SlideShare a Scribd company logo
By:-
Jasim Alam(1426) Prabal Jain (1418) Vivek Anand(1444)
About Alibaba.com
 The company was founded in 1999 by 18 people led by Jack Ma, a former English
teacher from Hangzhou, China to support operation of B2B market places.
 In Oct. 2000 Alibaba launched the Gold supplier membership service for Chinese
exporters.
 On November 6,2007, Alibaba.com debuted on the Hong Kong Stock exchange,
raising US$1.5 billion.
 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.
 Japan's Softbank was one of the earliest investors in Alibaba.
 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.
Alibaba Case Study on Strategic Management
General Environment
Economic Segment-
SME contribute 68.8% to the nation’s GDP.
SME’s are estimated to rise from 31.5millionin
2006 to 50 million in 2012
Policy Segment-
“11th
five year plan for the Development of e-
commerce” encouraging SME’s to use third party
e-commerce platform.
General Environment
Global Segment-
From early 21st
century Alibaba launched different
sites in different national languages to cater the
global market. E.g.-English, Korean and Chinese
versions.
Technology Segment-
Internet penetration improved from 12.3% in 2007
to 49.03% in 2015.
In 2006,28% of SME’s are utilizing 3rd
party B2B e-
commerce platform in china which is expected to rise
up to 82% in 2012.
Industry Environment
Barriers to Entry (Low)
High returns results in new entrants, decreases
profitability
More new websites try to copy the business model
of Alibaba.com
Target market to a single industry
finechemical.com
textilehome.com
Share the special market of Alibaba.com
Buyer Bargaining Power (Medium)
•the customers are generally the medium and
small-size firms which don’t have the ability or
don’t need to build up their own websites
•these firms don’t have too many advantages to
fight for lower cost and nearly all the standards
are decided by the Alibaba.com
•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.
Supplier Bargaining Power(limit & stable)
 It is not a manufacture firm but an e-service one
 The most important suppliers are the firms
supply the advertise for Alibaba.com, such as the
famous magazines, newspapers and websites.
 These suppliers are not a union and the price is
generally based on the market
Availability of Substitutes(Medium)
 Web search engines like google, yahoo,
rediff,
 self-websites of large 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
Competition(Medium)
 E-bay, Amazon, Baidu, jd.com, hc360.com
 Already established brands
 Possess global identity hence large
customer based
 Big Players having similar models
Competitive analysis
Competitor Market
Share(2007)
Advantage over Alibaba
Global Sources 21.3% • 38 years of experience in
business
• 14 online marketplaces in
2007
• Publishes 13 monthly
magazines
• 9 trade specific exhibitions
Made-in-
China.com
14% • Cheaper price
• Use of agent system
ChinaChemNet 3.8% • Vertical coverage of Chemical
industry
Financial analysis
Alibaba Case Study on Strategic Management
GMV
SWOT Template
 Largest onlineLargest online
tradingtrading
websitewebsite
 Trustpass.comTrustpass.com
reliabilityreliability
 Strong placeStrong place
in globalin global
marketmarket
 Positive cashPositive cash
flowflow
StrengthsStrengths • Low brandLow brand
recognitionrecognition
• No massNo mass
advertisementadvertisement
• Website:Website:
Intermediary &Intermediary &
replicabereplicabe
• MembershipMembership
system incrementsystem increment
in feesin fees
•
WeaknessesWeaknesses
• Market shareMarket share
possibility inpossibility in
USUS
• IncreasingIncreasing
popularity ofpopularity of
InternetInternet
• China; creatingChina; creating
regulatedregulated
businessbusiness
environmentenvironment
OpportunitiesOpportunities
• E-commerce industryE-commerce industry
growthgrowth
• Competition among rivalCompetition among rival
websiteswebsites
• Profits mainly in ChinaProfits mainly in China
ThreatsThreats
SWOTSWOT
AnalysisAnalysis
Internal
Factors
Positive Negative
External
Factors
Business Strategies
 Networking- Company believed that
diversification and quality of users were critical
to success of the marketplace.
 Monetization of user base- company was
focusing on converting its free members into
paying members
 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.
Business Model
Alibaba.com’s value propositions
Suppliers
Access to active global
buyer community
Target marketing to
reach buyers
Customer service and
training
Always online
Budget certainly through
a fixed subscription fee
model
Buyers
Access to active global
supplier community
Broad selection of
listings
Access to high quality,
organized information
Easy-to-use interface
Convenient, rael-time
medium
Authentic and trust
profiles of suppliers
Vision
 To last 102 years
 To be one of the world’s top 10 internet sites
 To be an essential partner for all business people
Mission
 To make doing business easy
Values
Customer comes first Customers are everything
Teamwork and Cooperation Team interests are always ahead of
individual interests
Embrace changes Go beyond yourself and welcome changes
Integrity Honest and upright, honoring
commitments
Passion Never give up and stay optimistic
Fiscal Year 2015 Highlights
Fiscal Year 2015 Strategic Highlights
Fiscal Year 2015 Strategic Highlights
Fiscal Year 2015 Financial
Highlights
Future of Alibaba
 The number of online shoppers are skyrocketing
 The number of online shoppers in China grew from 148 million (in 2010
representing 11% of the population and 32% of Internet users) to 302 million
(by the end of 2013 representing more than 22% of the country's population
and roughly half of Internet users ).
 By the end of 2020, China is expected to have more than 700 million online
shoppers.
 Alibaba is working with partners to improve China’s logistics network
 Much of current logistics network in China was built before 1990, and may be
inadequate in terms of keeping up with the growing e-commerce market.
 As a result, the company launched a massive logistics project teamed up with
some private equity firms and other investors in 2013.
 The network is expected to support annual online sales of up to RMB 10
trillion, and will play a key role in driving Alibaba's growth.
 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 (a leading behemoth in the
Chinese Internet space).
 Mobile commerce is gaining traction
 Mobile GMV accounted for only 1.4% of total China
marketplaces GMV for quarter ended June 2011.
 This figure jumped to 42% for quarter ended December 2014.
 The percentage has been increasing at an average rate of 6%
for the last three quarters, which suggests that mobile
commerce is gaining popularity in the country.
FY2016 Strategic Priorities
Thank You !!!!!

