...! ! ! ALIBABA!VS.!AMAZON! Does!Amazon!need!to!worry!about!the!aspiring! Alibaba?! Fundamentals!of!Corporate!Finance! ZHONG!Ninghua! written!by!BOULANGER!Guillaume,!DAM!Thuy!Mi,!MAIKATH!Joline! October!09,!2015! Fundamentals!of!Corporate!Finance,!ZHONG!Ninghua! ! ! ! Alibaba!vs.!Amazon! Which%company%has%the%better%conditions%to%be%the%leader%of%the%electronic%commerce%market% in%the%world?%To%answer%this%question,%we%need%to%look%at%some%important%facts%about%those% two%companies%first.% This%report%will%compare%the%latest%financial%statement%from%the%annual%reports%of%Alibaba%Group% Holding% Ltd.% with% the% peer% company% Amazon.com.% In% order% to% understand% the% difference% or% similarity%between%these%two%companies,%we%will%introduce%their%main%business%model%and%of% course%the%financial%statements.%Subsequently,%the%report%is%closed%with%our%own%conclusion% and%the%appendix.%% % Introduction*of*Alibaba*and*Amazon* Alibaba%Group%Holding%Ltd.%was%founded%in%China,%Hangzhou%by%the%former%English%teacher% Jack%Ma%in%1999.%In%China's%eLcommerce%market,%Alibaba%with%its%many%network%platforms%is% already% the% dominant% company.% Its% business% model% consists% of% its% largest% platform% Taobao% which%is%a%customerLtoLcustomer%(C2C)%marketplace%cooperating%in%China%(brings%small%and% private%sellers%with%private%buyers%together%on%a%free%platform),%Tmall%L%a%businessLtoLcustomer% (B2C)%marketplace%in%China%for%larger%retailer%(Nike...
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...unique natural environment, help improve Wikipedia and win some great prizes along the way! ------------------------------------------------- Alibaba Group From Wikipedia, the free encyclopedia For the character from the Arabian folk tale, see Ali Baba. Coordinates: 30°11′31.12″N 120°11′9.79″E Alibaba Group Holding Limited | | Type | Public Company | Traded as | NYSE: BABA | Founded | 4 April 1999; 17 years ago Hangzhou, Zhejiang, China | Headquarters | Hangzhou, Zhejiang, China | Area served | Worldwide | Founder(s) | Jack Ma | Key people | * Jack Ma (Chairman) * Daniel Zhang (CEO) * Joseph Tsai (Executive vice-chairman) | Industry | Internet | Products | E-commerce, Online auction hosting, Online money transfers, mobile commerce | Services | Online shopping | Revenue | CN¥76.204 billion (2015)[1] | Operating income | CN¥22.716 billion (2015)[1] | Net income | CN¥24.261 billion (2015)[1] | Total 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...
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...ALIBABA Group Holding Brief History. Alibaba cooperation is a global wide Internet company founded by Jack Ma, Chinese name Ma Yun.Although Alibaba was founded in 1999, the story of how the company came to be actually dates back to 1995, when Jack Ma was on a trip to the U.S. and first became exposed to the Internet. As the story goes, he tried searching for the word "beer" on Yahoo but the search results did not turn up a single Chinese option. In fact, he could hardly find anything about China on the Internet at all. After returning home, he founded a company called China Pages - a directory of various Chinese companies looking for customers abroad. China Pages was a flop. But a few years later, Ma took another stab at an Internet business. With a group of 17 friends and $60,000 of funds, Alibaba was born. [Baidupedia Web] Within only 15 years, Alibaba became the largest e-commerce company in the world, with approximately $300 billion in annual gross merchandise volume ("GMV") - or nearly 1.5 times the combined GMV of Amazon and eBay. In fact, more than three out of every four dollars spent online shopping in China goes through its platform, which should come as no surprise given that Alibaba's user base is nearly equal to the entire population of the U.S. Alibaba's "ecosystem" is made up of three leading Chinese online retailing platforms: (1) Taobao.com, China's largest online C2C shopping site; (2) Tmall.com, China's largest third-party...
