1) Background of the Alibaba
Alibaba is an e-commerce company from china. Alibaba was the biggest IPO in the world. The founder of the company is jack ma and penh Lei. This company set up on since 1999 and since 2001 they start to earning profit. In 2012 alibaba group handle sale of 170 bilion.
Nowadays, Alibaba company is successful than Ebay and Amazon. In 2003, Alibaba found taobao as direct to competition to Ebay. In the year of 2004, Alibaba group ofer Alipay. Alipay give customer to receiver good before payment was released to the sellers.
Before that, in july 2011 the group initiate a mobile operating system and develop by their cloud computing system. Jack ma was CEO of the group till 2013, because lack of technical knowledge, Jack ma never a typical CEO. Now have the one of the person, he is the main pillar of Alibaba. The present CEO is Jonathan Lu.
In September of 2014, Alibaba is the first time took the US markets by the storm. Then, It propelled the founder Jack Ma to became a richest man in the china. In 2013, have 231 million of customer spent the sum of 2480 billion on the Alibaba web portals. And the more sale than ebay and amazon combined. Jonathan Lu attribute the success to the customer. Therefore, service the customer in their company be a important thing.
Lastly, the Alibaba of the successful are inspiring to several internet business all over the world. So a company need to be successful, persistence is victory.
In the first, The Alibaba company have say the mission make them successful in the
company in the world, so the mission is to make it easy to do business anywhere and can
communication with different type people of business. After that, The Alibaba company have
operation leading online and mobile markets in the retail and wholesale sectors. Alibaba have
provide technology, usage, payment platforms and implementation to enable consumers and
businesses to conduct business activities in the most convenient and reliable manner.
In Alibaba the first vision is became the first platform to share data and become a company
with at least 102 years of happiest people. After that, Alibaba company prepare to solve the
challenges of small businesses in procurement, sales and marketing, management and
financing through information technology. Therefore, The Alibaba have say that the goal is
to became a pioneer in the global trade revolution. Then, Alibaba envisage to their unique
team will establish the future business infrastructure and serve their customers in the three
The Alibaba company have make many of offer to the people to start their business life in
there. The first is the company of Alibaba have provided the people to get free register in
one year, and the people can start the business to sell the thing they want and also the
customer need. Before that, when the seller wants to start a business but does not know what
to do, so the Alibaba company have think of this solution is was provide the skill to let the
people to learn in step by step before to start a business or half sell the product and half learn
same as like training. After that, The Alibaba company have provided the service of
e-commerce learning to the people who was interested to be suppliers or need to understand
about the global suppliers, And the Alibaba company has separate different level of e-
commerce to let the people have more understanding and the people can know what level you
understand in the learning. Example, Basic of E-commerce, Basic of foreign trade and
industry analysis. Therefore, The Alibaba have provided membership package to the seller
and let the seller have continue to their business, and Alibaba like the seller can be success in
the business and can let the customer buying their product can feel more satisfaction.
Critical success factor
Unique Business Model
The first, Alibaba have mainly provided service to small businesses and individuals. This
provides a unique business opportunity for liberating the productivity of small businesses and
provides consumer with more diversified spending options. After that, in 1688 in B2B e-
commerce platform, Taobao or e-Tac in China’s largest professional import and export agent,
Alibaba’s the three core of important businesses are focused on providing services for small
businesses and accumulate value that cannot be create individually. And the Alibaba need to
represent a complete e-commerce ecosystem. Therefore, more focusing on small businesses,
the various target consumer of groups can have a variety of good. In 2014, the total of
transaction of Alibaba platform, is reach 2.3billion yuan is 330 billion euros, 340 million US
Reliable credit model
Into the first, Alibaba is good to credit model to helps build a trustworthy reputation among its
costumers. All the seller in the e-commerce platform need to required and pass through the
online certification tests to verify their identity information. This action can decrease illegal
trades because seller are always supervised on the platform. After that, The record of the
transactions can be traced back by the seller and the customer. Therefore, this action can
protects the legitimacy of each transaction and helps customers choose more reliable sellers.
Thus, The function of the Alipay have make the most of people receive the good product from
the seller because the protected is good. And the use of the Alipay is reached 300 million and
the number of transaction reached 900 billion euros is 1280 billion euros, 135 billion US dollars.
So the number of active users of mobile terminals reached 100 million more than the number
of paypal user. In addition, This system have receive the people feedback highly encouraged.
Then, the customer can have the discount coupons when they get feedback to the system. This
action is reducing post-purchase regret.
Unconventional Profit Model
The first, the Alibaba have charge for marketing and technical support services, not admission fees. This action can improve the largest market of loyal customers. Before that, The Alibaba of profit is come from the advertising and the keyword bidding, and the account of total profit is 57%. The second largest of profit is 25%is come from the technical service and also based on consumer behaviour in big data. Thus, the Alibaba have give the free register and also let the people learn trading in online, and ebay china charge fees for its platform transactions. To collect many of sellers, Taobao is success to attracted more customer. In addition, The total of people register in Alibaba platform have 500million people. And also including 230 million active buyers more than 8 million if seller, and the annual orders exceeding 11 billion. Alibaba can use the advertising, keyword bidding and the customer data to make money.
Support customer satisfaction services
In the first, Alibaba service provide a comfortable shopping environment and a positive onlone customer experience, and also increase the user engagement. Before that, Alibaba have provides a good set of support service to ensure optimal customer satisfaction by helping sellers to maintain positive interaction for sellers. In the support service have including online business training for sellers, introducing specialized coding system to manage the large number of stores on the platform, development the good of messaging tools to achieve better communication between buyer and seller and the product must be refunds in 7 days. In addition, these support service can help generate more transactions.
Implemented Fun Culture At Work, Rather Than Hard Work
The first, Ma Yun is not a performance –oriented person. And he does not believe in digital games. He believes the business is a part of life. He never forces the employees to achieve goals. And he is focus on funny culture at work. He always freedom to share knowledge of employees and listen to their suggestions and opinions. Thus, In his opinion. The first is try to think of customer, Into the second is the employee. The third is shareholder. Ma Yun give motivate to employees by his speech, and he with the each of employees have a good relationship, and many of employees at work think that is his own company. In addition, having though emotional touch have bring good of the result to the company.