...Team #2 Jing Dong Corporation Executive Summary JD.com or Jingdong, formerly 360Buy, is a Chinese electronic commerce company headquartered in Beijing. It is one of the largest B2C online retailers in China by transaction volume. Its English website, for worldwide shipping, launched on October 18, 2012. The company was founded by Liu Qiangdong (a.k.a. Richard Liu) in July 1998, and its B2C (Business to Customer) platform went online in 2004. It started as an online magneto-optical store, but soon diversified, selling electronics, mobile phones, computers, etc. Jingdong Mall changed the domain name to 360buy.com in June 2007, and to JD.com in 2013. In May of 2014 JD.com listed on the Nasdaq stock exchange, which marked the largest listing of the year on that exchange. In 2014 JD.com recorded GMV of $41.9 billion (RMB 260.2 billion) and net revenue of $18.5 billion (RMB 115 billion). Jing Dong Mall is the largest professional 3C (computer, communications, and consumer electronics.) online shopping platform in B2C market in China, and the most influential E-commerce Websites in China, which is also the most popular with consumers. Jing Dong Mall has been maintaining a high growth since founded in 2004. Its market share has been the top one for years in the online direct sales market, and the growth rate has been soaring over 300% for four consecutive years until now. Jing Dong Mall always adheres to the pure E-commerce mode operation, to reduce intermediate links, to provide...
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...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 multiple...
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...industry attractiveness and firm’s competitive advantage with respect to other firms in the industry both contribute to the performance of a firm. Regarding to E-commerce business in China, Alibaba has become the industry leader without any doubt. This essay will explain the relevant issues in the E-commerce industry as well as analyze the success of Alibaba Group. Alibaba was established in 1999 by Jack Ma (Yun Ma). Back then it was only a B2B E-commerce business. Today Alibaba is the unbeatable leader of B2B industry with more than 50 percent share of Chinese B2B market in 2014 (shown in Exhibit 1). And when people talk about B2C business in China, the first website appears in their mind is T-mall, which belongs to Alibaba Group. In spite of the entrance of new competitors every year, T-mall still reached 50 percent share of Chinese B2C market in 2014 (shown in Exhibit 2). In addition to this, as China’s own eBay-like C2C platform, Taobao, also operated by Alibaba Group, has become the market leader of Chinese C2C business with the help of its annual 1111 shopping event. Alibaba was founded in China but now it’s a publicly listed company. To evaluate its environmental threat, we will conduct Porter’s 5 forces framework. Threat of New Entrants - It’s not difficult to set up a new smaller and more focused e-commerce business like Zappos.com in China right now. However, Alibaba has developed quite the reputation for new innovation and its global influence that others can’t catch...
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...Case study of Tencent’s E-commerce Strategy Executive Summary Tencent’s E-commerce strategy didn’t work well. The company’s core business is QQ which is an online instant messenger. All of tencent’s other business will be rolled out base upon the QQ. They want people who use QQ can also shop online easily. So they made the strategy according to that point. They developed E-commerce websites which made no difference with Taobao and Tmall but didn’t make them to success. Why does this happen? What’s Tencent’s strategy? Introduction As Tencent announced to take 15% stake of JD.com[1], which is the largest online retailer of China, in March 2014, it also implicated the failure of Tencent’s previous e-commerce strategy. In the meantime, Tencent almost sold all of its own e-commerce business to JD, including Paipai marketplace(C2C) and QQwanggou(B2C), logistic assets and personnel, as well as part interest of 51Buy.com.This combination shows that Tencent has completely given up its own e-commerce business which were created by its own team in 2005. On the one hand, Tencent is the fourth-largest Internet company in the world whose market value has reached about US$ 150 billion in 2014 which means it has sufficient cash stockpile. On the other hand, it’s a giant company which has developed diverse and abundant online business including IM, game, search engine, social network, video and portal. Without shortage of money or resources, it seems a little confused for Tencent’s choice...
