Strengths And Weaknesses Of Alibaba

Amazon intended to benefit from cross selling on the basis that it already has a loyal installed base in place. (Krishnamurthy, 2004) Amazon also benefited from economies of scope as its basic infrastructure is already in place and highly scalable.

Leadership is a vital component that leads effective teamwork. According to Mullins (2010), a good leader will influence his talented staff and their actions will lead the good performance. This report is going to examine the influences of the Ma Yun’s leadership on the Alibaba Group.

Jack Ma Is Alibaba’s lead founder and, since May 2013, has served as our executive chairman. From our founding in 1999 until May 2013, Jack served as our chairman and chief executive officer (Alibaba Group, 2014). As the aspect of CEO, first of all Alibaba was founded by Jack Ma, it is clearly that Alibaba will not exist without Jack Ma, So Jack should have absolute control for Alibaba. Then, Alibaba is not alone in terms of a founder having compete control over a company. Both Facebook and Google also have dual share classes where the companies’ founders basically have complete control. However, Google and Facebook have been very nice to their common shareholders. There has a very important reason for founders are normally better at running tech companies tech companies is as founders generally think longer term and are more willing to take risks to pursue potentially worthwhile ideas. From this perspective, Alibaba being under the control of Jack Ma is not necessarily a bad thing. Jack Ma has done the impossible by forming China's most valuable technology company with very limited resources. Ma defeated eBay, for example, by forming a website called Taobao with an initial investment of only one million yuan and he also create big event that created $9.31 billion trading volume one day at 11 November 2014 in Taobao website. Now with Alibaba's stock as currency,

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

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

In a market with a vast amount of competitors offering similar products, it is vital that competitors stay at the front of the market. In order to do this, companies, such as Blue Nile, must increase globalization efforts. As the market shifts worldwide, so must companies. Blue Nile, for example, has recently seen success in the worldwide market, although international profits only make up 13% of revenue. Also, companies must offer reliable customer service, such as Blue Nile offers. Along with reliable customer service, online competitors must focus on reliable shipping, lowering costs when applicable. Finally, marketing efforts must be vamped to ramp up customer traffic and build larger customer bases.

One of the main benefits of cloud computing is that the company’s resources are used in other different ways and reduce the overall costs. It eliminates the need for a physical hardware computer and replace it with an online storage or a software delivered over the internet. For instance, government agencies are shifting its government IT infrastructure into the cloud and launch mobile and e-services for citizens and businesses. As an example of cloud applications in some countries: In China a company named Wang Fu Jing has deployed cloud services to share supply chain information and implement B2B e-commerce with suppliers (Kshetri, N. ,2011). Another example is in South Korea: IBM’s cloud computing centre provides architecture, skills and pilot projects for banking, telecommunications, and IT hosting services (Kshetri, N. ,2011). An Indian bank named ICICI’s uses Zoho’s applications to develop services such as personalised insurance for diabetes (Kshetri, N. ,2011). Cloud computing offers many services to companies and government agencies; applications, operating systems and data are secured in the cloud environment rather than on a physical computer that is exposed to the risk of lost, stolen or hardware failure. Compared to client-based computing, cloud-based software is easier to install, maintain and upgrade. Furthermore, mobile applications based on cloud computing are becoming increasingly popular. Ericsson estimates that there

Employees are encouraged to share with each other on the lessons learned from project and events through debriefing sessions.Company also reward employees through several different variable-pay programs. Employees have these stock as part of their benefit. This helps to retain employees and motivate employees to work harder. Moreover, company also provides educational forums so that staff can discuss and learn about different topics that interest them.

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

As for Alibaba.com, it earns secondary revenue through its Gold suppliers accreditation which promises reliability. Though Alibaba Group is famous for its primary site Alibaba.com, its first business now accounts for only a small part of its portfolio (Osawa, 2013), and is often dogged by criticisms from the finance world, notably referred to as “the worst asset that [Alibaba Group] has” (CNBC, 2012). On the other hand, Amazon sells its own products such as its Kindle and offers additional services such as streaming (Rayburn, 2011). It also deals with web design for external companies looking into e-commerce (Layton, n.d.).

The business model of Alibaba is pretty simple, it acts a middleman by connecting merchants meet buyers on a worldwide scale centered on the principle offering point of selling china items and services to enhance their business growth and trading abilities worldwide. The Alibaba expand on supply chain advantages that wipe out intermediation costs that are common in the traditional retailing trade model.

Alibaba’s dominant business model is an exchange. Piccoli, in his textbook, defines exchanges as “Exchanges are organizations that create a marketplace for buyers and sellers to come together and transact. Thus, an exchange does not take control of inventory or worry about fulfillment. Rather the exchange provides a “market making” service and is compensated with fees, commission on sales, or consulting fees on more complex business-to-business transactions. The prototypical example of an exchange is eBay. Others include Alibaba.com and Ariba—both mainly targeting the business-to-business domain.” (Piccoli, pg 170)

In twenty-one century, The ways of Non-traditional distributions are increasing rapidly. Such as Online shop, mail order or producer directly sells things to consumers, which is convenient for people shopping and give the firms, who wants to gain more benefit in the whole market. Among which online Discount Retailer become popular today. On 11, November 2015, China biggest online shopping site TAOBAO reached 120bn RMB in one day. That is a great successful thing every retailer in TAOBAO who can sell things to consumers without

In 2004, eBay acquired by Each Net to enter the Chinese market, many analysts believe eBay will become leader in Chinese market. Tao Bao and eBay both have a wealth of experience in international and domestic markets and to maintain close contact with consumers. By the end 2006, eBay has invested three hundred million US dollars for the Chinese business but with little success. Market share of eBay continue to decline each year and fell pitifully until 2006, Alibaba’s Tao Bao leapt on it. After the completion of the acquisition Bo Shao and other eBay executives have been chosen to leave eBay. With Tao Bao online, EBay has difficulty situation in China and market share began declining. The biggest problem is the user experience and defining aspect of the product, at beginning which get global platform to China. Because of eBay’s global platform is grid, according to the situation in China, localization is hard, which limits the prospects for our development in China fundamentally.

Alibaba, the owner of the largest shopping website of Taobao and T-mall, is considered to be a successful company and it became listed in the United States. After being listed, Alibaba face more challenges and opportunities. The high rate of counterfeits makes consumers lose confidence in Alibaba and it has been sued by some large brands, such as Gucci and Kering. Fake items are a big issue for Alibab and Harley Lewin, a lawyer, even says that it will go broke if it eliminates all fake goods (Schuman). The seemingly fake financial statement also damages its reputation. The situation is aggravated by decreasing purchase power of Chinese, economic depression, and competition from other shopping websites, such as JingDong and Amazon. However,