More Related Content

What's hot

Alibaba group
Alibaba groupAlibaba group
Alibaba group
anncheng1118
 
case study of alibaba group
case study of alibaba groupcase study of alibaba group
case study of alibaba group
Omid Hosseinnejad
 
Alibab - The global Gaints
Alibab - The global Gaints Alibab - The global Gaints
Alibab - The global Gaints
omkada
 
Alibaba
Alibaba Alibaba
Alibaba
ahmed goda
 
alibaba-ppt
 alibaba-ppt alibaba-ppt
Case Study of Alibaba.com
Case Study of Alibaba.comCase Study of Alibaba.com
Case Study of Alibaba.com
Akshay Pratap Singh
 
Alibaba Group Holding Ltd
Alibaba Group Holding Ltd Alibaba Group Holding Ltd
Alibaba Group Holding Ltd
Mercy Jane Ballesteros
 
Alibaba Global Strategy
Alibaba Global StrategyAlibaba Global Strategy
Alibaba Global Strategy
Alexandr Kudasov
 
Alibaba.com
Alibaba.comAlibaba.com
Alibaba.com
Shubham Banthiya
 
Alibaba.com
Alibaba.comAlibaba.com
Alibaba.com
Osama Zafar
 
Analysis on the Business Model
Analysis on the Business Model Analysis on the Business Model
Analysis on the Business Model
Roni Bhowmik
 
Alibaba ppt
Alibaba pptAlibaba ppt
Alibaba ppt
cskjin
 
Alibaba
AlibabaAlibaba
Alibaba
anoopvasu01
 
Alibaba SWOT Analysis
Alibaba SWOT AnalysisAlibaba SWOT Analysis
Alibaba SWOT Analysis
Shreyansh Singh
 
