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Business Model Canvas of ALIBABA
Agam Mishra
(MBA)
CASE FACTS:
Chinese multinational conglomerate.
Founder – Jack Ma
Year of Establishment – 1990 (Hangzhou, China)
CEO – Daniel Zhang (present)
Revenue – 37,684.4 Crores (2019)
World's fourth-largest internet company by revenue.
http://www.alibaba.com
World's fourth-largest internet company by revenue.
Cost Structure
Cost Structure
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).
Cost Structure
Value Proposition
Alibaba offers 5 primary value propositions:
Accessibility
Customization
Convenience
Risk reduction
Brand/Status
Cost Structure
Channels
Main channel: Website
http://www.alibaba.com
Other channels:
Sales team
Telephone sales personnel
Social media
Cost Structure
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
Cost Structure
Key Activities
Maintaining a robust common
platform between two parties:
Product/Service
Buyers and Sellers.
Cost Structure
Key Partners
Marketing Affiliates
Logistics Service Providers
Retail Operational Partners
Independent Software Vendors
Professional Service Providers
Cost Structure
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)
Cost Structure
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
Cost Structure
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)
MOBILE driven
Cast your net wide in search of OPPORTUNITIES
Power of NETWORKING
“Focus first on customer satisfaction and second on teamwork.
Shareholders’interests come third because they are outcomes, not
inputs.” – Jack Ma
References
Alibaba.com
Clevrism.com
Google images
You tube.com
Quora.com
Wikipedia.com

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