...How does Alibaba group create corporate advantage? (Why are the businesses under one roof?) Is this corporate advantage sustainable? Is the current degree of competition amongst the business units appropriate? Do you think Jack Ma should encourage more cooperation? If so how? The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s multi-business activities are paramount to understanding the way in which corporate advantage is created. The relationships between subsidiaries are also a key point of scrutiny, as to whether Ma achieves the correct balance between competition and coordination of business units. Primarily Alibaba’s organisational structure has allowed the firm to create corporate advantage by encouraging subsidiaries to be leaders of their respective industries (Case p7). Alibaba has also benefitted from a strong set of shared values and a culture which focusses on serving the consumer above all else. This can be seen as a major source of corporate advantage creation across a number of subsidiaries. The sustainability of Alibaba’s corporate advantage hinges on...
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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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...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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...success. Ma knew that once eBay had a firm hold on their individual consumers and sellers, it would be easy for them to transition into a bigger, SME-targeted type of e-commerce. Given eBay’s worldwide dominance, Ma’s fears were not completely unfounded. It was this that motivated Ma to do something to stop eBay in its tracks. Ma’s reaction to eBay’s arrival, however, was not just to find a way to ensure their position as the leading B2B online goods provider. Before eBay could even begin to consider moving horizontally to B2B to facedown the Chinese giant, Alibaba became proactive and decided to expand into C2C, and thus Taobao was born. 2. How did Taobao beat eBay? Taobao was clearly ahead of eBay in many aspects. And while one may argue that eBay had exhibited participation in these aspects as well, they clearly did not do it as well as Taobao did. a. Familiarity with Chinese aesthetics and preference Alibaba had been founded by a Chinese man, in China, and has ben serving the Chinese market for years. It is only understandable that Taobao had a better concept of what the market wanted. When it came down to the nitty gritty details, those little nuances to a business model could spell the difference. For example, the web interface: Taobao knew that the Chinese preferred busy, packed websites with a lot of links and items to click on. Western design typically favored spares, clean, minimalist looks, with al lot of white space as we can see in successful 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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...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 countries and regions. In 2013, there was amount of $248 billion transactions went...
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...October 11 October 11 Case 1: Taobao vs. eBay China E-Business Professor Qiu Ivy Yuwen Cai Case 1: Taobao vs. eBay China E-Business Professor Qiu Ivy Yuwen Cai 08 Fall 08 Fall Ivy Yuwen Cai E-Business Professor Qiu Case 1 Taobao vs. eBay China Due Date: October 11, 2011 A Lesson of “Doing Business in China” eBay had failed to recognize that the Chinese market and its business environment are very different in comparison to the United States. In any country, having local knowledge of your market is good; having local leadership on the ground is better. However, eBay assigns its high management positions to people who are not from Mainland China, who lack understanding of the local market. The fact that eBay had a strong brand in the United States didn’t mean it would be a strong brand in China. Security and Payment One of the most important factors, which let customers make purchase decisions, is security, and security issues are mostly related to payment process. When competing in payment services, Jack Ma and his team use their Chinese “guanxi” with key government officials and leaders in the Chinese banking industry to secure and process payment transactions. eBay has introduced its traditional payment method, Paypal, while Taobao has introduced a similar one, Alipay. Before 2007, the difference between Paypal and Alipay is the process of payment. Through Paypal, buyers pay directly to sellers, without any third party involvement...
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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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...business-to-consumer (B2C) business and that are established players in their home market. Market overview According to market analysis (ref 1-2-3) the e-commerce market in China surpassed the U.S. one in 2013, reaching almost 300bn USD in turnover while U.S. reached just little above 250bn USD. Not only the size is impressive but also the growth rate, which has been around 70% in China since 2009 compared to 13% in the U.S. (see Figure 1). The online part of the retail sector is around 7% whereas Western countries report from 2% to 6% according to (Hoffmann & Lannes, 2013). In addition, more than 50% of all transactions are carried out via mobile devices. Finally, it is important to mention that the market is largely dominated by the Alibaba Group, enjoying a market share of more than 50% in B2B, B2C, and C2C. Figure 1 China's Digital Market © Bain & Company ((Hoffmann & Lannes, 2013)) Figure 1 China's Digital Market © Bain & Company ((Hoffmann & Lannes, 2013)) Market analysis Approach using Porter’s Five Forces Figure 2: Analysis of Chinese e-commerce...
