Alibaba s Dominant Business Model Essay - 1470 Words

Alibaba’s dominant business model is an exchange. Piccoli, in his textbook, defines exchanges as â€Å"Exchanges are organizations that create a marketplace for buyers and sellers to come together and transact. Thus, an exchange does not take control of inventory or worry about fulfillment. Rather the exchange provides a â€Å"market making† service and is compensated with fees, commission on sales, or consulting fees on more complex business-to-business transactions. The prototypical example of an exchange is eBay. Others include Alibaba.com and Ariba—both mainly targeting the business-to-business domain.† (Piccoli, pg 170) Principally, Alibaba is a Chinese business to business e-commerce company. Alibaba focuses on suppliers and buyers trading both domestically and internationally. The business to business marketplaces provide a platform to facilitate e-commerce between business sellers, whom Alibaba refers to as â€Å"suppliers†, and wholesale buyers. Suppliers and buyers would use the marketplaces to establish their presence online, identify potential trading partners and conduct business with each other. Suppliers and some buyers would use the marketplaces to host their company profiles and catalogs in standardized formats known as â€Å"storefronts† and post â€Å"listings† such as products, services and trade leads. Users could view storefronts and listings in over 30 industry categories and nearly 5,000 product categories by either searching for keywords or browse through theShow MoreRelatedA Short Note On The E Commerce Market1973 Words   |  8 Pagesanalyze the fact ors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market. During the late 1990’s and early 2000’s, the internet was not very popular in China and people were ignorant to its proper use. Knowing this, Jack Ma decided to start this internet user-friendly company that would allow his clients to perform business transactions with other businesses/suppliers in China. He first started the company on a local level and as Alibaba has seen success it has beenRead MoreImpact Of Information And Communication Technologies2569 Words   |  11 Pageslowest cost. In addition of the advances made in communication technology, transportation innovation has also played a key role in the development of the e-commerce. In fact, containerization and air shipment have revolutionized the transportation business the years after the World War II, resulting in the falling of the transportation cost. Today technological innovations such as bar code, laser bar code reader, electronic microchip that allows real time tracking lead also to a cheaper, f aster andRead MoreRivalry Of The Global E Commerce Market1496 Words   |  6 Pagesthere a strong competition between the existing players, is one player very dominant or all equal in strength or size. E-Bay is one of the dominant players in the global e-commerce market; but because of low entry barriers E-Bay is currently facing competition in its different market segments. Therefore, this market is full of competitors such as Amazon, Craigslist, Yahoo! Auctions, and other new players such as Alibaba, Jet.com, Groupon and Overstock.com. The battle between e-commerce players engageRead MoreRe Expansion Of Ebay Into China2685 Words   |  11 PagesEachnet to form eBay Eachnet. Up until 2005 eBay Eachnet was the leader of the ecommerce market due to their C2C platform. However, with the emergence of Alibaba owned subsidiary Taobao.com (Taobao), eBay Eachnet soon lost its stronghold on the market. This factor combined with a rigid Chinese ecommerce market drove eBay to withdraw business dealings in the country in 2006. Yet, the goal of a successful longstanding ecommerce venture has never been far from the companies plan. In 2013 the ecommerceRead MoreComparative Ebay and Taobao3114 Words   |  13 PagesA Comparative Study between eBay and Taobao in Chinese Online Auction Market BSAD 415:66 Electronic Business Prof. G. Trites Jie Yue (Kathy) 200706289 June 10, 2008 1 Introduction Being the largest online trading company, eBay has launched websites across the world, including thirty other countries in addition to its original U.S. website. China, with its large online market, is one of these countries. In 2003, after its cooperation with Eachnet, the first C2C online companyRead MoreTaobao vs. Ebay China8878 Words   |  36 PagesCASE: IB-88 DATE: 01/04/10 TAOBAO VS. EBAY CHINA Ten to 15 years from now, I think China can be eBay s largest market on a global basis†¦. We think China has tremendous long-term potential and we want to do everything we can to maintain 1 our No. 1 position. — Meg Whitman, eBay CEO, 2004 By 2008, Jack Ma, CEO of Alibaba.com Inc., was in a position to consider how to fortify Taobao’s dominant position in China’s online consumer-to-consumer (C2C) market. Ma and his company had come a long way sinceRead MoreBaidu Valuation at IPO9089 Words   |  37 Pagesand the strength of Baidu’s business model and strategic position. BACKGROUND ON CHINA’S ADVERTISING AND ONLINE ADVERTISING MARKETS Advertising Market From 1995 to 2005 China’s advertising market grew at a compounded annual growth rate (CAGR) of 17 percent, which was substantially higher than China’s nominal annual GDP growth rate of 11 percent over the same period. China’s strong economic growth had resulted in increased demand for products and services, both in business and consumer product categoriesRead MoreEquity Valuation Analysis Report - Tencent Holdings Limited8305 Words   |  34 Pages Equity Valuation Analysis Report ACCT6111E Business Valuation Analysis Instructor: Professor Albert Tsang Team members Name Student ID Winnie Yam 1155025593 Sherry Zhang 1155023131 Fiona Tong 1093644801 Tommy Wu 1155021510 Robert Pun 1155026071 21 November 2013 TABLE OF CONTENTS 1.0 Executive summary [3] 2.0 Industry overview [4] 3.0 Company overview [6] 4.0 Financial statement analysis [12] 5.0 Profitability analysisRead MoreWhy Ebay Lost to Taobao in China - the Global Advantage2817 Words   |  12 Pageselectronic commerce involves electronically-facilitated transactions between consumers through third parties.9 In China, a number of C2C platforms have emerged, such as eBay (China), TaoBao and PaiPai. TaoBao, established in 2003, has quickly assumed a dominant position in this market, underlined by the December 2006 decision by eBay to quit the C2C market in China altogether,4, 8 merging its China operations with those of telecoms provider TOM Online. In China, C2C platforms encourage buyers to contactRead MoreCase Study on Ebay18810 Words   |  76 Pagesadopted to revive itself and its slowing growth rate. (20marks) (15marks) b. 3.A significant mistake made by the eBay team in China was its notion of applying its US business model in China. Discuss the business model of eBay in the US, its strengths and weaknesses. Also analyze how eBay tried to adapt its business model to increase its market share in China. 4.The entry of large Multi National Companies (MNCs) into emerging economies was considered to be the end of local players in markets