THE APPLE SUPPLY CHAIN. It was Tmall that pioneered “Singles Day” in 2009 as an annual promotional event to reward users with discounts. In the1960’s, Singapore was a developing nation. Information Technology Also, Boeing may be able to reduce the development cost of the 787 by exploiting suppliers… Electronic Commerce (e-commerce) is a business model that enables a firm or individual to conduct business over the internet. But, that’s not always the case! Supporting mobile transactions. Alibaba’s e-commerce ... outsourcing company, with 257,000 people serving clients in more than 120 countries. Why Mukesh Ambani bought Hamleys Toys Shop? According to its website, the hottest picks during the most popular online shopping day came from the following categories: Alibaba.com, the primary company of Alibaba, is the world’s largest online business-to-business trading platform for small businesses. Expected Market Growth The first phase was, started since 1998 until 2001. Email Marketing Automation Course & Syllabus. While many people understand that Alibaba (BABA) is an online retailer similar to Amazon (AMZN) or eBay (EBAY), the company's business model is surprisingly different from the leading e-commerce businesses in the United States. With The Flipkart Deal, Alibaba Will Hold Stake In The Top Two Ecommerce Players In India. In what was to become a spectacular play, Alibaba.com grew big enough for the whole world to notice, along with its C2C eCommerce site Taobao, as well as B2C retail site Tmall. Home » Alibaba Marketing Strategy and Case Study. Summary of Case Study •The definition of “outsourcing” depends on the position in the value-chain. Suppose that you are a Procurement Analyst in a large company. Outsourcing May Hurt Fashion Manufacturers' Bottom Line A study shows that fashion companies should combine trendy product designs with short production and distribution lead times. One of the most interesting elements of Alibaba's business strategy lies in its relationship with Baidu, which operates China's leading search engine. Click and mortar is a type of business model that has both online and offline operations, which typically include a website and a physical store. This, in turn, increases the value of search on Taobao and Tmall. Morris and Wood (1991) suggest the case study strategy if the researcher “wishes to gain … Rather, Alibaba has created software platforms that facilitate the exchange of goods and services. He is also a good leader that encourages his employee to achieve higher without limitation. Alibaba hit the headlines with the world’s biggest IPO in September 2014. through common goal. Alibaba Marketing Strategy and Case Study – Alibaba, the number one e-commerce company targeting online consumers in China. Jasim Alam(1426) Prabal Jain (1418) Vivek Anand(1444) Indian Institute of Forest Management (IIFM) 2. There’s still lot of opportunity for eCommerce stores, wholesalers, distributors, and retailers to build on inefficient supply chains, paper-centric processes, and error-prone workflows. Your Case Study organization’s CEO says they would like to “outsource their ICT” and asks to you to “make it happen”; this includes any existing systems as well as new systems. Alibaba Group describes its overall mission as “to make it easy to do business anywhere.”. A CASE STUDY OF APPLE SUPPLY CHAIN. Similarly, decision is also more important than capabilities. Alibaba offers a wholesale platform for small buyers on the global site seeking fast shipment of small quantities of goods. He works together with them and guide them through the entire success of Alibaba. – The interest in global purchasing has increased significantly in recent years, but the impact on product innovation is not well understood. For example, Trustpass has given online customers a strong trust and security of online transactions. Improves company focus: By outsourcing less important tasks, you increase the company's focus on tasks that are deemed more vital. Without China market, Alibaba would not be able to survive without the economic of scale. Alibaba is attempting to expand its business in developing countries such as India, which is the second fastest developing country after China. Stock price: BABA (NYSE) US$ 99.62 -2.95 (-2.88%). Suppliers at Apple register on SID (Supplier Information Database). April 1, 2011 | by Marguerite Rigoglioso This aspect of Alibaba's business model is similar to Google (GOOGL), which makes a significant amount of its revenue through online advertising. Pros Explained . It was founded in 1999 in Hangzhou, China. How CuriosityStream Reached Great Success via Hiring Remote Senior Developers. Buy one free one is the best method used by suppliers to attract customers. After finding himself without a job (including a rejection from a KFC restaurant) by 1992, he borrowed $2000 to start a company that directly competed with China Telecom. 100% privacy guaranteed. 