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...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 - 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. - 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. - 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? - Alibaba came with few main products, Taobao.com (shopping site), Alipay.com (payment service), Koubei.com (classified ads) and Alimama.com (marketplace). - 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...
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...conclude 7Ps, in order to assist Amazon in extending into a new online service, a social platform named `Amazon Book Club`. Part A: External Analysis 1. The Macro environment 1.1 Economic In recent years after economics crisis, global economy has been gradually improved. GDP, as a measure of a countries’ economy, has been increased in a stable pace in America [1]. At the same time, according to the data from People’s Daily Online, China’s household disposable income reached 20167 yuan in 2014, 8.0 percent increase compared with 2013 [2]. Take China as an example, ‘shopping online’ becomes the hot words in recent years. As it indicates in the chart [3], the scale of the E-commerce market extends gradually. All these figures indicate that people are more capable to purchase and attach more importance to the quality of life. Amazon, in the last 18 months, undoubtedly benefited from this tendency. For example, in the first Chinese ‘shopping overseas festival’ beginning on 28th, November in 2014, the sale increased by 24 times compared with the week before it [4]. 1.2 Political a. Governments’ policies will influence market structure and behavior. For example, China carry out the policy to encourage consumption. China raised individual income tax threshold to 3500 yuan [5]. And from the table, the gross profit of Amazon increased in the past three quarters in 2015 [6]. b. New legislation can impact...
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...Development Council (Hong-kong-economy-research.hktdc.com, 2015) states that the proportion of sales through online shopping platforms are only share 7.7% of the whole e-Commerce industry, which means the online shopping phenomenon is just at the early stage, with the growing of social media, such as Facebook, Twitter and Weibo (Castronovo and Lei, 2012), there is a plenty of room to grow. In order to understanding the e-commerce industry in Hong Kong, Go-Globe Hong Kong conduct a research about the e-commerce environment in Hong Kong. The main group of online shoppers are 25 to 34 years old (76.4%), while 40.5% aged between 50 to 64 years old. In 2013, there are 8.5% increase of Hong Kong residents shopping online in compare with 2011. Four out of five Hong Kong consumers use the internet to research what they want before purchasing or even purchase it online. And 49% of them are willing to spend more money on online shopping mall in the near future. With the smartphone are become more and more popular, 89% of smartphone users search a product which they desired in smartphone and 43% of them purchase those items on their smartphone. (Go-Globe Hong Kong, 2015) After the fierce competition of group buying industry in 2012 and the crush of the China online shopping mall giants, such as Taobao, Tmall and JD.com, only three major group buying sites left in the market. With the rule of the game is changed, more and more new local challengers, such as...
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International 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 ...................................................
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...INTERNET VS STORE-BASED SHOPPING: THE GLOBAL MOVE TOWARDS OMNICHANNEL RETAILING Euromonitor International 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 ...................................................
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...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 services viaweb portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect...
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...Virtual currency is currency people can use to make payments in virtual environments like gaming and social networking sites. It is possible to earn it by completing tasks in the virtual environment or simply participating for a set period of time, and users can also buy it, converting real currency into virtual, usually at a very favorable exchange rate. Virtual currencies like Bitcoin, Ripple, Litecoin and others have developed rapidly these years. Compared with traditional currency, virtual currency differs in many aspects. However, will virtual currency be able to take over traditional currency in the future? Economists have different idea on this question. The essay is presenting the arguments that virtual currency will replace traditional currency and vise-versa. One argument comes from People.cn: Some virtual currencies have become independent currencies and no longer depend on sovereign currencies. With future development, virtual currencies will replace traditional currencies. (Can Virtual Currencies Strike the Real World? 2013) In this argument, the premise is some virtual currencies have become independent currencies and no longer depend on sovereign currencies. This premise is deniable. Virtual currencies are not independent by now. They still need the support of sovereign currencies. For an example, people use the real money to buy Bitcoin and store it in a digital wallet. Or by mining, people can get Bitcoin, but the real money is still necessary to buy...
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...Technology | Internet BUY Price target $118.00 Price $95.76 The Powerful 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...
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