On Thursday CHINA'S largest e-commerce company Alibaba Group has made announcement that it has split its consumer online shopping platform Taobao into three firms. This was done to have a proper adaptation to an increasingly competitive landscape.

Alibaba has stated that the Taobao which was held privately has been split into Taobao Mall, Taobao Marketplace and eTao. The firm Taobao Mall was for the consumers to shop from brand-name stores, Taobao Marketplace was meant for individuals to buy sell goods while the last one eTao was for shopping-related searches.

Group chairman and chief executive Jack Ma stated that the reorganisation will create more value for not only the company but also shareholders. He said this in a letter to employees making the announcement of the restructuring.

According to Mr. Ma, from last two years search, social networking and e-commerce have marked disruptive changes which were catalyzed by the development of open platform and social trends, while many new companies have occurred. Alibaba has said the each firm will be managed by their president.