12, Intelligent Collaborative System and Service in Value Network for Enterprise Computing, pp. outsourcing manufacturing engineering services - a case study in process planning Basavaraj Dhanavade QuEST Global Manufacturing process planning is the process of selecting and sequenc-ing manufacturing processes such that they achieve one or more goals and satisfy a … Next, Alibaba provides products within the same range with different prices depending on the suppliers to offer buyers a wider choice of variety. As a testament to the success of its marketing objectives, Alibaba earned $14.3billion (€13.45bn) in revenue in just 24 hours, making it the highest revenue gained in one shopping day, not only in China, but in the whole world. The Alibaba model, which relies on profits sharing rather than listing fees has attracted many merchants to participate in the network. At that moment, China’s trade market was still in the early stage where only information flow. Jack Ma is also good in unifying everyone’s believe Critical success factors for mutual collaboration with suppliers in IT outsourcing industry: a case study of a top IT outsourcing company in Korea. According to eMarketer, e-commerce sales in India are expected to grow from $14 billion in 2015 to $55 billion in 2018. It’s an exciting, albeit competitive, time for business. phone users. Then, he ushered in a group of friends and convinced them to part with a collective $60,000 to start the B2B ecommerce site that was to become Alibaba as we know it today. Mobile B2B eCommerce is a priority. While Taobao caters more to small merchants and individuals as sellers, Tmall is focused on larger companies, including multinational brands such as Nike (NKE) and Apple (AAPL). The second source of revenue comes from customers for value-added services, listing fees as well as membership fees. Face-to-face transactions must also pave way to mobile order writing, seamless integration between order taking and enterprise resource planning systems, and mobile-first workflows. It is a $30bn sector in the Philippines alone – contributing 10%+ to the country’s GDP. I believe in two principles: Attitude is more important than capabilities. Alibaba also target on small and medium-sized private enterprises and individual businessmen, which have great potential in succeeding in the e-trade. Boeing faces an indefinite grounding of the Dreamliner because of a battery fire on a 787 in Boston and the smoldering of … CASE STUDY - ALIBABA The primary subject matter of this case concerns the challenging nature of international business. All Our Manufacturing Outsourcing Case Studies offer evidence for our dedicated work. Furthermore, Alibaba also bring into play discount to stimulate the sales as well as retaining their customers. Target Market Please fill up the below form and we will contact to you in next 1 hours! The outsourcing sector is a $100bn++ sector worldwide. Founded in Hangzhou in eastern China, Alibaba.com has three main services. Key Lessons Learned after 15 Years 71 12. However, the country has managed to transform itself from that state to a modern state at the current time. Consequently, shoppers must go directly to Taobao and Tmall in order to see what they have to offer. Chinese e-commerce giant Alibaba (BABA) boasts a wide variety of eye-popping statistics. Online retail currently accounts for around 0.8% of all retail sales in India (compared to a global average of 6.3%) and is forecasted to grow to 4.8% by 2019, according to eMarketer. Jack Ma looked into the needs of SMEs in China in entering the B2B e-market by providing them withfree online services and information according to the different enterprises and the characteristics of theindustries. The US offered the skills Alibaba required to gain a competitive edge against eBay. It provides payments and escrow services for transactions on Alibaba Group platforms. To enhance my study on Alibaba, I went through Alibaba.com to understand more on how Alibaba system works and what makes it so successful. his network. Moreover, Alibaba also has the latest technology for anti-fraud and anti-spam that is able to detect any fraudulent activities and, Likewise, Alibaba has a good relationship with the Chinese government, which is important in China where government acts as a gatekeeper of the economy. In 2012 Cook reduced component suppliers from 100 -24, forcing Suppliers to compete. Alibaba earn profits by two major aspects. also has a team of dedicated experts that are always motivated to search for better and innovative technology platforms to catch up with the changing of the generations. Despite the obstacles, as Charlie Rose of Bloomberg helpfully points out, Alibaba is set to change the face of B2B commerce as we know it. The Best Customer to Customer Sellers Can Be People Like You, Circle (Financial Services Company) Definition, Click and Mortar: Retailers That Thrive Both Online and Offline. pricing is one of the marketing strategies that Alibaba implies to set a low price in order to increase sales and market share. Just call us on Surjeet personal number for free career guidance. Outsourcing Examples: Companies That Outsourced to Fuel Growth For example, Alisoft is giving out free copies of Shopkeeper TM, a package that consist of accounting, stock management, and consumer resource management tools for registered users. These two marketplaces are collectively the most- visited B2B website on the Internet. 