success of Alibaba

2. Course:
Marketing Management
Instructor:
Mam. Samra Malik

3. Success Story
Organization:
Alibaba

4. Group Members:
Muhammad Saad Roll#02
Amna Javed Roll#08
Abdul Mannan Roll#10

5. INTRODUCTION
What is
Alibaba?
Growth of
Alibaba
Who is Jack Ma?
Mission of
Alibaba
Vision
Values of
company
Marketing
Mix
References

7. Type: Public Company
Founded: 4th April, 1999. China
Headquarters: Hangzhou, Zhejiang,China.
Products: E-commerce, online auction hosting, online money transfers, mobile commerce
Revenue: US$39.898 billion, 2018 No. of Employees: 66,421 (March 31, 2018)
Slogan: Global trade starts here
Subsidiaries: Daraz,Tmall.com,Alibaba.com,Cainiao, Alibaba Cloud,Taobao Market.

8. Alibaba.com is
currently “China’s
largest global online
wholesale
marketplace” that
provides an
international trading
platform connecting
Chinese suppliers to
both international
buyers and domestic
buyers.
It does not sell any
products by itself, but
instead acts as a
mediator for all ongoing
transactions.
The main sellers on
Alibaba.com are
manufacturers and
distributors based in
China, although they
also come from other
countries such as
India, Pakistan,
United States and
Thailand.
Alibaba.com is a B2B
platform as it lets
exporters post
product listings that
buyers from other
businesses can
browse through their
website.

9. Video

10. • Alibaba Group was established in
1999 by 18 people led by Jack Ma, a
former English teacher from
Hangzhou, China.
• Its first website is English-language
Alibaba.com, a global wholesale
marketplace.
• Alibaba, named after the character
from Arabian Nights, also “Alibaba” is
easy to pronounce and remember.
1999
• Alibabalaunched Taobao, now
the largest online shopping
marketplace for consumers in
China with more than 80 million
registered users.
• After Taobao was established it
did not take long before in 2005
Taobao overtook its U.S. rival
eBay.
2003

11. 2004
The Group offered Alipay.The venture was an instant success.
Alipay allowed customers to receive goods before payment
was released to the sellers.
2005
Alibaba partnered withYahoo and took over ChinaYahoo.
2007
Alibaba Group was listed in Hong Kong Stock Exchange.
2008
The web portalTmall (Taobao Mall) was launched. It offered
only customer to customer business. Alibaba R&D was also
established during this time.

12. 2010
In 2010, Alibaba came up with a shopping search engine- eTao.
The company re-organized itsTaobao portal under three heads
–Taobao Marketplace,Tmall and eTao.
2011
July 2011, the group launched a mobile operating system which
was developed by their cloud computing team.
2012
By 2012, two of Alibaba’s portals were handling sales almost
worth $170 billion.
2013
In September, 2014, Alibaba’s first IPO took the US markets by
storm. It propelled founder Jack Ma to become China’s Richest
Man.

13.  Founder of E-Commerce giant
Alibaba and is stakeholder at
AliPay (e-payment portal)
 Richest man in China with
estimated net worth of $25
billion
 Jack Ma only holds a 7.8% stake
in Alibaba and a 50% stake in
Alipay
 Alibaba is worth more than
Facebook, and processes
goods more than eBay and
Amazon combined!

14.  Jack Ma was born in Hangzhou, located in the south-
eastern part of China. He was born and raised along with
an elder brother and a younger sister during the rise of
communist China and its isolation from the Western
regions. His parents were traditional Musicians-
Storytellers and they didn’t make enough to be even
considered as middle class during those days.
 Former US president Richard Nixon’s visit to Hangzhou
in 1972 improved the situation of tourism in his home-
town and Jack wanted to make the most of this
opportunity. Jack always wanted to learn English as a kid
and he spent his early mornings riding on his bike to a
nearby park, giving English tours to foreigners for free. It
was then he met a foreign girl who gave him the
nickname ‘Jack’ for his name was hard to spell for her.
 Jack, after graduating with a Bachelor’s degree in
English, worked as an English teacher at Hangzhou
Dianzi University with a pay of $12 a month

15.  In his early childhood, Jack Ma Failed in his
Primary School examinations, not once, but
Twice
 He FailedThrice during his Middle School exams
 When applying to universities after his High
school, Jack failed the entrance exams thrice,
before finally joining Hangzhou Normal
University.
 He even applied and wrote to Harvard University
ten times about being admitted – and got
rejected each time.
 During and after his Bachelor’s degree Jack tried and failed to get a job at a
multitude of places
 After spending three years to get into a University, Jack failed to land a job after
applying to them 30 times
 He also one of the 5 applicants to a job in Police force and was the only one
getting rejected after being told, “No, you’re no good.”

