...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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...! ! ! 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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...Overivew of Alibaba’s Business Alibaba is the largest e-commerce (online and mobile) company in the world based on gross merchandise volume in 2014. It is also the biggest e-commerce company in China dominating more than 80% of the country’s e-commerce market share. Alibaba operates a similar business model to eBay by providing technology infrastructure and marketing reach in the form of online marketplaces for merchants to conduct online transactions with cosumers and businesses. Unlike Amazon, Alibaba does not hold or sell any merchandise. Instead, Alibaba plays the role of a middleman to connect buyers and sellers and facilitating the transactions between them (MarketWatch: Alibaba, 2015). Thus, purchase of the physical merchandise is made directly from the 3rd party businesses (eCommerceFuel: Alibaba vs Amazon, 2014). Supporting Alibaba’s business through maintaining buyer’s confidence is its secured online payment platform, Alipay that provides escrow services. Alipay manages the bulk of the transactions that take place on Alibaba’s China marketplaces. Alibaba operates both China and global marketplaces. Its China marketplaces include Taobao, Tmall and Juhuasuan whose presence continues to dominate China’s e-commerce marketshare. At the end of 2015, Gross Merchandise Volume (GMV) transacted on these retail marketplaces was RMB964 billion (US$149 billion), an increase of 23% over 2014. Alibaba’s global marketplaces include Tmall global –an extension of Tmall, Aliexpress...
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...Amazon VS Dangdang While I sign in Amazom.com which is the world’s largest online retailer, there are a proliferation of commodities which come into view, just like cellphones, cameras, watches, and so forth. It seems that this experience can also be enjoyed on Dangdang.com, which is the largest online book store in China. However, there are a lot of differences include homepage layout, logistics system, search technique, and special service. After comparing, I think I absolutely choose to use Amazon.com. In terms of homepage layout, there are a lot of discrepancies owing to different styles and positioning of company. Amazon focuses on middle and upscale customers, while Dangdang pander to low and middle-class customers. In addition, Amazon’s main products include books, electronics, kindle(star product), etc. But for Dangdang, even though it started as a online book store, it has been positioned as a online shopping mall since 2010, just like Alibaba Group's Taobao, which is China's largest Internet retail platform. Both of them include numerous goods. Dangdang is not a specialist in a specific field anymore. Because of the reasons I mentioned above, Amazon’s homepage is much more clear and well-organized. This point exerts tremendous positive effects on customers’ satisfaction. In addition, logistics system is crucial for a e-business. Amazon China, formerly Joyo.com is a Chinese shopping website located in Beijing. In 2004, it was acquired by Amazon.com. Why did Amazon...
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...Write Up 1: Amazon Goes Global 1. Why did Amazon choose the United Kingdom as its first entry location? Why not other countries such as Canada and Austrlia? With the emergence of a global marketplace, Amazon has since ridden on the waves of the opportunities that comes with globalisation. After more than a decade of expansion, Amazon’s international operations accounted for about 43 per cent of its revenue, bringing in $26.28 billion in 2012. This shows the significance of targeting the international markets. However, entry into foreign market does not come without risks and costs that resulted from barriers created by distance. The CAGE Framework of distance by Ghemawat explained distance as 4 main attributes – Cultural, Administrative, Geographic, Economic.1 To address these risks and costs, it is crucial to first assess the extent and type of differences between the USA market and the United Kingdom market. Amazon’s entry into United Kingdom (UK) can be attributed to minimal distance and various similarities, which allowed Amazon to significantly reduce risks and costs. Primarily, the UK market has a lot of similarities to the US market in terms of cultural, administrative and economic distance. UK has the second most number of native English speakers (60 million), after US (231 million), and is also the place where English was first spoken. Since books were the primary products sold by Amazon, the similarity in language made it extremely ideal for Amazon to target...