Alibaba Company Presentation
Alibaba Company PresentationAlibaba Company Presentation
Alibaba Company Presentation
William Zhang
 
Taobao vs. eBay - The battle within the Chinese eCommerce market
Taobao vs. eBay - The battle within the Chinese eCommerce marketTaobao vs. eBay - The battle within the Chinese eCommerce market
Taobao vs. eBay - The battle within the Chinese eCommerce market
Yannick Pinkinelli
 
Alibaba Overview
Alibaba Overview Alibaba Overview
Alibaba Overview
guda Vamshi Netha
 
Ali Baba: A Case Study
Ali Baba: A Case StudyAli Baba: A Case Study
Ali Baba: A Case Study
King Abidi
 
Case Study Presentation on Alibaba
Case Study Presentation on AlibabaCase Study Presentation on Alibaba
Case Study Presentation on Alibaba
Aashish Bende
 
Yahoo Case Study
Yahoo Case StudyYahoo Case Study
Yahoo Case Study
Chirine Hamdan
 

What's hot (20)

Alibaba group
Alibaba groupAlibaba group
Alibaba group
 
case study of alibaba group
case study of alibaba groupcase study of alibaba group
case study of alibaba group
 
Alibab - The global Gaints
Alibab - The global Gaints Alibab - The global Gaints
Alibab - The global Gaints
 
Alibaba
Alibaba Alibaba
Alibaba
 
alibaba-ppt
 alibaba-ppt alibaba-ppt
alibaba-ppt
 
Case Study of Alibaba.com
Case Study of Alibaba.comCase Study of Alibaba.com
Case Study of Alibaba.com
 
Alibaba Group Holding Ltd
Alibaba Group Holding Ltd Alibaba Group Holding Ltd
Alibaba Group Holding Ltd
 
Alibaba Global Strategy
Alibaba Global StrategyAlibaba Global Strategy
Alibaba Global Strategy
 
Alibaba.com
Alibaba.comAlibaba.com
Alibaba.com
 
Alibaba.com
Alibaba.comAlibaba.com
Alibaba.com
 
Analysis on the Business Model
Analysis on the Business Model Analysis on the Business Model
Analysis on the Business Model
 
Alibaba ppt
Alibaba pptAlibaba ppt
Alibaba ppt
 
Alibaba
AlibabaAlibaba
Alibaba
 
Alibaba SWOT Analysis
Alibaba SWOT AnalysisAlibaba SWOT Analysis
Alibaba SWOT Analysis
 
Alibaba Company Presentation
Alibaba Company PresentationAlibaba Company Presentation
Alibaba Company Presentation
 
Taobao vs. eBay - The battle within the Chinese eCommerce market
Taobao vs. eBay - The battle within the Chinese eCommerce marketTaobao vs. eBay - The battle within the Chinese eCommerce market
Taobao vs. eBay - The battle within the Chinese eCommerce market
 
Alibaba Overview
Alibaba Overview Alibaba Overview
Alibaba Overview
 
Ali Baba: A Case Study
Ali Baba: A Case StudyAli Baba: A Case Study
Ali Baba: A Case Study
 
Case Study Presentation on Alibaba
Case Study Presentation on AlibabaCase Study Presentation on Alibaba
Case Study Presentation on Alibaba
 
Yahoo Case Study
Yahoo Case StudyYahoo Case Study
Yahoo Case Study
 

Similar to Alibaba Case Study on Strategic Management

Ali baba e- business.pptx
Ali baba e- business.pptxAli baba e- business.pptx
Ali baba e- business.pptx
RishavRaj752309
 
Global Fund Report
Global Fund ReportGlobal Fund Report
Global Fund Report
Chuanwen Tsai
 