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...Alibaba. Alibaba is an e-commerce company from China that is currently the biggest IPO under the world. The Group provides business to customer and customer-to-customer sales and services via online. Electronic payments, cloud-computing services that are data centric and search engines for shopping are also included in Alibaba’s services. Jack Ma is a very successful person that brings up the whole company with Penh Lei, also known as founders of the company. Being an English teacher, which is lacked in computer knowledge, Jack Ma made up for this weakness with his vision. Jack and 17 of his friends launched Alibaba in 1999. By right, Alibaba Group is more successful than eBay and Amazon when put together. Srikanth An. (2015, June 25).Jack Ma- The Inspirational Story of Alibaba Founder. Retrieved from http://www.shoutmeloud.com/jack-ma-alibaba-founder.html In 2012, two thresholds of Ali Baba Group handled sales of almost $170 billion. Though the company was started in the year 1999, the group started earning profits only from the year 2001. Jack Ma was CEO of the group till 2013. Lacking the technical knowledge, Jack was never a typical CEO. Jack is the main pillar of Alibaba who presently acting as the chairman of the group. But the present CEO is Jonathan Lu. In September 2014, Alibaba’s first IPO took the US markets by storm. It boosted founder Jack Ma to become China’s Richest Man. Over 231 million customers spent a figure of $248 billion on Alibaba’s web portals in...
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...Alibaba Goes Public I. Executive Summary Alibaba competes in the e-commerce industry with a focus in China. The main service offering in the e-commerce industry is to provide an online marketplace that links buyers and sellers across a wide breadth of product lines. The ability to connect buyers and sellers on an accessible platform allows market constituents to engage in trade opportunities to which they previously would not have access. II. Key Factors Alibaba Group had the pioneer advantage and gained a significant share of the Chinese e-commerce industry. Its core value proposition of connecting “small and medium-sized Chinese manufacturers” has been dramatically revised as a result of the business’ rapid growth to suffice customer needs. Categorizing their business units according to the profile of the vendor, the Alibaba Group has established market exclusivity in an effort to segment their vast consumer market. Segmenting their market allowed the firm to expand their consumer base, while strategically positioning themselves competitively and avoiding the risk of cannibalization across their services. To support the large extent of commerce, the business units are supported by peripheral services, Alipay and Yu’e Bao, which structure Alibaba’s main service offering. Alibaba Group strengthened the value of their existing service offerings by providing an escrow service, Alipay, to reduce the risk of online purchasing. This supporting service is a response to the...
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...国际管理 International 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...
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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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...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 well over half of the Chinese population in 10 years, up from less than 25% now. We estimate FY14-17E revenue CAGR of 36%, driven by continued commission...
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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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...ENL 213 Vihang Jain 10.27.2014 Jack Ma’s Key to Success It’s a common saying “Where there is a will, there is a way” and a perfect example for this is the CEO of Alibaba, Jack Ma, who took the business world by storm with the largest IPO, exceeding the amount of 20 Billion dollars (CNBC, 2014). Despite being born in an underprivileged family, Jack Ma’s strong will to achieve his goals lead him to become one of the richest man in the world. Jack Ma’s success story is an inspiration to young adults, as it reinforces that dedication and hard work is the key to success. Jack Ma was born on 15th October 1964, in Hangzhou, China. He grew up in communist China with two siblings and strict parents (Stone & D’onfro, 2014). According to an article in Business Insider, Jack Ma often got into fights while growing up and he was never afraid of his opponents (Stone & D’onfro, 2014). He grew up during China’s cultural revolution and did not have the privilege to learn English. However, as China was opening up to the West, he saw an opportunity to learn English from the tourists who were visiting China. Every morning Jack Ma rode his bike for Forty minutes to get to the nearest tourist spot, so that he could learn English from the foreigners in exchange for a city tour. His dedication to learn English paid off, when he finally became an English teacher, after being rejected from KFC and dozens of other jobs (Stone & D’onfro, 2014). Life after High school was not any easier...
