ALIBABABy: Delaney McMullen, Julia Toohey, and Peter Gawrychowski

PREVIEW OF THE PRESENTATION•An overview of the company •Three main sites: Taobao, Tmall, and Alibaba.com •Competition and Relation to other companies

BACKGROUND

•Chinese online marketplace company

•Founded in 1999 by Jack Ma•The company’s spiritual leader•Philosophy is to always put customers before shareholders

•China’s richest man: net worth of $25 billion

•Went public in the US on September 19, 2014

ECOMMERCE

•The most popular destination for online shopping•Transactions on its online sites totaled $248 billion last year (more than eBay and Amazon combined) •80% of China’s online shopping market is dominated by Alibaba

ALIBABA IN THE MARKETPLACE

•One of the most valuable technology companies in the world•Largest IPO ever•It is currently fourth in terms of market capital, with $215 billion, falling only behind Apple, Google, and Microsoft

WHO OWNS ALIBABA?

DISCUSSION QUESTION

Despite only knowing this little bit of information, would you be excited or

willing to invest in Alibaba? Or is it not worth the risk?

COMPANY STRUCTURE

ALIBABA.COM•Primary company

•World’s largest B2B online trading platform for small businesses

•It connects Chinese exporters with companies elsewhere in the world

•Three services: •English Portal•Chinese Portal•AliExpress.com

WHAT IS ALIBABA.COM?

TAOBAO

•Alibaba’s biggest shopping site•Home to seven million merchants •Consumer-to-consumer portal•Free registration•Commission-free transactions

TMALL

•Specializes in online sales of branded goods and focuses on China’s quickly growing middle class•Business-to-consumer (B2C) online retail •Platform for local Chinese and international business to sell brand name goods to consumers in China.

OVERVIEW OF ALIBABA IN RELATION TO OTHER COMPANIES•Amazon owns warehouses and goods, whereas Alibaba is simply a trading platform•Alibaba is similar to eBay in the sense that it acts as a middle man between buyers and sellers•Similarly to Paypal, it handles the exchange of money, but with a different system: Alipay

ALIBABA VS. AMAZON•Jeff Bezos founded Amazon by solely selling books, and now they are the largest online retailer in North America

•Goal: to build the world’s most customer centric company

•Jack Ma founded Alibaba launched Alibaba.com as a B2B portal

•Goal: to help small businesses grow by solving their problems through Internet technology

ALIBABA VS AMAZON BUSINESS MODELS

• Alibaba is known for thier B2B portal and facilitation of eCommerce in China through Taobao

• They facilitate transactions. They manage the market place, but do not hold the merchandise themselves

• On Amazon, you not only are able to find thousands of products from 3rd party businesses, but they also sell products directly to consumers

ALIBABA VS AMAZON PROFITABILITY• Alibaba sells more products

than Amazon• Amazon generates higher fee

revenues• So, who makes more money?

AMAZON VS ALIBABA: THE FUTURE● Alibaba has a stranglehold on the Chinese

market● Amazon is the clear US leader ● What will happen?

DISCUSSION QUESTION

Do you perceive Alibaba to be a legitimate threat to Amazon in the US?

WHAT IS ALIPAY?

•Online payment system

•No transaction fees

•Half of all online payment transactions in China

ALIPAY.COM IN COMPETITION WITH EBAY & PAYPAL

● Similarities to Paypal: ○ Handles the exchange of money

● Overtook Paypal as the largest mobile payment platform

● Paypal is only perceived as an escarow service

ALIBABA CLOUD COMPUTING

•Aliyun.com

•Cloud computing service platform•E-commerce data mining•E-commerce data processing•Data customization

COMPETITION WITH AMAZON (CLOUD COMPUTING) https://www.youtube.com/watch?v=jQjCweX_EpM

DISCUSSION QUESTIONS

Would you use Alibaba? Which segment is most

appealing to you?