...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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...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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...Pivot of Supporting The Loan th The 17 “Hanju” Cup Financial Case Analysis Contest Analysis Report 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 ...................................
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...21st Bled eConference eCollaboration: Overcoming Boundaries through Multi-Channel Interaction June 15 - 18, 2008; Bled, Slovenia Value Creation in B2B E-Markets of China: A Practical Perspective Jing Zhao a, , Shan Wang b and Wilfred V Huang c a Center for International Cooperation in E-Business, College of Management China University of Geosciences, Wuhan 430074, P.R.China zhao5563@gmail.com b Department of Management Science, School of Business, Renmin University, 59 Zhong Guan Cun Avenue, Haidian District, Beijing 100872, P.R. China wangs7@gmail.com c College of Business, Alfred University, Alfred, NY 14802, U.S.A. fhuang@alfred.edu Abstract In China, the development of e-market has unique characteristics in the transactional processes and market mechanisms, which relate largely to the current industry structure, financial infrastructure and organization structure. This paper seeks to develop a conceptual model of B2B e-market value creation strategy, and can also be used to highlight the complexity of such activities for Chinese B2B e-markets. A process-oriented approach to modelling the value of e-market, rather than strategic position theory or a simple descriptive approach, is found to be more suitable and has been selected. The model consists of two dimensions: the e-commerce process and the controlling complexity. We apply the model in an actual Chinese B2B e-market (Alibaba.com). The crucial value creation activities and strategies in the four...
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...FIVE FORCES ANALYSIS ................................................... 4 4. PRESENT THE CORPORATION NOW ............................. 5 5. ENVIRONMENT .................................................................... 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...
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...Microsoft’s Bid for Yahoo! Timeline As early as in late 2007, Microsoft proposed a number of cooperation alternatives with Yahoo! ranging from commercial partnerships to a merger, which were rejected by Yahoo!. Regarding to Microsoft’s proposal of acquisition in 2008, here are some key issues: Late 2007 Yahoo! rejected partnerships or merger proposal from Microsoft 31/1/2008 Microsoft announced its bid for Yahoo! at US$31/share 11/2/2008 Yahoo! rejected the offer, saying that it undervalued the company 28/2/2008 Google released news that with willingness to acquire 20% Yahoo share 6/4/2008 Final call from Microsoft – threatened Yahoo! Board with a proxy battle 2/5/2008 Yahoo! asked for US$37, Microsoft rose to US$33 4/5/2008 Microsoft withdrew US$47.5 buyout offer 5/5/2008 Yahoo!’s value dropped to $34 billion 17/5/2008 Yahoo! accepted the price $33-34, but Microsoft only interested in search business, Yahoo decided instead to sign a search advertising deal with Google. Microsoft’s Motivation of Acquisition After the failure of the deal, Steven Ballmer was made fun by the public that his greatest contribution during his tenure was: not able to close the deal. Why would Microsoft pay such high cost to acquire Yahoo! at the first place? As we know, Google was the dominant player in this industry and it kept consolidating its dominance through acquisition. Microsoft was eager to content against its biggest rival. The combination...
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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 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. Employees 4,400 (June 30,2007). As of January 2009, the Alibaba Group is made up of 6 sub-companies: 1. Taobao.com: Online auctions web site for customers. 2. Alipay: Online payments web site, processing mainly payments within China. 3. Alisoft: Provider of web services to the Chinese Small and Medium-sized Enterprise market place. 4. Alimama: Online advertising exchange, which allows web publishers and advertisers to trade online advertising inventory. 5. China Yahoo ! As a powerful portal with excellent searching engine, it provides high- quality basic application services for internet users including email, IM, information services and so on. 6. Koubei.com: China's largest communities for exchanging basic life information such as that on clothes, food, housing and travel. In 2009, Alibaba Group employed nearly 17,000 people, 70% worked in Alibaba’s B2B business. CRITICAL SUCCESS FACTORS 1. Clear Strategy To be the best e-business website not only in China, but also all over the world is the mission of Alibaba Corporation. The clear strategy is the beginning of the team of Ma Yun and the highest demand of all the team members. The right strategy born with the right period of e-business development in...