Indiamart Analysis
Indiamart  AnalysisIndiamart  Analysis
Indiamart Analysis
ANNI GUPTA
 
Chinese digital market 2018
Chinese digital market 2018Chinese digital market 2018
Chinese digital market 2018
Yang Huang
 
PinDuoDuo: How they became the fastest growing commerce company ever
PinDuoDuo: How they became the fastest growing commerce company everPinDuoDuo: How they became the fastest growing commerce company ever
PinDuoDuo: How they became the fastest growing commerce company ever
Cathay Innovation
 
ALIBABA analysis.pdf
ALIBABA analysis.pdfALIBABA analysis.pdf
ALIBABA analysis.pdf
Paul23153
 
Simple draft on Snapdeal case write up
Simple draft on Snapdeal case write upSimple draft on Snapdeal case write up
Simple draft on Snapdeal case write up
pranjulgupta20
 
Web Market Space_B2B Project
Web Market Space_B2B ProjectWeb Market Space_B2B Project
Web Market Space_B2B Project
Mohan Suyamburaj
 
B2b web portals
B2b web portalsB2b web portals
B2b web portals
Naga Kiruthika
 
ONLINE B2B MARKETPLACES
ONLINE B2B MARKETPLACESONLINE B2B MARKETPLACES
ONLINE B2B MARKETPLACES
kiruthikanaga
 
Alibaba_Business_Report.pptx
Alibaba_Business_Report.pptxAlibaba_Business_Report.pptx
Alibaba_Business_Report.pptx
sdfasd14
 
E-commerce
E-commerceE-commerce
E-commerce
Udit Goel
 
Ganing the Edge in China's E-Commerce
Ganing the Edge in China's E-CommerceGaning the Edge in China's E-Commerce
Ganing the Edge in China's E-Commerce
Mark Opao
 
Alibaba
AlibabaAlibaba
Alibaba
srb1706
 
Baidu Valuation Analysis
Baidu Valuation AnalysisBaidu Valuation Analysis
Baidu Valuation Analysis
Henry Jenkins
 
Analysis of business model of Alibaba as a multi sided platform
Analysis of business model of Alibaba as a multi sided platform Analysis of business model of Alibaba as a multi sided platform
Analysis of business model of Alibaba as a multi sided platform
Akash Behl
 
b2b presentation, How b2b Businessess operates. .pptx
b2b presentation, How b2b Businessess operates. .pptxb2b presentation, How b2b Businessess operates. .pptx
b2b presentation, How b2b Businessess operates. .pptx
Sumit717679
 
Flipkart, amazon, snapdeal SWOT analysis
Flipkart, amazon, snapdeal SWOT analysisFlipkart, amazon, snapdeal SWOT analysis
Flipkart, amazon, snapdeal SWOT analysis
Sankalp Meshram
 
Asiansbook Investor Pitchdeck
Asiansbook Investor PitchdeckAsiansbook Investor Pitchdeck
Asiansbook Investor Pitchdeck
Michael Herlache
 
E-commerce Trends from 2015 to 2016 by Divante
E-commerce Trends from 2015 to 2016 by DivanteE-commerce Trends from 2015 to 2016 by Divante
E-commerce Trends from 2015 to 2016 by Divante
Divante
 

Similar to Alibaba Case Study on Strategic Management (20)

Ali baba e- business.pptx
Ali baba e- business.pptxAli baba e- business.pptx
Ali baba e- business.pptx
 
Global Fund Report
Global Fund ReportGlobal Fund Report
Global Fund Report
 
Indiamart Analysis
Indiamart  AnalysisIndiamart  Analysis
Indiamart Analysis
 
Chinese digital market 2018
Chinese digital market 2018Chinese digital market 2018
Chinese digital market 2018
 
PinDuoDuo: How they became the fastest growing commerce company ever
PinDuoDuo: How they became the fastest growing commerce company everPinDuoDuo: How they became the fastest growing commerce company ever
PinDuoDuo: How they became the fastest growing commerce company ever
 
