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Business Case Study: The Aliibaba Story

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The Alibaba Story

Manas Mohan Faculty of Management Studies
2013-2015
manas.m15@fms.edu
9818937363
China has the world’s largest online populations with 130 million residential broadband accounts. E-tailing produced more than $180 billion in sales in 2012. The e-tailing industry in China has registered 120% compound growth rate since 2003. At the heart of this e-tailing revolution lies the Alibaba group, which is slated to go public in the United States as early as next month.
The Alibaba group was founded in 1999 when its current head Jack Ma founded the website Alibaba.com, a business to business portal to help connect Chinese exporters, manufacturers and entrepreneurs with overseas buyers. Its next invention, Taobao, a consumer-to-consumer portal similar to e-bay, features nearly a billion products and is one of the 20 most-visited websites globally. Then came Tmall, a business-to-consumer portal similar to Amazon that helps global brands reach China’s middle class. …show more content…

Alibaba group today controls about 80 percent of the China’s online shopping market. Alibaba is also the most profitable Chinese e-commerce company. It handled transactions worth $248 billion last year, more than amazon and e-bay combined. Alibaba currently has 231 million active buyers and 8 million active

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