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
Nowadays, high-speed development of the technology has changed the daily life and the computer and the Internet have become the mainstream in China markets. The expansion of the Internet rapidly leads the e-commence to develop and change the operation way of Chinese business. At present, there are many people who want to start-up a business on their own. Ma seizes the opportunity to establish a great stage ‘Alibaba’ for
Google Scholar requires some strict guidelines for inclusion. ASIB will need to ensure all documents are formatted correctly on their website to be considered for inclusion on Google Scholar. I have outlined some of the requirements below. For more detailed information on specific requirements, visit Google Scholars website at http://www.google.com/intl/en/scholar/inclusion.html#overview.
The biggest problem of Alibaba Corporate Governance is management powers, because Alibaba Corporate Governance structure lack of stockholder rights and independent board representation to select board members and have a nominal in the management of the company. Although the board of directors in publicly traded companies always fail in their responsibility to protect the interests of shareholders. Alibaba has deprived even this minimal power ways from shareholders which isn’t sufficient respect of shareholder rights in the structures being proposed. In Alibaba has a permanent lock on control of the company but hold only a small minority of the equity capital known as the Alibaba Partnership. This
The definition of E-Commerce or E-Tailing is replacing the traditional relationship of buying and selling in person or the phone with the use of the Internet, Smart Phones and networking. The more people that use the Internet regularly, the more Internet commerce increases. This causes a continual loop of improvements and innovations of which businesses must be aware. Most economists see e-commerce as a market segment that leads to intensive price competition and consumers armed with greater knowledge. E-commerce has changed business models globally, and allows customers to engage in the process of shopping either online or to a destination. Brick and mortar stores do have a conundrum do you want traffic into the store, or do you want the sale based on ease of shopping and/or convenience? (Eisingerich).
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per
Its dominance in the Chinese online retailing market was achieved through Taobao(C2C), China’s version of eBay, and Tmall(B2C), another popular shopping destination where major international brands like Nike and Samsung have online Stores.
E-tailing, short for electronic retailing is the sale of retail merchandise over the internet. There are many factors that beckon different behaviors in e-tailing ( Searchcio.com, 2011 ). It is the new wave of the world today. As technology steers our habits toward electronic commerce, it affects different behavioral aspects for both e-tailers and their customers. E-commerce, short for electronic commerce, is the buying and selling of goods and services on the internet
Alibaba’s sites have currently reached over 65 millions of registered users, hosted over millions of merchants and businesses globally. In 2005, its revenue had reached over approximately US$100 millions. Although China’s gross domestic product
Peter Nicholson wishes to convert the factory in the north east to production of the electric taxi. Using data in Appendix C, Table 1, calculate payback period and the average rate of return.
The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s
Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile
Alibaba is the largest leading e-commerce companies of B2B online retailer in China and it is giving a trading platform that associates worldwide purchasers to huge number of small medium enterprises to conduct business in their network. The market operate by Alibaba
Alibaba cooperation is a global wide Internet company founded by Jack Ma, Chinese name Ma Yun.Although Alibaba was founded in 1999, the story of how the company came to be actually dates back to 1995, when Jack Ma was on a trip to the U.S. and first became exposed to the Internet. As the story goes, he tried searching for the word "beer" on Yahoo but the search results did not turn up a single Chinese option. In fact, he could hardly find anything about China on the Internet at all. After returning home, he founded a company called China Pages - a directory of various Chinese companies looking for customers abroad. China Pages was a flop. But a few years later, Ma took another stab at an
There is no doubt that online retail is growing everywhere, but one thing to stay aware of is that the landscape is very diverse. This means that there are countries and regions that are at different stages of development in regard to their e-commerce and online retail maturity. Even though there is a lot of variation, one thing to note is that with only a total of 4% of sales being online globally in 2012, the e-tailing emergence really has only just begun.
Alibaba Group is the world's outstanding business-to-business e-commerce service company, which provides an efficient online trading platform for buyers and suppliers all over the world. It is China's largest e-commerce group which was founded by Jack Ma in 1999, and has developed into seven affiliated groups, namely Alibaba International Business Operations, Alibaba Small Business Operations, Taobao Marketplace, Tmall.com, Juhuasuan, e-Tao and Alibaba Cloud Computing (News, 2012). Besides, Alibaba Group has more than 24,000 employees in 70 cities which scattered in China, India, Japan, Korea, the United Kingdom and the United States (News, 2012).