ALIBABA analysis.pdf
ALIBABA analysis.pdfALIBABA analysis.pdf
ALIBABA analysis.pdf
 
Simple draft on Snapdeal case write up
Simple draft on Snapdeal case write upSimple draft on Snapdeal case write up
Simple draft on Snapdeal case write up
 
Web Market Space_B2B Project
Web Market Space_B2B ProjectWeb Market Space_B2B Project
Web Market Space_B2B Project
 
B2b web portals
B2b web portalsB2b web portals
B2b web portals
 
ONLINE B2B MARKETPLACES
ONLINE B2B MARKETPLACESONLINE B2B MARKETPLACES
ONLINE B2B MARKETPLACES
 
Alibaba_Business_Report.pptx
Alibaba_Business_Report.pptxAlibaba_Business_Report.pptx
Alibaba_Business_Report.pptx
 
E-commerce
E-commerceE-commerce
E-commerce
 
Ganing the Edge in China's E-Commerce
Ganing the Edge in China's E-CommerceGaning the Edge in China's E-Commerce
Ganing the Edge in China's E-Commerce
 
Alibaba
AlibabaAlibaba
Alibaba
 
Baidu Valuation Analysis
Baidu Valuation AnalysisBaidu Valuation Analysis
Baidu Valuation Analysis
 
Analysis of business model of Alibaba as a multi sided platform
Analysis of business model of Alibaba as a multi sided platform Analysis of business model of Alibaba as a multi sided platform
Analysis of business model of Alibaba as a multi sided platform
 
b2b presentation, How b2b Businessess operates. .pptx
b2b presentation, How b2b Businessess operates. .pptxb2b presentation, How b2b Businessess operates. .pptx
b2b presentation, How b2b Businessess operates. .pptx
 
Flipkart, amazon, snapdeal SWOT analysis
Flipkart, amazon, snapdeal SWOT analysisFlipkart, amazon, snapdeal SWOT analysis
Flipkart, amazon, snapdeal SWOT analysis
 
Asiansbook Investor Pitchdeck
Asiansbook Investor PitchdeckAsiansbook Investor Pitchdeck
Asiansbook Investor Pitchdeck
 
E-commerce Trends from 2015 to 2016 by Divante
E-commerce Trends from 2015 to 2016 by DivanteE-commerce Trends from 2015 to 2016 by Divante
E-commerce Trends from 2015 to 2016 by Divante
 

Recently uploaded

CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARECAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
solitaireshubham
 
Buyer’s Behaviour by sandesh acharya.pptx
Buyer’s Behaviour by sandesh acharya.pptxBuyer’s Behaviour by sandesh acharya.pptx
Buyer’s Behaviour by sandesh acharya.pptx
SandeshAcharya17
 
Building A Powerful Brand on Any Platform
Building A Powerful Brand on Any PlatformBuilding A Powerful Brand on Any Platform
Building A Powerful Brand on Any Platform
Xpand Marketing
 
Segmentation, Targeting and positioning (1).pptx
Segmentation, Targeting and positioning (1).pptxSegmentation, Targeting and positioning (1).pptx
Segmentation, Targeting and positioning (1).pptx
SandeshAcharya17
 
State of tokenization landscape 2024.pdf
State of tokenization landscape 2024.pdfState of tokenization landscape 2024.pdf
State of tokenization landscape 2024.pdf
nehapardhi711
 
How to Build AI Chatbots in Minutes and Deploy Across Multi-Channels
How to Build AI Chatbots in Minutes and Deploy Across Multi-ChannelsHow to Build AI Chatbots in Minutes and Deploy Across Multi-Channels
How to Build AI Chatbots in Minutes and Deploy Across Multi-Channels
Vbout.com
 
Unlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo EngageUnlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo Engage
GNW Consulting
 
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdfTAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
Social Samosa
 
How Social Media effect on business | eflot
How Social Media effect on business | eflotHow Social Media effect on business | eflot
How Social Media effect on business | eflot
swethag283189
 
