BUDHANILKANTHA SECONDARY SCHOOL

Engineering Department
Budhanilkantha, Kathmandu

Report on
Alibaba

SUBMITTED BY :-
Roshan Kumar Bhandari
Roll no:-9
ADDRESS:- Aurahi-06 (bairiya)

SUBMITTED TO:-
Ronak karki
Abstract
Alibaba.com, often simply Alibaba, is a Chinese E-commerce company which has
been serving worldwide from last 18 years. The founder vision was to build a
company that would be able to provide every types of items that customers require
from the same company globally. Through internet, people can order any products
they prefer by observing the price visiting the site Alibaba.com. Alibaba.com
became a platform for the manufacturer, retailer and individuals in
2000.Alibaba.com offers their services towards four types of customers,
consumers, sellers and enterprises.

This case study report is detail analysis of Alibaba.com. The report describes the
List of areas that it has been working, the business models it has adopted and the
various strategies that it has implemented to make it one of the most successful E-
commerce platform. This case study reflects that using the strategies and model
adopted by Alibaba's can leads any other E-commerce site to get successful.

This case study also shows that how the different models and strategies must be
Implemented with respect to the dynamic environment of the E-commerce. To
gather such information on Alibaba's we use the informal way like as reading the
articles and other case study documents and pointed out some key points and
finally we visited to theAlibaba.com to verify the finding as well as to discover
more that we might have been missing. After doing the sort of analysis, we tends
to find that Alibaba is totally uses the Business to Customer Model, Business to
Business Model and Customer to Customer Model.

Alibaba totally rely on the customer and customer satisfaction is its primary goal.
Alibaba handle its better relationship with customer by collecting information of
the customer like as all personal information of customers their credit card record,
transaction record, order record, profile, their past purchase history are collected in
the database. Alibaba.com carries out some of Associate programs to boost the
customer traffic and rate of sale.

Alibaba mainly focuses on the customer satisfaction by providing the various ways
to ensure that like as personalization, user ratings and reviews, minimum shipping
charge which act as the key ingredients for success of Alibaba.com. But still
Alibaba have to do some change on its system like as Global Expansion,
Integrating on New Technologies, Innovation of New products.
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Table of Contents
Table of Contents 2
1. Introduction
1.1. Introduction 3
1.2. History 3
2. Business Models of e-Commerce 3
2.1. Business to Business (B2B)
2.2. Business to Consumer (B2C)
2.3. Consumer to Consumer (C2C)
3. E-marketing and Advertising Concepts
4. Electronic Payment System (EPS)
5. Public Policy 6
5.1 Target Users 8
3.4 Payment Methods 9

5. Conclusions
6. Recommendation:
7. References
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1. Introduction:
1.1 Introduction:

Alibaba Group, founded in 1999 by Jack Ma and his associates in Hangzhou,

China, has emerged as a global leader in e-commerce and technology
innovation. Beginning with Alibaba.com, a pioneering platform for business-to-
business (B2B) transactions, the company quickly expanded its footprint to
include consumer-focused platforms such as Taobao and Tmall, which dominate
the Chinese online retail market. Alibaba's influence extends beyond e-
commerce into cloud computing with Alibaba Cloud (Aliyun), digital
entertainment through investments in platforms like Youku, and financial
technology via Ant Group, which operates Alipay, one of the world's largest
mobile payment platforms. Alibaba's success lies in its ability to leverage
technology to connect businesses, empower consumers, and drive economic
growth. Through continuous innovation and strategic investments, Alibaba
continues to shape the digital landscape, setting standards for online commerce
and technological advancement globally.

1.2 History:

Alibaba Group, founded in 1999 by Jack Ma and a group of associates in

Hangzhou, China, started as an online platform connecting Chinese
manufacturers with international buyers in a business-to-business (B2B) model.
The company quickly expanded its influence with the launch of Taobao in 2003,
revolutionizing China's consumer-to-consumer (C2C) e-commerce market. In
2008, Tmall was introduced as a business-to-consumer (B2C) platform, catering
to brands and retailers seeking direct access to Chinese consumers. Alibaba's
2014 IPO on the New York Stock Exchange was one of the largest in history,
enabling investments in cloud computing (Alibaba Cloud), digital media
(Youku), and financial services through Ant Group, known for its mobile
payment platform, Alipay. Despite regulatory challenges, Alibaba continues to
lead in global e-commerce and technology innovation, embodying Jack Ma's
vision of empowering businesses and fostering digital transformation worldwide.

