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Alibaba - Group 3

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8 views

Alibaba - Group 3

Uploaded by

Shubham Agarwal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Alibaba

Group 3 Members
Ritvij Tripathi Keyur Pitroda Mansi Singh
17030120159 17030120219 17030120208

Sneha Patel Aishwarya Jawa Mahip Vijayvergia


17030120172 17030120127 17030120207

Subham Singh Anushree Rawat Simran Sovasaria


17030120173 17030120189 17030120237
About ALIBABA
Alibaba is an Hangzhou-based e-commerce
company specializing in global trading and
online consumer shopping.

Eighteen people led by Jack Ma, a former


English teacher from Hangzhou, China,
established Alibaba Group in 1999.

Mission: To make it easy to do business


anywhere

Vision: To build the future infrastructure of


commerce
Operations
Alibaba Growth strategy

Fostered a platform between sellers and buyers

Followed model of zero commission

An innovative approach to solving a genuine problem

Vertical and horizontal expansion of business

Aimed at becoming a global e-commerce giant

Formed a complete ecosystem where each new

business was supporting the other business growth


First Alibaba brought free information to suppliers entering
1
the market

2 Alibaba invented a reliable credit certification called TrustPass

5 stages 3
The third step happens around 2004 when Alibaba seeking to develop
foreign markets to develop the e-commerce market

of growth
4 Yahoo China was taken over by Alibaba

Alibaba reviews its strategy to encourage B2C, increasing its


5 total number of registered users significantly
Horizontal and Vertical growth strategies in each stage

Stage 1: Alibaba.com Stage 3: Tmall


HORIZONTAL
HORIZONTAL
Free for all Business idea
A step up for sellers
VERTICAL
VERTICAL
Add on features
Taobao plan

Stage 2: Taobao.com Additional strategies


HORIZONTAL HORIZONTAL
Taobao launch Aliyun launch
VERTICAL VERTICAL
Alipay Providing microloans
Elimination of Baidu
1 Launch of TaoBao marketplace
Growth
creating 2 Building an ecommerce
ecosystem
values
3 A marketplace for all

4 Global and Horizontal


marketplace

5 A Business model with a huge


customer base
Vision: Go for 'Shrimps' instead
01 of 'Whales'

Sustainable 02 Multiple Business Lines

Profit 03 Add-on Features

Growth Response to changes in


04 Consumer Behaviour & Market
Trends
Challenges faced
moving from a Alibaba wanted to charge a cut of every
business-oriented deal but the CFO felt that this would lead
platform to a to losing out on people
consumer oriented In May 2006, Taobao made its first
platform present attempt at monetization by offering sellers
to bid on keywords to influence the order
of their product listings

This attempt failed and led to an outrage


among the sellers and was labelled as
“creating discrimination in all transactions”
THE FIRST
This keyword-bidding service was soon
MONETIZATION suspended leading to an apology from
ATTEMPT Jack Ma and making the service free for
another 20 years
Challenges faced
moving from a Taobao launched a B2C platform within the
general C2C platform, which provided an
business-oriented application of customer discrimination strategy
platform to a on the seller’s side

consumer oriented The company now comprised two B2B


marketplaces (international import/export and
platform present? domestic trade) and the C2C marketplace
Taobao

In a survey conducted at the end of 2005, 43%


of respondents expressed concerns over the
quality of online goods and after-sale service

Distrust towards unscreened sellers


THE SECOND
MONETIZATION Consumers couldn't tell the difference between
genuine and imitation products
ATTEMPT
Selling imitated products of
1 famous brand

2 Internet Traffic

Alibaba's 3 Fraud with suppliers in China

Managerial 4 Increment in technical fees and


deposits by Tmall

Problems 5
Synergy between the 7
business units

Restructuring 7 into 25
6 corporations more

External ecosystem disrupted


7 the traditional structure
Reasons for Frequent Restructuring of the company

Restructuring:

July 2012 - All the businesses of Alibaba were To promote the 'One-Company'
grouped into 7 clusters - concept
Taobao To mirror the decentralized state of
Etao
the market
Tmall
'October Siege' and many other
Juhuasuan
Alibaba.com incidents voiced by the stakeholders
1688.com To make bigger organizations smaller
Ali Cloud for creating a business ecological
Formation of CBBS - Consumer, Distributor, system that is capable of supporting
Manufacturer, E-commerce provider value chain thousands of small operations
January 2013 - Restructuring of the 7 business
clusters in to 25 business units
Alibaba’s Strategy in the Mobile Internet Sector

The competitive strategy of Alibaba in the mobile space was primarily mergers and
acquisitions

In 2014, Alibaba initiated a series of investments in areas such as mass entertainment,


social networking, etc. For ex. UCWeb, Weibo, ChinaVision, etc.

Alibaba was positioned at the third place in the generation of revenue on the basis
of mobile in 2015
Challenges for future growth

Low Monetization Rate on Mobile

Trends towards B2C in the Chinese Ecommerce Market

Difficult to create Synergy

Problem of Counterfeit Products

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