4, No 1, 2011, pp. 11 Main hosts thousands of merchants selling products in a variety of categories. This is an analytical approach case study. Aliyun develops platforms for cloud computing and data management, ensuring that Alibaba's e-commerce portals can handle its massive traffic and transaction volumes. Alibaba.com is a business-to-business website, connecting manufacturers from a variety of countries with buyers around the world. The company accounts for a reported 58% of all online retail sales in China. The firm, founded by Jack Ma and others, is now the most valuable Asian public company, as well as the world’s largest ecommerce company and seventh most valuable firm. In my opinion, Alibaba became so successful in e-commerce is because of its numerous advantages and it have great potential to boost up business for all small and medium enterprise which attracted many suppliers to invest in them. 'http':'https';if(!d.getElementById(id)){js=d.createElement(s);js.id=id;js.src=p+"://platform.twitter.com/widgets.js";fjs.parentNode.insertBefore(js,fjs);}}(document,"script","twitter-wjs"); Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. Alibaba is only the beginning of the future of B2B eCommerce. The IPO is expected to raise $21.8 billion, which values the company at $167.6 billion overtaking Visa and Facebook (Chen, Solomon & Mac, 2014). Alibaba: Connecting low-income rural entrepreneurs with urban consumer markets ... Shaji village initiative is a case in point. (2018). It was founded in 1999 in Hangzhou, China. Alibaba Group Holding Ltd’s development can be divided into 5 phases for the past 13 years. The Chinese portal 1688.com was developed for domestic business-to-business trade in China. In order to achieve these objectives Lithuanian Ernesta Stasiulytė, Motives of Human Resource Management Outsourcing: a Case Study from Lithuania, Economics & Sociology, Vol. The Alibaba Group follows a business model that differs from e-commerce leaders in the United States and allows the firm to play the middleman to … Alibaba is not only the largest IPO in U.S. history but has also risen more than the three largest IPOs by American Internet companies combined. In order to get a huge portion of market share, Alibaba has localized the e-trade services by developing websites that locate to different languages and modify their design and layouts, which suits the local cultural in overseas. We'll never share your email. Customer to customer (C2C) is a business model whereby customers trade with each other using a third-party platform such as eBay or Craigslist. To my surprise, I love many features that Alibaba.com has to offer that inspired me to promote my future company and products effectively. Advertisers can choose between pay-for-performance and display marketing. Alibaba is a “Collective Entrepreneurship” between company and thousands of merchants that join t Jack Ma’s Alibaba began by outsourcing its development to a US firm. Alibaba Reduces and controls operating costs: Outsourcing is often cheaper than hiring on an employee, and it also takes away some level of uncertainty about costs.The contract will determine exactly what will get done and for what price. Alibaba conducted a record-breaking IPO six years ago on the New York Stock Exchange and is now valued at over $500 billion. Besides that, Alibaba is also enhancing its technology and R&D development for advance Internet infrastructure to give the fastest speed and accuracy for online marketing (You Fei, 2012). Section 2 briefly d escribes the company in question and introduces the issues around which the study is focused. During that time, attracting foreign experts to run the company isessential because people in China had very little management experiences (Walraven, 2009), Top 7 Patanjali products behind company’s massive Rs…, See How Bing Is Earning Rs 50,000 Crore Annually for…, Losing Billions Every Year, What's Eating Ramdev's…. Once upon a time, circa 1999, a little eCommerce company began in a cement-floored apartment in Hangzhou––a city Southwest of Shanghai––at a time when only a few million people where online in China. Tweets by @ciimhelpline Alibaba.com went public at the Hong Kong Stock Exchange in 2007, and was delisted again in 2012. Led by Jack Ma, they started Alibaba.com, a global wholesale marketplace connecting buyers and sellers. CuriosityStream is a global independent media company and video-on-demand streaming service. In addition, founder, Jack Ma speaks great English whilst many other Chinese entrepreneurs could not communicate well in English. ... high-quality products from various reliable suppliers in China. In 2014, Alibaba launched the US shopping website 11Main.com. Alibaba follows the supplier aggregator model (much like many B2B marketplaces of the 90s) working to ease the pain of global sourcing. #4 alibaba: outsourcing for website development Alibaba — also known as “China’s eBay” — wouldn’t have gotten far without outsourcing its website design and development work. It uses the price that