Alibaba.com Case Analysis

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

Alibaba.com Introduction

Traditional Sourcing Lifecycle

Search/ Discovery

Evaluate

Negotiate

Transact

Average sourcing cycle: 3.3 – 4.2 months 52% of time spent searching for/identifying appropriate suppliers

20% of time spent on screening/sorting proposals

18% of time spent on RFQ development/ RFQ response

10% of time spent on contract negotiations

Traditional Sources of Supplier Information Referral

Industry associations

Trade shows

Trade directories

Industry magazines, trade journals

Existing suppliers

Source: The Aberdeen Group

The Sourcing Lifecycle, 2.0

Search/ Discovery

Evaluate

Negotiate

Transact Finding Suppliers on-line is a matter of hours, not days and weeks.

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

Average sourcing cycle: 1.6 – 2 months New Sources of Supplier Information Internet

Source: The Aberdeen Group

Referral

How online marketplaces can help?  •E-Marketplaces can offer a platform to address buyers’key considerations:

Breadth & Depth

Quality of service

Trust & Credibility

Lower cost

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Alibaba.com Introduction

#1 & #2 6

Alibaba’s Mission and Vision

Marketplace

Community

Long Term Vision

To Make It Easy To Do Business Anywhere To Be an Essential Partner to All Businesspeople

To Build a Company that Lasts “102 Years”

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) 8

The Alibaba Network

Alibaba.com

Buyer

• •

Search products Contact Suppliers

Supplier

• •

Post products Reach international buyers

My Alibaba

• • •

Manage Account Information Check messages Buying and selling tools

Community

• •

Online Forum Open Sesame Events

Tools & Resources

• • • •

Trade Essentials Tradeshow Channel Trade Alert TradeManager

Largest Online B2B Marketplaces

Sellers 





Typically SMEs Ten to a few thousand employees 5,000+ product categories in 30+ industries

Buyers 

International Marketplace 4.4 million registered users (1) 



China Marketplace 23.2 million registered users (1)

Across more than 200 countries Companies of all sizes Diverse end markets

Alibaba.com synergies As a neutral marketplace, Alibaba.com is building a platform to bring together all relevant trade services

Associations

Trade shows

Media/Publications

Alibaba.com

Logistics

Financial Institutions

Inspection

Our International Marketplace  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 EU 9% UK 6% India China 7% 8% Canada 3%

USA 18%

South America 3% 12

South East Asia 13%

Middle East 4%

Australia 3%

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. 13

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

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

Porters five force analysis

Alibaba’s tomorrow  Opportunities

 Challenges