Go to main content
Harvard Business School
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions

Faculty & Research

  • HOME
  • FACULTY
  • RESEARCH
    • Global Research Centers
    • HBS Case Collection
    • HBS Case Development
    • Initiatives & Projects
    • Publications
    • Research Associate (RA) Positions
    • Research Services
    • Seminars & Conferences
    Close
  • FEATURED TOPICS
    • Business and Environment
    • Business History
    • Entrepreneurship
    • Finance
    • Globalization
    • Health Care
    • Human Behavior and Decision-Making
    • Leadership
    • Social Enterprise
    • Technology and Innovation
    Close
  • ACADEMIC UNITS
    • Accounting and Management
    • Business, Government and the International Economy
    • Entrepreneurial Management
    • Finance
    • General Management
    • Marketing
    • Negotiation, Organizations & Markets
    • Organizational Behavior
    • Strategy
    • Technology and Operations Management
    Close

Case | HBS Case Collection | January 2019

Rural Taobao: Alibaba's Expansion into Rural E-Commerce

by Tarun Khanna, Ryan Allen, Adam Frost and Wesley Koo

  • Print
  • Email

Abstract

Alibaba's Rural Taobao initiative had been launched in 2014 as a public service initiative to increase e-commerce adoption in China’s remote rural areas. In the first two iterations of the initiative, dubbed “1.0” and “2.0”, Alibaba had partnered with local businesses and young returnees to operate village stations. Village stations served as logistical and educational hubs to help villagers make online purchases. Despite significant growth in sales through village stations, the business model was operating at a loss, and competitors JD and Pinduoduo were growing quickly, threatening to challenge Alibaba by claiming the rural e-commerce markets. Bill Wang, the head of the initiative, was tasked with designing and implementing the next model for Alibaba’s future expansion into rural areas. The decision centers around whether Alibaba should copy the successes of competitors JD and Pinduoduo, escalate commitment to its original value proposition (hands-on service to villagers), or embrace an entirely new model. The case highlights the competing pressures of financial performance, CSR and corporate mission, government relations, and long-term competitive positioning that are common to major strategic decisions.

Keywords: strategy; Business growth; ecommerce; corporate social responsibility; Business and Government; emerging market; Market Platforms; Online Technology; Emerging Markets; Rural Scope; Growth and Development Strategy; Competitive Strategy; Corporate Social Responsibility and Impact; Business and Government Relations; Decision Making; China;

Language: English Format: Print 21 pages Educators

Citation:

Khanna, Tarun, Ryan Allen, Adam Frost, and Wesley Koo. "Rural Taobao: Alibaba's Expansion into Rural E-Commerce." Harvard Business School Case 719-433, January 2019.

About the Authors

Photo
Tarun Khanna
Jorge Paulo Lemann Professor
Strategy

View Profile »
View Publications »

 

More from these Authors

  • Teaching Note | HBS Case Collection | January 2019

    Kumbh Mela: India's Pop-up Mega-City

    Tarun Khanna, John Macomber and Saloni Chaturvedi

    Citation:

    Khanna, Tarun, John Macomber, and Saloni Chaturvedi. "Kumbh Mela: India's Pop-up Mega-City." Harvard Business School Teaching Note 219-081, January 2019.  View Details
    CiteView DetailsPurchase Related
  • Case | HBS Case Collection | August 2013 (Revised January 2019)

    Kumbh Mela: India's Pop-up Mega-City

    Tarun Khanna, John Macomber and Saloni Chaturvedi

    Keywords: India;

    Citation:

    Khanna, Tarun, John Macomber, and Saloni Chaturvedi. "Kumbh Mela: India's Pop-up Mega-City." Harvard Business School Case 214-023, August 2013. (Revised January 2019.)  View Details
    CiteView DetailsEducatorsPurchase Related
  • Case | HBS Case Collection | May 2017 (Revised November 2018)

    Talent@Tencent

    Tarun Khanna, Nancy Hua Dai and Shu Lin

    On November 11, 2016, Xi Dan, Senior Vice President of Tencent, and Ma Yongwu, Dean of Tencent Academy, were discussing how Tencent could develop new capabilities to sustain its growth miracle and entry into new technologies, expansion into B2B businesses, and internationalization.

    Keywords: Talent and Talent Management; Training; Emerging Markets; Entrepreneurship; Globalization; Human Resources; Innovation and Management; Leadership Development; Business Strategy; Technology; Internet; China;

    Citation:

    Khanna, Tarun, Nancy Hua Dai, and Shu Lin. "Talent@Tencent." Harvard Business School Case 717-500, May 2017. (Revised November 2018.)  View Details
    CiteView DetailsEducatorsPurchase Related
ǁ
Campus Map
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→ Map & Directions
→ More Contact Information
→ More Contact Information
→ More Contact Information
→ More Contact Information
  • HBS Facebook
  • Alumni Facebook
  • Executive Education Facebook
  • Michael Porter Facebook
  • Working Knowledge Facebook
  • HBS Twitter
  • Executive Education Twitter
  • HBS Alumni Twitter
  • Michael Porter Twitter
  • Recruiting Twitter
  • Rock Center Twitter
  • Working Knowledge Twitter
  • Jobs Twitter
  • HBS Youtube
  • Michael Porter Youtube
  • Executive Education Youtube
  • HBS Linkedin
  • Alumni Linkedin
  • Executive Education Linkedin
  • MBA Linkedin
  • Linkedin
  • HBS Instagram
  • Alumni Instagram
  • Executive Education Instagram
  • Michael Porter Instagram
  • HBS iTunes
  • Executive Education iTunes
  • HBS Tumblr
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Privacy
  • Terms of Use
Copyright © President & Fellows of Harvard College