Kamarul Amirudin

Mohamad Alamin Rehan

Mohd Azwan Azim Rosli
Why Alibaba.com?
Presentation Layout
1.0 Founder
●

2.0 Company History

●

3.0 Core Business

●

4.0 Business Model

●

5.0 IT Applications
●

6.0 Success Stories

●

7.0 Lesson Learnt

●
Founder

Founder
Company
History

Jack Ma (Ma Yun)

 Born September 10, 1964 in the city of Hangzhou,
Core Zhejiang province, China.
Business
 Attended Hangzhou Teachers College and graduated
in 1988 with a bachelor's degree in English.
 Became lecturer in English and International Trade at
Business
Model the same university.
 First started building websites for Chinese companies
with the help of friends in the US.
IT  1995: Founded China Pages, widely believed to be
Application
China’s first Internet-based company.
 1998 – 1999: Headed an information technology
company established by the China International
Success
Stories
Electronic Commerce Center, a department of
Ministry of Foreign Trade and Economic Cooperation

Lesson
Learnt
Founder

Founder
Company
History

Jack Ma (Ma Yun)

 1999: Founded Alibaba.com
Core
Business
"One day I was in San Francisco in a coffee shop, and I
was thinking Alibaba is a good name. And then a
waitress came, and I said do you know about Alibaba?
Business
Model And she said yes. I said what do you know about
Alibaba, and she said ‘Forty thieves'. And I said yes,
this is the name! Then I went onto the street and found
IT 30 people and asked them, ‘Do you know Alilbaba’?
Application
People from India, people from Germany, people from
Tokyo and China… They all knew about Alibaba.
Alibaba — forty thieves. Alibaba is not the thief.
Success
Stories
Alibaba is a kind, smart business person, and he helped
the village and helped the thieves steal from them. So…
easy to spell, and globally known. Open sesame!”
Lesson
Learnt
Founder

Company History
Company
History
●
Alibaba.com was officially established by18 founders,
1999
●

led by Jack Ma in his Hangzhou apartment.

Core
Business
●
● Alibaba.com
Alibaba.com launches
launches the
the Gold
Gold Supplier
Supplier membership
membership onon its
its international
international marketplace,
marketplace,
2000 providing
providing mainland
that
that they
mainland Chinese
they can
can use
Chinese exporters
use with
with trading
exporters with
trading partners
with an
an endorsement
partners anywhere
endorsement of
anywhere in
in the
of their
the world.
world.
their business
business standards
standards

Business
Model

2001 ●
● Alibaba.com becomes profitable
IT
Application

TradeManager instant messaging software is introduced, facilitating

2003
●
●

Success trade by enabling Alibaba.com users to communicate in real time.

Stories

Lesson Alibaba
Alibaba Group
Group forms
forms aa strategic
strategic partnership
partnership with
with Yahoo!
Yahoo! Inc.
Inc. and
and takes
takes over
over the
the
2005
●
●

Learnt operation
operation of China Yahoo! In exchange, Yahoo! Invests in 40% of Alibaba.com shares.
of China Yahoo! In exchange, Yahoo! Invests in 40% of Alibaba.com shares.
Founder

Company History
Company
History

●
● Alibaba.com completes its US$1.7 billion initial public
2007 offering on the Main Board of the Hong Kong Stock
Core Exchange.
Business

Business
Model

●
● Alibaba.com forms an associated company, Alibaba Japan, with
Softbank to take over operations of its Japanese business.
IT 2008 ●
● Alibaba.com posted a net profit of RMB 1,205 million (US$176
Application million) on revenues of RMB3,001 million (US$439 million).

