This document will elaborate the aspects of ALI BABA China's leading organization

1. Arsalan Sadiq Shiekh (9300)
Muhammad Arif (9034)

2.  The company was founded in 1999 by 18 people led by Jack Ma.
 On November 6,2007, Alibaba.com debuted on the Hong Kong Stock
exchange, raising US$1.5 billion.
 By the second quarter of 2007, Alibaba.com was the largest online B2B e-
commerce company in china.
 The English-language web site alibaba.com specializes in business-to-
business trades, especially for international buyers trying to contact Chinese
sellers.
 On 18 September 2014, Alibaba's IPO priced at US$68, raised US$21.8
billion for the company and investors making it the biggest U.S. IPO in
history.

3. Mission
As part of the Alibaba Group, our mission is to make it
easy to do business anywhere.
We do this by giving suppliers the tools necessary to
reach a global audience for their products, and by
helping buyers find products and suppliers quickly and
efficiently.

5. Buyer Bargaining Power (Medium)
•With the development of B2B
websites, the customers may have the
opportunity to choose the other
platform and that will also be the
opportunity to negotiate with
Alibaba.com for more rights. But, the
goodwill of the business in market
gives them a strong position in
negotiation.

6.  The most important suppliers are the
firms advertising on Alibaba.com,
such as the famous magazines,
newspapers and websites.
 Advertisement price is generally
based on the market

7.  Own websites of companies.
 The customers which prefer to make
business with large companies, they will
not turn to Alibaba.com but directly
contact with the companies themselves

8.  eBay, Amazon, jd.com, hc360.com
 Alibaba.com has the highest profit margin
with around 44%, whereas Amazon and eBay
have much lower profit margin.
 According to the BBC, the total value of
goods sold on Alibaba in 2014 was higher
than Amazon and eBay combined.

9.  Largest online trading websiteLargest online trading website
 China has largest number ofChina has largest number of
online usersonline users
 Strong place in global marketStrong place in global market
 Positive cash flowPositive cash flow
• No mass advertisementNo mass advertisement
• Website: Intermediary &Website: Intermediary &
replicablereplicable
WeaknessesWeaknessesStrengthsStrengths

10. • Market share possibilityMarket share possibility
in USin US
• Increasing popularity ofIncreasing popularity of
InternetInternet
• China; creatingChina; creating
regulated businessregulated business
environmentenvironment
• Competition among rivalCompetition among rival
websiteswebsites
• Profits mainly in ChinaProfits mainly in China
• Online threats/data securityOnline threats/data security
threats.threats.
OpportunitiesOpportunities ThreatsThreats

11.  Networking- Company believed that
diversification and quality of users were
critical to success of the marketplace.
 Continuous expansion- exploring
international markets to sell more premium
services to the customers
 Value added services- services like Instant
messaging services, CRM and online business
applications was offered to customers to
improve brand loyalty.

12. They charge for advertisement
Listing for companies/products are free but for better
exposure companies pay to Alibaba.com from where
they earn their revenue.
They do not charge commission for sell.

13. The number of online shoppers are skyrocketing
The number of online shoppers in China grew from
148 million (in 2010 representing 11% of the
population and 32% of Internet users
 By the end of 2020, China is expected to have more
than 700 million online shoppers.

14. Rising competition from JD.com could impact Alibaba’s
market share on B2C and mobile commerce
JD.com a direct sales retailer but has recently
expanded into a marketplace model, could intensify
competition.
it has strategic advantages such as a huge cash
muscle as well as a close partnership with Tencent.

15. Thank You !!!!!