...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 through Alibaba’s online sites which is more than the total of eBay and Amazon. Furthermore, after...
Words: 1824 - Pages: 8
...Content: Introduction: Market size and trends of the two markets P2 Comprehensive analysis The ALIBABA and the ebey market pattern P4 The principles involved in the introduction of the new product P10 Characteristics of those consumers who might be adopters P12 Hidden psychological motivations that hindered/contribute to success P14 Role of peer pressure or other elements P16 Conclusion: Recommendation/ Opinion P18 Reference P19 Introduction Market size and trends of the two markets. Alibaba since March 10, 1999 after the establishment soon became China's largest Internet companies and the world's second largest Internet companies, Alibaba is the world's leading small business e-commerce company, Alibaba Group's flagship business. Alibaba market through its three trading around the world to millions of buyers and suppliers engaged in online business.Three online marketplaces: focuses on serving importers and exporters in the international market, domestic trade in China market, and, through an associated company, to promote Japanese exports and the domestic market in Japan.In addition, Alibaba is also on the international market with a global wholesale trading platform for smaller, you need small quantities of goods to buyers fast delivery service.All transactions with the formation of a market more than 240 countries and regions from over 61 million registered users of the online community.In order to be transformed into...
Words: 6708 - Pages: 27
...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...
Words: 969 - Pages: 4
...influence, it has a team of three countries, i.e. Japan, China and Britain. * Brand popularity Alibaba has strong brand popularity and it is difficult to find another B2B ecommerce with such huge brand influence power and brand popularity in China. Alibaba has been doing the scientific marketing efforts for the global customers since many years and has used it to establish a good reputation and brand popularity in their customer’s mind, which has become the core competitiveness of them, and that is hard for the later competitors to exceed which acts as value for Alibaba. * Good understanding of its customers The customers of Alibaba are able to effortlessly navigate through the website because it has been created with a very good understanding of its customers. It also provides another forum for the customers who want to communicate information or find business opportunity in their location. It keeps on bringing new innovative ideas in the e-commerce industry in China which is a strong indication of its understanding of its customers. * Strong internet enterprise union International internet union between Yahoo, Japanese Softbank and Alibaba by share relations has helped Alibaba get the advanced searching technology supports from Yahoo and the success experience from Japanese C2C market. Weakness * Easy to replace and imitate The business model of Alibaba is easy to imitate...
Words: 1157 - Pages: 5
...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...
Words: 4020 - Pages: 17
...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...
Words: 4020 - Pages: 17
...ALIBABA Group Holding Brief History. Alibaba cooperation is a global wide Internet company founded by Jack Ma, Chinese name Ma Yun.Although Alibaba was founded in 1999, the story of how the company came to be actually dates back to 1995, when Jack Ma was on a trip to the U.S. and first became exposed to the Internet. As the story goes, he tried searching for the word "beer" on Yahoo but the search results did not turn up a single Chinese option. In fact, he could hardly find anything about China on the Internet at all. After returning home, he founded a company called China Pages - a directory of various Chinese companies looking for customers abroad. China Pages was a flop. But a few years later, Ma took another stab at an Internet business. With a group of 17 friends and $60,000 of funds, Alibaba was born. [Baidupedia Web] Within only 15 years, Alibaba became the largest e-commerce company in the world, with approximately $300 billion in annual gross merchandise volume ("GMV") - or nearly 1.5 times the combined GMV of Amazon and eBay. In fact, more than three out of every four dollars spent online shopping in China goes through its platform, which should come as no surprise given that Alibaba's user base is nearly equal to the entire population of the U.S. Alibaba's "ecosystem" is made up of three leading Chinese online retailing platforms: (1) Taobao.com, China's largest online C2C shopping site; (2) Tmall.com, China's largest third-party...
Words: 1544 - Pages: 7
...Introduction: Alibaba Group was established in 1999 by 18 people led by Jack Ma, a teacher from Hangzhou, China. Company’s founders shared a belief that the Internet would level the playing field by enabling small enterprises to leverage innovation and technology to grow and compete more effectively in the domestic and global economies. Currently it operates in leading online and mobile marketplaces in retail and wholesale segment, cloud computing and other services. It provides technology and services to consumers and other participants to conduct commerce in their ecosystem. Mission: To make it easy to do business anywhere. Vision: We aim to build the future infrastructure of commerce. We envision that our customers will meet, work and live at Alibaba, and that we will be a company that lasts at least 102 years. Subsidiaries and its ecosystem: 1. Alibaba.com (B2B market place): There were 40 million small businesses in China. Many of them operated in fragmented market with limited access to communication channels and information services. Alibaba developed small online trading platform designed to help connect small Chinese businesses with buyers, retailers and trading companies. With Alibaba.com they started acquiring customer on line at an extremely low cost. In 2008, Alibaba increased its operating profit by 48% and had 7.9 million registered users and 970,000 store fronts. Revenue from value added services increases in line with user base. 2. Taobao:...
