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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.
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.”
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.
ALIBABA INTRODUCTION
• Alibaba has more than 40 • It’s purpose is to connect
million users companies with suppliers
• It also reaches buyers and and manufacturers
sellers in more than 240 throughout the world.
countries around the • Alibaba specializes in
world. trade between buyers and
• It’s primary business is to sellers.
serve the Chinese market • Headquarter Hangzhou,
with a directory of the China
Chinese manufacturers. • Alibaba group revenue
158.3 billion CNY
ALIBABA’S KEY BRANDS
• The Alibaba group consists of 5
e-commerce sub-companies:

• Alibaba.com - Publicly traded


company in business-to-business
e-commerce marketplace
• Taobao.com - 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
ALIBABA’S PRODUCTS & SERVICES
• 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: WEAKNESSES:
• Leading position as the largest internet • Easy to imitate business model
market • Counterfeits
• Brand popularity & investor trust • Influenced by Chinese Government
increasing internationally • Chinese culture is not innovative enough
• Good relations with Chinese Government • Disorderly business platform
• increases customer traffic and value • Slow delivery time
• Connected with own payment system
(ALIPAY)

OPPORTUNITIES: THREATS:
• Government Support / Regulations • Government Regulations / Nationalization
• Growing internet penetration • E-commerce competition
• Increasing delivery efficiency • Global Economic Crisis
• Strong economic & Industrial background • Growth of E-commerce
• Lawsuits from brand holders
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)


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.
● 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.

Taiwan Entrepreneurs Fund ($312M)


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.
Key Partner
• Alimama (advertising and marketing partner)
• Alipay (Payment System)
• FedEx, DHL
• Seller/Retailer
Key Resource
• Company/Retailer/ Seller’s brand
• Online marketplace
• Customer data
Customer Relationships
• Self service help center – user guide
• Community
• Newsletter
• VIP event team
Channel
• Alibaba Apps
• Website

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