Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals.
Alibaba group was founded in 1999 by
18 people led by Jack Ma, a former
English teacher from China. The
company's goal was to champion
small businesses, in the belief that the
internet would level the playing field
by enabling small enterprises to
leverage innovation & technology to
grow and compete more effectively in
the domestic and global economies.
“We provide the fundamental technology
infrastructure & marketing reach to help
merchants, brands and other businesses
that provide products, services and digital
content to leverage the power of the
internet to engage with their users and
customers. Our businesses are
comprised of core commerce, cloud
computing, digital media and
entertainment, innovation initiatives and
others. Through investee affiliates, we
also participate in the logistics and local
“We aim to build the future infrastructure of commerce.”
Meet @ Alibaba
We enable hundreds of millions of commercial & social interactions
among our users, between consumers and merchants, and among
businesses every day.
We empower our customers with the fundamental infrastructure for
commerce and data technology, so that they can build businesses
and create value that can be shared among our ecosystem
We strive to expand our products and services to become central to
the everyday lives of our customers.
For a company that was founded in 1999, lasting at least 102 years
means we will have spanned three centuries, an achievement that
few companies can claim. Our culture, business models and
systems are built to last, so that we can achieve sustainability in the
• It’s purpose is to connect
companies with suppliers
throughout the world.
• Alibaba specializes in
trade between buyers and
• Headquarter Hangzhou,
• Alibaba group revenue
158.3 billion CNY
• Alibaba has more than 40
• It also reaches buyers and
sellers in more than 240
countries around the
• It’s primary business is to
serve the Chinese market
with a directory of the
ALIBABA’S KEY BRANDS
• The Alibaba group consists of 5
• Alibaba.com - Publicly traded
company in business-to-business
• Taobao.com - online retail
• Alipay - third-party online payment
• Alibaba Cloud Computing -
advanced data-centric cloud
computing service platform
• China Yahoo! - a leading Chinese-
ALIBABA’S PRODUCTS & SERVICES
• Some of the products they offer
• Construction & Real Estate
• Rubber and Plastic
• Shoes and Accessories
• Toys and Hobbies
• Leading position as the largest internet
• Brand popularity & investor trust
• Good relations with Chinese Government
• increases customer traffic and value
• Connected with own payment system
• Easy to imitate business model
• Influenced by Chinese Government
• Chinese culture is not innovative enough
• Disorderly business platform
• Slow delivery time
• Government Support / Regulations
• Growing internet penetration
• Increasing delivery efficiency
• Strong economic & Industrial background
• Government Regulations / Nationalization
• E-commerce competition
• Global Economic Crisis
• Growth of E-commerce
• Lawsuits from brand holders
CEO indicated that Alibaba will:
➔ Continue to build-up channels that allow international brands and merchants the opportunity to sell online to
➔ Invest in operations that allow retailers to tap the growing purchasing power of rural Chinese consumers, and
platforms that help rural farmers sell and deliver agricultural products to online big-city shoppers.
➔ Continue to drive innovation in omnichannel retailing and
build-up on-demand service offerings.
Daniel Zhang (CEO)
Pricing and Membership Strategies
• Pricing: Alibaba uses a competitive pricing model where they set
the price of a product based on comparing what competitors are
pricing the same product. Pricing is one of the marketing
strategies that Alibaba deploys to set a low price in order to
increase sales and market share.
• Discount: Alibaba’s intent is to stimulate sales as well as
retaining customers through their discounting model. Discounts
are commonly offered on the company’s sites during festivals
and when customers make bulk purchases.
• Free Membership: Earlier in Alibaba’s existence the company
offered new customers free membership to their site as a tactic
to attract new users. Once the company reached a significant
membership registration milestone it withdrew its free
membership and began charging membership fees.
• Value-Added Services: Services such as shipping, instant
delivery, guarantees, and warranties are offered to help increase
the profitability of the product sale.
● Launched in 2016.
● Applicants are required to use at least one of Alibaba’s services.
● The missions of the funds are to help Hong Kong and Taiwan-based
entrepreneurs and young people realize their dreams and visions for their
businesses and communities.
2016 Health2Sync Makes an app for diabetics. Financing round led by Company raised $3M. May align with
Alibaba Health ambitions.
2016 Istaging Makes virtual and augmented reality software. Creates tours of property listings and interior
designs (allows customers to virtually try furniture in their homes). $2M investment. Technology
may be applied to enhance shopping experience for Company’s users.
Taiwan Entrepreneurs Fund ($312M)
(643.6 million internet users) – http://www.emarketer.com/Article/China-Leads-World-Internet-Population/1011615/13
Popularity – projects.wsj.com/Alibaba/
(Largest IPO in history $25 billion) – projects.wsj.com/Alibaba/
Relations with China - http://www.forbes.com/sites/panosmourdoukoutas/2014/04/15/alibabas-five-advantages/
Economy – http://www.worldbank.org/en/country/china/overview
Expanded Network - https://hbr.org/2014/11/what-airbnb-uber-and-alibaba-have-in-common
(1 of 5 companies to enter internet banking)
Easy to imitate -
Counterfeits - projects.wsj.com/Alibaba/
Government Reliance – http://www.bloomberg.com/news/articles/2014-05-27/alibaba-s-china-base-is-both-good-news-and-bad-for-ipo-investors
Innovation - http://www3.weforum.org/docs/WEF_GlobalCompetitivenessReport_2014-15.pdf
Business Platform -
Government Regulations - http://www.bloomberg.com/news/articles/2014-05-27/alibaba-s-china-base-is-both-good-news-and-bad-for-ipo-investors
Internet Penetration –
Delivery efficiency – http://www.thestreet.com/story/12968357/3/alibabas-challenges-and-opportunities-may-spell-trouble-for-ebay-and-amazon.html
Government - http://qz.com/206864/alibaba-china-risk-ipo/
Growth M- commerce - http://www.accessatlanta.com/videos/social-networking/alibabas-biggest-mobile-threat-wechat/vCB6bG/
Global crisis –
How Alibaba became so successful ? These are 4 key strategies. I want to point out two of them.
Pricing: Alibaba uses a competitive pricing model where they set the price based on what competitors are pricing the same product. You can usually find the product on Alibaba’s platform with the lowest price.
Free Membership: The company offered new merchant free membership earlier to their site as a tactic to attract new users. More merchants