Prepared and presented a case study on Alibaba at SIDTM Pune

1. ALIBABA
CASE STUDY
Prepared By:
Aakansha Budhuraja [19020542001]
Aarushi Prasad [19020542002]
Aashish Bende [19020542003]
Abhijit Mahji [19020542004]
Abhiraj Saha [19020542006]
Abhishek Kataria [19020542007]
SYNDICATE NO. : A 1

2. INTRODUCTION
 Jack Ma founded Alibaba in 1999 with an objective to facilitate trade by Chinese small businesses to
reach the global market
 For his success with Alibaba, Jack Ma found gaps (institutional, informational, logistics and finance
gaps) and converted them into opportunities.
 Alibaba Group is huge, exclusive, online business organization situated in China, having nearness in
240 nations and districts and utilizing 24,000 laborers
 It is currently the biggest giant in the market with a revenue growth of 42% and 654 million active
consumers
 They are using technologies like Artificial Intelligence and big data to create a unique shopping
experience for their customer.
First Phase
B2B trading by Alibaba.com
Second Phase
Alibaba’s growth
started
Third Phase
Focus on Ecosystem
Strategy in 2008
Fourth Phase
Alibaba started
focusing on building
a technology
company

3. PROBLEM DEFINITION
Building a
bigger market in
India
Using Rural Taobao
Strategy to make
sustainable money
Expanding business
to countries other
than China

4. Political
•Political factors in each of countries like India, UK, USA, Canada, Germany may have the ability to affect
performance or strategic goals
•Economic factors such as the development of local business in the global scenario is growing in an environment
where there is prospective growth of organizations
Social
•Social patterns in the economic climate reveal that consumers are seeking ease in addition to attractive costs.
•Language barriers, Physical and Digital Infrastructure barriers while establishing a business in a new country.
Technol
ogical
•Lack of awareness of upcoming technologies in people and competitive advantages to companies that are
already using newer technologies like big data in India
Environ
mental
•Presence of competition like Flipkart and Amazon
Economic
PESTELANALYSIS

5. E commerce in China-The
Inclusive Growth Model
• China’s worldwide e-commerce transaction value grew from less
than 1% a decade ago to over 40% now, exceeding that of France,
Germany, Japan, the United Kingdom, and the United States
combined, according to a McKinsey study.
• A joint research initiative between the World Bank and the
Alibaba Group is examining how China has harnessed digital
technologies to aid growth and expand employment by developing
e-commerce in rural areas.
https://youtu.be/X7hVzBzTg_g

6. 1995
1999
1999-2003
2005- 2010
2012-2019
ChinaYellowPages
Online Business Directory that can be discovered
by foreign enterprises searching for Chinese
products. Soon sold to a local telecom carrier
FoundedAlibaba
Objective : To facilitate trade for
Chinese MSME and Small
Business
B2Bto B2C
• 1999 : B2B business trading platform was created for
Chinese small business to for to foreign trade
• 2001 : China became member of WTO, opened
opportunities of export of Chinese goods
• 2002 : Entry of eBay (85% market share)
• 2003 : Entered B2C business to tackle eBay
Launchof Taobao
• 2005 : Launch of Taobao village to compete with eBay, shared of
eBay decreased to 24%
• 2008 : Partnered with third party service providers to make
business easy, achieved net worth : 15 Billion.
• 2010 : Founded Aliexpress : Major platform for global buyers
Alibaba Ecosystem : Entering into
technology
• 2012 : Established Taobao mall, more focused towards
domestic customers, this led to launch of Aliyun
• 2013 : Launch of CAINIAO : joint venture of Alibaba,
use of IOT for packaging services
• 2014 : Converting Aliyun to a cloud computing comp.,
also restructure d Alipay to evolve it as Ant financial
• 2017 : 3 Strategies : Ecommerce, Bigdata and Cloud
computing
• 2019 : Net worth : 44 Billion dollar
Story of the Giant– Alibaba

7. Taobao is an online marketplace
nearly equivalent to eBay, operated by
Alibaba Group.
TAOBAO
VILLAGE
Residents got started in e-commerce
spontaneously with the use of Taobao marketplace.
Total annual e-commerce transaction volume is at
least 10 million RMB (= $1.6 million)
At least 10% of village households actively
engage in e-commerce, or at least 100 active
online shops have been opened by villagers

8. Provinces with Rural Taobao presence
Taobao Villages Insights
Taobao villages are all over China.
It took only 5
years to establish
more than 3000+
Taobao villages in
China
The number of active
online shops in Taobao
Villages increased from
70,000 in 2014 to
660,000 in 2018

9. China’s Rural Population: 600
Million
OPPORTUNITY
Establish more than 100,000
Service Centers in all rural areas
Estimate to reach 1 Trillion RMB
in Online Consumption in Rural
China by year 2020
VISION
RURAL TAOBAO STRATEGY

10. Local
Government
• Cooperation from
local government
• Globalization
Infrastructure
• Logistics and
Information
• Data Center for
Storage Platform
Rural
Talent
Partners
• Taobao partners
• Rural
Development

11. • The e-commerce has transformed the way business is done in India.
The Indian e-commerce market is expected to grow to US$ 200
billion by 2026 from US$ 38.5 billion as of 2017.
• India’s internet economy is expected to double from US$ 125
billion as of April 2017 to US$ 250 billion by 2020.
• India’s E-commerce revenue is expected to jump from US$ 39
billion in 2017 to US$ 120 billion in 2020, growing at an annual
rate of 51 per cent, the highest in the world.
Achievements:
• In the festive sale (September 29-October 4, 2019), the e-tailers in
India achieved US$ 3 billion of Gross Merchandise Value (GMV).
• Value of Unified Payments Interface (UPI) transactions recorded
1.15 billion transaction worth more than Rs 1.913 trillion (US$ 27
billion) in October 2019.
E-commerce Industry in India

13. • The Indian e-commerce industry has been on an upward growth trajectory and is
expected to surpass the US to become the second largest e-commerce market in the
world by 2034.
• The e-commerce market is expected to reach Rs 13,97,800 crore (US$ 200 billion) by
2027 from Rs 2,69,076.5 crore (US$ 38.5 billion) in 2017. India's e-commerce market
has the potential to grow more than four folds to Rs 10,48,350 crore (US$ 150 billion)
by 2022 supported by rising incomes and surge in internet users.