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...team construction: external conditions, the team structure, job design, process.External conditions, including sufficient information, effective leadership, trust atmosphere, performance evaluation and incentive system. Alibaba company have these support including timely information, the right equipment, and full staff, encourage and administrative support. The team to achieve targets must be larger organization from management and the necessary support; these sufficient resources as Alibaba company laid a foundation. Alibaba members of effective teams trust each other. And they also exhibit trust in their leaders. Trust in leadership is important in that it allows the team to be willing to accept and commit to their leader’s goals and decisions. Alibaba through the performance appraisal to the staff appraisal, encourage employees to ensure their positions, remuneration, working of rationality, second through the performance evaluation, help employees find out their reasons of the poor performance and motivate their potential. Design features work to improve the level of employee motivation, increase the effectiveness of the team. Efficient team needs to work together and take joint responsibility to complete important tasks. Computer technology allows Alibaba organizations to communicate more easily，quick ，content is also more extensive communication. E-commerce enabled employees and customers can contact at any time, helping to ensure the company's interests. But e-commerce...
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...Sep. 2014, the world’s largest initial public offering (IPO) was successfully completed in the New York Stock Exchange (NYSE), U.S., and the total IPO amount has reached up to $25 billion (Chen. Mac. Solomon. 2014). Alibaba, the miracle creator, used only 15-year’s development to take the seat in the Wall Street and build an e-commercial empire. The NYSE’s IPO is the signal to tell global investors and competitors that Alibaba is ready to join the global market competition. For Alibaba, going global means new frontier, 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...
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...placed at No.1, major owner are No 2 while shareholders are No 3. He also states that an IPO was never have been their goal. As he said “We will continue to adhere to the principle of customer first, employees second, shareholders third”. Even Alibaba have become one of the greatest companies after they made a new IPO record in the history of New York Stock Exchange, but they will continue with their principle which is to protect the benefit of customers and shareholders and also to support their employees. Another difference between Jack Ma with other company leaders is Jack Ma only owns 7.8% of Alibaba’s shares that is surprisingly low for an owner of a big successful company which is less than 10%. The reasons why Jack Ma doing that is because he needed a large amount of capitals from external environment especially powerful foreign partners to help the growth of his company. Due to the shares that shareholders holding, Masayoshi Son’s Softbank owns 36% of Alibaba’s shares while Yahoo owns 24% of Alibaba’s shares which are larger than the shares hold by Jack Ma which was only 7.8% of the total shares. Jack Ma probably will be losing the ownership table if Alibaba goes public. Therefore, Jack Ma made an agreement with Yahoo to buy 12% of Alibaba’s shares when Alibaba conducts an IPO. Actually Jack Ma wants to create a dual-class share structure where he still can control the operation of Alibaba even though only a small portion of Alibaba’s shares owns by Jack Ma. Next, Jack Ma...
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...Alibaba Group Management recommendations and preparation Company summary: Alibaba is one of the Chinese biggest e-commerce company, with hundreds of millions of customers buying products from three main sites: Taobao, Tmall and Alibaba.com. Since the development of Alibaba, the company has established a leading in the e-commerce, online payment, B2B online marketplace and cloud computing business. They provide a platform for small businesses and individual entrepreneurs to open online stores that mainly cater to consumers in China and abroad as well. I think they will grow over the next five or ten years with the 564 million Chines internet users. Furthermore, Alibaba is improving their business to comprehensive level. They have invested in some high-potential companies that could fuse well with its e-commerce business. To face the competitions from the companies in the same type, I agree with that they are going to make a virtual world to further reduce the competition. Moreover, while fighting to stay at the front line in Chinese e-commerce, Alibaba has ambitions of going international. Its initial strategy to bring Taobao abroad is clear: target Chinese users outside mainland China. As the mere description in Part 1, expanding to Korea with wholly owned model is the best way for a company like Alibaba. I think Alibaba’s main goal is maintaining their status in Asian by entering Korea. Alibaba’s intermediary model has replicability, which provides samples...
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...Introduction: Alibaba Group was established in 1999 by 18 people led by Jack Ma, a teacher from Hangzhou, China. Company’s founders shared a belief that the Internet would level the playing field by enabling small enterprises to leverage innovation and technology to grow and compete more effectively 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:...
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