Abstract
In China's e-commerce landscape, this study delves into Taobao's successes, challenges and strategic solutions. The paper scrutinizes Taobao's major developmental turning points, including its evolution from a C2C model to a B2C model, the creation of the Double Eleven shopping festival and the live streaming model. These forward-looking strategic layouts enabled Taobao to stand out from the competition and gain a sizable market size and user base. At the same time, Taobao faced fierce competition from JD.com and Pinduoduo, and was challenged by fake products, trust issues, and endless price wars. Inspired by the Amazon Prime membership model, the study proposes a series of strategic solutions that advocate a shift from price competition to exclusive offers and personalized services. Through these strategic reforms, Taobao can jump out of the swamp of price wars and improve its competitiveness, profitability, and the potential impact of user loyalty in order to stay ahead of the fierce competition in China's e-commerce.
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