2. WHY ALIBABA?
Only big Non-U.S. E-commerce giant
Fastest growing e-commerce Company in the world
One of the biggest innovators in cutting cost.
Competitors Amazon, eBay
5. VS VS
• Founded in 1995, Campbell,
California, United States
• Released IPO at a valuation of USD
$63 Million in 1998
• Online platform for sale of goods
and services for and by individuals
• PayPal, Skype, Craiglist are
subsidiaries.
• Founded in 1999, Hangzhou,
China
• Released IPO in September
2014 in US at a valuation of
USD $21.8 Billion
• Acts as middleman between
buyers and sellers through its
network of websites
• Taobao.com, Tmall, Alipay
• No Inventory
• Founded in 1994, Bellevue,
Washington, United States
• Released IPO at a valuation of USD
$54 Million in May, 1997
• Indulges in both direct selling of goods
and provides online platform for other
retailers to sell products
• Kindle, e-book are other sources of
revenues
• Has its large network of warehouses
for inventory
9. FINDINGS:
• Alibaba have higher gross profit margins, operating profit margin , ROA and ROE,
thus it is more profitable than EBay an Amazon.
• It is primarily due to high profits they make by their business.
• The interesting fact is that Amazon net revenue is more than Alibaba’s but still their
profit margins are low.
• If we see leverage, then also Alibaba is the least risky company among the three.
• By 2017 Alibaba would take over Amazon in revenue too.
22.82%
15.45
%
56.54%