3. Analysis:

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3.1 Business Model

Alibaba has the vision to have the reach throughout the world from the
beginning and was determined to provide the demanding service to all the
people globally. The initial business model of Alibaba was simple a
facilitate a 24/7 meeting platform for suppliers and buyers around the
world. From the start Alibaba did not just connect Chinese suppliers with
international buyers, but it had the goal of connecting all importers and
exporters around the world to each other.
Alibaba has mostly employed three business models and they are: C2C, B2C
and B2B.

C2C:

Alibaba's C2C (consumer-to-consumer) platform is primarily represented by

Taobao, launched in 2003. Taobao revolutionized online shopping in China by
offering a diverse range of products from individual sellers to consumers. It
operates on a model where individuals and small businesses can list their
products for sale directly to other consumers, facilitating a vibrant marketplace
with competitive pricing and extensive product variety. Taobao’ s success has
solidified Alibaba's presence in China's retail landscape, showcasing its ability to
empower small sellers and provide consumers with a user-friendly platform for
buying and selling goods online.

b. B2C:

Alibaba's B2C (business-to-consumer) platform is primarily represented by

Tmall, which was launched in 2008. Tmall stands out as a premier online retail
platform in China, offering a curated selection of branded products from both
domestic and international companies. Unlike Taobao’ s C2C model, Tmall
focuses on official brand stores and authorized sellers, ensuring product
authenticity and customer trust. Tmall’s emphasis on quality assurance and
brand reputation has made it a preferred destination for Chinese consumers
seeking a wide range of goods, from fashion and electronics to household items.
Its success underscores Alibaba's ability to cater to both businesses and
discerning consumers in the competitive e-commerce landscape.

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 B2B:

Alibaba's B2B (business-to-business) platform, Alibaba.com, serves as a global

marketplace connecting businesses across the world. Launched in 1999,
Alibaba.com facilitates trade between suppliers and buyers, offering a wide
range of products and services. It enables businesses to showcase their products,
negotiate deals, and complete transactions online. Alibaba.com supports various
industries, from manufacturing and wholesale to retail and service sectors,
providing a robust platform for businesses of all sizes to expand their reach and
establish international trade relationships. Its comprehensive features and global
reach make Alibaba.com a pivotal hub for B2B commerce, driving global trade
and business growth.

3. E-marketing and Advertising Concepts

In Alibaba's e-commerce strategy, e-marketing and advertising concepts are
pivotal for driving sales and enhancing brand visibility. They employ a variety
of tactics:

1. Targeted Advertising: Alibaba uses sophisticated algorithms to target

ads based on user behavior, demographics, and interests. This ensures that
ads are relevant and more likely to convert into sales.
2. Social Media Marketing: Platforms like WeChat, Weibo, and Alipay are
used for engaging with consumers, running promotional campaigns, and
building brand communities. Social media marketing helps Alibaba to
increase brand awareness and customer loyalty.
3. Content Marketing: Alibaba creates and distributes high-quality content
such as articles, videos, and tutorials to educate consumers about products
and services. This content not only attracts potential customers but also
establishes Alibaba as a thought leader in e-commerce.
4. Search Engine Marketing (SEM): Alibaba invests in SEM to improve
visibility in search engine results. They bid on relevant keywords and
optimize product listings to drive traffic to their platforms.
5. Affiliate Marketing: Alibaba collaborates with affiliates and partners
who promote their products in exchange for commissions. This strategy
expands reach and drives sales through third-party endorsements.

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 6. Email Marketing: Utilizing customer data, Alibaba sends personalized
email campaigns to nurture relationships with customers, promote
products, and drive repeat purchases.

