...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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...Business Report on Alibaba Name: Xiya Chen Group:IBM-E2 Subject: Business & Management Executive Summary This report is based on the business environment analysis to identify key factor for Alibaba. From ratio analysis, it is found that financial performance of Alibaba is decreased in last two years due to decline in profitability and management efficiency. It is also identified from PESTEL analysis that political, social and legal environment of China is supportive for Alibaba, but there are some emerging challenges in economic environment. From SWOT, it is also found that are various opportunities and threats for Alibaba in the existing business environment. In the end, it is observed that global expansion can be effective for Alibaba to deal with future challenges effectively. Table of Contents 1.0 Introduction 4 2.0 Company Background 4 3.0 Business Performance 4 4.0 Macro and Micro Environment Analysis 5 4.1 PESTLE Analysis 6 4.2 Porter’s Five Forces Analysis 7 4.3 SWOT Analysis 8 5.0 Recommendations 9 5.1 Conclusion 10 5.2 References 11 1.0 Introduction This report is prepared to analyze external business environment for an organization and make appropriate recommendations to deal with future challenges. For this purpose, Alibaba is selected for this report. 2.0 Company Background Alibaba is a China based e-commerce company that was founded in year 1999 by Jack Ma when he launched a website called Aliobaba.com. At present, it mainly operated...
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...Performance Analysis of Alibaba In general, industry attractiveness and firm’s competitive advantage with respect to other firms in the industry both contribute to the performance of a firm. Regarding to E-commerce business in China, Alibaba has become the industry leader without any doubt. This essay will explain the relevant issues in the E-commerce industry as well as analyze the success of Alibaba Group. Alibaba was established in 1999 by Jack Ma (Yun Ma). Back then it was only a B2B E-commerce business. Today Alibaba is the unbeatable leader of B2B industry with more than 50 percent share of Chinese B2B market in 2014 (shown in Exhibit 1). And when people talk about B2C business in China, the first website appears in their mind is T-mall, which belongs to Alibaba Group. In spite of the entrance of new competitors every year, T-mall still reached 50 percent share of Chinese B2C market in 2014 (shown in Exhibit 2). In addition to this, as China’s own eBay-like C2C platform, Taobao, also operated by Alibaba Group, has become the market leader of Chinese C2C business with the help of its annual 1111 shopping event. Alibaba was founded in China but now it’s a publicly listed company. To evaluate its environmental threat, we will conduct Porter’s 5 forces framework. Threat of New Entrants - It’s not difficult to set up a new smaller and more focused e-commerce business like Zappos.com in China right now. However, Alibaba has developed quite the reputation for new innovation...
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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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...Corporate strategy report on the online retail Industry (AMAZON AND ALIBABA) Introduction This report will first analyse the global online retail industry by showing its evolution, characteristics and future outlook. It will also analyse the competitiveness and strategies used by Amazon Inc. and Alibaba Group to dominate the market as well as give an insight of their future challenges and some concrete strategic suggestions for how these firms might deal with them. The industry lifecycle stages is a famous model explored by Michael Porter. According to him, the industry is one of the most important factor of a firm’s environment (Porter, 1980). The global online retail is still at the beginning of its growth cycle. It is also one of the most promising and therefore attractive industry. It has experienced a compound annual growth rate (CAGR) of 22.6% between 2010 and 2014. The sector grew by 19.1% in 2014 to reach a total value of $974.5 billion and is expected to grow by 114.5% by 2019 compared to 2014 to reach a value of $2,090.2 billion (MarketLine, 2015). The industry lifecycle stages is a famous model explored by Michael Porter. According to him, the industry is one of the most important factor of a firm’s environment (Porter, 1980). The global online retail is still at the beginning of its growth cycle. It is also one of the most promising and therefore attractive industry. It has experienced a compound annual growth rate (CAGR) of 22.6% between 2010 and 2014....
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... My favorite company is Alibaba. Alibaba started his business as a platform for facilitating E-commerce between buyers and sellers in China in 1999. There are 17000 employees in more than 50 cities and 50 million users in 240 countries now. Before started the process for an initial public offering in the U.S, Alibaba.com has hold 70% of China’s online E-commerce market. As the biggest IPO in history, Alibaba became one of the most valuable tech companies in the world. By listing in the U.S., Alibaba come into the international stage. It recognized by overseas investors and investment corporates, which help enlarge its business scale and attract more partners on both domestic market and its overseas market. I am interested in Alibaba when I heard that there was a contract between Yahoo and Alibaba in 2006. It clarified that if Alibaba does not start Initial Public Offering before 2015 it cannot get back a half of shares of the company owned by Yahoo and Yahoo could deal with all Alibaba’s shares as Yahoo’s will. Proofs by facts, Alibaba made his IPO before 2015. I have to admire the man behind Alibaba—Mr. Jack Ma. As the spiritual leader of the company, Mr. Ma become a hero in the heart of many people. But if I could be a CEO of Alibaba, I have to say that Alibaba is facing a slew of new business challenges and potential legal risk. Alibaba’s legal and ethical analysis: 1) Doubt on legal structure of Alibaba. Alibaba is using a so-called variable interest...
