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Alibaba.
com: A Smiling Community With A Dream
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Introduction
. Alibaba Group Holding Limited is a Chinese e-

commerce company that provides consumer-to-
consumer, business-to-consumer and business-to-
business sales services via web portals.
. It also provides electronic payment services, a shopping
search engine and data-centric cloud computing
services.
. The group began in 1999 when Jack Ma founded the
website Alibaba.com, a business-to-business portal to
connect Chinese manufacturers with overseas buyers.
History
. In December 1998 Alibaba’s first online marketplace was
launched as Alibaba online
. In June 1999 Jack Ma and 18 founders formed the parent
company Alibaba group.
. In September 1999 a major operating subsidiary in china,
Alibaba china, was establish to carry out the business of
operating B2B market place.
. In October 2000, Alibaba launched the gold supplier
membership service for Chinese exporters.
. In September 2006 to facilitate the IPO and its B2B arm,
Alibaba.com.
Jack Ma- Founder and CEO
Jack Ma or Ma Yun (born September

10, 1964) is a Chinese business magnate
and philanthropist. He is the founder and
executive chairman of Alibaba Group, a
family of highly successful Internet-based
businesses. One of the first e-commerce
entrepreneurs in china who Started
Alibaba in 1999. He is the first mainland
Chinese entrepreneur to appear on the
cover of Forbes.
Mission
To solve the challenges of small
Vision businesses in procurement, sales
To make it easy to do and marketing, management and
business anywhere financing through information
technology
SWOT Analysis
Brand ambiguity – Yahoo! China
Strengths Weakness
Refund and Returns
Disadvantages of E-Commerce
SWOT
Global yet Local

Opportunity Threats Strong Brand Nam
M-Commerce
Untapped Market Segment Market Leader Div
Source- (
http://www.chinainternetwatch.com/11911/e
-commerce-market-2014/
Alipay had total unique visitors of 151,793 thousand in 2014 in China, ranking top among
)
China major e-commerce payment brands, followed by China Economic Net and ICBC.
Internet and E-Commerce in China
The world’s most populous nation had 632 million Internet users as of
June 2014. The Chinese Internet-using population stands on second
position after United States. China’s internet penetration rate was
recorded as 47.9% in 2014 which was increased from 2013 penetration
rate 45.8% and expected to experience even more rapid growth in the
upcoming years.
Growth Strategy of Global Sources
Market penetration through increasing revenue from exhibitions by

selling more booths and increasing the average revenue per booth
Source- (
Source-(
http://www.statista.com/statistics/236963/pe http://www.chinadaily.com.cn/bizchi
na/chinadata/2015-03/10/content_1
Growth Strategy of Global Sources
New product development

Acquisition and alliances
Expansion into China’s domestic B2B market
Source- (
http://www.chinainternetwatch.com/
Other Competitions and Constraints
Competitors in Alibaba.com’s Chinese marketplace include domestic

B2B e-commerce platforms such as HC360.com, the Web site operated by
HC International.
Alibaba.com also had

to contend with
specialized platforms
that focused on
vertical coverage of
specific industries ,
such as
ChinaChemNet, which
catered to the
chemical industry in
China.
Source- (
Business Model of Alibaba.com
Alibaba.com was the largest online B2B e-commerce company in china.

It is based on the number of registered users and market share by revenue.
The international marketplace was served by their English-language web-
site, Alibaba.com.
Which focused on global importers and exporters.
The Chinese marketplace was served by their Chinese-language interface,
alibaba.com.cn, which focused on suppliers and buyers trading
domestically in China.
Suppliers and some buyers used the marketplaces to host their company
profiles and categories in standardized formats known as STORE Fronts and
POST LISTINGS.
Users could view storefronts and listings in over 30 industry categories and
nearly 5000 product categories by either searching for keywords or
browsing through the online industry directory.
Suppliers Buyers
Access to active global Access to active global
buyer community supplier community
Targeted marketing to reach buyers Broad selection of listings
Customer service and training Access to high-quality, organized

information
Easy-to-use interface
Always online Convenient, real-time medium
Budget certainty through a fixed Authentication and trust profiles of

subscription fee model suppliers
Trading Process In The Alibaba.Com Marketplace
Suppliers post Search Suppliers Suppliers Finalize
Product and listings for And buyers and buyers negotiation,
Service listings Potential make trade negotiate place
suppliers enquiries transaction orders,
or buyers and terms arrange
exchange delivery and
Suppliers post information payment
Product and
Service listings
Suppliers and
buyers use
Alibaba.com’s tools
to manage customer
relationships and
trade information
Alibaba.com Strategy
Alibaba.com’s mission was to make it easy to do business

anywhere. To accomplish this mission, alibaba.com set forth a multi-
pronged strategy to make its online market places more effective for
SMEs around the world.
Alibaba.com tried to increase size of its marketplaces through the

expansion of its user base and active listings.
Alibaba.com planned to enhance community experiences to further
improve user loyalty and activity through continued development
and introduction of new features and tools.
Alibaba.com was keen to monetize its user base after providing years
of free service to the majority of its members.
Alibaba.com planned to selectively expand its sales and customer
service capabilities into international markets, either directly or
through third-party agents , to acquire more paying members and
sell premium services outside china.
Alibaba.com believed that its online market place platform could be

extended beyond pure trade marketing to address users’ daily
business processes , such as customer relationship management
and internal operations.
Alibaba.com was set to expand its business through acquisition,

investments, licensing arrangements, and partnerships.
Competition from global sources
Chief among Alibaba.com’s competitors in the international

marketplace was international B2B giant Global sources, whose online
directory was bolstered by the many other B2B services it offered,
such as print business directories and exhibitions.
Global sources also boasted the following:

It enabled to suppliers to sell to hard-to-reach buyers in over 230
countries.
It operated 14 online marketplaces that delivered more than 23 million
sales leads annually.
It published 13 monthly magazines and over 100 sourcing research
reports per year.
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Alibaba.

com: A Smiling Community With A Dream

. Alibaba Group Holding Limited is a Chinese e-

Jack Ma or Ma Yun (born September

Global yet Local

Market penetration through increasing revenue from exhibitions by

New product development

Competitors in Alibaba.com’s Chinese marketplace include domestic

Alibaba.com also had

Alibaba.com was the largest online B2B e-commerce company in china.

Targeted marketing to reach buyers Broad selection of listings

Customer service and training Access to high-quality, organized

Always online Convenient, real-time medium

Budget certainty through a fixed Authentication and trust profiles of

Alibaba.com’s mission was to make it easy to do business

Alibaba.com tried to increase size of its marketplaces through the

Alibaba.com believed that its online market place platform could be

Alibaba.com was set to expand its business through acquisition,

Chief among Alibaba.com’s competitors in the international

Global sources also boasted the following:

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