Alibaba Vs Amazon Essay

831 Words 4 Pages
Two e-commerce giants
With the development of information technology, online shopping become a worldwide form of entertainment, which accelerate the growth of e-commerce companies. Also, the globalization lead to a more aggressive competition through the world especially in the e-trading and there are two corporates stand out. Amazon, a solely-focused online book store ever and Alibaba, an online shopping website founded by an English teacher range into the top e-commerce enterprises over the world. Although both take dominant market share, there are some stark differences between them in values and business model.
As two greatest e-commerce corporations, they take huge market share in this industry. Both Alibaba and Amazon dedicate to developing
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Alibaba is known as a business to business company in many people’s views. Granted, Alibaba.com using this model to connect the domestic market and overseas market is more widely known over the world. But the majority of Alibaba’s revenue comes from Taobao.com and Tmall.com that two sites provide a platform for small business to sell and customers to buy, which is named business to customer model or customer to customer model. (Dan, 2015) Alibaba makes money by advertising for those little-known brands to attract more customers and facilitating the transactions. It acts as an intermediary among the businesses and consumers and does not hold any inventory, which reduce the risk of making losses of overstocked goods and fully fill out the cost-benefit method. Moreover, Alibaba is now experiencing an expansion by acquiring companies in other industry such as logistic in ambition to build an internet empire. Amazon, in contrast, takes part in the market and does not solely set up a platform for other business to sell their products. Instead, it sells its own products such as Kindle and offers internet services named amazon web service that is a secure cloud services platform. (Eric, 2013) Unlike Alibaba, Amazon makes money mainly by getting commission from other retailers at Amazon.com. Also, playing a role in the market means it should take inbound and outbound logistics into consideration and …show more content…
Although they have some racial difference in the business model and management strategy, they are both successful in their own domestic market and Amazon goes a little further as an international retailer. However, whether it could succeed in China is still a mystery. Therefore, comparison between these two e-commerce giants and argument on which one would be the winner in each one’s domestic market will continue and no matter who would win in this war, customers have been the biggest winners

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