, the 2nd 1 is standardisation, security is the last 1.

Free for the Sellerss is the most of import factor that Taobao could crush Ebay to busy the largest market portion in its first phase. It is unknown that whether the Sellerss will go on their concern on Taobao when it begins to bear down fees. Therefore this measure in important to Taobao ‘ hereafter development although it can convey income instantly without excessively much disbursal. The execution of bear downing scheme would take a long period, because the directors of Taobao should listen to the different positions, develop different charging criterions and rectify these criterions during the procedure of execution to make a concluding version.

Change the marketer ‘s personal store webpages seems to be a bantam thing, but it is the web page that contain the elaborate information that attract the clients to purchase the merchandise. If every marketer ‘s individual store web page can plan simple and tidy, it will sell more merchandises, as a consequence the volume of dealing will lift a batch wholly. The show of merchandise is besides of import. It is reported ( hypertext transfer protocol: // ) that the ailment rate is 0.4aˆ° . However we can non cheated by the figure, that does non intend the remainder of 99.6aˆ° is truly content about what they have bought. For illustration, a client bought a T-shirt on Taobao costs 2 $ , but when this client receive the T-shirt find the colour is non as shown in the image, he will non get off it back to do a alteration or inquire for returning the money cause it will be him 1.5 $ to present the T-shirt. Do non advert about fuss to do a ailment. It is Taobao ‘ duty to advance the accurate show and description of the merchandise that make the client 100 % content.

Security is the line of life of e-commerce, a good security can non garentee a e-commerce success, but a bad one can do it neglect. Up to now, Taobao is making good to maintain the security of Sellerss and clients, it should remian look intoing into this country.

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