Success
Stories

●
● Global
Global Gold
Gold Supplier
Supplier membership
membership is is introduced
introduced on
on the
the international
international marketplace
marketplace to
to serve
serve suppliers
suppliers
outside
outside Greater
Greater China.
China.
●
Alibaba.com
Alibaba.com completes
completes thethe acquisition
acquisition ofof the
the business
business management
management software
software division
division
2009
●

Lesson ●
● Alibaba.com
Alibaba.com announces
announces an an additional
additional domain
domain name,
name, 1688.com,
1688.com, for
for its
its China
China marketplace
marketplace and
and aa
Learnt strategic
strategic upgrade
upgrade ofof the
the site
site to
to support
support wholesale
wholesale transactions.
transactions.
●
● Alibaba.com
Alibaba.com beta-launches
beta-launches AliExpress,
AliExpress, aa wholesale
wholesale platform
platform on
on the
the international
international marketplace
marketplace
designed
designed to
to facilitate
facilitate small
small bulk
bulk transactions
transactions online.
online.
Founder

Company History
Company
History

• AliExpress is officially launched on the international marketplace for

smaller buyers seeking fast shipment of small quantities of goods.
Core 2010
Business

Business
Model

IT
Application

Success
Stories

Lesson
Learnt
Founder

Alibaba Group
Company
History

Core
Business

Business
Model

IT
Application

Success
Stories

Lesson
Learnt
Founder

Core Business
Company
History

www.alibaba.co 50 million registered

Core m users in more than 240
Business
Japanese Global countries and regions
Wholesale
Platform Platform

Business
Model

E-
Chinese marketplac
IT
Application
Platform e

www.aliexpress.com www.1688.com
Success
Stories Global
Trade
Platform

Lesson
Learnt www.alibaba.co.j
p
Founder

Business Model
Company
History

Value
Core Proposition
Business
Management Revenue
Team Model

Business
Model

Organizational Community Market

Development Provider Opportunity
IT
Application

Success Market Competitive

Stories
Strategy Environment
Competitive
Advantage
Lesson
Learnt
Founder

IT Applications
Company
History
Self-Owned Resource Interaction and Method and System For Processing
Electronic Trade Information
Core
Business •Relates to the field of network resources data processing.
 provides an interactive method of owned-resources.
 the method uses a management system to:
Business i) record interactive information of the owned-resources
Model ii) receive the first user's resources
iii) send the resources of a first user to a second user upon verifying that the first user
has received the second user's resources.
IT
Application •More efficient data resource interaction and electronic trading.
•This method helps:
i) reduce interaction costs substantially
Success
ii) ensure the smooth progress of resource interaction
Stories iii) enhance reallocation of resources
iv) improves balanced use of the reallocated resources.

Lesson
Learnt
Founder

IT Applications
Company
History

System and Method for Making Payment

Core
Business •A payment system includes a central account registration system to bind multiple
payment platforms into an account federation to accomplish convenient and secure
cross-platform payment.
•The central account registration system assigns a federation user ID to each federation
Business
Model user and stores mapping information between the user's federation user ID and the
user's account in its payment platform.
• Upon receiving an operation request of a first user from a first payment platform, the
central account registration system provides the account information of a second
IT
Application payment platform to the first payment platform according to a federation user ID of a
second user.
• Payment system is then able to make a cross-platform payment between the first
payment platform and the second payment platform based on the account information
Success
Stories
provided by the central account registration system.

Lesson
Learnt
Founder

IT Applications
Company
History

Instant Messaging Using Browser

Core
Business • Methods and systems for instant messaging using a browser to eliminate the
requirement of installation of instant messaging software.
• When a source user sends an instant message to a target user, the source server (the
Business
server which the source user is logged in) searches the information of the target server
Model (the server which the target user is currently logged in) with the help of an instant
messaging status server, and sends the instant message to the target server according
to the search result.
• The target server then relays the instant message to the target user.
IT
Application • The target server may also send a reply message to the source server, which in turn
transmits the reply message to the source user.
• Preferably, at least one of users uses a browser and not an instant messaging client
software.
Success
Stories

Lesson
Learnt
Founder

IT Applications
Company
History

Interactive Resource Competition and Competitive Information Display

Core
Business
• Interactive resource competition ranks resource users using coefficients of performance
(CoP).
• Resource users compete for a target resource and each offer a quantifiable reciprocal
Business resource in exchange for using the target resource.
Model
• A trigger frequency of a predetermined action with respect to the target resource is
recorded, and the CoP based on the respective reciprocal resource value and the trigger
frequency is determined.
IT • The target resource is then allocated based on the ranking of the CoP's.
Application
• An intermediate and credit fund account is used for both making payments and
recording the trigger frequency.
• The competition is particularly useful for allocating an information display position in
Success online electronic marketing.
Stories

