alibaba.com case analysis
DESCRIPTION
this presentations explains the success story of alibaba.comTRANSCRIPT
Welcome to Alibaba.com!Welcome to Alibaba.com!
Presented by;
Ronak Vijayvergia
Sanjay Kumar Sahoo
Sadu chaitanya Reddy
Siba
Vinith
Alibaba.com Introduction
Traditional Sources of Supplier Information
Referral
Trade shows
Industry magazines, trade journals
Industry associations
Trade directories
Existing suppliers
Search/ Discovery
Negotiate TransactEvaluate
Average sourcing cycle: 3.3 – 4.2 months
52% of time spent searching for/identifying appropriate suppliers
18% of time spent on RFQ development/ RFQ response
20% of time spent on screening/sorting proposals
10% of time spent on contract negotiations
Source: The Aberdeen Group
Traditional Sourcing Lifecycle
New Sources of Supplier Information
Internet Referral
Search/ Discovery
Negotiate TransactEvaluate
Average sourcing cycle: 1.6 – 2 months
52% of time spent searching for/identifying appropriate suppliers
18% of time spent on RFQ development/ RFQ response
20% of time spent on screening/sorting proposals
10% of time spent on contract negotiations
Source: The Aberdeen Group
The Sourcing Lifecycle, 2.0
Finding Suppliers on-line is a matter of hours, not days and weeks.
How online marketplaces can help? •E-Marketplaces can offer a platform to
address buyers’key considerations:
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Breadth & Depth
Quality of service Lower cost
Trust & Credibility
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Alibaba.com Introduction
#1 & #2
To Make It Easy To Do Business
Anywhere
To Be an Essential Partner to All
Businesspeople
To Build a Company that Lasts “102 Years”
Marketplace
Community
Long Term Vision
Alibaba’s Mission and Vision
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Products and Services
• B2B (market place): alibaba.com, divided into
china.alibaba.com (serving Chinese customers),
japan.alibaba.com (serving Japanese customers),
alibaba.com (serving global customers)
• C2C: taobao.com (founded in May 2003), free
website, business volume in 2005 is USD 967 M.
• Alipay: online payment tool (founded in October
2003, one of the main electronic payment tools)
• Yahoo China (after the deal)
• Search products• Contact Suppliers
Buyer
Supplier
My Alibaba
Community
• Post products• Reach international buyers
Tools &Resources
• Trade Essentials• Tradeshow Channel • Trade Alert• TradeManager
Alibaba.com
• Online Forum• Open Sesame Events
• Manage Account Information• Check messages • Buying and selling tools
The Alibaba Network
Largest Online B2B Marketplaces
Sellers
International Marketplace4.4 million registered users (1)
International Marketplace4.4 million registered users (1)
China Marketplace 23.2 million registered users
(1)
China Marketplace 23.2 million registered users
(1)
Across more than 200 countries
Companies of all sizes
Diverse end markets
Typically SMEs
Ten to a few thousand employees
5,000+ product categories in 30+ industries
Buyers
Alibaba.com synergies
As a neutral marketplace, Alibaba.com is building a platform to bring together all relevant trade services
Alibaba.com
Logistics InspectionFinancial Institutions
Associations Media/PublicationsTrade shows
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Our International Marketplace
South America 3%
India 8%
China 7%
South East Asia 13%
EU 9%UK 6%
USA 18%
Middle East 4% Australia 3%
Canada 3%
Over 4.4 million registered members from 200 countries & regions USA is our most active region in the world Approximately 800,000 members from the USA
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Business Strategy:
Keep the leading position in e-commerce. Provide business
opportunities to medium and small-sized enterprises, esp. to
foreign-trade enterprises
Enlarge the online value-chain like the pay system and the
searching system of the e-commerce
The target is to be a leading global player of C2C and
B2B internet business.
The vision is to be one of the top 10 websites globally, that all
the business man will use Alibaba.
Reasons for Alibaba.com’s Rapid Development
Practical and personalized services Active promotion at home and abroad Team work, teaching and learning Perseverance, focus and creativeness Efficient platform with a huge mount
of information Simple and friendly Interface E-community with self- services and
interaction
The success story of Alibaba.com Entrepreneurial opportunities Manufacturing arm of the world Cheap labor, door to door salesmen The point of entry Alipay service. Variety of products User friendly interface Right strategies at right time
Porters five force analysis
Opportunities
Challenges
Alibaba’s tomorrow