does not have extreme differences with its competitors and provides the cheapest prices with good quality to attract its target market. Besides this, it also offers business management software and Internet infrastructure services targeting businesses across China. Maturing Environment 2011 - 2013 59 11. As a result, Alibaba successfully competed … Alibaba is a B2B website catering to the needs of suppliers and […] It is based on a simple rule, if something is not the core competency of your company then … In addition to its leading e-commerce portals, Alibaba Group created an ecosystem of companies to complement them: Alipay is an online third-party payment platform, launched in 2004 by Alibaba Group. According to Alibaba, India is its second largest market after China and in the next few years it hopes to have 10 million Indian businesses on its B2B platform, while focusing on expanding its footprint among retail consumers. Once the outsourcing decision is taken, a process aimed at analyzing and choosing the appropriate suppliers begins. Merchants can list their products for free on Alibaba.com but also have the option to pay for a range of benefits such as greater exposure on the site and unlimited product listings. Unlike Amazon, Alibaba Group holds no inventory and owns no warehouses. The target audience of the website is always some other company or its employees. Logistics Outsourcing: Lessons from Case Studies AldoSraboticˇ Mitja Ruzzier This paper investigates key success factors in logistics outsourcing. In a paper recently posted on SSRN, Alibaba: A Case Study of Synthetic Control, we explain how … Alibaba’s meteoric rise can be attributed to its focus on growing its enormous supplier base, which targets Chinese and other Asian sellers that Amazon and other marketplaces don’t. This is one of his underrated advantages. In addition, Alibaba.com offers a transaction-based retail website, AliExpress.com, which allows smaller buyers to buy small quantities of goods at wholesale prices. While Alibaba may be a B2B behemoth, it wasn’t an easy road to growth. In 2014 it even bought a 50 percent share of the Guangzhou Evergrande Football Club for $192 million. Taobao.com is more similar to eBay or Amazon, connecting international businesses to consumers—or consumers to consumers. We have structured our past work into different categories of Strategic Sourcing Case Studies, Private & White Label production case studies and OEM Production Case Studies. Activity 3 - Outsourcing (20 minutes) Apple outsource the component creations of its product to many overseas businesses. Alibaba actually blocks Baidu's spider from indexing both Taobao and Tmall, meaning that pages from these websites do not appear in Baidu's search results. [3] Given the rapid pace of growth of e-commerce in India and the huge potential opportunity which is already being tapped by Amazon, Alibaba now appears to be looking at consolidating its position in the country. The Third Vendor Transition 54 10. We believe as companies look to tap into the growing e-commerce market in India, Alibaba’s strategic stake holdings in leading players of the region will enable it to establish a strong presence in the country and create stiff competition for global e-commerce giant Amazon in India. Alibaba’s future strategic actions include sustaining domestic Chinese market. Case study is defined as “a strategy for doing research which involves an empirical investigation of a particular contemporary phenomenon within its real life context using multiple sources of evidence” (Robson, 2002, cited in Saunders et al., 2003, p. 93). A model is used to illustrate outsourcing relationships and then applied to three examples from the logistics sector. In this way, it bears some resemblance to eBay and Amazon, which also collect transaction fees from third-party merchants. CIIM - Digital Marketing Course in Chandigarh. As told to Rebecca Fannin of Inc.com, Jack Ma started his entrepreneurial journey very young. Competing with Alibaba’s broad marketplace model with more focused direct models that engender stronger relationships between suppliers/brands and customers/retail buyers. Alibaba is a B2B website catering to the needs of suppliers and buyers. For some wholesalers and manufacturers, it may be beneficial to take advantage of this resource to access to global marketplaces across the world. Promotion Strategy Last but not least, value-added services are applied whereby product is offered at a cheap price but services such as shipping, instant delivery, guarantees, warranties and many more are added up to make sure that the total cost of the products with added services is higher than the production cost in order to make profit (UKessays.com, 2014). They offer freebies to attract more clients and customer to use Alibaba as an online marketing platform. Alibaba Marketing Strategy and Case Study – Alibaba, the number one e-commerce company targeting online consumers in China, Alibaba is the undisputed leader in e-commerce for small businesses and the flagship company of Alibaba Group. With the client stressing the importance of providing customers