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Alibaba case

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Dao Linh

on 18 October 2012

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Transcript of Alibaba case

CEO Background Alibaba was launched in Aug 1999 Agenda 1. Background Factors for Alibaba's success (continuing...) Knowledge of the Chinese market
Ma knew what the market in China was lacking
The demand for the product was huge
Right strategies

Awareness of what the customer need
The service was easy-to-use and in customers' own language which made it attractive 2. Success and Competition 3. Future challenge Alibaba group
CEO Jack Ma Factors for success
Yahoo!China Jack Ma, graduated in English in 1988 and became teacher Exposed to internet in USA Launched China's first commercial website in 1995 In 1998, designed the first Govt. website for China Alibaba Group 1999 2001-2008 2000 Factors for Alibaba's success Alibaba was launched in Aug 1999-registered in Hong Kong with total capital of 60,000 $ Accepted offer of venture capital investors up to US $ 5 million in Oct 1999
Softbank Corporation(Soft Bank) invest US $20 Million Launched its first two websites: Alibaba China and Alibaba International Concentrated in SMEs Dotcom bubble burst, Alibaba adopted B2C strategies: Back to the coast Back To Central Back To China
By end of 1999, became largest online global trading: about 200,000members from 194 countries Expanding: services for B2B, B2C and C2C Largest e-commerce company in China New in the market
No e-commerce market in China
Lack of competitors
SMEs had no channel for finding customers
The CEO, Jack Ma, was an innovative and strong leader
Alibaba survived the dotcom crash by reorganizing its business Taobao.com Ranked 8th in the World's Most Innovative Company 2003: eBay 73% market of China May 2003: Launched Taobao 2005: eBay 29.1% vs Taobao:67.3% 2003-2004: Aggressive competition Free services Understanding of language and culture Doing business locally Yahoo! "The real source of eBay's woes in Asia is its inability to under stand local market conditions in this part of the world" Porter Erisman - Vice President for International Marketing of Alibaba Baidu has mastered the Internet research market in local language 2005, Alibaba acquired Yahoo! operation in China. ...We have to make the Yahoo!'s search engine more human, more interactive...something for the 1.3 billion people in China who aren't technology -oriented, who don't know how to ask a right questions to a search engine...
-Jack Ma- Brand ambiguity Baidu: Chinese company 2007, Yahoo!China strategy change to business-oriented Competition is more agressive Future challenge Local and foreign competitors Go globally Change in culture
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