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...International Business Strategy II 1. Liu Shu 6509037 Introduction Google and Apple are giants in technology industry. These two companies provide innovate products or service and have unique organizational structure and culture. Under the increasing pressure of cost reduction and local responsiveness caused by globalization development, both Google and Apple are transforming into transnational organizations. This report will critically evaluate the comparative transnational effectiveness of Google and Apple in terms of motivation means and mentalities, layers of competitiveness, across boundaries management and corporation social responsiveness (CSR). 2. Motivations Means and Mentalities Initial incentives of Apple and Google expansion were different because of their distinct business focuses. Apple generates its profits by selling cutting-edge electronic devices, whereas Google even though has its own products such as some newly invented wearable devices, its benefit basically comes from their advertising. Therefore, Google do not have to secure key supply, and access to low-cost market. Nevertheless, seeking boarder market seems to be very important for both of these to enterprises. Moreover, the emerging motivations for Google and Apple are quite similar. After they began to expand, the forces which triggered the expansion in the first place, may turn into secondary when they make emerging global...
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...Differentiation and Two Part Pricing Strategy of Amazon By: Sonal Uban Amazon.com is an American international e-commerce company headquartered in Seattle, Washington. It is the world's largest online retailer[1] that started as an online bookstore, but soon diversified, selling furniture, food, toys, and jewelry among other things. [2] The company also produces the popular Kindle e-book reader and the Kindle Fire tablet computer—and is a major provider of cloud computing services. [3] Amazon is considered the fourth most successful startup company of all time by market capitalization, revenue, growth and cultural impact.[4] Amazon’s e-commerce strategy is multi-level. In its annual summary, Amazon stresses that “It believes the main competitive factors in its market segments include selection, price, availability, convenience, information, discovery, brand recognition, personalized services, accessibility, customer service, reliability, speed of fulfillment, ease of use, and ability to adapt to changing conditions, as well as our customers’ overall experience and trust in transactions with us and facilitated by us on behalf of third-party sellers”. [5] The key to realizing and achieving all these factors lie in Amazons strategy. This paper will explore how Amazon is employing price discrimination and two- part pricing system as its strategy to realize its goals on profit. Background In order to maximize their revenue, Amazon has to first learn about the reservation...
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International August 2014 INTERNET VS STORE -BASED SHOPPING: THE GLOBAL MOVE TOW ARDS OMNICHANNEL RETAILING Passport I LIST OF CONTENTS AND TABLES Executive Summary ..................................................................................................................... 1 Growth Drivers .......................................................................................................................... 1 Internet Retailing Trends .......................................................................................................... 2 Chart 1 Global Internet Sales by Category 2013....................................................... 2 Behaviour and Characteristics of Online Shoppers .................................................................. 3 Retailer Strategies .................................................................................................................... 4 Outlook ..................................................................................................................................... 6 Summary 1 Opportunities and Threats to Retailers ......................................................... 6 Introduction................................................................................................................................... 7 A New Way of Shopping ...................................................
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...Comparison of eBay.com and Alibaba.com Thomas Liquori o h T a m i L s o u q . i r e m Digitally signed by Thomas Liquori DN: cn=Thomas Liquori, email=thomasliquori@a ol.com, o=thomasliquori.me, l=New York, NY Date: 2010.09.05 16:57:16 -04'00' 12/16/2009 Professor Reddi: BUS451 By: Thomas Liquori, Danauda Benjamin, and Anca Barbu EBay.com Introduction ................................................................................................................................. 3 EBay.com Products and Services .................................................................................................................. 5 TABLE OF CONTENTS Comparison of eBay.com and Alibaba.com Ebay.com Financial analysis .......................................................................................................................... 6 Ebay.com Last Three Year Financial Graphs ................................................................................................. 7 EBay.com TOWS Matrix Analysis .................................................................................................................. 9 EBAY.com TOWS Matrix Graph ................................................................................................................... 13 Competitive Forces for ebay.com ............................................................................................................... 14 EBay.com Industry Rivalry...
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...Introduction: Yahoo Inc. in the last three months has been in the news, and the news has not been about investment in research and development (R&D), new products introduction and shareholders’ value creation strategy. On November 24, 2015, Standard and Poor’s (S&P), a credit-rating firm announced the cutting of Yahoo rating outlook to negative (BB+) from stable citing the decline in revenue growth and higher cost of attracting traffic to its website (CNBC, November 24, 2015). The rate cut will increase the cost of capital, reduce profit and reduce shareholders wealth. On November 9, 2015, Reuter’s News reported the hiring of the consulting firm McKinsey & Co. The focus of the consulting firm was to assist with the reorganization of the company’s core business (Reuters, November 9, 2015). The decision was a surprise development to the shareholders in that the current management under the leadership of Ms. Marissa Meyer had been at the helms of Yahoo affairs for almost four years and had spent about $7 billion on R&D, Merger and Acquisition. The turnaround initiatives expected with Ms. Meyer’s appointment as the Chief Executive Officer has not come into being, for there has been a high turnover of senior executives. The board of directors and senior management has failed in their attempts to turn around the firm. Yahoo share price has declined year to date by 34% as of November 25, 2015, whereas its’ main competitors Facebook, Goggle, and Microsoft...
