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A Little Electronic Magic at Alibaba

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Jeremy Downton

on 2 December 2012

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Transcript of A Little Electronic Magic at Alibaba

A Little Electronic Magic at Alibaba.com Compare and Contrast the features of Alibaba.com,
Tradeindia.com, and Tradekey.com Alibaba.com What is a B2B e-commerce business? 400 Million Users from over 200 Countries and Territories More focus between buyer/supplier connection TradeIndia.com “geologically colossus earth into a tiny global village bringing manufacturers, buyers, and sellers under one pedestal.” Focus on the details in the transaction
i.e. freight quotes, reselling platforms Tradekey.com Offices in Saudi, China, and Pakistan ‘help small businesses convert into global enterprises by providing them a state of the art online platform.” Greater emphasis placed on the importer with a means to resell products through e-commerce. Is it reasonable to speculate that eventually most trade between companies might take place in the context of sites like Alibaba.com? Is there room for growth in the world of import/exports?

What is currently unappealing about B2B e-commerce? 98% of total enterprises are SMEs in the Asia Pacific Region

Generating only around 30% of exports 3 Main operate objectives in international trade -

Expanding sales
Acquiring Resources
Minimizing Risk Why do companies export?
What would lead them to turn to e-commerce sites?

Economies of scale
Counter home leaders
Profit potential Many pitfalls...

Obtaining credit
Customer Management
More competition
Information technology expectancies
Cost of shipping/customs
Local representation Why import?

3 types -
Foreign sourcing to get the cheapest products
Foreign sourcing as part of global supply chain "Like any smart shopper an importer scans world markets, seeking lower priced, better quality or locally unavailable products" Why do companies import?

Specialisation of labour
Global rivalry
Local unavailability
Diversification of operating risks
To resell into home markets
Sometimes virtually In conclusion...

It IS "reasonable to speculate that eventually most trade between companies might take place in the context of sites like Alibaba.com
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