Lesson
Learnt
Founder

IT Applications
Company
History

INTERSYSTEM SINGLE SIGN-ON

Core
Business • Techniques for intersystem Single Sign-On use intersystem user ID mapping to map user
IDs of multiple systems.
• In one implementation, a method obtains a user's ID information associated with a first
Business
system, and obtains the user's ID information associated with a second system from the
Model user's ID information associated with the first system according to the intersystem user
ID mapping table.
• The first system sends the user's ID information associated with the second system to
the second system, which may allow the user to automatically log on upon successful
IT
Application user ID verification.
• The user ID information communicated between the systems may be encrypted and
decrypted using digital signature techniques.
Success
Stories

Lesson
Learnt
Founder

Success Stories
Company
History

Best of the Web 2000-2006

Core The only import-export marketplace named "Best of the
Business
Web" 7 years in a row by Forbes magazine (2000-2006)

Business
Top Website for Entrepreneurs 2006
Model Selected as a "Top Website for Entrepreneurs“ by US-
based Entrepreneur magazine
IT
Application Most popular B2B website 2006
Selected as the most popular B2B website by readers of the Far Eastern
Economic Review, a financial magazine published by Dow Jones in Asia
Success
Stories
World's most popular site in the categories of Import-Export and International
Business and Trade 2006
Lesson Ranked by Alexa (www.alexa.com) - a subsidiary of Amazon.com that
Learnt provides independent web traffic ratings of websites around the world
Founder

Success Stories
Company
History
Wharton Infosys Business Transformation Award for the Asia-Pacific region
2007
Core WIBTA rewards IT excellence and innovations that have a long lasting impact on
Business the industry and on society as a whole.
Alibaba.com allows SMCs to reach a far wider market and helps them compete
directly with large corporations.
Business
Model
Hitwise Top 10 award for April-June 2008
The Hitwise Top 10 Award acknowledges websites from over 160 industries who
are leaders in their industry. Alibaba.com ranked 5 based on visits among all US
IT websites in the Hitwise Shopping and Classifieds section for the Wholesale and
Application
Relationship Sales industry.

Success
Stories
FastCompany Top 50 Most Innovative Companies 2010
Ranked 29th in FastCompany magazine top 50 most innovative companies

Lesson
Learnt
Founder

Lesson Learnt
Company
History
Buyers can save their time of surveying items to buy
●

by using the Alibaba website whereby all the products

Core review are displayed.
Business

Business
Model
Suppliers do not have to use big space for advertisement
●

and promotion activities whereby Alibaba website has

provided the advertisement facility.
IT
Application

Success
Stories
The online trading business have huge potential to
●

grow as the usage of Internet is keep on increasing

all over the world.
Lesson
Learnt
THANK YOU VERY MUCH, AND
HAVE A PLEASANT DAY!
Founder

Value Proposition
• Why should the customer buy from
you?
Company
History

Increase sales and market share

Core
Business
●
Through International promotion platform
●
Alibaba.com is the global leader in e-commerce and marketplaces with a community of more than 50 million registered users in more than
240 countries and regions
Business
Model

Easy to use
IT
Application
●
B2B trade portal for manufacturers and exporters

Success
Stories
Reduce business cost

Lesson
Learnt
●
Low cost of communication, Low cost of promotion and No cost for middleman
Founder

Value Proposition
• Why should the customer buy from
you?
Company
History

Easy to communicate Trade Manager + Buying Lead

Core
Business ●
Buyers and sellers can locate each other, share information, negotiate directly and transact business

Business one stop centre

Business
Model ●
It offers Internet infrastructure services (China), provide business management software, and provides educational services to incubate enterprise
management and e-commerce professionals.

www.alibaba.co
IT Business friendly m
Application

●
Provide all categories of products, quick business information such as latest trade trend, hot business country , promotional products, latest hot products
and price watch