Words: 2371 - Pages: 10
...Alibaba. Alibaba is an e-commerce company from China that is currently the biggest IPO under the world. The Group provides business to customer and customer-to-customer sales and services via online. Electronic payments, cloud-computing services that are data centric and search engines for shopping are also included in Alibaba’s services. Jack Ma is a very successful person that brings up the whole company with Penh Lei, also known as founders of the company. Being an English teacher, which is lacked in computer knowledge, Jack Ma made up for this weakness with his vision. Jack and 17 of his friends launched Alibaba in 1999. By right, Alibaba Group is more successful than eBay and Amazon when put together. Srikanth An. (2015, June 25).Jack Ma- The Inspirational Story of Alibaba Founder. Retrieved from http://www.shoutmeloud.com/jack-ma-alibaba-founder.html In 2012, two thresholds of Ali Baba Group handled sales of almost $170 billion. Though the company was started in the year 1999, the group started earning profits only from the year 2001. Jack Ma was CEO of the group till 2013. Lacking the technical knowledge, Jack was never a typical CEO. Jack is the main pillar of Alibaba who presently acting as the chairman of the group. But the present CEO is Jonathan Lu. In September 2014, Alibaba’s first IPO took the US markets by storm. It boosted founder Jack Ma to become China’s Richest Man. Over 231 million customers spent a figure of $248 billion on Alibaba’s web portals in...
Words: 944 - Pages: 4
... Business Model 5 4. Products and Services 7 5. Target Users 8 6. Payment Methods 9 7. Comparison of Alibaba with other TechGiants 12 9. References 15 2 Alibaba A marketplace, a search engine and a bank, all in one. Alibaba is China’s and by some measures, the world’s biggest online commerce company. Its three main sites — Taobao, Tmall and Alibaba.com — have hundreds of millions of users, and host millions of merchants and businesses. Alibaba handles more business than any other ecommerce company. One can think of it as a mix of Amazon.com, eBay and Paypal. Customers use Alibaba to shop online, sell unwanted goods and make online payments. Alibaba has two retail sites: Taobao, which features thousands of nonbrand name products sold by smaller merchants; and Tmall, which offers brandname products sold by big merchants. Unlike Amazon, which buys goods from suppliers and sells them to customers, Alibaba has always acted as a middleman, connecting buyers and sellers and facilitating transactions between them. This Chinese B2B trading platform connects buyers in North America and Europe with suppliers from China. Alibaba follows an aggregation of supply model (similar to other early B2B players), helping to solve the pain of global sourcing. 3...
Words: 2572 - Pages: 11
...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...
Words: 7300 - Pages: 30
...com/news/china/article/1694077/state-commerce-regulator-releases-damming- account-tabaocom-day-alibaba http://www.straitstimes.com/news/opinion/more-opinion-stories/story/taobao-the-king-fakes- china-e-commerce-20150202 Taobao cooperate with sgshop n mbb http://www.aspirantsg.com/maybank-sgshop-brings-china-taobao-bargains-to-singapore/ Wiki Taobao http://en.wikipedia.org/wiki/Taobao https://www.techinasia.com/tag/taobao/ Taobao team up with signpost https://sg.news.yahoo.com/taobao-teams-singpost-pore-shoppers-030023580.html http://www.chinainternetwatch.com/tag/taobao/ https://www.crunchbase.com/organization/taobao http://www.bomodagroup.com/differences-tmall-taobao/ CNBC news http://www.cnbc.com/id/102007039#. http://english.cntv.cn/2015/01/29/VIDE1422462360357940.shtml taobao lawsuit http://english.cntv.cn/2015/01/29/VIDE1422462360528952.shtml https://www.google.com.sg/search? biw=1249&bih=675&noj=1&tbs=qdr%3Ay&q=taobao+business+disadvantage&oq=taobao+busines s+disadvantage&gs_l=serp.3...31549.65805.0.66050.33.23.1.0.0.1.580.2011.0j4j2j0j1j1.8.0.msedr.. .0...1c.1.61.serp..28.5.1061.Uaz9VrHSf1s http://www.alibabagroup.com/en/news/press Taobao Sale report http://www.chinainternetwatch.com/7276/a-glimpse-at-chinese-internet-giants-2013-financial- statements/ http://www.alizila.com/alipay-report-shows-mobile-commerce-booming-china http://thenextweb.com/asia/2014/05/06/alibaba-files-ipo-618-million-users-5-55-billion-annual- revenue/...