4. Electronic Payment System (EPS)

Alibaba's electronic payment system is primarily managed by Ant Group,
previously known as Ant Financial. The flagship product of Ant Group is
Alipay, which has become one of the largest and most widely used mobile and
online payment platforms globally.

Alipay facilitates a variety of electronic payment services, including:

1. Mobile Payments: Users can make payments using the Alipay mobile
app, which supports transactions via QR code scanning, contactless NFC
technology, and in-app payments for various goods and services.
2. Online Payments: Alipay is integrated into Alibaba's e-commerce
platforms (Taobao, Tmall, and Alibaba.com) and numerous other online
merchants worldwide, allowing consumers to securely pay for purchases
online.
3. Money Transfer: Alipay enables users to transfer money to other
individuals or businesses quickly and conveniently through its app,
reducing the need for traditional banking methods.
4. Bill Payments: Users can pay utility bills, credit card bills, and other
expenses directly through the Alipay platform, streamlining financial
transactions.
5. Investment and Wealth Management: Alipay offers wealth
management services through products like Yu'e Bao, allowing users to
invest their digital wallet balances in money market funds.
6. Financial Services: Beyond payments, Alipay provides access to various
financial services such as loans, insurance products, and credit scoring
based on user transaction data.

5. Public Policy

Alibaba engages in public policy through various initiatives and engagements

aimed at addressing regulatory compliance, promoting responsible business

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practices, and fostering innovation. Key aspects of Alibaba's public policy
efforts include:

1. Regulatory Compliance: Alibaba works closely with regulatory

authorities in different countries to ensure compliance with local laws and
regulations governing e-commerce, data privacy, intellectual property
rights, and consumer protection.
2. Corporate Social Responsibility (CSR): Alibaba emphasizes CSR
initiatives focused on environmental sustainability, social welfare, and
community development. This includes initiatives like poverty alleviation
programs and environmental conservation efforts.
3. Industry Collaboration: Alibaba collaborates with industry associations,
government agencies, and academic institutions to shape industry
standards, promote best practices, and advocate for policies that support
digital economy growth and innovation.
4. Digital Inclusion: Alibaba promotes digital inclusion through initiatives
that aim to bridge the digital divide, enhance digital literacy, and promote
access to digital services for underserved populations.
5. Ethical Business Practices: Alibaba upholds ethical standards in business
operations, including transparency in financial reporting, anti-corruption
measures, and fair competition practices.
6. Technology Policy Advocacy: Alibaba advocates for policies that support
innovation in technology, including AI development, blockchain
technology, and digital infrastructure improvements.

3.2 Products and Services

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Alibaba provides a wide variety of products and services through its various
online por Tals. Some of these are:
● Electronics
● Electrical Equipment, Components & Telecom
● Online marketing
● Cloud Computing
● Logistics Operations
● Gift, Sports & Toys
● Health & Beauty
● Home, Lights & Construction ● Jewelry, Bags & Shoes
● Machinery, Hardware & Tool
● Apparel, Textiles & Accessories
● Auto & Transportation
● Metallurgy, Chemicals, Rubber & Plastics
● Packaging, Advertising & Office
● Electronic Payment Services

From Alibaba customer can choose among wide variety of products and
order them easily with less delivery charge. A consumer can literally buy
products ranging to simple toys to automobiles. People can buy in retail or
wholesale. It also provides several offers and discount for variety of
products that it sells. Hence, proving to be platform where a consumer can
choose among a wide variety of options that they need in affordable price
easily. It claims “Get everything and anything”.

3.2 Target Users

Alibaba is the main and the most popular E-commerce site in China. But it had
extended is business in almost 190 countries throughout the world.
Now Alibaba is the most successful global organization but it has been
focusing in china more. About 570 million Chinese people are using
Alibaba at an average of 20 hours a week and it is occupying more than
70% of the Chinese users. It also provides the small sized to medium
online business platform to individuals.

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Due to emerging market and growing popularity Alibaba has established
its offices in Korea, US, UK, India, Japan and many other developed
countries and it is also linking its business with the E-commerce business
of other developing countries.

