Alibaba case study

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					Alibaba case study
Alibaba is a global B2B e-commerce brands, is the world's largest
commercial exchange market online trading community and often he has
twice been elected MBA from Harvard Business School case study in the
United States launched the academic boom, twice the U.S. authority
financial magazine "Forbes" named one of the world's best B2B
sites and has been related agencies as the most popular B2B sites
worldwide, the Chinese business class excellent website, hundreds of
excellent sites in China, Best Trade Network were domestic and foreign
media, foreign venture capitalists in Silicon Valley and praised and
Yahoo, Amazon, eBay, AOL shoulder to shoulder on behalf of the five major
schools of one of the Internet business. Its founder and CEO Jack Ma is
also the famous "Alibaba is a global B2B e-commerce ...... well-
known brands, is the world's largest commercial exchange market online
trading community and often he had twice been at Harvard University MBA
Business School selected as case studies in the United States launched
the academic boom, twice the U.S. financial magazine "Forbes"
named one of the world's best B2B sites and has been ranked as the
world's most popular related organizations B2B website, the Chinese
business class excellent website, hundreds of excellent sites in China,
China's best trade network, to be domestic and foreign media, foreign
venture capitalists in Silicon Valley and praised and Yahoo, Amazon,
eBay, AOL shoulder to shoulder in the top five business schools on behalf
of one of the Internet . its founder, CEO Jack Ma is also the famous
"World Economic Forum," selected as "future leaders",
Asian Business Association of the United States selected as
"business leaders", and has been invited as the world's leading
institutions of higher learning Massachusetts University, Wharton
Business School, Harvard University lecture, the first in 50 years become
a "Forbes" Cover of Chinese entrepreneurs.
May be determined by "good location, solid structure, excellent
service", had now become the world's first company Alibaba has 2.1
million business e-commerce website, a global business network of choice
for web site promotion, to be business people as " the most popular
B2B website ", and outstanding achievements made by Alibaba public
concern. WTO Director-General Sutherland as the first Alibaba consultant,
U.S. Department of Commerce, the Japanese Federation of Economic and
Industrial Sheng European SMEs and other government and private agencies
to local businesses recommended by Alibaba.
"Listening to our customers, satisfy customer needs" is perhaps
the foundation of survival and development of Alibaba, according to the
related survey: Nearly half of Alibaba's online membership through word
of mouth and use that Alibaba Alibaba; all industries Member business
platform reached by Alibaba partners Nearly half of the total membership
Products and services, Alibaba is China's top export-oriented
manufacturing enterprises in the global market, "China
Suppliers" professional extension services. Chinese suppliers are
relying on a world-class online trading community, comply with
international buyers trends in online business operations, recommended
supplier of China's top export commodities, more valuable to obtain more
international orders. As of the end of May 2003 to join nearly 3,000
enterprises. Already 70% of the recommended companies in online
transactions, a wide variety of market places have been filled. March
2002 registered members began to provide access to the global business
community, faith passes - the "integrity" service. Alibaba
integrity of e-business advocates, and D & B, ACP, China, Xinhua
letters and other international and domestic famous enterprises to launch
e-commerce credit reference agencies, credit services to help enterprises
to establish a credit file online, through certification, assessment,
record, retrieve , feedback and other credit system, improve the
efficiency of online transactions and the chance of success. Win a
monthly income to double-digit growth. Alibaba to 500,000 yuan venture
capital started to attract international capital 25 million U.S. dollars,
after three years of development, by the end of the month 2001 profit per
month in 2002 to achieve double-digit revenue growth, achieving full-year
profit, which to ensure lasting customer service capabilities.
Let us come to the Alibaba business model analysis.
Alibaba's business model is to follow a gradual process. First of all,
grasp the base, and then continued in the implementation process to
capture new revenue opportunities arise. From the most basic set up sites
for business, to the accompanying web site promotion, and on-line trade
credit support services, order management transactions themselves, keep
growing. Good profit model line: a strong profitable, sustainable and
1, set up business site
Few enterprises understand it as an important business reason for this is
that this is a highly discrete industry. You can be relaxed to obtain a
site or several production companies the opportunity, but it does not
have access to many. There's revenue collection difficulties. Some of the
company's main business, they tend to be cell at the high end business
customers. Alibaba is a great commercial community site, which means that
it has frequent contact with many potential customers the chance. More
importantly, it can smooth the potential opportunities into real income.
Alibaba's target audience Canton Fair every year to participate in many
similar fairs like the meeting, this time on Alibaba staff there, there
are some low-cost promotion. Online and offline promotion of business
combination proved effective in the collection of business opportunities.
There is great flexibility of SMEs, it is said that the scale of business
processes and business are rapidly changing. Sometimes it may be to find
a neighbor to help design a home page, which may have been sufficient at
the time, but soon it will have higher demand, which exceeds the capacity
of a neighbor. Alibaba is the ability to provide low-to high-end
solutions for all the sites. It can grow in the enterprise to obtain all
the benefits. Greater advantage of market-oriented commodity production
site. Alibaba is only for the appearance of commodity markets to make a
home page, then link in their classified directory. Market have a site,
in fact, this and Alibaba's site is the same site, which increase the
chance of being retrieved. Web Design, after all, is a preferred labor-
intensive business. Web site design and development of applications in
fact no different, it is said there is the inherent demands of
international subcontracting, This is the same story in Bangalore, India.