Words: 514 - Pages: 3
...Alibaba Taobao Introduction Founded by Alibaba Group on May 10, 2003, Taobao Marketplace facilitates consumer-to-consumer (C2C) retail by providing a platform for small businesses and individual entrepreneurs to open online stores that mainly cater to consumers in Chinese-speaking regions (Mainland China, Hong Kong, Macau and Taiwan) and also abroad. Taobao Marketplace (formerly "Taobao") was launched in May 2003 by Alibaba after eBay acquired Eachnet, China’s online auction leader at the time, for USD 180 million and became a major player in the Chinese consumer e-commerce market. To counter eBay’s expansion, Taobao offered free listings to sellers and introduced website features designed to act in local consumers' best interests, such as instant messaging for facilitating buyer-seller communication and an escrow-based payment tool, Alipay. As a result, Taobao became mainland China's undisputed market leader within two years. Its market share surged from 8% to 59% between 2003 and 2005, while eBay China plunged from 79% to 36%. EBay shut down its China site in 2006. Asees the attractiveness of the e-commerce insdustry. In many ways, China seems suited for the rapid development of e-commerce. Driving forces that make e-commerce attractive includes the explosion of Internet use and the government's interest in developing e-commerce. Along with growth in Internet users has come increased e-commerce revenues. There were over 200 e-commerce web sites in China, employing...
Words: 837 - Pages: 4
... My favorite company is Alibaba. Alibaba started his business as a platform for facilitating E-commerce between buyers and sellers in China in 1999. There are 17000 employees in more than 50 cities and 50 million users in 240 countries now. Before started the process for an initial public offering in the U.S, Alibaba.com has hold 70% of China’s online E-commerce market. As the biggest IPO in history, Alibaba became one of the most valuable tech companies in the world. By listing in the U.S., Alibaba come into the international stage. It recognized by overseas investors and investment corporates, which help enlarge its business scale and attract more partners on both domestic market and its overseas market. I am interested in Alibaba when I heard that there was a contract between Yahoo and Alibaba in 2006. It clarified that if Alibaba does not start Initial Public Offering before 2015 it cannot get back a half of shares of the company owned by Yahoo and Yahoo could deal with all Alibaba’s shares as Yahoo’s will. Proofs by facts, Alibaba made his IPO before 2015. I have to admire the man behind Alibaba—Mr. Jack Ma. As the spiritual leader of the company, Mr. Ma become a hero in the heart of many people. But if I could be a CEO of Alibaba, I have to say that Alibaba is facing a slew of new business challenges and potential legal risk. Alibaba’s legal and ethical analysis: 1) Doubt on legal structure of Alibaba. Alibaba is using a so-called variable interest...
Words: 1191 - Pages: 5
...eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China, listing both the advantages and disadvantages of its acquisition strategy. As we know, eBay’s China expansion strategy can be considered as failure, despite the fact that eBay entered this potentially rewarding market with caution. This cautious strategy was very unusual for eBay, because they used full-forced, head-on, .be-first-or-nothing. strategy in other markets, for various reasons, it would be impossible to implement this strategy when penetrating Chinese market. So acquiring an already comparatively recognizable and well established brand seemed to be the best way to continue eBay’s expansion in Asia. Without a doubt, Each Net was the best candidate for acquisition at the time. When eBay acquired 33% shares of Each Net in 2002, it seemed to be hugely successful, because in year 2003 the value of Each Net had doubled and market share had rocketed to 85% - this initial success encouraged full acquisition of Each Net. As we know, the success did not turn out to be long-lasting, despite the fact that in first few years the performance of the company was brilliant. While acquisition of Each Net meant many advantages for eBay, it also implied serious disadvantages. Advantages of Each Net acquisition: • Each net had strong financial backing from...
Words: 564 - Pages: 3