3.3 Payment Methods

Alibaba offers the users various ways of payment system and due to
diverse payment methods it is very easy and reliable to make the
payments that the user trust. Actually Alibaba Group has its own payment
solution named as Alipay, is a third-party online payment platform with
no transaction fees. Other than that, Alibaba also offers many ways to pay
suppliers. List of the payment methods are:
1. Telegraphic Transfer (TT)/Bank Transfer
2. Letter of Credit
3. DA/DP
4. Western Union
5. PayPal
6. Escrow

Buyers are advised to consider each option carefully before committing to

one. In terms of innovation, Alibaba is introducing a new secure mobile
payment method as it gets ready for its IPO. The Chinese e-commerce
giant will get ahead of its competitors Alibaba, Google and PayPal with an
innovative and secure method of payment using finger prints instead of
passwords.

“The biometric technology, including encryption and authentication

managed by Huawei, will allow mobile users to confirm payments for a
wide variety of goods and services with their smartphones simply by
swiping a digit instead of entering a lengthy code,” the company says on
its blog.

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Huawei, the world’s third largest smartphone vendor by shipment volume, will
also employ high-level encryption and verification to ensure only approved
third-party applications,
I.e. Alipay Wallet, are allowed to access the fingerprint information for
transactions.

It’s worth remembering that Alibaba is a pretty safe platform to purchase on.
Not only do you have the standard protection that your payment provide gives,
but Alibaba hold mostly all payments in Escrow until the buyer confirms they
have received the goods and they are as expected .Until the buyer confirms the
receipt the seller does nt receive the funds.

Overall rising competition:

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Other entities like Tangent and JD.com are local competitors to Alibaba in
China while Alibaba and eBay are the global threats.
Stability of the economy:

The stability of the Chinese economy will also play a role in deciding the
success of the business. But since almost all of Alibaba’s business comes from
within China, the global markets will have an impact only in dire situations.

Dropping profitability:

With rising demand in service levels from E-commerce portals, the profitability
of most Ecommerce firms is dropping which is a point of worry for Alibaba as
well.

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 6. Recommendation:
Alibaba.com is the ultimate online retailer around the world. It’s nearest but not
even close competitors are amazon, e-bay and best buy. But the competition is
growing day by day. a. Competing in the market:
Like past, Alibaba in future will have to come up with special something. The
global market is changing day by day. Business competitors are investing large
to take Alibaba down. There is no room for relaxation. It is very challenging
and has to be consistent in the market to be number one retailer shop. b.
Innovation of new Product:
It is essential for Alibaba to think out of the box and bring new products to
satisfy and retain customer to be loyal to Alibaba.com. Alibaba always offered
its customer better quality and better service. But in future it may not be the
same. People in today s world ask ‟ for more. Alibaba has to apply smart
enough to understand the customer need before even customers know about it.

c. Integration of New Technology:

Technology is making progress like the spread of light. Company like
“Alibaba” needs to be adaptive and technology friendly to retain its domination
in the market. Alibaba’s new technology of Drone delivery system indicates it
is planning and investing significant amount of money in technology for near
future.

d. Customer Loyalty:

For an upward revenue stream customer loyalty is essential. Alibaba’s most of

the buyers are its repeat customers who are loyal to Alibaba. But growing
competition can be a risk to Alibaba’s loyal customer. e. Global Expansion:
Alibaba is expanding its business around the world. But this may cause
significant strain in number of sectors like management, inventory, supply
system and more over to Alibaba’s market place. International market is very
challenging because of political and economic conditions. Investing more
towards customer information for better understanding the customer needs and
behavior is essential.

7. Conclusion:

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On the part of conclusion we conclude that Alibaba.com uses different types of
Business Model for its better growth. Alibaba mainly focuses on the customer
satisfaction by providing the various ways to ensure that like as personalization,
user ratings and reviews, minimum shipping charge which act as the key
ingredients for success of Alibaba.com. But still Alibaba have to do some
change on its system like as Global Expansion, Integrating on New
Technologies, Innovation of New products

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