...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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...Case 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...
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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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...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 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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...Case Study | Alibaba Group “F5 Application Delivery Networking solutions enabled us to build globalized data centers that are secure, reliable, and fast.” Wang Zhilei, Operations Director, Alibaba B2B Overview Alibaba Builds a Secure, Reliable, and Fast Data Center Using F5 Application Delivery Networking Products Global e-commerce leader Alibaba Group is the largest e-commerce company in China. The company plans to expand its operations significantly, and needed to support several e-commerce sites in different parts of the world. By using F5® BIG-IP® Global Traffic Manager™ (GTM) and F5 BIG-IP® Local Traffic Manager™ (LTM), Alibaba was able to consistently provide high-quality and secure services to its 24/7 worldwide customer base. Business Challenge Founded in 1999, Alibaba Group has grown to include the core businesses described below. • Alibaba.com, the group’s flagship company and the world’s leading B2B e-commerce company, serves small and medium-size enterprises (SMEs) in China and around the world. It has more than 40 million registered users from more than 240 countries and regions. The company has offices in more than 40 cities across Greater China, as well as in Europe and the United States. • Taobao is China’s largest consumer e-commerce company. It incorporates Alimama, China’s largest online advertising exchange platform. With a registered user base of nearly 100 million, its transaction volume was RMB 99.96 billion (US $14.6 billion) in 2008, up 131...
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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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...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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...Standard Chartered China becomes first international bank to launch Alipay’s Express Payment service Providing even more customer convenience with new express payment service 15 February 2012, Shanghai, China - Standard Chartered Bank (China) Ltd and Alipay today jointly announced the launch of the new Standard Chartered - Alipay Express Payment service. The launch of this new service innovation is a reflection of Standard Chartered China‘s commitment to customer service excellence and a first for international banks in China to provide a service which enables debit card holders to safely and conveniently pay off their online purchases, anywhere, anytime. Standard Chartered China debit card holders can now join 40 million other users of the Alipay Express Payment service to make secure and convenient purchases with as many as 460,000 online merchants worldwide that offer Alipay as a payment option, including Taobao.com and TMall.com. To use the Express Payment service, users do not need to register for online banking but must provide their debit card number, mobile phone verification code and other related information. Once approved, users need only their Alipay password and mobile verification code to complete transactions. Standard Chartered China and Alipay have implemented a rigorous security system to provide consumers with ease-of-use and account protection. The state- of-the-art security system reduces the risks caused by Trojan horses and phishing links...
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...alibaba By snoworb | Studymode.com xecutive Summary Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile commerce, and also, industries beyond, the report then ends with suggestions for future possibilities that the Group could explore. Outline of Alibaba Group Set in a fast moving, highly pragmatic e-commerce sector, Alibaba Group has never been shy of its ambition which comprises to top Walmart to become the largest retail company worldwide within the next 3 years (Hong, 2013). Alibaba Group has stakes in not only e-commerce platforms but also in cloud computing, group purchasing, payment processing, cloud computing, and even instant messaging. With its strategic position in a developing China, strong presence in the e-commerce sector and far looking management strategies, Alibaba Group might just be able to achieve its ambitious goals. ...
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...Alibaba Reaction paper Hary Gilles Business 101-002 Victor Hugo (02/26/1802 – 05/22/1885), recognized as the most influential French Romantic writer of the 19th century and as also the greatest French poet, once said: “One can resist the invasion of armies; one cannot resist the invasion of ideas. .... Nothing is stronger than an idea whose time has come. “ If there is a quote that can best describe “Alibaba” the company, it is this one previously mentioned. As we will try to demonstrate in this paper, Jack Ma has proven to everybody that he is a great leader, a great motivator, an intelligent marketer, and above all, a great visionary. In this business, he started as an ordinary man by building websites for Chinese companies with the help of friends in the US, and in 1995, he founded China’s Yellow pages, widely believed to be China’s first Internet-based company. From 1998 to 1999, he then became the head of an information technology company established by “China Electronic Commerce Center”. In 1999, he founded Alibaba which presently has over 79 million members – hundreds of millions of users and merchants. Businesses using ALIBABA are counted by the millions, from more than 240 countries and territories. In September 2014, the world has witnessed what has become the largest listing in the U.S. history of the stock market. This company has raised $25 billion for its IPO (Initial Public Offering), overtaking VISA’s $19.7 billion 2008 IPO. How did the company...
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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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...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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...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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