Group Number 17 Group Member: Siyi Qin, Kang Jie Tan, Pohsuan Tsai. Business Paper Proposal Alibaba was founded by Jack Ma in April 4, 1999; Hangzhou, Zhejiang, China. 17 years after its development, it has grown into the world’s largest online trading market and business community. The company takes part in the Internet industry conducting business through online retail services. Alibaba is known for their online sales service. Alibaba actually offers three types of sales service; customer-to-customer (C2C), business-to-customer (B2C) and business-to-business (B2B). We can compare Alibaba with those companies that offer similar services such as eBay which offers customer-to-customer service and Amazon which offers business-to-customer service. Unlike Amazon who conducts business-to-customer sales by shipping and selling items to customers or Ebay who conducts customer-to-customer sales, Alibaba does not ship and sell items to its customers but mainly conducts business-to-business sales by connecting Chinese suppliers with buyers. The annual revenue of Alibaba is greater than the combined revenue of both Amazon and eBay, so we will like to find out the reasons behind it. One of the reasons is that Alibaba is good at creating special events for shopping. For example, Alibaba turns the Chinese Single Day into a shopping carnival, which is bigger than the Black Friday (1). When someone is purchasing products online, they would usually pay with credit card by entering their information online or with the use of a payment processor like Paypal. Paypal is an third-party online payment application that one can link his account with debit or credit card and can make payment online or transfer money to others. Alibaba has its own application called Alipay. Unlike Paypal, Alipay has totally changed people’s life in China. The common question when conducting any kind of financial transaction in China is: “Cash or Alipay?” (2) While Paypal still has a lot of restrictions, Alipay is just as good as cash or even better. Alipay is safer and more
convenient than cash. If one buys stuff on the Alibaba website, he/she will chose to pay with Alipay, which is also an Alibaba product. After receiving the order for the product, the next thing to do would be shipping the product to the customer. Many Americans buy stuff on Tmall and Taobao (both owned by Alibaba) but not many Chinese purchase goods on Amazon. The reason behind it is the logistics. Alibaba made a deal with USPS to ensure that all the Alibaba packages will be delivered to the customers faster which increases customer satisfaction and consumerism. The customer's’ experience is a main factor for whether an e-commerce company will become successful or not. A few years ago, when we think of shopping online, we will think of the PC. But now the focus has shifted from PC to a mobile phone. China has become the largest e-
You've reached the end of your free preview.
Want to read all 8 pages?
- Fall '11