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Alibab - The global Gaints

  1. Alibaba group was founded in 1999 by 18 people led by Jack Ma, a former English teacher from China. The company's goal was to champion small businesses, in the belief that the internet would level the playing field by enabling small enterprises to leverage innovation & technology to grow and compete more effectively in the domestic and global economies.
  2. Mission “We provide the fundamental technology infrastructure & marketing reach to help merchants, brands and other businesses that provide products, services and digital content to leverage the power of the internet to engage with their users and customers. Our businesses are comprised of core commerce, cloud computing, digital media and entertainment, innovation initiatives and others. Through investee affiliates, we also participate in the logistics and local services sectors.”
  3. Vision “We aim to build the future infrastructure of commerce.” Meet @ Alibaba We enable hundreds of millions of commercial & social interactions among our users, between consumers and merchants, and among businesses every day. Work@Alibaba We empower our customers with the fundamental infrastructure for commerce and data technology, so that they can build businesses and create value that can be shared among our ecosystem participants. Live@Alibaba We strive to expand our products and services to become central to the everyday lives of our customers. 102 Years For a company that was founded in 1999, lasting at least 102 years means we will have spanned three centuries, an achievement that few companies can claim. Our culture, business models and systems are built to last, so that we can achieve sustainability in the long run.
  4. ALIBABA INTRODUCTION • It’s purpose is to connect companies with suppliers and manufacturers throughout the world. • Alibaba specializes in trade between buyers and sellers. • Headquarter Hangzhou, China • Alibaba group revenue 158.3 billion CNY • Alibaba has more than 40 million users • It also reaches buyers and sellers in more than 240 countries around the world. • It’s primary business is to serve the Chinese market with a directory of the Chinese manufacturers.
  5. ALIBABA’S KEY BRANDS • The Alibaba group consists of 5 e-commerce sub-companies: • - Publicly traded company in business-to-business e-commerce marketplace • - online retail marketplace • Alipay - third-party online payment platform, • Alibaba Cloud Computing - advanced data-centric cloud computing service platform • China Yahoo! - a leading Chinese- language portal
  6. ALIBABA’S PRODUCTS & SERVICES 7 • Some of the products they offer include: • Agriculture • Automobiles • Chemicals • Construction & Real Estate • Energy • Furniture • Rubber and Plastic • Shoes and Accessories • Tools • Toys and Hobbies
  7. SWOT Analysis STRENGTHS: • Leading position as the largest internet market • Brand popularity & investor trust increasing internationally • Good relations with Chinese Government • increases customer traffic and value • Connected with own payment system (ALIPAY) WEAKNESSES: • Easy to imitate business model • Counterfeits • Influenced by Chinese Government • Chinese culture is not innovative enough • Disorderly business platform • Slow delivery time OPPORTUNITIES: • Government Support / Regulations • Growing internet penetration • Increasing delivery efficiency • Strong economic & Industrial background THREATS: • Government Regulations / Nationalization • E-commerce competition • Global Economic Crisis • Growth of E-commerce • Lawsuits from brand holders
  8. CEO indicated that Alibaba will: ➔ Continue to build-up channels that allow international brands and merchants the opportunity to sell online to Chinese consumers ➔ Invest in operations that allow retailers to tap the growing purchasing power of rural Chinese consumers, and platforms that help rural farmers sell and deliver agricultural products to online big-city shoppers. ➔ Continue to drive innovation in omnichannel retailing and build-up on-demand service offerings. Daniel Zhang (CEO)
  9. Pricing and Membership Strategies • Pricing: Alibaba uses a competitive pricing model where they set the price of a product based on comparing what competitors are pricing the same product. Pricing is one of the marketing strategies that Alibaba deploys to set a low price in order to increase sales and market share. • Discount: Alibaba’s intent is to stimulate sales as well as retaining customers through their discounting model. Discounts are commonly offered on the company’s sites during festivals and when customers make bulk purchases. • Free Membership: Earlier in Alibaba’s existence the company offered new customers free membership to their site as a tactic to attract new users. Once the company reached a significant membership registration milestone it withdrew its free membership and began charging membership fees. • Value-Added Services: Services such as shipping, instant delivery, guarantees, and warranties are offered to help increase the profitability of the product sale.
  10. ● Launched in 2016. ● Applicants are required to use at least one of Alibaba’s services. ● The missions of the funds are to help Hong Kong and Taiwan-based entrepreneurs and young people realize their dreams and visions for their businesses and communities. 2016 Health2Sync Makes an app for diabetics. Financing round led by Company raised $3M. May align with Alibaba Health ambitions. 2016 Istaging Makes virtual and augmented reality software. Creates tours of property listings and interior designs (allows customers to virtually try furniture in their homes). $2M investment. Technology may be applied to enhance shopping experience for Company’s users. Taiwan Entrepreneurs Fund ($312M)
  11. Key Partner • Alimama (advertising and marketing partner) • Alipay (Payment System) • FedEx, DHL • Seller/Retailer
  12. Key Resource • Company/Retailer/ Seller’s brand • Online marketplace • Customer data
  13. Customer Relationships • Self service help center – user guide • Community • Newsletter • VIP event team
  14. Channel • Alibaba Apps • Website

Hinweis der Redaktion

  1. Lina Strenghts: (643.6 million internet users) – Popularity – (Largest IPO in history $25 billion) – Relations with China - Economy – Expanded Network - (1 of 5 companies to enter internet banking) Weaknesses: Easy to imitate - Counterfeits - Government Reliance – Innovation - Business Platform - Opportunities: Government Regulations - Internet Penetration – Delivery efficiency – B2B – Threats: Government - M&A – Growth M- commerce -​ M&A – Global crisis –
  2. How Alibaba became so successful ? These are 4 key strategies. I want to point out two of them. Pricing: Alibaba uses a competitive pricing model where they set the price based on what competitors are pricing the same product. You can usually find the product on Alibaba’s platform with the lowest price. Free Membership: The company offered new merchant free membership earlier to their site as a tactic to attract new users. More merchants
  3. Can we see if a title if necessaary?