...Case Study IT Business Dot Com Alibaba. Com Extracted from Alibaba.com Presentations SME : Small and Medium Sized Enterprises IPO : Initial Public Offering The business model of Alibaba is very simple. It is to help sellers meet buyers. More specifically, it provides an Internet based business‐to‐business (B2B) platform where sellers(suppliers / manufactures) can meet buyers (outsourcers / wholesalers) on a global scale. The company offers two platforms, one in Chinese for Chinese businesses, and another in English for the other international customers. Customers are both the sellers and the buyers, who are able to post “storefronts” to advertise their products or needs. Alibaba offers several services. By June of 2007, Alibaba had over 19.8 million registered users, with 16.6 within its Chinese market place. 219,098 of these 19.8 users where paying members. As stated by Alibaba, the workflow includes: 1. Suppliers and buyers post their listings, matching the inputs from the company’sstrategic perspective. 2. Listings are searched, contacts are made, and information is exchanged between thesuppliers and buyers. This will often include product specifications and capabilities. This corresponds to the information manipulation the company’s servers and softwareuse to generate the value for the customers. 3. Customers then negotiate with each other, which is the “outbound” part of theworkflow. 4. All of the communications for suppliers and buyers is ...
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...Alibaba.com Feasibility Study and Business Plan M21-A Kevin Paul Julia CONTENT 1. INTRODUCTION................................................................... 2 2. BUSINESS MODEL ............................................................... 3 3. FIVE FORCES ANALYSIS ................................................... 4 4. PRESENT THE CORPORATION NOW ............................. 5 5. ENVIRONMENT .................................................................... 6 6. FINANCIAL ANALYSIS........................................................ 7 7. SWOT ANALYSIS ................................................................ 10 1 1. Introduction 1.1. Alibaba Group Alibaba (SEHK: 1688) (Chinese: 阿 里 巴 巴 ; pinyin: ā lǐ bā bā) is a Hangzhou-based e-commerce/e-auction company, specializing in global trading. It was founded in 1999 by Ma Yun (Jack Ma), and operates five e-commerce sub-companies which operate different aspects of trading. 1.2. Business profile The English-language web site alibaba.com specializes in business-to-business trades, especially for international buyers trying to contact Chinese sellers. The Chinese-language web site china.alibaba.com focuses on business-to-business trades within China, while www.taobao.com is a consumer-to-consumer trade site for Chinese customers. The Japanese language website "Japan.alibaba.com" is for Japanese customers. Alibaba Group Type e-commerce Founded Hangzhou, China (1999) 6/F Chuangye Mansion, East...
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...The organization operates various businesses and the major businesses of its related companies and affiliates have been summarized in the table below with the descriptions of their products or services provided, as well as their target markets. Products or services provides Target market Alibaba.com Online business-to-business trading platform Worldwide small to medium sized businesses (importer and exporters) 1688.com Chinese portal of Alibaba.com Domestic (Chinese) small to medium sized businesses Taobao Consumer-to-consumer online shopping platform Individual Chinese consumer Tmall.com Online business-to-consumer retail platform Chinese small and medium sized businesses and Chinese consumers AliExpress Global retail marketplace Chinese wholesalers, manufacturers, and worldwide consumers, many of them located in Russia, Brazil and the United States Alipay Third-party online payment platform Online merchants and consumers, including Alibaba Group’s marketplaces as well as third parties such as financial institutions, online games, and digital communication To differentiate its business units from others in the e-commerce industry by focusing on the very first stage of e-commerce, to provide trading opportunities. In other words, in e-commerce industry there are usually three stages: providing trading opportunities, confirming transactions, and executing trades. Instead of getting involved from information management (order processing, purchasing) to the physical...
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...Ankit Singh and Juan Alberto Calero Part A – e-Commerce in China vs USA 1. Overall, what are some key opportunities and challenges (obstacles) that confront ecommerce in China? How are these challenges similar / different from those confronting e-commerce in the US (or other countries that you are more familiar with)? Some of the key opportunities of e-commerce in China are: The internet penetration rate in China is growing at a much faster rate as compared to other countries. 25.5% users in China have engaged in e-commerce, while in US 71% has done so. This represents an enormous opportunity for e-commerce services, given that there is room for growth in China. The market is China is still in the beginning of its growth stage. The manufacturing prowess of china provides an excellent complement to the ecommerce market. Online shopping market has grown 64.1% over last year to $1.5 Billion. Online B2B market is valued at 65.7 B 69.8% yearly growth. With these accelerated growth rates, the e-commerce market will developed very quickly, players need to be aware of the stage of e-commerce in China and address the market accordignly. Small and medium sized enterprises (SMEs) contribute to 68.8% of nation gross industrial output. Only 28% of SMEs utilised third-party B2B e-commerce platform. The government has a plan to increase it to 80% by 2012. Given this, the projected demand for e-commerce is known. In addition , players also known which type of businesses are using e-commerce...