16.  Also, on his Entrepreneurial undertakings,
Jack Ma went on to fail on two of his initial
ventures. But that didn’t stop him in any way
of dreaming bigger.
 In one of his interviews, when asked about his
rejections, this is what he had to say, “Well, I
think we have to get used to it. We’re not
that good.”

17.  Jack Ma visited US in 1995, for a Government undertaking project related to the
building of highways. It was then that Jack Ma was first introduced to the
Internet and Computers. The first word he searched on the Mosaic browser was
‘Beer’, and it popped out results from different countries, but signs of China
anywhere. He then searched ‘China’ and not a single result popped out! He
decided it was time for China and its people to get on the Internet.
 Finally, after persuading 17 of his other friends to invest and join him in his
new e-commerce startup – Alibaba, the company began from his apartment
 Initially, Alibaba didn’t had a single penny in investment from outside investors,
but they later raised $20 Millio from SoftBank and another $5 Million from
Goldman Sachs in 1999
 In 2005, Yahoo invested $1 billion in Alibaba in exchange for about a 40% stake in
the company. This was huge for Alibaba — at the time it was trying to beat eBay
in China — and it would eventually be an enormous win for Yahoo too, netting it
~$10 billion in Alibaba's IPO alone.

18.  Ma stepped down from his post
as CEO in 2013, staying on as
executive chairman. Alibaba
went public on Sept. 19
 The company's $150-billion IPO
was the largest offering for a
US-listed company in the
history of the New York Stock
Exchange. It also made Ma the
richest man in China, with an
estimated worth of $25 billion

20. Our mission is to make it easy
to do business anywhere.
Alibaba’s long-term strategic
goal is to serve two billion
consumers around the world
and support ten million
businesses to operate
profitably on our platforms.

21. Meet @ Alibaba
• It enable commercial and social interactions among hundreds of
millions of users, between consumers and merchants, and among
businesses every day.
Work @ Alibaba
• It empower their customers with the fundamental infrastructure
for commerce and new technology, so that they can build
businesses and create value that can be shared among our
ecosystem participants.
Live @ Alibaba
• It strive to expand it’s products and services to become central to
the everyday lives of it’s customers.
102Years
• For a company that was founded in 1999, lasting at least 102 years
means it will have spanned three centuries, an achievement that
few companies can claim. Their culture, business models and
systems are built to last, so that they can achieve sustainability in
the long run.

22.  Their values are fundamental to the way they
operate and how they recruit,
evaluate and compensate their people.
CUSTOMER FIRST
The interests of their
community of consumers,
merchants and enterprises
must be their first priority.
TEAMWORK
They believe teamwork
enables ordinary people
to achieve extraordinary
things.

23. EMBRACE CHANGE
In this fast-changing world, we must
be flexible, innovative and ready to
adapt to new business conditions in
order to maintain sustainability and
vitality in our business
PASSION
They expect our people to
approach everything with fire
in their belly and never give
up on doing what they
believe is right.
INTEGRITY
They expect their people to
uphold the highest
standards of honesty and to
deliver on their
commitments.
COMMITMENT
Employees who demonstrate
perseverance and excellence are
richly rewarded. Nothing should
be taken for granted as we
encourage our people to “work
happily and live seriously.”

25.  The primary product in the Alibaba
group is their E-commerce portal –
Alibaba.com. This portal has the
distinction of being the world’s
largest business to business portal.
Where Amazon and other E-
commerce portals sell business to
consumer, Alibaba captured the
business to business market and is
currently the leader.
 Alibaba, through its other service –
Aliexpress.com also provides
smaller buyouts for small
businesses as well. The major
advantage of Alibaba.com as an E-
commerce portal is that it can
export to 240 countries, thereby
immediately giving it the reach to
have a lot of revenue turnover.

