Alibaba Case Study

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Alibaba.com is one of the top B2B e-Commerce company in China and in world. Yun Ma (Jack Ma) founded Alibaba Group at HangZhou in 1999. There are seven business group namely Alibaba International Business Operations, Alibaba Small Business Operations, Taobao, eTao ,Tmall, Alibaba Cloud Computing and Juhuasuan in total .

Taobao and Tmall assists Alibaba. Alibaba Group Holding Ltd has broadly participating users. Alibaba operates one of the leading mobile marketplace and e-Commerce business in wholesale trade and retail as well as services such as providing a platform which enables merchants, consumers and other participants in conduct business in Alibaba’s network. Japan’s Softbank and Yahoo are the main stakeholders.

In 1999, started with
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Alibaba achieved its success through its strong marketing plan. With proper marketing mix, it has built a strong relationship with its suppliers and buyers

Alibaba is having a “mini website” which carries the contact information, company profiles, and a virtual showroom of the services and products. The buyers can search for products which they want via search engine with an extensive database. Registered users have the privilege to subscribe to trade alerts send to buyers on their selected suppliers.

Alibaba was supported by Softbank Corp, a Japanese mobile company. Softbank corp has a share of 36.7% while Yahoo Inc. share is 24% in the company.

Value
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Alibaba’s has made easy to do business from everywhere. Prior to Alibaba Sales channels were very inadequate for local SMEs in China. Trade exhibitions to introduce new products from the SMEs were very costly. Customers could not be reached effectively. Alibaba has provided the opportunity to the SMEs in China to grow their business. The new technology has also helped the transaction cost to go down sharply. E-commerce technology by Alibaba has made it very convenient to Small & Medium Enterprises to conduct their business efficiently anywhere in the world. The total value of merchandise sold in Alibaba in 2013 was far more than Amazon and eBay combined.

Branding and Image

The name Alibaba was chosen as many chinese company face the problem by its foreign partners to remember the name. Alibaba could be pronounced and spelled easily in many languages. Also, Ali Baba discovered the path to enter the cave with gold and hidden treasures as the main character from the movie of “One Thousand and One Nights”. It implies that Alibaba is a company that opens gateway for wealth to all its suppliers and buyers.

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