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...Alibaba Group At Alibaba, strategy and organization go hand-in-hand. Every year we change 'the organizational structure in tandem with changes in strategy. Jack Ma, Chief Executive Officer of Alibaba Group, stared through the fog at the cable stays of the Hangzhou Bay Bridge whistling past on his drive to the offices of Taobao ("hunting for treasures"), Alibaba's online marketplace for Chinese retailers and consumers. The longest transoceanic bridge in the world had a long gestation period: the feasibility studies took a decade. and even after their approval the plans changed to connect the northern end of the bridge to Jiaxing, rather than the Jinshan suburb of Shanghai as initially planned. When the bridge was opened to the public just over a year earlier, in May 2008, it cut the trip between the cities of Ningbo and Shanghai and southern Jiangsu province from 400 kilometers (km, equivalent to 249 miles) to just 80 km (50 miles), boosting economic integration and development in the Yangtze River Delta, which was home to 72.40 million people living in almost 100,000 square km of land comprising Shanghai, Zhejiang province, and Jiangsu province.? Ma couldn't help but smile to himself as he thought of the obvious similarities between the Hangzhou Bay Bridge and the Alibaba Group of companies. Just as the proposed bridge changed form as its plans progressed, the Alibaba Group evolved over an equally long period from its founding by Ma and a small group of friends in 1998...
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...however, the new frontier could be either a barren cliff or cornucopian grassland. In this essay, we will mainly discuss that why Alibaba want to expand global markets, and how Alibaba is going to make the global strategies to against global competitors in overseas market. by avoiding direct competition, targeting similar market as China and increasing firm size in the global market environment to step into a “grassland” market for persistent development. Alibaba -- the world’s largest online and mobile commerce company, was established in 1999 by the group of 18 people led by Jack Ma in Hangzhou, China. There are three main sites in Alibaba China, including T-mall, Taobao and Alibaba.com along with numbers of other companies to support Alibaba’s ecosystem development. Moreover, Alibaba also has Alibaba.com and AliExpress.com to provide worldwide online shopping services (Pressman 2014). Until 2013, Alibaba has more than 2 million merchants across more than 190 countries and regions. In 2013, there was amount of $248 billion transactions went through Alibaba’s online sites which is more than the total of eBay and Amazon. Furthermore, after the NYSE’s IPO, Alibaba’s market cap has reached up to 215 billion dollar, which only followed behind Microsoft, Google and Apple among the global tech...
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...Alibaba Group is a Hangzhou-based e-commerce/e-auction company, specializing in global trading. It was founded in 1999 by Ma Yun (Jack Ma), and operates five e-commerce sub-companies which operate different aspects of trading. Employees 4,400 (June 30,2007). As of January 2009, the Alibaba Group is made up of 6 sub-companies: 1. Taobao.com: Online auctions web site for customers. 2. Alipay: Online payments web site, processing mainly payments within China. 3. Alisoft: Provider of web services to the Chinese Small and Medium-sized Enterprise market place. 4. Alimama: Online advertising exchange, which allows web publishers and advertisers to trade online advertising inventory. 5. China Yahoo ! As a powerful portal with excellent searching engine, it provides high- quality basic application services for internet users including email, IM, information services and so on. 6. Koubei.com: China's largest communities for exchanging basic life information such as that on clothes, food, housing and travel. In 2009, Alibaba Group employed nearly 17,000 people, 70% worked in Alibaba’s B2B business. CRITICAL SUCCESS FACTORS 1. Clear Strategy To be the best e-business website not only in China, but also all over the world is the mission of Alibaba Corporation. The clear strategy is the beginning of the team of Ma Yun and the highest demand of all the team members. The right strategy born with the right period of e-business development in...