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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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...Alibaba in the Emerging Chinese E-commerce Industry Yuexi Li1 Claremont McKenna College November 15, 2015 Abstract: Alibaba.com is one of the leading e-Commerce companies in China. It has grown admirably from its initial beginning as an e-Market connecting small suppliers and buyers to a giant emarketplace that has several operational platforms. Currently the heavy reliance on Chinese Economy, the counterfeit goods issues, and the competition from other emarketplace remain Alibaba’s greatest challenges. In this paper I evaluate Alibaba’s business model including its mission, vision, and values, revenue model, and its R&D structure. Alibaba’s strategy led to its competitive advantages in realizing network effect of scale and understanding the Chinese market. 1 yli17@cmc.edu 1. Introduction On November 11th, 2015, Alibaba Group Holding Ltd. (hereinafter, Alibaba) reported a record-breaking $14.3 billion in sales over just 24 hours during the “Singles Day”2, a shopping holiday. In recent years, Singles Day sales in China have out paced Cyber Monday sales in the US: According to the Reuters.com, on November 11th, 2014, Alibaba reported a $9.3 billion sales from 24 hours, which is $7.26 billion more than sum of US retail ecommerce on Cyber Monday 2014. The statistic shows the Chinese online shopping market’s power, as well as Alibaba’s leading position as the Chinese e-commerce giant. Reaching...
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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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...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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...Julius Chen George Chiu Armen Odadjian Mengyang Wu FBE459: Stock-Trak End of Semester Report Our portfolio had a return of +6.97% as of November 28th compared with a +3.86% return on the S&P 500 in the same time period. We ended with a Sharpe Ratio of 4.30 and portfolio beta of 0.23. Over 136 trades, we employed various option strategies, longed and shorted equities, speculated on commodities with futures, and invested in fixed income securities. Listed below are a few highlights and in-depth analysis of the strategies that we used. Protected Put Ticker | Position | Cost | Strike | S0 | ST | Profit/Loss | MU | Long | | | 30.61 | 34.30 | +$369.00 | | Buy Put | 1.72 | 31 | 30.61 | 34.30 | -$172.00 | DVN | Long | | | 59.02 | 67.20 | +$818.00 | | Buy Put | 1.60 | 57.5 | 59.02 | 67.20 | -$160.00 | SSYS | Long | | | 116.63 | 102.42 | -$1,421.00 | | Buy Put | 6.70 | 115 | 116.63 | 102.42 | +588.00 | *where S0= price at position open and ST=price at position close On October 22, we entered into three protect put strategies for Micro Technology (semiconductor maker), Devon Energy Corp. (energy company), and Stratasys, Ltd. (3-D printer maker). Our team believed that each company would outperform their peers in their perspective industries. Each company, however, operates in volatile industries. The semiconductor industry suffers from cyclical demand and producers often see margins slashed due to constant price wars. The stock prices of energy companies often...
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...------------------------------------------------- Two major processes of strategy Strategy specifically involves two major processes: formulation and implementation. These two major initiatives undertaken by the top managerial level in an organization is regarded as strategic management. Strategy assignment help experts focus on these. 1. Formulation Formulation refers to the analysis of the market condition and plotting adequate strategic actions respectively to gain competitive advantage against the rivals. Strategies are formulated based on the following factors and mainly highlighted in strategy assignment help material: * The nature of organizational business * The target market for a significant product or service * The purchase characteristics of target customers * The geographical scope of the business * The differentiation capability of business * The opportunities and possible threats of the business 2. Implementation It refers to the alignment of resources towards the organizational goals. Implementation depends on a number of factors that include structuring of resources, leadership arrangement, effective communication, management, performance monitoring etc. Strategy assignment help experts suggest that implementation is a useful process to evaluate the progress towards achievement of...
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...local people, the locals understand local consumption habits, festivals, religion, social system better than foreigners. So it is something we all take for granted: the locals can manage locals easier or build local ties better. In addition: Cultural exchange is a two-way process, after local employees working with foreign staffs, the locals can give suggestion to help foreign staffs to adapt faster. For example: There are two telecommunications companies want to expand business in U.S.. One is from India,another is from China.Indian company's U.S. division has been fully localized, senior staffs are almost all Americans, it has been deemed to come from behind global competitors after U.S. local telecommunications giant's did a strategic analysis. On the contrary, Chinese state-owned enterprise, all the senior staffs are sent from China. In addition to considering the Chinese market, U.S. telecom operators never consider the Chinese counterparts as a global competitor.[i] Therefore it is necessary for every multinational corporations to provide an...
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