Success
Stories Trustable web portal

●
Alibaba is public listed company in Hong Kong Stock Exchange and 40% shares are owned by Yahoo!.
Lesson
Learnt
Founder

Value Proposition
• Why should the customer buy from
you?
Company
History

Core
Business

Effective target market

Business
Model

IT
Application

●
Business online through various marketplaces to focus on customer special needs and wants. For examples:
●
Global trade platform for importers and exporters (www.alibaba.com)
●
Chinese platform for domestic trade in China (www.1688.com)
●
For smaller buyers seeking fast shipment of small quantities of goods (www.aliexpress.com)
Success ●
Associated company, a Japanese platform facilitating trade to and from Japan (www.alibaba.co.jp)
Stories ●
Spanish version http://spanish.alibaba.com
●
German version: http://german.alibaba.com
●
Italian version: http://italian.alibaba.com
●
French version: http://french.alibaba.com
●
Portuguese: http://portuguese.alibaba.com
●
Russian: http://russian.alibaba.com
Lesson
Learnt Some examples
PRESS
PRESS
Founder

Revenue Model • How will you earn money?

Company
History
Alibaba.com revenue comes from membership fees of registered
suppliers.
Core All users must register before they can use the features of Alibaba.com.
Business
Suppliers’ memberships are either:
◦ Free membership (available for companies outside of China)
Business ◦ Gold Supplier membership (compulsory for Chinese companies)
Model

IT
Application

Free member
Membership fees
Success
Stories

Alibaba income
Lesson
Learnt
Founder

Revenue Model • How will you earn money?

Company
History

Revenue
Core
Business
RMB2,484.9 million 43.6% RMB3,567.9 million
(US$363.8 million) as of (US$522.4 million) as of
March 31, 2009 March 31, 2010
Business
Model
RMB3,437.0 million
3.8%
(US$503.2 million) as of
December 31, 2009
IT
Application

“The increase was mainly due to the continued healthy growth in Gold
Supplier membership and the strong growth of our China marketplace as we
Success
Stories launched our new initiatives “ Alibaba.com

Lesson
Learnt
PRESS
Founder

Mkt. Opportunity • What marketspace do you intend to

serve? What is its size?
Company
History

• Basically, Alibaba supply existing service like “middlemen” but in a new or

superior way by using internet platform. Market opportunities for Alibaba are
Core as follows:
Business
1. Companies that are looking for more convenient and efficient business
process.
2. Companies that are looking for new networking and business partner in
Business
Model
other countries.
3. Companies that are looking for new or latest products.
4. Companies that need quick delivery products. Alibaba used Aliexpress.com
IT
for buyers who are looking for fast shipment of goods in small quantity.
Application • In China market alone, the market opportunity is huge because China have the
highest population in the world and one of the world emerging economy with
high GDP growth by 8.7 in year 2009.
Success • The potential market size is huge where current world internet users are
Stories almost 2 billions.
•Alibaba community is now more than 50 million registered users in more than
240 countries.
Lesson
Learnt
Founder

Mkt. Opportunity • What marketspace do you intend to

serve? What is its size?
Company
History

Core
Business

Business
Model

IT
Application

Success
Stories

Lesson
Learnt
Founder

Competitive Evt.
• Who else occupies your
marketspace?
Company
History

Core
Business

Business
Model

IT
Application

Success
Stories

Lesson
Learnt
Founder

Competitive Adv.
• What special advantage does your
firm bring to the marketspace?
Company
History
Competitive advantage is defined as company’s ability to perform in the
ways that competitors cannot or will not match.
Core
Business
●
From Agriculture products to Chemicals, to Waste
It offers all sort of products
Management equipment
Business Example
Model s

●
Alibaba.com Ltd is a public listed company in Hong Kong
IT
Application Financially strong and stable Stock Exchange since 2007 and ranked first in the list of
online trading companies.

