Topic > New Trending Strategy - 1128

5.1.1 New Trending Strategy As the market becomes more competitive, exact prediction, proper strategy and subsequent responses are more important for the e-commerce industry , especially for the C2C open market. To see the Korean cases, Gmarket and Auction have used the scalability of the C2C open marketplace and developed a successful business model. At first, the economic downturn was a blessing for Auction as it attracted buyers with low-priced raw materials. A relative newcomer, Gmarket took advantage of the anti-monopoly power of the auction and quickly changed B2B, initially defaulted to C2C to adapt to environmental trends. Undertaken by eBay it may also be an opportunity to expand the global market for Gmarket. Gmarket and Auction are planning to transform the C2C open marketplace into the e-commerce portal site. Due to these changes, these two companies diversify the source of revenue from transaction fees to advertising fees. In China, Taobao holds nearly three-quarters of the market share. Its free services competed successfully against eBay rival EachNet. Taobao penetrates the fact that Chinese customers are price sensitive; for the C2C open market the price covers not only the buyers' product price but also the sellers' service fee. Taobao expects the Chinese market to mature to adopt service fees and will wait for the right time to abandon the free model. These strategies hit the target. The company has been trying to go beyond mainland China and recently put its idea into action with Yahoo Japan.5.1.2 Differentiation StrategyThe differentiation strategy provides the company with a unique differentiator. "instant purchase", "negotiation" and "group purchase". Most of these services… half the paper… surrendered by seizing the opportunity with these four strategies. Since Korea is a powerful country in the IT industry, the disparity in payment technique and system cannot be a success factor. Therefore each company must differentiate itself, even under the same holding company, eBay. In China, the industry needs to pay attention to the Chinese government's policy on the C2C market and actions to open up the market; because China's C2C industry is still in an early stage and will reach maturity in the next 5-10 years. They also need to compete among all related business links, including website, payment tool, communication tool and logistics, because China's C2C e-commerce platform still has room for technological development, especially credit sales and shipping. Free politics is also a temporary success factor. Finding a sustainable mode of profitability and business model will be a key success factor.