Alibaba 23 12

Alibaba :
Competing in China and beyond
Present By :
23/12/2018
Content :
 Background
Background

Founder of Alibaba –Jack Ma

Launched china’s first commercial website
Prepared 1st website in china - MOFTEC
Background- Important Time lines
Background- Important Facts
 Jack Ma ,the founder of Alibaba,was born in China in 1964,graduated in
English in 1988 and became teacher.
 He had opportunities to get exposure to internet in USA , He launched

China Pages, China’s first commercial website in 1995 by borrowing
$2000 from relatives.
 In 1998, Ma moved to Beijing to work for the Ministry of Foreign Trade and
Economic Cooperation (MOFTEC) as the head of International Department of
the China International Electronic Commerce Center(CIECC), and designed the
first Govt. website for China.
He gathered 18 people and explained his vision to them and paid them
Rimini(RMB -Chinese currency with principal unit called Yuan.) and Alibaba
was launched in Aug 1999-registered in Hong Kong with total capital of
60000 USD.
 He later accepted offer of venture capital investors up to US $ 5 million in
Oct 1999 and persuaded Softbank Corporation(Soft Bank) to invest US $ 20
Million in his venture in Jan - 2000 . In return , Peter Sutherland ,Chairman of
Goldman Sachs and Massayoshi Son CEO of Soft Bank joined Alibaba board
of advisors. Ma moved head quarters of Alibaba from Hangzhou to Shanghai.
 Alibaba concentrated on SMEs all over and became its World Trade
Organization to help the small and medium enterprises to grow.
 During (1990 – 2000)s the internet was not very popular in China and
banks were not networked Credit card usage was limited and providing
logistics services in the country was difficult.
 Initially Alibaba had two websites – www.alibaba.com, an English websites

for international B2B trade and www.china .alibaba.com for B2B trade in
china. Alibaba Japan website was launched in 2002 www.alibaba.co.jp, as
Japan was china’s second largest trading partner.
 In May 2000 , officer of Alibaba. Ma brought in John Wu(Wu), the
creator of he Yahoo! Search engine, and appointed him as the chief
technology
 Another major concern for Ma was that many SMEs distrusted the idea of
online payments but still Ma was able to convince them.
 By end of 2000 Ma has become largest online global trading. with about
200,000members from 194 countries of which 70% was Chinese
 Alibaba aimed to have a global presence and expand in the US and hence
the company’s R&D was mainly done at Silicon Valley
 During early 2000 Alabama's popularity attached a number of other

companies to start e-commerce venture in china
 While some of these firms concentrated on particular industries others such
as Commerce one on Big business in Europe
 Ma refused to worry about the rising competition and in March 2000 when
the dotcom bubble burst as number of dotcom and e-commerce companies
field for bankruptcy
 Alibaba however was able to withstand the dotcom crash since its
business was not depended on advertising revenue.
 Then it announced B2C strategy
 Back to china under which Alibaba would concentrate mainly on
improving its business in china rather than focusing on global markets

Back to central under which the head quarters was moved
Back to Coast under which Alibaba would concentrate on improving its
presence in the coastal areas
In early 2001 Alibaba started offering a customized online market place
for the members(Initially free)
In late 2001 Alibaba began charging its members for its services
By March 2002 Alabama's members had touched the one million
mark
In March 2002 Alibaba set a trust pass membership fee of Us$299
companies wanting to join Alibaba after which they verified and authenticated.
About 200 Chinese companies are registering them every day.

Case analysis . . .
 Alibaba.com corporation
 China’s leading E-commerce Company
 Focused on various Business Models
B 2B
B 2 C
C 2 C
 Captured Market Share of 69.04 %

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Alibaba :

Competing in China and beyond

Founder of Alibaba –Jack Ma

 He had opportunities to get exposure to internet in USA , He launched

 Initially Alibaba had two websites – www.alibaba.com, an English websites

 During early 2000 Alabama's popularity attached a number of other

as Commerce one on Big business in Europe

the dotcom bubble burst as number of dotcom and e-commerce companies

field for bankruptcy

business was not depended on advertising revenue.

 Then it announced B2C strategy

 Back to china under which Alibaba would concentrate mainly on

improving its business in china rather than focusing on global markets

Back to central under which the head quarters was moved

Back to Coast under which Alibaba would concentrate on improving its

presence in the coastal areas

for the members(Initially free)

About 200 Chinese companies are registering them every day.

 Captured Market Share of 69.04 %

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