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Alibaba market strategy

SWOT analysis for alibaba on how it can expand its business in B2C category from B2B. for more info check the website

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Alibaba market strategy

  1. 1. • Story……….!!!!!!!!!!!!!! 1
  2. 2. Alibaba The Growing family Current position : valuation • Alibaba s valuation is roughly around 60 bn $. rank • Ranked 174th in the forbes world ‘s biggest companies ranking . Users • Alibaba has 367 million active users
  3. 3. Next What ? Expansion in India Having presence in b2c segment .
  4. 4. Why India is important ? Exact condition • As of now the % of total retail sales from internet is .9% but is expected to grow 1.9% in the very next 2 yrs Retail ecommerce sales • Retail e-commerce sales in India have grown tremendously from 2.3 billion U.S. dollars in 2012 to an estimated 17.5 billion U.S. dollars, representing an almost eight-fold growth. Indian • According to Nomura’s internet India report in July , Indian e- commerce is estimated to reach 45 bn $ in next 5 yrs .
  5. 5. Digital Buyer penetration to grow in India 0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 2014 2015 2016 2017 2018 2019
  6. 6. • Per capita income at current prices during 2014-15 was 88,533 rs. • The internet penetration is given by : • Nov 17, 2015 - The number of Internet users in India is expected to reach 402 million by December2015, registering a growth of 49 per cent over last year. • And last but not least the Modi led government which announced 100 percent FDI in ecommerce on march 29th 2016 and is committed for the ease of doing business in India is definitely a plus point for alibaba . year Internet user Penetration % Total population 2016 462,124,989 34.80% 132,680,1576 2015 354,114,747 27% 131,105,0527
  7. 7. From where to start • In India Still the companies are inveigling customers by keeping the price low and as in Alibaba we have that leverage over others due to low price in china and ability to invest money, we can any day start with Alibaba in B2C also no company till now have come up with the vision to connect the people especially the women in tier 2 and tier 3 cities who still play important role in shopping even in today s world so Alibaba should come up with more user friendly, segment focused platform in order to capture that segment . what Alibaba can do ? • Coming up with the app along with the website which should be extremely user friendly and if anyone wants to order something he or she should get the option to write it on the app like making list or he or she can upload the list with the jpeg/jpg format then person will get the possible items on the app and then the procedure is same for delivering because in tier 2 or 3 cities people nowadays have become more brand conscious.
  8. 8. Why focusing tier 2 and tier 3 cities? • According to Assocham study the high internet penetration across tier-II and tier-III cities along with high disposable income shall lead to approx 100 million transactions on the Internet by 2020. As a result, the luxury consumption is going to increase manifold in the country. So focusing more will benefit us in long run . Clearly this target has all the potential
  9. 9. Why pro mobile is better ? •India has mobile internet user base of 306 million as of December 2015. As per a report released by Internet and Mobile Association of India (IMAI) and market research firm IMRB and penetration of mobile internet was 23 % according to the same sources and why women are also important is being shown with this diagram
  10. 10. Also even in 2012 the picture was that and clearly the conditioned has improved a lot ….
  11. 11. E-commerce apps usage in 2014-15
  12. 12. If Alibaba wants to start from the very next day then :- Strength Ability to invest which will keep the price lower and Indians are more prone to low prices . Weakness Little late entry as there are already 4-5 big market players in India. Threats Companies are already investing huge on advertising like flipkart 50 cr , Amazon 70 cr and ask me 300 cr so the companies are trying to capture market through huge advertisement also there are 200 ecommerce startups where 60 percent are horizontal and 40 percent are vertical so in order to save their market share from Alibaba they can expand this budget Opportunities Explained in the next slide . ALIBABA
  13. 13. Opportunities for Us Festivals(most of the sales are done in festival season and India has 24 national, religious and seasonal festivals so a great opportunity. Some very important are Diwali ,Holi,Eid ,Baisakhi etc. Social media promotion where India has 112 million fb users and 22 million active twitter users so it gives opportunity for less expensive marketing Sports events such as IPL, Indian table tennis league , pro kabbaddi , martial art camp, national games goa , south Asian games, junior hockey world cup . Bollywood Award functions such as IIFA, Stardust , zee cine awards ,national film awards , filmfare ,Big star entertainment awards ,screen awards. Tradeshows and exhibition in which India is going to have more then 200 trade shows this year and next year which can help us in active marketing shows_india_2.html Municipal corporation functions if the ecommerce company wants to capture the tier 2 and tier 3 market then still the less expensive but effective way of marketing is through these where in short period most of the people become aware of your site .
  14. 14. Upcoming most important events • AFC U-16 championship(15 Sep -2 Oct 2016 ) • Pro Kabbadi League(July –August 2016 ) • IPL ( next is in April 8 to May 29 , 2017) •India International Trade Fair(14-27 nov,2016) •IHGF Delhi Fair(14-18 oct,2016) •Bangalore Fashion Week(28-31 july,2016) •India International Garment Fair(18 - 20 Jul 2016) •India International Mega Trade Fair-Kolkata(16 - 26 Dec 2016) • IIFA Madrid 2016 (June 23-26) • Big star entertainment awards (December 2016) • Filmfare Awards (January 2017) • Guild awards (January 2017)
  15. 15. The reason I made the project • Since after joining Alibaba on may 1st as an intern I fell in love with this company . The 6 basic principles of integrity, customer first, passion ,commitment ,team work and embrace change are something which I want to embrace ,learn and follow in my life and I believe that is possible only in this company . I also firmly believe that my goal is towards contributing more to the company in future .
  16. 16. Reason of this love culture with in this organization nurtures one’s thought process to be more open and innovative . The opportunity to work with the brilliant people. The motto of making business everywhere easy shows the inclusive and more of customer dedicated approach which is hard to find in other company. Exposure one receives working with the global company which is having presence in more then 150+ countries .
  17. 17. Why I belong to alibaba ? Exposure to world I have travelled 8 countries at the age of 22 and I believe I am the global citizen and have an exposure to how to deal with the customers outside my own country . Leadership I had been a student council member in my college and through out my school headed my class as a monitor that shows my leadership qualities which is there in every employee of Alibaba i.e. To take the responsibilities and lead . Commitment I have always showed my commitment to every given opportunity in hand whether it would be in college towards studies and student council or it will be in my daily life which makes me adhering to the one of Alibaba s 6 principles .
  18. 18. Where can I work Business development • I can work in business development as I designed a potential revenue model for the NGO during my winter internship which helped the NGO in identifying the new potential revenue sources. Marketing • I can work in marketing by helping Alibaba in reaching to the distant villages , small towns etc by involving in active marketing through different mediums . Also as I like selling so I can work in sales . Volunteer • Even if I am not suitable for these two jobs , I would be ok to work as a volunteer to each department by fulfilling my desire to work in this company.
  19. 19. • Contact details +918386923345