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Alibaba Case Study and Website Review
- 1. Alibaba BUSINESS REVIEW ANDCASE STUDY 1 Submitted by REZA HAMOULEH School of industrial engineering Iran University of Science and Technology 2016
- 2. A brief introduction Alibaba Group is an e-commerce company (not only a website) Alibaba Group is an e-commerce Ecosystem, like a mix of Amazon, eBay and PayPal! Alibaba.com is the flagship company of Alibaba Group, Is the world’s largest online B2B trading platform. Act as a middleman (unlike amazon) 2 Global Rank 66 Alibaba.com Global Rank 12 Taobao.com Global Rank 33 Tmall.com Global Rank 50 Aliexpress.com According to Alexa.com
- 3. Income Annual netincome (March 31 2015 - March 31 2016) 11.06billion U.S. dollars Annual net income (March 31 2014 - March 31 2015): 3.9 billion $ Annual net income (March 31 2013 - March 31 2014): 3.2 billion $ Number of employees at Alibaba: 36,450 (Amazon: 230,000) Alibaba Group Brand Value: 49.3 billion U.S dollars 3 World Rank 18 Brand value According to Statista.com
- 4. History Founded inDec 1999 By Jack Ma and 17 other founders 4
- 5. History Founded inDec 1999 in Hangzhou, China 5
- 6. History In Dec2001, Alibaba.com achieved profitability 6
- 7. Some interesting factsabout Alibaba It has 300m customers - just short of the entire US population. Alibaba boasts 81% of online business in China In 2014, Jim Tompkins estimates that U.S. e-commerce with reach $475B, China will be at $540B, and Alibaba will be at $450B. Alibaba alone will nearly equal all e- commerce in the U.S. in 2014. Alibaba is the fastest growing e-commerce company in the world in the fastest growing market. The company’s growth rate since 2003 has approached 120%/year and has grown at a rate of 70% between 2009 and 2013. Jack Ma was an English teacher when he started the site from his one-bedroom apartment in Hangzhou, Zhejiang province, in 1999. He set up Alibaba with $60,000 borrowed from 17 people. His shareholding in Alibaba is 8.9%. 7
- 8. Expand to newmarkets E-commerce Markets Alibaba.com (B2B) AliExpress.com (B2B & B2C, international small businesses) taobao.com (C2C) 1688.com (B2B, domestic small businesses) Tmall.com (B2C) Juhuasuan.com (Group buying) 8 buying
- 9. Expand to newmarkets E-commerce Markets Alibaba.com (B2B) AliExpress.com (B2B & B2C, international small businesses) taobao.com (C2C) 1688.com (B2B, domestic small businesses) Tmall.com (B2C) Juhuasuan.com (Group buying) 9 buying
- 10. Expand to newmarkets E-Commerce Services Alipay.com (online payment platform) Etac.com (shopping search engine) other businesses Aliyun.com Alitrip.com … 10
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- 15. Search & Discovery15 1-Type in a product name and you’ll get anything from 500 to 500 000 results. That’s a lot of products, but it doesn’t really say anything about the suppliers behind these products. 2- You still type in a product name, but instead of a list of products you’ll get a list of suppliers that make your product.
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- 18. Discovery They trying toconvince you to Trust them! 18
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- 21. Trust: verification businessin Alibaba A&V Check Third-party verification company Required for all Global Gold Suppliers Onsite Check Alibaba.com personnel & third-party verification company Required for all Gold Suppliers in Mainland China, Taiwan Gold Suppliers and Hong Kong Gold Suppliers Assessed Supplier A third-party company, such as Bureau Veritas or TÜV Rheinland, carries out the inspection and verification. Optional for all Gold Suppliers in Mainland China, Taiwan Gold Suppliers and Hong Kong Gold Suppliers 21
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- 25. Business cycle 25 Western Union Risk Level For Buyer: Very Risky PayPal Risk Level For Buyer: Fairly Safe Upfront TT (Bank Transfer) Risk Level For Buyer: Risky Letter of Credit Risk Level For Buyer: Fairly Safe
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