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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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...2015 Russell Corpron The Waters Bottling Company 2015 Marketing Plan TABLE OF CONTENT Section 1 – The Environment * Introduction to Marketing * The Marketing Mix * The Marketing Environment * Marketing and its relationship with other functional areas of business * Strategic Marketing * Planning Process * Strategy * Organizational Levels * Goals and Objectives * Planning Gap * Ethics in Marketing Section 2 – Market Research & Targeting * Market Research * Research Methods & Data Mining * Market Research Process * Consumer Behavior * B2C vs. B2B * Consumer Decision Making Process * Factors Affecting B2C and B2B consumer behavior * Market Segmentation * Market Segmentation Concepts * Segmentation Process * Segmentation Strategies * Target Marketing Section 3 – Product & Price * The Product * Product Levels: Core, Actual, & Augmented (Packaging) * Product Life Cycle * BCG Model * Services Marketing * Price Determination & Pricing Strategies * Supply & Demand * Competition * Objectives and Strategies Section 4 – Place & Promotion * Distribution Channels * Length & Width * Direct & Indirect * Vertical & Horizontal Channel Conflict ...
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...CONSUMER INTERNET Bear, Stearns & Co. Inc. – U.S. Equity Research February 4, 2008 Rating Information Sector Rating Target Price YE ’08 Long-Term Growth Market Weight 26.23% (YHOO-$28.38-Outperform) MicroHoo!: Where are We Now & Where Do We Go From Here? Trading Data 52-Wk Range Market Cap. Shares Out. Dividend Yield Avg Daily Vol. Float Yahoo! Corp. $18.58 - $34.08 $25,459 MM 1,336.4 MM 0.0% 27,140,000 NA Source: FactSet It’s not often that management of a company sees its stock skyrocket ~50% in one day and have to ask themselves “Is this the best day in company history or the worst?” We believe Yahoo!'s valuation has being hampered by near-term investment concerns which weighed on investor realization of the long-term potential and value of the company. As we pointed out in our 4Q earnings note, we thought the near-term investor disappointment created an opportunity for any suitor that was remotely serious. Fundamental Data EV/EBITDA Enterprise Value LT Debt to Total Cap. Book Value 16.4x $24,681.6 MM 0.0% $7.00 • Implications to Traffic and Search Market Share. Domestically, Yahoo! and MSN together command 11% in page views market share, more than double Google’s 5% market share. In the international market, however, Yahoo! and MSN jointly account for 8% of total page views, still slightly lower than Google at 9%. On Search, the combination of Yahoo! and MSN would represent 33% of query market share in the...
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...HKU701 JIANGYONG LU ZHIGANG TAO EBAY’S STRATEGY IN CHINA: ALLIANCE OR ACQUISITION In December 2006, eBay Inc., a US company that offered e-commerce, e-payments and internet communication services globally, announced its plan to form a joint venture with China-based online portal and wireless operator, TOM Online, in which eBay would have 49% ownership.1 The move reflected the increasing difficulties foreign internet companies were facing in their attempts to snatch a share of the Chinese market amid fierce competition and a changing market environment. eBay first set foot in China in 2002 by acquiring 33% interest in EachNet—a domestic online auction company, followed by a full acquisition in 2003.2,3 In 2005, eBay acquired Skype4 to expand into the online communication sector. While Skype was a wholly owned subsidiary of eBay globally, it operated indirectly in China via a joint venture with TOM Online. Due to this existing relationship between the two companies,5 TOM Online seemed to be a natural choice of partner for eBay’s subsequent decision with regards to its online marketplace business. Recognising TOM Online’s local knowledge and political connections, eBay believed that a joint venture would benefit its failing business in China and help the company further develop its Chinese market.6 Some analysts questioned whether political connections alone were the answer and suggested that eBay focus on its product and service offerings.7 Vara, V. and Chao, L. (20 December...
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