26. Besides Alibaba.com, In China, the
Alibaba group also launched Taobao
which is the Ebay.com equivalent of
a Business to consumer E-commerce
store. It is the largest E-commerce
store in China and the 2nd most
visited website in China.
There are many other
web products under Alibaba. As
mentioned previously, China is not
an open market, an advantage
which was taken by Alibaba and it
followed a route similar to Google’s
in USA. It has launched many
different web products

27. Like any other portal, Alibaba
has a very lenient pricing and its
commission are very low to
allow businessmen to do their
own business. This is the reason
that Alibaba has reach such
great heights so fast. Due to the
low cost nature of Chinese
products, it can be said that
Alibaba has penetrative pricing.
When compared with the hefty
fees that Amazon or other
portals charge to their sellers,
Alibaba has a very nominal fee
and hence it can be said as
penetrative pricing.
Even Taobao which is the consumer to
consumer platform of Alibaba, hardly
charges any fee and most of the
process is free. The earnings are
mainly from advertising and not from
anything else.

28.  Alibaba earns money through a margin of the transactions performed on their website.
 Alibaba.com connects brands and retailers with factories in China and elsewhere.
 Alibaba.com charges its suppliers through membership premiums such as the gold supplier
membership.
 Meanwhile, this enables Alibaba.com to charge very low prices, and offer discounts and bonuses
for buyers.
 It is no surprise that the number of buyers from the US have surged from 2 million to 7 million in a
span of three years.
 Cross-border buyers place more than 10,000 orders daily, with a total worth about 250 million
HKD.
 Alibaba’s local market alone was worth more than 300 million HKD in 2013.
 Alibaba also provides useful and accurate statistics in the form of analytical services to its clients.

29. Alibaba has far and wide reach across the world. It
recently entered US with an IPO and is also
building its teams in various countries of Asia. One
of the major advantage of Alibaba is that it hails
from China, where bulk manufacturing is done.
There are exporters ready to do business and
there are importers ready in other countries who
want to import things. Thus, it is a win-win
situation for both.
As on date, Alibaba.com is the only portal
having international presence whereas all other portals of Alibaba
group are concentrated on China only. However, most of them are
market leaders with Taobao being the market leader for consumer to
consumer platform, Autonavi being the market leader for maps and
similarlyTmall having a high market share for sale of global brands.
Overall, Alibaba claims that it can
export to 240 countries from its
international business to business
portal – Alibaba.com. At the same
time, the portal is increasing its
actual presence across the world.

30.  Alibaba is known to heavily promote its E-
commerce portal digitally. Naturally, as most of
the services are digital, across the world digital
ads are shown. Within China, Alibaba promotes
the portal above the line as well as below the
line. It uses Hoardings, digital advertising and
sales promotions to advertise below the line.
And in Above the line, it uses television, print as
well as radio.
 Outside of China too, it has started TV ads which
mainly target is as a B2B business portal and a
bulk product supplier.

33.  https://www.researchgate.net/publication/2746338
65_How_did_Alibabacom_become_and_still_remai
ns_a_dominant_platform_in_the_e-
commerce_market
 https://successstory.com/companies/alibaba-group
 https://www.businessinsider.com/the-inspiring-life-
story-of-alibaba-founder-jack-ma-2014-10#the-
ipo-may-have-made-ma-an-extremely-wealthy-
man-but-he-hasnt-made-any-flashy-purchases-
yet-and-he-still-has-some-pretty-modest-hobbies-
i-dont-think-he-has-changed-much-he-is-still-that-
old-style-xiao-ping-chen-a-friend-of-ma-told-usa-
today-he-likes-reading-and-writing-kung-fu-
fiction-playing-poker-meditating-and-practicing-
tai-chi-he-has-even-teamed-up-with-jet-li-to-
spread-awareness-of-tai-chi-and-he-brings-a-
trainer-along-with-him-when-he-travels-13
 https://www.shoutmeloud.com/jack-ma-alibaba-
founder.html
 https://www.marketing91.com/marketing-mix-
alibaba/

34. Let’s clearYour Ambiguities….!