COURSE TITLE
FINANCIAL MANAGEMENT AND CORPORATE GOVERNANCE
SEMESTER AND SESSION
SEMESTER 1/2015/2016
REPORT TITLE
MAIN ISSUES IN ALIBABA, BAT AND XIAOMI BUSINESSES
PREPARED FOR
MR ISMAIL BIN ABDUL RAHMAN
PREPARED BY
HEMA RAMASAMY@LOGARAJAH
MATRIC NUMBER
MBS141140
SUBMISSION DATE
18TH OCTOBER 2015

ALIBABA’S JACK MA: RISE OF THE NEW CHINESE ENTREPRENEUR
Central Issues
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China Pages were initially started up with almost no Internet background and low value of capital, resulted a bought over by China Telecom, a state-owned giant in industry.

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Alibaba’s formation with limited capital went through period of uncertainty, where it was not a profitable business until year 2000. Its expansion were mainly focused on free-use base produced no revenue to Alibaba.com. Its funding was mainly from private investors and strategic partners such as Yahoo and Softbank.

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Jack Ma’s strategy were based from original business models, and not a copied from US ones like most other Chinese Internet companies. Was it a wise decision to be unique?

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Alibaba came with few main products, Taobao.com (shopping site), Alipay.com
(payment service), Koubei.com (classified ads) and Alimama.com (marketplace).

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EBay, had strong financial and technological resources, acquired EachNet, an online auction leader at the time as a competitor. Alibaba lacked resources to build an own search engine, led Jack to join forces with Yahoo. Somehow, Yahoo has its own competitors such as Google and local-based Baidu as well.

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Taobao.com took over eBay’s market share on its advantages of slick site design catered local preferences, customer support and some free services.

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Critic, a negative public image raised on Jack Ma’s rumored donation of RMB 1 for earthquake victims.

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Another negative review came when Jack Ma spoke out against public