...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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...American electronic commerce and cloud computing company with headquarters in Seattle, Washington. It is the largest Internet-based retailer in the world by total sales and market capitalization. Some of the key strategies of this organisation is as follows: Cost leadership Amazon leverages economies of scale and economies of learning to make products available at cheaper price. Amazon’s huge bargaining power over its suppliers and it excellent distribution reduces its cost of operation which makes it possible for Amazon to reduce the price of products Differentiation Technologies such 1-click, Recommendations, Wish list differentiates amazon from rest of the competitors, these features make it easy for...
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...the core value proposition of Alibaba.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...
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...the core value proposition of Alibaba.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...
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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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...Company’s consultants specialize in specific areas which include services such as SWOT analysis, sales and marketing, competitive analysis, finance, strategic planning and many others to assist any organization with their needs. We invite business owners and organizations to choose our services and let us show you how we can help you enhance your business. Introduction CanGo’s executive management has contracted with The Manhattan Project Company to provide consulting services in order to understand how to grow its business. We have looked at some areas within the organization and found a few key areas that will assist the company in reaching its goals. SWOT Analysis Strengths: CanGo has turn out to be one of the fastest growing online small business companies. CanGo has different variety of products to offer. They have labeled themselves as “the customer”. By doing this it permits them to keep the question “what do we want” in the front position of the attentions all while concentrating on recognizing the consumer’s requirements and requests. The employees at CanGo showed robust commitment in supporting company’s goal. Staying competitive coupled with strong customer satisfaction is of high importance. Innovation is present that will help CanGo’s ability to maintain continuing growth. Weaknesses: Their advertising budget...
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...Walmart’s Strategy Walmart’s Current strategy In Walmart's thinking, there are three types of shopping trips (Depillis, 2013): The stock-up mission- this kind of shopping trip brings families to Walmart's 3,200 nationwide Supercenters. The basic grocery run- where shopping trip shoppers want to go someplace nearby, such as one of Walmart's 300 neighborhood markets. The "immediate access" stops - where shoppers head for the traditional convenience store. As of today, Walmart hasn't really touched the third segment, except for a handful of "express" stores in Arkansas. Bill Simon, Walmart’s chief executive, vision to put all three segments together on what he called “ecosystem”. Walmart believes that “tethering” is the key to make this system work. From tether hiring and back- office functions, to tether inventory distribution systems, and even online orders, for greater efficiency and quick response to demand. In other words, instead of having one huge store with endless goods, Walmart will offer three kinds of stores with most of those goods, at the time and place customers need them. Walmart’s current strategy includes more emphasis on smaller-format stores and more e-commerce. (Cheng, 2012). Competitive Advantage Walmart enjoys several of competitive advantages that are the source of the company’s market dominance. However, Walmart’s primary competitive advantage is low costs. Low cost culture and leadership initiated by the company’s founder, Sam Walton...
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...EBay Corporation Inc. Business strategy and policy Introduction E-commerce and online industries are firms who market and sale their products online. The internet is the main selling unit that connects the retailers and the consumers. It helps people make purchases more easily than when the go to stores in search of products to buy. EBay Inc. is a sole proprietorship formed around sept 1995. The incorporation took place in California in May 1996 and corporates in Delaware in April 1998. In other to sustain and maintain the success of the company Pierre and his co-founder, Jeff Skoll brought in Meg Whitman who studied business at Harvard business school with the experience of branding company for example Hasbro. Ecommerce and online industries are firm who market and sale their products online. The internet is the main selling unit that connects the retailers and the consumers. It helps people make purchases more easily than when the go to stores in search of products to buy. EBay’s mission statement The mission statement for the corporation “our mission is to provide a global online market place where practically anyone can trade practically anything, enabling economic opportunity around the world”. This mission statement simply states the goal of the company, it states the vision of what eBay has planned and will contribute to do for the buyers and sellers around the world. This gives the customers enough confidence in the company to make payment with trust and...
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...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 ........................................................................................................... 7 Definitions ......................................
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...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 ........................................................................................................... 7 Definitions ......................................
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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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...The Confessions of Online Shopaholics Introduction We all know that we are in the midst of a social, business, and cultural revolution. Our generation today is often termed as “technology savvy”, especially now that the internet has new revolutionary trends. Nowadays, businesses are not just using databases but also the internet. Since 1995, electronic commerce (e-commerce) has grown in the United States from a standing start to $310 billion retail, travel, and media business and a 3.3 trillion worth total of business-to-business databases, bringing about enormous changes in business firms, markets and consumer behavior quickly. Economies and business firms around the globe got affected rapidly. Today, e-commerce has become the platform for new, unique services and capabilities that are not found in the physical world. In 2011, e-commerce is entering a new period of explosive entrepreneurial activity focusing on social networks, and the mobile digital platform created by smartphones and netbooks (Laudon, 2012). As stated by Rayport (2002), “We are in a revolution that is enabled and accelerated by technological change and at the center of this change is the internet, and, more specifically, economies” (p 2). Whenever we read the morning papers, we observe interesting stories on companies helping the growth of the internet and so the day goes-with constant stimuli related to the internet, e-commerce and the new economy- as we work, shop, dine, or drive through our...
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...PGP2015-17 Project Report on Recent trends in Ecommerce logistic and their adaptation in Steel Logistics process To Mr. Gopal Kapoor & Mr. Alok Singh Student Name: - Suraj Tripathy Roll number: - PGP/19/350 Introduction The fast development of information and mobile technology in the past few years is changing many aspects of our lives i.e. how we look for the information we seek, how we plan our travel and most of all how we buy products or services. Even though classic store based retail is still preferred, e-commerce, which involves buying and selling of products and services mainly through electronic channels, like computer, tablets, mobiles etc. is gaining ground. The most common form of e-commerce is online shopping. Ecommerce can be of mainly three categories. Most common is business to consumer e-commerce (B2C), where individual customers order various products online, which they then receive through courier, parcel or by post. Second category of e-commerce focuses mainly on transactions between companies or businesses, such as manufacturers and a wholesaler, similarly from wholesalers and retailers and vice versa is called business to business e-commerce (B2B). The next category of e-commerce refers to the transactions between...
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...Cognitive Learning in the Spotlight: Spike in Investments in Behavior Modification Companies ........ 9 Sources of Investment Activity Information .............................................. 11 Investment Patterns in Context: The Longitudinal Perspective ......... 11 Blowing Past the $3 Billion Threshold ....................................................... 12 The China-India-Brazil Juggernaut ............................................................ 12 Opening the Floodgates: Unprecedented Deal Flows in 2015 ............ 13 Funding Amounts Over $50 million in First Three Quarters of 2015 .. 16 Retail Education: Consumer-facing Companies Still Attracting Investments ...................................................................................... 18 Which Consumer-facing Suppliers Attract Investment? ............................ 19 Corporate-facing Suppliers Make a Comeback ................................... 21 Spike in Investments for Three Learning Technology Products ......... 22 All Eyes on China, India, and Brazil...
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