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...radio. He stumbled on the internet during a trip to America as an interpreter in the mid-1990s. He typed the phrase “Chinese beer” into a search engine. No results appeared. He saw an opportunity. He started Alibaba in 1999, to help small firms find customers and suppliers without going through costly middlemen. Alibaba.com now claims to have 57m users, including some in nearly every country. It is sometimes likened to eBay, but is more like an online Yellow Pages. Related topics * China * Science and technology * Internet * E-commerce * Business Another venture, Taobao.com, sells to consumers. It has 300m customers and shifted $29 billion-worth of goods in 2009. It is like a scrappy cross between Amazon and eBay: it operates an online mall where vetted sellers can hawk their wares, and a site where anyone with a Chinese identity number can sell anything legal to anyone. It generates money through advertising. Alibaba’s staff boast of the businesses they have nurtured. One Chinese village had a stack of rabbit meat, having skinned the creatures for fur. The chief asked for suggestions. A villager sold the lot on Alibaba.com. More commonly, clients are small firms that want to link cheaply to the global...
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...COMPANY NOTE Initiating Coverage 27 October 2014 CHN | Technology | Internet BUY Price target $118.00 Price $95.76 The Powerful E-Commerce Ecosystem Connecting Half of China; Initiate at Buy Key Takeaway China's changing Internet user demographics and mobile development support our favorable view on e-Commerce for the next decade. Alibaba is the largest Chinese ecommerce player, with 80%+ GMV market share, but is only selling to less than 25% of the population now. We estimate well over half of Chinese population will be shopping on Alibaba’s platforms in 10 years. Initiate with Buy; PT USD118. Changing demographics & mobile support ecommerce in the next decade. As discussed in our sector note, "A Taste of Domestic Consumption: The Unleashing of China's E-Commerce Power" published on Sept 19, 2014, China’s e-Commerce growth for the next decade benefit from: 1) changing Internet user demographics towards 30+ year old age groups; 2) accelerating structural shift to online from traditional retail; 3) Chinese government’s massive support for urbanization and domestic consumption; 4) proliferation of affordable smart devices; 5) improving wireless and transport infrastructures in lower tier and rural markets, and 6) rising consumer demand for better quality, design & fashion, authenticity and timely delivery. Growth driven by mix shift towards Tmall, and improving mobile monetization. We expect Alibaba, as the largest e-Commerce player, to sell to...
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...a trip he made in the USA as an interpreter, Jack Ma discovers computers and internet. Fascinated, he ordered to a friend a website for his translation agency. Back in China, he borrowed $ 2,000 from friends and launched the website China pages, considered as the first commercial website in the country. The site has difficulties to find its business model and stops. Jack Ma got a job at the Ministry of Foreign Trade, a position which enabled him in 1998 to meet Jerry Yang, co-founder of Yahoo. Jack Ma really wants to invest in the web. He managed to borrow $ 60,000 for the launch of Alibaba.com in 1999. Quickly, the company is a leader in the sector of business-to-business (B2B). The credibility won lets Jack Ma to raise $ 25 million dollars, allowed by the most demanding investors like Goldman Sachs, or the Japanese Internet entrepreneur Masayoshi Son. In March 2002, Alibaba.com counts one million users and starts to generate profits. In 2003, Jack Ma is launching on online auction with Taobao.com, which means "the search of treasure." It quickly emerged as a serious...
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...BUSINESS ENGLISH—M1 ------------------------------------------------- DR. BRAHIM BARHOUN IMRANI PRE-READING: http://www.inc.com/jack-ma/alibaba-jack-ma-reveals-his-global-strategy.html ALIBABA : THE EVERYTHING COMPANY In 1999, Trudy Dai used to spend all night sending e-mails from her friend Jack Ma’s apartment, trying to answer queries from American customers without letting on that she was Chinese. Ms Dai was one of the first dozen employees of Alibaba, an online listings service Mr. Ma, a teacher, had just started. It was already having some success connecting small Chinese manufacturers to potential customers, including the overseas ones Ms Dai was reassuring over e-mail. But the friends and students who made up the workforce were earning just 550 Yuan (then $66) a month. Mr. Ma, though, already had big dreams. That year he said: “Americans are strong at hardware and systems, but on information and software, all of our brains are just as good.” The company that started in Mr. Ma’s apartment now employs 24,000 workers at its headquarters in Hangzhou and elsewhere; Ms Dai is president of human resources. A few years ago Alibaba began to turn a profit; in the year to September 2012 it made $485m on revenues of $4.1 billion. Today, Alibaba is more than just the “Amazon of China”—it’s the Dropbox, PayPal...
