Kasey Harrington Strategic Management Canning/Sheffield April 16, 2020 Mini Case – Alibaba Background: Currently, Alibaba is one of the largest Chinese ecommerce companies. Alibaba got its name from an old Arabic tale “Ali Baba and the Forty Thieves”. Ali Baba was a poor woodcutter whom found treasure in a cave by saying “Open Sesame”. The founder of Alibaba chose this name for the company with the aspiration of opening opportunities to small Chinese manufacturers to find treasure in their business for themselves and their shareholders. The Wall Street Journal compares Alibaba to eBay, Amazon, and PayPal all in one. Alibaba’s main trading platforms are Taobao and Tmall. Alibaba started in 1999 by a former English teacher name Jack Ma, and staffed with a team of 18 individuals all working in Ma’s apartment in Hangzhou. China’s internet user number grew rapidly while Alibaba sail along with these numbers to success. Alibaba uses a B2B platform. Alibaba was not the first company to expand to a global trading market. However, it was the first to do so from the internet. In 2002 the sign of Alibaba’s profitability. Ten years later, Alibaba contributed to facilitating transactions all over the world. 1. Why did eBay lose out to Alibaba in China? What lessons can be learned for non- Chinese ecommerce companies such as Amazon? a. eBay acquired EachNet in 2003, but Alibaba feared this would steer small business away. Only a year later, eBay moved their EachNet users to a U.S platform. eBay wanted to allow its users to trade with one another from all over the world. eBay had to face China’s firewall as a subtle retaliation. EachNet’s website grew increasingly slower and harder to navigate. Users began to be
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- Winter '19
- Economy of the People's Republic of China, Alibaba