"Bhaktimay Hanuman: Embodiment of Devotion and Strength"
"Bhaktimay Hanuman: Embodiment of Devotion and Strength""Bhaktimay Hanuman: Embodiment of Devotion and Strength"
"Bhaktimay Hanuman: Embodiment of Devotion and Strength"
iamnavigato
 
online digital marketing training in telugu
online digital marketing training in teluguonline digital marketing training in telugu
online digital marketing training in telugu
lakshmie988
 
Online Digital Marketing course intelugu
Online Digital Marketing course inteluguOnline Digital Marketing course intelugu
Online Digital Marketing course intelugu
thotadivya582
 
This is a Comprehensive presentation on SEO
This is a Comprehensive presentation on SEOThis is a Comprehensive presentation on SEO
This is a Comprehensive presentation on SEO
mohitmandelia89
 
Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...
Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...
Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...
SFC Today
 
Introduction-to-Social-Marketing-2024Trendy Mktg
Introduction-to-Social-Marketing-2024Trendy MktgIntroduction-to-Social-Marketing-2024Trendy Mktg
Introduction-to-Social-Marketing-2024Trendy Mktg
puneetmonga971720526
 
How AI Drives Success In Digital Marketing-skillfloor.pdf
How AI Drives Success In Digital Marketing-skillfloor.pdfHow AI Drives Success In Digital Marketing-skillfloor.pdf
How AI Drives Success In Digital Marketing-skillfloor.pdf
gchaitya21
 
The Key Features of Social Marketing Strategies for Success www.eflot.com.pdf
The Key Features of Social Marketing Strategies for Success www.eflot.com.pdfThe Key Features of Social Marketing Strategies for Success www.eflot.com.pdf
The Key Features of Social Marketing Strategies for Success www.eflot.com.pdf
df2608021
 
[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...
[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...
[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...
VWO
 
LinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdfLinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdf
The Sparks Foundation
 
MKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdf
MKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdfMKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdf
MKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdf
Mohammad Tauhidul Islam Khan Rifat
 

Recently uploaded (20)

CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARECAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
CAMPUSEDGE ENETERPRISE RESOURCE MANAGEMENT SOFTWARE
 
Buyer’s Behaviour by sandesh acharya.pptx
Buyer’s Behaviour by sandesh acharya.pptxBuyer’s Behaviour by sandesh acharya.pptx
Buyer’s Behaviour by sandesh acharya.pptx
 
Building A Powerful Brand on Any Platform
Building A Powerful Brand on Any PlatformBuilding A Powerful Brand on Any Platform
Building A Powerful Brand on Any Platform
 
Segmentation, Targeting and positioning (1).pptx
Segmentation, Targeting and positioning (1).pptxSegmentation, Targeting and positioning (1).pptx
Segmentation, Targeting and positioning (1).pptx
 
State of tokenization landscape 2024.pdf
State of tokenization landscape 2024.pdfState of tokenization landscape 2024.pdf
State of tokenization landscape 2024.pdf
 
How to Build AI Chatbots in Minutes and Deploy Across Multi-Channels
How to Build AI Chatbots in Minutes and Deploy Across Multi-ChannelsHow to Build AI Chatbots in Minutes and Deploy Across Multi-Channels
How to Build AI Chatbots in Minutes and Deploy Across Multi-Channels
 
Unlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo EngageUnlocking Deliverability with Marketo Engage
Unlocking Deliverability with Marketo Engage
 
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdfTAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
TAM AdEx-Quarterly Report on Radio Advertising_2024.pdf
 
How Social Media effect on business | eflot
How Social Media effect on business | eflotHow Social Media effect on business | eflot
How Social Media effect on business | eflot
 