experience, Diversify worked closely with the client team to carefully map out and document the critical processes on the local level. Speak to the Surjeet to know what's the best course for your career. Due to Alibaba’s dominant market position in e-commerce, Alipay has emerged as the online payment-processing leader in China and it clears 80 million transactions per day, including 45 million transactions through its Alipay Wallet mobile app (Shih, 2014). Launched in November 2007, Alimama is an online marketing platform that provides sellers on Alibaba Group's marketplaces a range of marketing and advertising services. The case allows a discussion of why the company outsourcing, supply chain management and the proper use of inspection and testing. Top Search: alibaba marketing strategy 2017, alibaba online marketing strategy 2016, alibaba success story. Case Study: The supplier selection process is a critical activity within the operations of a company. Our Approach. Case Study. It is a business-to-business trading platform, connecting manufacturers from countries such as China, India, Pakistan, the United States, and Thailand with international buyers. Case study analysis of Alibaba.com 1. Alibaba has also invested in a number of US startups, including video messaging application Snapchat and Lyft. Alibaba has also creates Korean and Spanish language website in order to expand its market in different regions and to achieve highest profit and goals. Future Strategic Actions At 12, he showed foreign tourists around Hangzhou’s West Lake District, making him more outward thinking and entrepreneurial than most. As a sample marketing plan, it chose November 11 or 11-11 as a date for the sale, emphasising‘one’ and connecting it to the idea of being alone. Alibaba Group is a Chinese e-commerce platform represented by three businesses: Alibaba, Taobao, and Tmall. For example, English website is target to buyers from oversea in general while Chinese website targets China traders and Japanese website aims at the Japanese market. Harvard Business Review Case Study: Alibaba, the Self-Tuning Enterprise Published on June 5, 2015 June 5, 2015 • 63 Likes • 2 Comments The larger the network is, the greater the benefits for both company and merchants as it draw a large volume of sale. Tmall.com, which launched in 2008, offers a wide selection of branded products oriented towards China's growing middle class. Outsource Accelerator is the ‘Alibaba of outsourcing’.. Outsourcing: A huge opportunity for Philippines The offers that appear in this table are from partnerships from which Investopedia receives compensation. By December 31, 2013, Alibaba has generated revenue of RMB40.5 billion and net income of RMB17.7 billion. Mobile accounts for almost half of China’s retail eCommerce sales, according to eMarketer. It has exceeded the $6.55bn it gained in its 2014 US Thanksgiving Sale. During this phase, Alibaba provides free information for suppliers to enter the, market. The reason for these larger margins is primarily that Amazon has to manage the expensive and complex logistics of developing and maintaining a network of warehouses to ship products directly to shoppers. Alibaba Group spun off Alipay in 2010. About Alibaba.com The company was founded in 1999 by 18 people led by Jack Ma, a former English teacher from Hangzhou, China to support operation of B2B market places. The two companies will work together in an exclusive partnership to grow Yahoo brand in China. Despite Alibaba's wide-ranging investments, its core business remains centered on e-commerce; the firm's business model has combined elements of many of the leading technology companies in the US rather than mirroring any one business in particular. While Alibaba's revenues are less than Amazon's, it has higher operating margins and profit margins. 116-125. After a big number of registered clients at Alibaba, it began to charge membership fees. This is evidenced in initiatives like business verification, factory inspections, and stringent demands on quality of products. Impact and Rationale of Using Outsourcing (Why outsourcing) Singapore is a tiny country found in the South-eastern part of Asia. Taobao doesn't charge transaction fees and the site is free to join for merchants, a policy which helped the site gain its enormous user base in China. Alibaba provides free membership from the beginning to attract clients its way to e-trade market that became the core competency and contributing to more business opportunity in Alibaba. To cater to this global demand, Alibaba does everything it can to build more trust, opening the gates wider to the world. In 2013, 1688.com launched a direct channel that is responsible for $30 million in daily transaction value. Adopting, embracing, and deploying modern technologies using matching algorithms, intuitive UX/UI, personalization, and big data. Merchants have the option to buy advertising and other services to help them stand out on the website and boost sales. Secondary issues examined include unique business strategies and issues of corporate governance. 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