Success
Stories
●
Yahoo Inc. bought 40% of Alibaba shares in 2005 where it
Brand recognition
shows Alibaba.com’s potential and capability.
Lesson
Learnt
Founder

Competitive Adv.
• What special advantage does your
firm bring to the marketspace?
Company
History

•it used Alipay.com to create a safe payment solution. This system has
a payment service called Escrow, in which consumers can verify
Core whether they are satisfied with goods they have bought before
Secure, easy and releasing money to the seller.
Business
quick on-line •
payment. Alipay.com also have joint venture with China's leading banks;
including China Merchants Bank, China Construction Bank,
Agricultural Bank of China, and the Industrial and Commercial Bank
Business
Model
of China.

Better •The company was established by native Chinese (Jack Ma and

IT
understanding
Application colleagues), thus able to understand the colossal Chinese market.
of the market

Success •Create consumer confidence and trust by ensuring credibility of

Stories suppliers.
Gold Supplier • A member who wants to join as a Gold Supplier need to fulfil the
Membership necessary requirements, undergo rigorous authentication and
Lesson verification procedures by third-party security service.
Learnt Guide
PRESS
PRESS
Founder

Market Strategy
• How do you plan to promote your
products or services?
Company
History

Core
Business

Business
Model

IT
Application

On-line
marketplace, large
Success
Stories market share, and in
a fast growing
industry
Lesson
Learnt
Founder

Market Strategy
• How do you plan to promote your
products or services?
Company
History

●
The market is growing rapidly they require
Core
Business
Raise capital ●
investment to maintain their lead.
Listed on HKSE to raise capital.

Reduce price Attract more free members to convert into Gold Supplier Members
●

Business ●
Offered China TrustPass Basic, RMB1,688 per year lower than “Gold
Model Supplier”
for membership ●
Target market: entry-level SMEs

IT
Application
Introduce new ●
Introduce AliExpress for small scale users to do
business and faster shipping of small quantity goods.
service
Success
Stories

Strategic ●
Yahoo Inc. (for product search) and UPS (for
delivery, transportation and shipping).
Lesson
Learnt
partnership
Founder
• What types of organizational

Org. Development structures within the firm are

necessary to carry out the business
plan?
Company
History

Core Mission
Business

Business
Model ●
To make doing business easy

IT
Application

Vision

Success
Stories
●
To build a company that lasts 102 years.
●
To become the world's largest e-commerce service provider.
●
To become the world's best employer.
Lesson
Learnt
Founder
• What types of organizational

Org. Development structures within the firm are

necessary to carry out the business
plan?
Company
History

Core
Culture and Values
Business
The interests of our community of users and paying members must be our first
Customer First
priority.
We expect our employees to collaborate as a team. We encourage input from our
Business
Model Teamwork employees in the decision-making process, and expect every employee to commit
to the team's objectives.
We operate in a fast-evolving industry. We ask our employees to maintain
Embrace Change flexibility, continue to innovate and adapt to new business conditions and
IT
Application practice.
Integrity is at the heart of our business as trust is an essential element of a
Integrity marketplace. We expect our employees to uphold the highest standards of
Success integrity and to deliver on their commitments.
Stories
Our employees are encouraged to act with passion whether it is serving
Passion
customers or developing new services and products.
Our employees have a dedicated focus and commitment to understanding and
Lesson Commitment
delivering on the needs of Chinese and global SMEs.
Learnt
Founder
• What types of organizational

Org. Development structures within the firm are

necessary to carry out the business
plan?
Company
History
Jack Ma’s vivid image of his ideal work environment for the employees:

Core Blue Sky

Business Processes, systems, and decisions need to be open and transparent. There’s
nothing that should be hidden from employees. We should be transparent.
Solid Ground
Business Everything we do should be honest, ethical and contribute to the welfare of the society. The company
Model should be on solid financial ground so employees won’t worry about the financial future of the
company.

IT Free-flowing Ocean
Application
Talent must be allowed to rotate jobs across subsidiaries and departments.

Success
Green Forest
Stories Conducive conditions for continued innovation.
Harmonious Community
Lesson
Learnt
Peers with shared values and simple interpersonal relationships.
Founder
• What kinds of experiences and

Management Team background are important for the

company leaders to have?
Company
History

Core
Business

Business
Model

IT
Application

Success
Stories

Lesson
Learnt