Taobao: SWOT Analysis

Since its founding, Taobao has increasingly become a force to reckon in the commerce sphere. Its extraordinary growth rate remains a puzzle to many scholars in consideration of the fact that it came into an already-packed market. However, by studying its SWOT analysis does one come to the root cause of its historic growth.


Taobao has friendly transaction fees, which in essence allow buyers and sellers to make most out of their transaction. This strategy has and continues to attract a vast number of online dealers. The strategy further strengths its relationship with other parties.

Second, it has strong ties with reputable banks. In consequence, it has largely improved the integrity of e-payments and transactions by eliminating instances of fraud. By improving the credibility of e-transactions, it has been able to increase customer confidence.

Third, it has good relationships with other strong enterprises. For instance, it presently cooperates with, on...