This also explains why the Alibaba manpower it more concentrated in the
relatively low labor costs in Hangzhou. Implementation of international
subcontracting in addition to the brand, but also has counterparts to
set. No doubt, Alibaba has been to go to this direction.
2, site promotion
For the site's media has been very vague as it should be broadcast, or
search a specific user type? Other companies involved in site design
company there is a big problem, there is no corresponding generalization
ability. Once completed the site design, promotion is a natural demand.
Website is another kind of media, advertising revenue for most sites are
very important. Regardless of whether some of the services for business
called advertising. Broadcast mode is easy to understand, but we are more
inclined to search logic style. The reason is simple, web page space is
limited, in other words the attention itself is a scarce resource. Number
of sites suitable location has been filled with different forms of
advertising, we can not help but confused, the potential for growth
there? If we define as the search type, which also show very clearly that
there is almost unlimited advertising space available for sale. This is
the first site seems to be sought after in the stock market causes. Most
people with knowledge of the contrary, there is very strong SME marketing
aspirations. This desire has not translated into more practical reasons:
First, the cost of marketing is usually more than SMEs can afford.
Second, there is no corresponding previous good way. Alibaba's revenue
today, site promotion revenue in more than half. "China
Suppliers" and "Internet famous." "China
Suppliers" is facing the export-oriented enterprises, "Internet
famous", is targeted at the export of domestic or factory to buy the
main form of the kind. The price of which is based on, if a home business
is willing to 30,000 yuan price Canton Fair booth rental of two weeks,
then it seems that the price will be willing to purchase the same period
one year online fairs. This year the price had risen to 40,000. For a new
thing, a sense Alibaba to prove the effectiveness of services. Alibaba
has a system service thinking. In addition to the page on the site
settings, you can also "Business Express" e-mail magazine,
retrieve the first to send order. Customers can pay at least that
customers have more than a free chance. Some people are willing to 60,000
yuan price in order to get more services.
3, good faith communication
Networks may be virtual, but the trade itself must be true. Credit
analysis for daily work. This is well explained, users are trading in the
auction site every time it is not wishful. EBay's statistics show that
the same identity, but by only a few transactions through the so-called
one-star customer transactions, 6% by the end of complaints. Are the
same, there is inter-enterprise transactions similar to the pressure, the
difference is that enterprises have a higher sensitivity. Online trading
on the one hand reflects the purchasing behavior of more fully
competitive, the other business network information itself is full of
doubts. "Trust pass" as a service is easy to understand. Can
"trust pass" on the production of third-party assessment of
their enterprise in the Alibaba transaction records are based on
evidence. The question is whether the service itself will be very
successful. Alibaba is clear is that all the registered members are using
the paid service, at least so new registered users. This problem is very
interesting. If this expected in line with reality, most companies are
buying the "good faith communication" means that the remaining
few will buy it, even if not to buy is no longer important. Every
"good faith" between the price is very cheap, but the site
almost non-existent in terms of cost. This means that Alibaba's operating
performance will be very successful. Another possibility is that only a
small number of companies bought, and this issue of the loss of existing
customers. Alibaba mode similar to today's countless sites. Alibaba's
knowledge, the first of their previous efforts have attracted the most
active in international trade customer base. On the other hand online
transaction itself must realize their seriousness. "If a businessman
to pay the costs of both basic problems, he is simply not qualified to
engage in the business itself." I think this logic should be
considered correct.
4, Tradelink
Tradelink is one of Alibaba's new service, its main functions are as
follows: and millions Shangren security and reliability of real-time
online communication, interaction; met, to manage their own business
partners, to carry out one-of-line marketing; powerful business search
engine, search the world to do business; "hotline" to answer
questions for the integrity of the network through membership of trade
questions, easy to enjoy high-quality online customer service. The
interface somewhat similar to the popular chat tool QQ, a very friendly
and simple to use. However, the "trade through" no action had
been charging, but this is first and foremost desire. Alibaba is the
definition of business transactions every day a commission, which was
public opinion in advance is not possible because of duplicate B2B trade
transactions, business is usually not one to change a supplier. This
business is very easy to bypass any intermediary. This is another not
thinking quickly under the judge's example. Of course not.
"Tradelink" can be understood as a kind of order management
software. I think many people have overlooked the IT comment Alibaba a
service that, in fact, its greatest potential impact on the future of
Alibaba, an e-mail must not be regarded as a luxury version. There is a
different concept, the product is important that demand, rather than
technical presentation. "Tradelink" is to solve all the
problems of this. And the operation there is a strong possibility of a
short message via pay-per-bundling. The service faces price sensitivity
is small, and there is a large amount. "Tradelink" is an
extension of the idea of hosted enterprise software.
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