Alibaba.comTrue example of e-commerce

AdmirNamik

DinoAsmir

Summary

• What is Alibaba.com? • What is the structure of the company?• Business model, how it works?• Going international.• Going International• Future online strategy

What is Alibaba ?

• Electronically oriented business e-commerce– global reach, universal standards, information richness,

interactivity, information density, personalization/customization, social technology

• Largest Business-to-Business marketplace for global trade

• Link between buyers and customers• 2.3 + million members• 200 + countries and territories• 32 categories

Who is Alibaba

• Established 1999• Office locations: Hangzhou, China(HQ),USA

(Silicon Valley),Europe (Geneva), major cities in China

• Number of employees: 4000 +• Number 17 top site in the world• World’s Top-Ranked Import and Export Site• World’s Top International Business and Trade

site

Alibaba and others

• Alibaba Chinas leading e-commerce company, operating world’s largest online marketplaces both international and domestic China trade

• Taobao.com Chinas largest C2C auction site• Alipay.com Chinas largest online payment

gateway• Yahoo! China – leading search engine

Why E-commerce?

-Ubiquity -Global reach -Universal standards -Information richness-Interactivity -Information density -Personalization/customization -Social technology.

Structure of the Company

Alibaba Mission & Values

– Make doing business easy trough E-commerce– Customer comes first-(Customers are everything)

– Teamwork and cooperation-(Team interests are always ahead of individual interests)

– Embrace changes-(Go beyond yourself and welcome changes)

– Integrity-(Honest and upright, honoring commitments)

– Passion-(Never give up and stay optimistic)

– Honoring your job-(Perform the extraordinary with a professional attitude and an ordinary mind )

How Sourcing can help you ?

How they managed it?

• Their business model is simple• Sellers (suppliers / manufactures) can meet

buyers (outsourcers / wholesalers) • Acting as a mediator• Free and payable services • Priority services as an income generator• Users pay to advertise as the sellers

Business Model

• Emergence of virtual service companies • Traditional business model has a need for

change• No production and sale• Technology as the most important thing• The concept of inputs, operations and outputs

as a model (picture)

Business Model

Explanation

Good for every one

• For sellers – because Alibaba is making them visible to the buyers

• The sellers top method of marketing is their presence on Alibaba

• For buyers – because Alibaba is matching them with the seller based on their needs

• For Alibaba – because their make profit from each side

Both ways

• Alibaba’s customers are on either the inbound or outbound side of the manufacturing process.

Future strategies

• Making the business to a lower user level like ebay or amazon

• Keeping up with the technology• Better customer service• Expand to new developing countries

Being International

Some interesting facts

• By June of 2007, Alibaba had over 19.8 million registered users, with 16.6 within its Chinese marketplace. 219,098 of these 19.8 users where paying members.

• Expected surge in e-commerce amongst SMEs, which had risen from 4.5% in 2002 to 28% in 2006, and is estimated to climb to 82% by 2012

• The end