Student presentation on Business Model Canvas of Alibaba.com

1. Business Model Canvas of Alibaba
Agam Mishra
Anamika Pandey
(MBA 3rd Semester)

3. CASE FACTS:
Chinese multinational conglomerate.
Founder – Jack Ma
Year of Establishment – 1990 (Hangzhou, China)
CEO – Daniel Zhang (present)
Revenue – 37,684.4 Crores (2019)

4. World's fourth-largest internet company by revenue.
http://www.alibaba.com

5. World's fourth-largest internet company by revenue.

7. Cost Structure

9. Cost Structure

10. Customer Segments
Alibaba operates on a MULTI-SIDED BUSINESS model.
Two interdependent customer segments (Buyers and Sellers)
These segment include consumers and businesses in different combinations
(B2B, B2C, & C2C).

11. Cost Structure

12. Value Proposition
Alibaba offers 5 primary value propositions:
Accessibility
Customization
Convenience
Risk reduction
Brand/Status

13. Cost Structure

14. Channels
Main channel: Website &
App.
http://www.alibaba.com
Other channels:
Sales team
Telephone sales personnel
Social media

15. Cost Structure

16. Customer Relationships
Primarily Automated Self-Service
Limited human interface at all Customer
Touch Point
Self-help resources such as videos and
answers to frequently asked questions
available on the website
Personal assistance in the form of phone, e-
mail, and live chat support

18. Cost Structure

19. Key Activities
Maintaining a robust common
platform between two parties:
Product/Service
Buyers and Sellers.

20. Cost Structure

21. Key Partners
Marketing Affiliates
Logistics Service Providers
Retail Operational Partners
Independent Software Vendors
Professional Service Providers

22. Cost Structure

23. Key Resources
Proprietary software platform
Depends on human resources
(In the form of more than 12,000 engineering and data
analytic)
Relied heavily on funding from outside
parties
(Raising $8.91 billion as of June 2016)

24. Cost Structure

25. Cost Structure
Cost-driven structure
(aiming to minimize expenses through significant automation and
low-price value propositions)
Cost driver is cost of revenue
(a variable expense that includes staff, maintenance, and traffic
acquisition costs)
Other major drivers like SALES/MARKETING
AND PRODUCT DEVELOPMENT, BOTH
FIXED COSTS

26. Cost Structure

27. Revenue Streams
Alibaba has three revenue streams:
Commissions
(Revenues generated from fees charged to sellers for each
sales transaction)
Advertising Fees
(Revenues generated from fees charged to advertisers for
online marketing services. These account for the vast
majority of company revenues)
Service Fees
(Revenues generated from fees for various online services)

28. TREND driven
Cast your net wide in search of OPPORTUNITIES
Power of NETWORKING

30. “FOCUS first on customer satisfaction and second on teamwork.
SHAREHOLDERS’ INTERESTS COME THIRD because they are
outcomes, not inputs.” – Jack Ma

31. References (TO AVOID PLAGIARISM.)
Alibaba.com
Clevrism.com
Google images
You tube.com
Quora.com
Wikipedia.com