...to reach global buyers. In 1999, they also launched a Chinese-language wholesale marketplace for domestic China trade among small businesses, now called 1688.com. This domestic platform has since evolved into a wholesale channel for merchants doing business on our retail marketplaces to source products. In 2003, Alibaba established Taobao Marketplace as a free platform for buyers to explore and discover products and for sellers to establish a low-cost online presence. According to iResearch, Taobao Marketplace was the number one consumer-to-consumer, or C2C, marketplace in terms of gross merchandise volume in China in 2013. In 2004, Alibaba established Alipay to address the issue of trust between buyers and sellers online. Buyers were unwilling to effect payment before receiving and inspecting their purchases, and sellers were unwilling to ship the products until they were assured that payment was forthcoming. This lack of trust posed a stifling challenge for the development of online commerce in China. Alipay introduced its escrow service as a solution to this problem. Since 2011, Alibaba no longer control or have an ownership interest in Alipay, although Alibaba continue to participate in some of the economic benefits of Alipay...
Words: 720 - Pages: 3
...businesses and Chinese consumers AliExpress Global retail marketplace Chinese wholesalers, manufacturers, and worldwide consumers, many of them located in Russia, Brazil and the United States Alipay Third-party online payment platform Online merchants and consumers, including Alibaba Group’s marketplaces as well as third parties such as financial institutions, online games, and digital communication To differentiate its business units from others in the e-commerce industry by focusing on the very first stage of e-commerce, to provide trading opportunities. In other words, in e-commerce industry there are usually three stages: providing trading opportunities, confirming transactions, and executing trades. Instead of getting involved from information management (order processing, purchasing) to the physical transformation (materials, logistics, productions), Alibaba Group Holding Limited (Alibaba) focuses only on information management. It provides platforms for worldwide small to medium sized merchants and individuals, and leaves the trading process to the parties of the transactions. This business unit strategy is correct, proved by the fact that every related companies and affiliates of Alibaba...
Words: 310 - Pages: 2
...Alibaba Introduction Of Alibaba Alibaba is the world's leading e-commerce company, small business is alibaba group's flagship business. Alibaba n hangzhou city, founded in 1999 in China, through its three trading markets to help all over the world millions of buyers and suppliers engaged in online business. Three online trading market including: centralized service global import and export business of international trade market, focus on domestic trade in China market, as well as through a joint-venture company management, to promote Japan's export and sale in domestic market in Japan market. In addition, alibaba also on the international market has a global wholesale trading platform, for the smaller, need to small batch goods shipment the buyer to provide fast service. All form a trading market have come from more than 240 countries and regions more than 61 million registered users of online communities. To transition into online business for small businesses are more likely to establish and manage a comprehensive platform, alibaba also directly or through its acquisition of companies, including China nets and DaTong, the domestic traders to provide diversified business management software and Internet infrastructure services and export related services, and business management professionals and e-commerce specialist training services. Alibaba also has Vendio and Auctiva, the two companies are leading the third party e-commerce solutions...
Words: 1944 - Pages: 8
...Introduction: Alibaba Group is the world's outstanding business-to-business e-commerce service company, which provides an efficient online trading platform for buyers and suppliers all over the world. It is China's largest e-commerce group which was founded by Jack Ma in 1999, and has developed into seven affiliated groups, namely Alibaba International Business Operations, Alibaba Small Business Operations, Taobao Marketplace, Tmall.com, Juhuasuan, e-Tao and Alibaba Cloud Computing. Describe what happened (external) Political and legal : the government impose laws to control the e-commerce business like license, permission and approval from alibaba and its users.Furthermore, the transactions conducted through its cross-border marketplaces may be subject to different and customs and import/export rules and regulations. In addition, Alibaba faces the challenge of complying concurrently with the compliance rules and regulations of multiple jurisdictions Economic : there is an increase in tax for each online sellers. The company recorded revenues of( $8,526.6 million) ended March 2014,an increase of 52.1% over 2013. The operating profit of the company ($4,047 million) in 2014 as compared to an operating profit of ($1,746 million) in 2013. Social : Alibaba faced a problems when they sell their products in both China and foreign markets. Customers believe that Alibaba products is not quality and they sells fake goods. Project suggests that 70% of Americans do not trust prescription...