"Bhaktimay Hanuman: Embodiment of Devotion and Strength"
"Bhaktimay Hanuman: Embodiment of Devotion and Strength""Bhaktimay Hanuman: Embodiment of Devotion and Strength"
"Bhaktimay Hanuman: Embodiment of Devotion and Strength"
 
online digital marketing training in telugu
online digital marketing training in teluguonline digital marketing training in telugu
online digital marketing training in telugu
 
Online Digital Marketing course intelugu
Online Digital Marketing course inteluguOnline Digital Marketing course intelugu
Online Digital Marketing course intelugu
 
This is a Comprehensive presentation on SEO
This is a Comprehensive presentation on SEOThis is a Comprehensive presentation on SEO
This is a Comprehensive presentation on SEO
 
Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...
Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...
Top XRP Coin News of the Week: A Volatile Market Amidst Legal and Historical ...
 
Introduction-to-Social-Marketing-2024Trendy Mktg
Introduction-to-Social-Marketing-2024Trendy MktgIntroduction-to-Social-Marketing-2024Trendy Mktg
Introduction-to-Social-Marketing-2024Trendy Mktg
 
How AI Drives Success In Digital Marketing-skillfloor.pdf
How AI Drives Success In Digital Marketing-skillfloor.pdfHow AI Drives Success In Digital Marketing-skillfloor.pdf
How AI Drives Success In Digital Marketing-skillfloor.pdf
 
The Key Features of Social Marketing Strategies for Success www.eflot.com.pdf
The Key Features of Social Marketing Strategies for Success www.eflot.com.pdfThe Key Features of Social Marketing Strategies for Success www.eflot.com.pdf
The Key Features of Social Marketing Strategies for Success www.eflot.com.pdf
 
[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...
[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...
[Webinar - VWO] AI-First Strategies to Drive Traffic and Conversions for 2024...
 
LinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdfLinkedIn Marketing Plan for The Sparks Foundation.pdf
LinkedIn Marketing Plan for The Sparks Foundation.pdf
 
MKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdf
MKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdfMKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdf
MKT460: Strategic Marketing_ SeH_ Kishwan Cookies.pdf
 