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...assets | CN¥255.434 billion (2015)[1] | Total equity | CN¥146.097 billion (2015)[1] | Employees | 34,985 (March 2015)[2] | Subsidiaries | Guangzhou Evergrande Taobao F.C., Taobao, Tmall,UCWeb, AliExpress | Slogan(s) | Global Trade Starts Here | Website | alibabagroup.com | Alibaba Group | Simplified Chinese | 阿里巴巴集团 | Traditional Chinese | 阿里巴巴集團 | [show]Transcriptions | | Alibaba Group Holding Limited is a Chinese e-commerce company that providesconsumer-to-consumer, business-to-consumer and business-to-business sales services viaweb portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers. In...
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...in the domestic and global economies. Currently it operates in leading online and mobile marketplaces in retail and wholesale segment, cloud computing and other services. It provides technology and services to consumers and other participants to conduct commerce in their ecosystem. Mission: To make it easy to do business anywhere. Vision: We aim to build the future infrastructure of commerce. We envision that our customers will meet, work and live at Alibaba, and that we will be a company that lasts at least 102 years. Subsidiaries and its ecosystem: 1. Alibaba.com (B2B market place): There were 40 million small businesses in China. Many of them operated in fragmented market with limited access to communication channels and information services. Alibaba developed small online trading platform designed to help connect small Chinese businesses with buyers, retailers and trading companies. With Alibaba.com they started acquiring customer on line at an extremely low cost. In 2008, Alibaba increased its operating profit by 48% and had 7.9 million registered users and 970,000 store fronts. Revenue from value added services increases in line with user base. 2. Taobao: Consumer focus through B2C and C2C Alibaba group launched Taobao, an online shopping platform for retailers and individuals to sell goods to Chinese customers. It was started to counter attack eBay in Chinese market. Alibaba group worried that eBay would grow their business to B2B space. Taobao outperformed...
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...Milestone Alibaba’s 18 founders first gathered in Jack Ma’s Lakeside Gardens apartment in Hangzhou in 1999 and founded Alibaba.com. The founders and management would go on to launch a number of Alibaba’s core businesses from that apartment, including Alibaba.com.cn (now known as 1688.com), Taobao Marketplace and Alimama, meeting in the same spirit of partnership and with the same goal: to make it easy to do business anywhere. Jack Ma began operations in 1999 with Alibaba.com, an English-language marketplace for global trade. They founded Alibaba.com to help small exporters engaged in manufacturing and trading, primarily located in China, to reach global buyers. In 1999, they also launched a Chinese-language wholesale marketplace for domestic China trade among small businesses, now called 1688.com. This domestic platform has since evolved into a wholesale channel for merchants doing business on our retail marketplaces to source products. In 2003, Alibaba established Taobao Marketplace as a free platform for buyers to explore and discover products and for sellers to establish a low-cost online presence. According to iResearch, Taobao Marketplace was the number one consumer-to-consumer, or C2C, marketplace in terms of gross merchandise volume in China in 2013. In 2004, Alibaba established Alipay to address the issue of trust between buyers and sellers online. Buyers were unwilling to effect payment before receiving and inspecting their purchases, and sellers were unwilling to...
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...Management 刘意蒙（Angela）2010202124 郑在宪（Daniel）2012290112 Marc-Philip Moeller 2014591083 联系：18610732267 2639015607@qq.com 国际管理 Case Analysis of Alibaba.com and DHGate.com 1. Browse and compare the business models of Alibaba.com and DHGate.com After comparing Alibaba.com and DHGate.com, our group found out that these two websites share some similarities as well as have some distinctive differences. [Similarities] Both Alibaba.com and DHGate.com are B2B e-commerce websites, which provide a third party e-commerce transaction platform for sellers to source business opportunities and make deals. Both sites target small and medium enterprises as their customers, aiming to help them sell their products or buy products from other enterprises far way more easily. In order to create a platform that benefits small and medium enterprises, both sites provide free services such as posting information about the product, providing information about the supply and demand of a specific market, and supporting those enterprises to make product display. [Differences] (1) Value propositions are different. Alibaba.com focuses on publishing deal information online and transactions are mainly made off-line. In other words, a small or medium enterprise publishes information about its products and its contact information on Alibaba.com and when other enterprises are interested in its products, they will contact this company and make transactions off-line on their own. In comparison, DHGate...
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