Alibaba Group

Alibaba Group.

Opening Drumhead

The instance survey of the enterpriser will be base on Jack Ma, who is the laminitis of the Alibaba Group. Alibaba Group is the taking e-commerce company in China. Alibaba runs 3 chief concerns. Alibaba.com for the concern to concern ( B2B ) platform for the SME in China ; Taobao.com for the clients to clients ( C2C ) platform, an auction site which similar to eBay ; and the Alipay for the on-line payment system, which similar to the eBay Pay-pal system.

Alibaba was founded in 1999. Through 10years, it becomes the universe largest concern to concern web site. E-commerce on B2B concern is non a new concern when Alibaba was founded. However, it is a new concern chances in China. In 1999, the figure of internet user in China is 2.

1 million. [ 1 ] It increased to 59.1million in 2003 [ 2 ] and in 384 million 2009 [ 3 ] . Through the addition in figure of internet user in China, it provides a good platform for development of e-commerce in China.Alibaba creates the linkage between SME and purchaser from different parts of China and besides the remainder of universe.

It greatly reduces the distance between the SME and the purchasers and creates chances for the SME through the Alibaba platform.On the other manus, Taobao, the C2C web site of Alibaba group, besides benefit from the addition in internet user in China. Although eBay starts their concern in China much earlier, Taobao override eBay concern in China in 2005. [ 4 ]

Simple Opportunities & A ; Threats analysis of Alibaba Group:

OpportunitiesMenaces

Business Model of Alibaba

Business History of Jack Ma and the Alibaba Group

The initiation of Alibaba.com

Jack Ma was born in Hang Zhou in 1964. When he was 12, he got interested in larning English.

He acted as a free circuit usher in the Hang Zhou West Lake territory for aliens in order to pattern his English. The 8 old ages in the West Lake territory aid him broaden his head on the universe. He entered the Hang Zhou Teacher University after he had flunked for university entry test. He becomes an English instructor after he graduated from University.

He did n't cognize about cyberspace until he visited his friend in Seattle. He was inspired from the usage of the cyberspace. He search “beer ' in the cyberspace and found many consequences However, when he search “China” , he got nil on the hunt consequence. He discovered the concern chances of the cyberspace in China. Later on, He set up the web xanthous pages in China in 1995. He competed with China Telecom for about a twelvemonth and put up the joint venture with them.

Subsequently on he sold his concern to China Telecom.Jack starts the e-commerce company, the Alibaba.com in 1999. He gathered the support from the 17 staffs and started the concern from US $ 60,000 capital. The chief focal point of the Alibaba is the assisting the SME to do money.

[ 5 ] Alibaba.com is the online jobber which provide trade platform to let the SME to merchandise online. SME can name their inside informations, such as what they supply/produce, contact method etc and happen the possible purchaser for the merchandises. The information of the SME is divided in to different classs of industry.

User of the Alibaba.com can seek through the platform to place possible trading spouse and interact each other online to carry on concern. The listing of the information is ab initio free of charge. As the Alibaba.com market place develops, they launched the Gold Supplier rank strategy to procure trust between purchasers and provider.

Gold Supplier need to be must finish an hallmark and confirmation procedure by a third-party credit-reporting bureau. Gold provider enjoys higher precedence of exposing the merchandise and derive more exposure of purchaser than the free members.Alibaba is now runing three chief market places: the planetary trade market place ( www.alibaba.com ) , the Chinese domestic topographic point ( www.

alibaba.com.cn ) and the Nipponese market place ( www.alibaba.co.jp ) .

Alibaba become the best B2B e-commerce web site with 1 million of registered user in 2001. Alibaba was chosen by Forbes Magazine as “Best of the Web: B2B” in June 2000. [ 6 ] As of November 2009, Alibaba has 34.8 million and 10.5 million registered users for Chinese Domestic market place and international market place severally.

[ 7 ] The gross net income of Alibaba group rise from 359 million RMB ( 2004 ) to 3 billion RMB ( 2008 ) . [ 8 ]

The initiation of Taobao.com

After a few old ages of the operation of Alibaba.com, Jack started another concern, the Taobao auction site in 2003.

Taobao is the clients to clients ( C2C ) site, which are runs similar to the eBay. Taobao is an on-line retail market place where users could post points for auctions or for direct gross revenues.Although Taobao was found during the eruption of SARS, Taobao shortly surged in forepart of eBay, the major rival at that clip, after 2 old ages. Harmonizing to Alexa.com, as of 1 Aug 2005, Taobao was making 15,800 out of every 1 million Internet users, compared with merely below 10,000 for eBay China.

The Gross Merchandise Volume for Taobao was $ 120 million vs. $ 90 million for eBay for the first one-fourth of 2005. [ 9 ]Taobao shortly take up the market-share from eBay as Taobao is free of charge while eBay China charge for naming fees. On the other manus, the migration of database of eBay to USA, which greatly affect the entree velocity of eBay in China, helps Taobao to derive the market portion [ 10 ] .[ 1 ] China Internet Network Information Center ( 1999 ) 3rd China Internet Development study ( In Chinese ) [ on-line ] Available at: & lt ; hypertext transfer protocol: //www.

cnnic.net.cn/download/2003/10/13/93056.pdf & gt ; , P1[ 2 ] China Internet Network Information Center ( 2003 ) 11th China Internet Development study ( In Chinese ) [ on-line ] Available at: & lt ; hypertext transfer protocol: //www.

cnnic.net.cn/download/2003/10/10/170932.pdf & gt ; , P35[ 3 ] China Internet Network Information Center ( 2010 ) 25th China Internet Development study ( In Chinese ) [ on-line ] Available at: & lt ; hypertext transfer protocol: //www.cnnic.cn/uploadfiles/pdf/2010/1/15/101600.

pdf & gt ; , P3[ 4 ][ 5 ] Fannin, Rebecca ( 2008 ) “HOW I DID IT JACK MA ALIBABA.COM” Inc. ; Jan2008, Vol. 30 Issue 1 [ online ] Available at: & lt ; hypertext transfer protocol: //search.ebscohost.com/login.

aspx? direct=true & A ; db=buh & A ; AN=28532333 & A ; site=ehost-live & gt ;[ 6 ] “ Alibaba.com: A Smiling Community with a Dream” Financial Times.2005 [ online ] available at & lt ; hypertext transfer protocol: //media.ft.com/cms/c6aba388-74a6-11db-bc76-0000779e2340.pdf & gt ;[ 7 ] “Alibaba Company overview” November 2009, [ on-line ] available at & lt ; hypertext transfer protocol: //img.

alibaba.com/images/cms/upload/alibaba_group/100105/corporate_overview_eng_november_2009.pdf & gt ;[ 8 ] “Alibaba Annual Report 2008” 2009, page140, [ online ] available at & lt ; hypertext transfer protocol: //ir.download.

alibaba.com/download/200904/e1688_090327_AR.pdf & gt ;[ 9 ] Bill Powell and Jeffrey Ressner ( 2005 ) “Why eBay Must Win in China” Times. Aug 22 2005 [ online ] Available at: & lt ; hypertext transfer protocol: //www.time.

com/time/magazine/article/0,9171,1096554,00.html & gt ;[ 10 ] Sherman So and J. Christopher Westland ( 2005 ) “How eBay lost in China Market” Global Times. Aug 10 2009 [ online ] Available at: & lt ; hypertext transfer protocol: //business.globaltimes.cn/editor-picks/2009-08/455954.html & gt ;