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...Alibaba has been featuring quite frequently in business news of late as the company piques investors’ interest with the issuing of its prospects for the planned IPO on the New York Stock Exchange. Notably with the opening of 11Mail.com, the Chinese e-commerce giant made clear that its presence in the US market will not only be limited to Wall Street or to Silicon Valley with investments in tech start-ups and that, with this move, Alibaba will attempt to compete against its fiercest global rivals, Amazon and eBay, in their domestic territory. Global E-Commerce Competitive Environment At present, and despite being mainly a regional player, Alibaba is the world’s second largest e-commerce company, with total B2C value sales of US$44.3 billion in 2013, according to Euromonitor International. However, when considering other indicators, in 2013 Alibaba was already the biggest online retailer in the world. For example, in terms of Gross Merchandise Volume, the Chinese company is bigger than Amazon and eBay combined, and also appears ahead of its two main competitions in terms of profits. So how do Alibaba’s operations compare with those of its main competitors? How Alibaba Compares Against its Two Main Global Competitors Alibaba vs Other E-Commerce Giants Alibaba can count on its leading place in the enormous Chinese market with around 230 million active users, not far from the entire US population, and around seven million sellers, figures that explain the disproportionately...
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... FINANCING ALIBABA’S BUYOUT： Case Report Name： Title： SYNDICATED LOAN IN ASIA PIVOT OF SUPPORTING THE LOAN Team Name： WINNERS DATE: 2014/10/20 1 Pivot of Supporting The Loan Context Abstract ..................................................................................................................................................3 1. Macro and Industry Analysis .....................................................................................................4 1.1 PEST Analysis Macro Environment .................................................................... 4 1.1.1 Political Environment ......................................................................................... 4 1.1.2 Economic Environment ...................................................................................... 5 1.1.3 Social Environment ............................................................................................. 7 1.1.4 Technological Environment ................................................................................ 8 1.2 Industry Analysis – SWOT Analysis .................................................................. 10 1.2.1 Strength ............................................................................................................. 10 1.2.2 Weakness ........................................................................................................... 13 1.2.3 Opportunities ..............
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...................... 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 Software Park, Headquarters No.99 Huaxing Road, Hangzhou, 310099, China Key people Ma Yun (Jack Ma) Industry Internet Employees 4,400 (30 June 2007) Website http://www.alibaba.com Japan's Softbank was one of the earliest investors in Alibaba. Its founder, Masayoshi Son, invested $18 million in the company in 2000 and also participated in subsequent rounds of financing. . 1.3....
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...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 transformation (materials, logistics, productions), Alibaba Group Holding Limited (Alibaba) focuses only on information management. It provides platforms for worldwide small to medium sized merchants and individuals, and leaves the trading process to the parties of the transactions. This business unit strategy is correct, proved by the fact that every related companies and affiliates of Alibaba...
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...com, a leading B2B online market place in China with 53.8% market share. Founded in Dec. 1999, Alibaba provides both suppliers and buyers an easy to use online interface where they can match their needs. The report team considered this as an innovation because other than those typical challenges faced by innovative companies; Alibaba also faced specific challenges such as the lack of credit system in China when it was first founded, the severe pressure from capital investors due to the burst of dotcom bubble shortly after its inception, as well as the strong incumbent, eBay, entering China in 2003. By focusing on its core business of B2B online market place, continuously building its IT capability and integrating third-parties to establish a local credit rating system, Alibaba was able to stand out amongst the many players in the early dotcom age in China. At the same time, Alibaba successfully defended its B2B business by proactively entering into the C2C space and compete head to head with eBay. This report explores in specific details of actions undertaken by Alibaba, particularly by its founder Jack Ma, analyzes the impact of those actions, and finally presents an outlook for Alibaba’s business with our recommendations. Background Overview The Business Model of Alibaba Most of Alibaba’s customers nowadays still use a traditional supply chain; the business model of Alibaba is unique because it’s virtual in nature. The three components of Alibaba’s virtual supply chain...
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...com, a leading B2B online market place in China with 53.8% market share. Founded in Dec. 1999, Alibaba provides both suppliers and buyers an easy to use online interface where they can match their needs. The report team considered this as an innovation because other than those typical challenges faced by innovative companies; Alibaba also faced specific challenges such as the lack of credit system in China when it was first founded, the severe pressure from capital investors due to the burst of dotcom bubble shortly after its inception, as well as the strong incumbent, eBay, entering China in 2003. By focusing on its core business of B2B online market place, continuously building its IT capability and integrating third-parties to establish a local credit rating system, Alibaba was able to stand out amongst the many players in the early dotcom age in China. At the same time, Alibaba successfully defended its B2B business by proactively entering into the C2C space and compete head to head with eBay. This report explores in specific details of actions undertaken by Alibaba, particularly by its founder Jack Ma, analyzes the impact of those actions, and finally presents an outlook for Alibaba’s business with our recommendations. Background Overview The Business Model of Alibaba Most of Alibaba’s customers nowadays still use a traditional supply chain; the business model of Alibaba is unique because it’s virtual in nature. The three components of Alibaba’s virtual supply chain...
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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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...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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...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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