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...B2B案例研習 <<Alibaba>> 課程:電子化採購與B2B 課程序號:09070300 任課老師: 宋培建老師 學生姓名:朱家爵 學號:138354032 Contents * Definition pg.3 * Company Introduction pg.4 * Companies and affiliated entities pg.5-pg.7 * The Growth of Alibaba pg.8-pg.10 * Alibaba Business Model pg.11 * Five Forces Analysis pg.12-pg.13 * Present the Corporation Now pg.13 * Business Environment pg.14-pg.15 * The Financial Analysis pg.17-pg.18 * SWOT Analysis pg.19 * Recommendation for Alibaba pg.20 * Conclusion pg.20 * References pg.21 Definition * E-commerce Electronic commerce, commonly known as e-commerce or eCommerce, is a type of industry where the buying and selling of products or services is conducted over electronic systems such as the Internet and other computer networks. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web at least at one point in the transaction’s life-cycle, although it may encompass a wider range of technologies such as e-mail, mobile devices, social media...
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...Study: Should Alibaba Group Centralize? Jack Ma founded the technologically evolving and economically progressing business, Alibaba Group. Ma saw the potential of the Internet early on and created a multifaceted conglomerate, capturing a business market at its foundation. His goal was to provide a simple, efficient e-commerce platform and now holds half of the B2B in China. Wherever there was a need, Ma would adapt and create different business units to effectively provide the service. Alongside online trading, Ma provided a platform for retailers, individuals, payment services, management solutions, and an entertainment portal. Alibaba Group developed synergies within the units and subsidiaries to coordinate ideas, spread resources, and develop additional units to complement each other. He down streamed manufacturers provided a cheap storefront and added value services (such as keyword bidding and commission based sales). His model was unlike any other at the time. This kind of consolidation, led to competition among the subsidiaries. This kind of competition, however, has inspired efficiency and differentiation. Ma promoted collaboration and created cross-business and cross-functional teams. The business units also did not depend on large teams but rather channeled its focus on engineering and customer service. By the mid 2000’s, China had transitioned into a primarily private economy—which ultimately brought the nation to an economic boom. By 2009, 70% of Alibaba Groups business...
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...Alibaba Introduction Of Alibaba Alibaba is the world's leading e-commerce company, small business is alibaba group's flagship business. Alibaba n hangzhou city, founded in 1999 in China, through its three trading markets to help all over the world millions of buyers and suppliers engaged in online business. Three online trading market including: centralized service global import and export business of international trade market, focus on domestic trade in China market, as well as through a joint-venture company management, to promote Japan's export and sale in domestic market in Japan market. In addition, alibaba also on the international market has a global wholesale trading platform, for the smaller, need to small batch goods shipment the buyer to provide fast service. All form a trading market have come from more than 240 countries and regions more than 61 million registered users of online communities. To transition into online business for small businesses are more likely to establish and manage a comprehensive platform, alibaba also directly or through its acquisition of companies, including China nets and DaTong, the domestic traders to provide diversified business management software and Internet infrastructure services and export related services, and business management professionals and e-commerce specialist training services. Alibaba also has Vendio and Auctiva, the two companies are leading the third party e-commerce solutions...
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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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...What will he do with this information? A DOZEN big screens hang on the wall. Maps flash. Numbers stream by. The Alibaba Group’s “live data monitoring room” offers a snapshot of frantic activity: Chinese firms trading with foreign ones; Chinese individuals buying clothes from each other. Perhaps half a billion people use Alibaba’s various online services. The group’s diminutive founder, Jack Ma, smiles that business is “pretty good”. Yet he is far from satisfied. In a country where tycoons are often the children of politicians, Mr Ma stands out. He failed twice to get into college. He learned English from the 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...
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... ------------------------------------------------- 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, Uber, Hulu, ING Direct, and more. Though Google has its fingers in a similarly high volume of pies, its enterprises, unlike...
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