Words: 433 - Pages: 2
...alibaba By snoworb | Studymode.com xecutive Summary Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile commerce, and also, industries beyond, the report then ends with suggestions for future possibilities that the Group could explore. Outline of Alibaba Group Set in a fast moving, highly pragmatic e-commerce sector, Alibaba Group has never been shy of its ambition which comprises to top Walmart to become the largest retail company worldwide within the next 3 years (Hong, 2013). Alibaba Group has stakes in not only e-commerce platforms but also in cloud computing, group purchasing, payment processing, cloud computing, and even instant messaging. With its strategic position in a developing China, strong presence in the e-commerce sector and far looking management strategies, Alibaba Group might just be able to achieve its ambitious goals. ...
Words: 2839 - Pages: 12
...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 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...
Words: 2007 - Pages: 9
...Ankit Singh and Juan Alberto Calero Part A – e-Commerce in China vs USA 1. Overall, what are some key opportunities and challenges (obstacles) that confront ecommerce in China? How are these challenges similar / different from those confronting e-commerce in the US (or other countries that you are more familiar with)? Some of the key opportunities of e-commerce in China are: The internet penetration rate in China is growing at a much faster rate as compared to other countries. 25.5% users in China have engaged in e-commerce, while in US 71% has done so. This represents an enormous opportunity for e-commerce services, given that there is room for growth in China. The market is China is still in the beginning of its growth stage. The manufacturing prowess of china provides an excellent complement to the ecommerce market. Online shopping market has grown 64.1% over last year to $1.5 Billion. Online B2B market is valued at 65.7 B 69.8% yearly growth. With these accelerated growth rates, the e-commerce market will developed very quickly, players need to be aware of the stage of e-commerce in China and address the market accordignly. Small and medium sized enterprises (SMEs) contribute to 68.8% of nation gross industrial output. Only 28% of SMEs utilised third-party B2B e-commerce platform. The government has a plan to increase it to 80% by 2012. Given this, the projected demand for e-commerce is known. In addition , players also known which type of businesses are using e-commerce...
Words: 2454 - Pages: 10
...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
...Study: Should Alibaba Group Centralize? Jack Ma founded the technologically evolving and economically progressing business, Alibaba Group. Ma saw the potential of the Internet early on and created a multifaceted conglomerate, capturing a business market at its foundation. His goal was to provide a simple, efficient e-commerce platform and now holds half of the B2B in China. Wherever there was a need, Ma would adapt and create different business units to effectively provide the service. Alongside online trading, Ma provided a platform for retailers, individuals, payment services, management solutions, and an entertainment portal. Alibaba Group developed synergies within the units and subsidiaries to coordinate ideas, spread resources, and develop additional units to complement each other. He down streamed manufacturers provided a cheap storefront and added value services (such as keyword bidding and commission based sales). His model was unlike any other at the time. This kind of consolidation, led to competition among the subsidiaries. This kind of competition, however, has inspired efficiency and differentiation. Ma promoted collaboration and created cross-business and cross-functional teams. The business units also did not depend on large teams but rather channeled its focus on engineering and customer service. By the mid 2000’s, China had transitioned into a primarily private economy—which ultimately brought the nation to an economic boom. By 2009, 70% of Alibaba Groups business...
Words: 605 - Pages: 3
...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
...Presentation China is an ethnically and culturally diverse country. Its dominant cultural tradition has been heavily influenced by Confucianism and Taoism, but within that tradition are many different subcultures. The spoken language also varies greatly from region to region. Most Chinese people attach a great importance to cultivating, maintaining, and developing connections. These social values, which are the key elements for understanding Chinese social behavioural patterns and their business dynamics, are shared by Chinese societies all over the world. Alibaba.com is one of the most successful Internet companies to emerge from China. In fact, China's post-economic reform context has created a very favourable climate for B2B in Asia. If we draw a parallel between this growing sector and often floundering B2C/C2C companies which have faced threats such as the lack of credit systems, online payment problems, poor logistic systems and the old consumer habits we can see why Alibaba.com decided to seize the B2B market opportunity. Alibaba.com choose B2B, but focused on small and medium sized companies because of the disadvantages they faced in international trade until now. This was the basis of the innovation. The barrier abolition linked to the China's economic reform allowed companies to expand into an international trade market. Alibaba.com enabled SME's to find product and partner information around the world via Internet, offering e-commerce capabilities. Quantity...
Words: 683 - Pages: 3
...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...
Words: 5641 - Pages: 23
...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...
Words: 2369 - Pages: 10
...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...
Words: 3400 - Pages: 14
