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1. Taking charge of Yahoo China in August of 2005 was a big move for Alibaba.com founder Jack Ma. This move had an immediate impact on Ma’s company in the short-term, as well as long-term benefits for both Alibaba, and Yahoo. First, it gave them a competitive edge on Google who had just started moving into the Chinese market. The search capabilities of Yahoo China has allowed Alibaba to further its reach in acquiring business against search engine competition such as Google or China’s leading search engine, Baidu. In addition to providing increased competition against other search engines in the market, the large move of bringing Yahoo into the Chinese market helped push Ebay out. Alibaba Vice President of International Relations, Porter Erisman, said the deal makes Yahoo and its local partners the dominant players in online auctions in China, Japan, Taiwan and Hong Kong. "This is going to make it hard for eBay to win in Asia," he said. Pushing out such a large competitor was surely one of the most profound benefits gained through this partnership. Business-to-business e-commerce is growing faster than any other segment in China, and is anticipated to grow at a compound annual growth rate (CAGR) of 95 percent from 2004 to 2007 (source: National Bureau of Statistics of China and the State Administration of Industry and Commerce and IDC). Additionally, the consumer e-commerce segment in China also has

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