Alibaba Case Study on Strategic Management

  • 1. By:- Jasim Alam(1426) Prabal Jain (1418) Vivek Anand(1444)
  • 2. About Alibaba.com  The company was founded in 1999 by 18 people led by Jack Ma, a former English teacher from Hangzhou, China to support operation of B2B market places.  In Oct. 2000 Alibaba launched the Gold supplier membership service for Chinese exporters.  On November 6,2007, Alibaba.com debuted on the Hong Kong Stock exchange, raising US$1.5 billion.  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.  Japan's Softbank was one of the earliest investors in Alibaba.  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.
  • 4. General Environment Economic Segment- SME contribute 68.8% to the nation’s GDP. SME’s are estimated to rise from 31.5millionin 2006 to 50 million in 2012 Policy Segment- “11th five year plan for the Development of e- commerce” encouraging SME’s to use third party e-commerce platform.
  • 5. General Environment Global Segment- From early 21st century Alibaba launched different sites in different national languages to cater the global market. E.g.-English, Korean and Chinese versions. Technology Segment- Internet penetration improved from 12.3% in 2007 to 49.03% in 2015. In 2006,28% of SME’s are utilizing 3rd party B2B e- commerce platform in china which is expected to rise up to 82% in 2012.
  • 6. Industry Environment Barriers to Entry (Low) High returns results in new entrants, decreases profitability More new websites try to copy the business model of Alibaba.com Target market to a single industry finechemical.com textilehome.com Share the special market of Alibaba.com
  • 7. Buyer Bargaining Power (Medium) •the customers are generally the medium and small-size firms which don’t have the ability or don’t need to build up their own websites •these firms don’t have too many advantages to fight for lower cost and nearly all the standards are decided by the Alibaba.com •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.
  • 8. Supplier Bargaining Power(limit & stable)  It is not a manufacture firm but an e-service one  The most important suppliers are the firms supply the advertise for Alibaba.com, such as the famous magazines, newspapers and websites.  These suppliers are not a union and the price is generally based on the market
  • 9. Availability of Substitutes(Medium)  Web search engines like google, yahoo, rediff,  self-websites of large 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. Competition(Medium)  E-bay, Amazon, Baidu, jd.com, hc360.com  Already established brands  Possess global identity hence large customer based  Big Players having similar models
  • 11. Competitive analysis Competitor Market Share(2007) Advantage over Alibaba Global Sources 21.3% • 38 years of experience in business • 14 online marketplaces in 2007 • Publishes 13 monthly magazines • 9 trade specific exhibitions Made-in- China.com 14% • Cheaper price • Use of agent system ChinaChemNet 3.8% • Vertical coverage of Chemical industry
  • 14. GMV
  • 15. SWOT Template  Largest onlineLargest online tradingtrading websitewebsite  Trustpass.comTrustpass.com reliabilityreliability  Strong placeStrong place in globalin global marketmarket  Positive cashPositive cash flowflow StrengthsStrengths • Low brandLow brand recognitionrecognition • No massNo mass advertisementadvertisement • Website:Website: Intermediary &Intermediary & replicabereplicabe • MembershipMembership system incrementsystem increment in feesin fees • WeaknessesWeaknesses • Market shareMarket share possibility inpossibility in USUS • IncreasingIncreasing popularity ofpopularity of InternetInternet • China; creatingChina; creating regulatedregulated businessbusiness environmentenvironment OpportunitiesOpportunities • E-commerce industryE-commerce industry growthgrowth • Competition among rivalCompetition among rival websiteswebsites • Profits mainly in ChinaProfits mainly in China ThreatsThreats SWOTSWOT AnalysisAnalysis Internal Factors Positive Negative External Factors
  • 16. Business Strategies  Networking- Company believed that diversification and quality of users were critical to success of the marketplace.  Monetization of user base- company was focusing on converting its free members into paying members  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.
  • 18. Alibaba.com’s value propositions Suppliers Access to active global buyer community Target marketing to reach buyers Customer service and training Always online Budget certainly through a fixed subscription fee model Buyers Access to active global supplier community Broad selection of listings Access to high quality, organized information Easy-to-use interface Convenient, rael-time medium Authentic and trust profiles of suppliers
  • 19. Vision  To last 102 years  To be one of the world’s top 10 internet sites  To be an essential partner for all business people Mission  To make doing business easy Values Customer comes first Customers are everything Teamwork and Cooperation Team interests are always ahead of individual interests Embrace changes Go beyond yourself and welcome changes Integrity Honest and upright, honoring commitments Passion Never give up and stay optimistic
  • 20. Fiscal Year 2015 Highlights
  • 21. Fiscal Year 2015 Strategic Highlights
  • 22. Fiscal Year 2015 Strategic Highlights
  • 23. Fiscal Year 2015 Financial Highlights
  • 24. Future of Alibaba  The number of online shoppers are skyrocketing  The number of online shoppers in China grew from 148 million (in 2010 representing 11% of the population and 32% of Internet users) to 302 million (by the end of 2013 representing more than 22% of the country's population and roughly half of Internet users ).  By the end of 2020, China is expected to have more than 700 million online shoppers.  Alibaba is working with partners to improve China’s logistics network  Much of current logistics network in China was built before 1990, and may be inadequate in terms of keeping up with the growing e-commerce market.  As a result, the company launched a massive logistics project teamed up with some private equity firms and other investors in 2013.  The network is expected to support annual online sales of up to RMB 10 trillion, and will play a key role in driving Alibaba's growth.
  • 25.  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 (a leading behemoth in the Chinese Internet space).  Mobile commerce is gaining traction  Mobile GMV accounted for only 1.4% of total China marketplaces GMV for quarter ended June 2011.  This figure jumped to 42% for quarter ended December 2014.  The percentage has been increasing at an average rate of 6% for the last three quarters, which suggests that mobile commerce is gaining popularity in the country.