alibaba.com case analysis

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Welcome to Welcome to Alibaba.com! Alibaba.com! Presented by; Ronak Vijayvergia Sanjay Kumar Sahoo Sadu chaitanya Reddy Siba Vinith

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this presentations explains the success story of alibaba.com

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Page 1: Alibaba.com case analysis

Welcome to Alibaba.com!Welcome to Alibaba.com!

Presented by;

Ronak Vijayvergia

Sanjay Kumar Sahoo

Sadu chaitanya Reddy

Siba

Vinith

Page 2: Alibaba.com case analysis

Alibaba.com Introduction

Page 3: Alibaba.com case analysis

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

Page 4: Alibaba.com case analysis

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.

Page 5: Alibaba.com case analysis

How online marketplaces can help? •E-Marketplaces can offer a platform to

address buyers’key considerations:

5

Breadth & Depth

Quality of service Lower cost

Trust & Credibility

Page 6: Alibaba.com case analysis

6

Alibaba.com Introduction

#1 & #2

Page 7: Alibaba.com case analysis

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

Page 8: Alibaba.com case analysis

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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)

Page 9: Alibaba.com case analysis

• 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

Page 10: Alibaba.com case analysis

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

Page 11: Alibaba.com case analysis

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

Page 12: Alibaba.com case analysis

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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

Page 13: Alibaba.com case analysis

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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.

Page 14: Alibaba.com case analysis

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

Page 15: Alibaba.com case analysis

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

Page 16: Alibaba.com case analysis

Porters five force analysis

Page 17: Alibaba.com case analysis

Opportunities

Challenges

Alibaba’s tomorrow