3. The company was founded in 1999 by 18 people led by Jack Ma.
On November 6,2007, Alibaba.com debuted on the Hong Kong
Stock
exchange, raising US$1.5 billion.
.The company provides consumer-to-consumer (C2C), business-to-
consumer (B2C), and business-to-business (B2B) sales services via
Chinese and global marketplaces, as well as local consumer, digital
media and entertainment, logistics and cloud computing services.
It owns and operates a diverse portfolio of companies around the
world in numerous business sectors.
INTRODUCTION
4. By the second quarter of 2007, Alibaba.com was the largest online B2B e-
commerce company in china.
The English-language web site alibaba.com specializes in business-to-
business trades, especially for international buyers trying to contact Chinese
sellers.
On 18 September 2014, Alibaba's IPO priced at US$68, raised US$21.8
billion for the company and investors making it the biggest U.S. IPO in
history.
5. MISSION
As part of the Alibaba Group, our mission is to make it
easy to do business anywhere.
We do this by giving suppliers the tools necessary to
reach a global audience for their products, and by
helping buyers find products and suppliers quickly and
efficiently.
6.
7. Buyer Bargaining Power (Medium)
•With the development of B2B
websites, the customers may have the
opportunity to choose the other
platform and that will also be the
opportunity to negotiate with
Alibaba.com for more rights. But, the
goodwill of the business in market
gives them a strong position in
negotiation.
8. ► The most important suppliers are the
firms advertising on Alibaba.com,
such as the famous magazines,
newspapers and websites.
► Advertisement price is generally
based on the market
9. ➢ Own websites of companies.
➢ The customers which prefer to make
business with large companies, they will
not turn to Alibaba.com but directly
contact with the companies themselves
10. ► eBay, Amazon, jd.com, hc360.com
► Alibaba.com has the highest profit margin
with around 44%, whereas Amazon and eBay
have much lower profit margin.
● According to the BBC, the total value of
goods sold on Alibaba in 2014 was higher
than Amazon and eBay combined.
11. ▪ Largest online trading website
▪ China has largest number of
online users
▪ Strong place in global market
▪ Positive cash flow
•
•
No mass advertisement
Website: Intermediary &
replicable
Weaknesses
STRENGTHS
12. •
•
•
Market share possibility
in US
Increasing popularity of
Internet
China; creating
regulated business
environment
•
•
•
Competition among rival
websites
Profits mainly in China
Online threats/data security
threats.
OPPORTUNIT
IES
Threats
13. ► Networking- Company believed that
diversification and quality of users were
critical to success of the marketplace.
► Continuous expansion- exploring
international markets to sell more premium
services to the customers
► Value added services- services like Instant
messaging services, CRM and online business
applications was offered to customers to
improve brand loyalty.
14. ●They charge for advertisement
●Listing for companies/products are free but for better
exposure companies pay to Alibaba.com from where
they earn their revenue.
●They do not charge commission for sell.
15. THE NUMBER OF ONLINE SHOPPERS ARE SKYROCKETING
T h e number of online shoppers in China grew f
r
o
m
148 million (in 2010 representing 11% of the
population and 32% of Internet users
► By the end of 2020, China is expected to have more
than 700 million online shoppers.
16. RISING COMPETITION FROM JD.COM COULD
IMPACT ALIBABA’S MARKET SHARE ON B2C
AND MOBILE COMMERCE
► JD.com a direct sales retailer but has recently expanded into a
marketplace model, could intensify competition.
► it has strategic advantages such as a huge cash muscle as well
as a close partnership with Tencent.
