Alibaba.com True example of e-commerce Admir Namik Dino Asmir

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 million members 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: 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

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