Nuria Plazas López

23837303B
CASE STUDY: ALIBABA

Alibaba's success has transcended borders and positioned it as one of the world's largest trading
companies. The Chinese company has been able to offer a simple platform full of opportunities to
both small and large businesses, connecting them with consumers all over the world.

One of the keys to Alibaba and its founder, Jack Ma, is that of simplicity and that this is the
differentiating factor with its competitors when it comes to offering a service to its customers. In
China, until his arrival, online sales channels were not optimal and the company itself turned the
chessboard upside down with only two servers.

Alibaba's success has been rapid and exponential and has been aided by China's growth in
consumption and global exports, spurred by domestic economic measures.
Alibaba offers its services primarily to small and medium-sized enterprises, as well as to
individuals, but also to large companies. This offers a capacity for growth to very small companies
and the opportunity for small individuals or entrepreneurs to sell a lot thanks to Alibaba's
reputation.
Alibaba operates for many small businesses as a franchisor, as it charges companies that sell their
products on its platform a fee for its marketing, sales and customer service services. This means that
Alibaba's revenue streams are tied to the sales of its merchants, which to date have only grown, and
it achieves high customer loyalty, as Alibaba provides the marketing expertise that small merchants
do not have (around 50% of Alibaba's total revenue).

On the other hand, customer service support brings Alibaba approximately 25% of its total revenue,
on issues related to Big Data and Artificial Intelligence in order to analyse the behaviour of the
customers of each company that sells on its platform.

acts as a financial institution among those who market their products on its platform. Firstly, it asks
each seller for certification of veracity to confirm the identity of the company, in order to reduce the
level of scams and illegal transactions, recording each transaction carried out on its platform.
Complementarily, it has developed its own payment platform called Alipay, ensuring the veracity of
transactions and linking its Alipay Wallet to financial institutions.
 Nuria Plazas López
23837303B
Alibaba challenges traditional transaction models and explores new ways to create more value for
customers based on their needs. For example, it has created the C2B transaction model by reducing
traditional supply chain costs as well as reducing product delivery times, which results in increased
end-customer satisfaction.

On the other hand, it has developed an Online to Offline (O2O) system so that customers can buy
products with a simple scan of a two-dimensional code and have their logistics traceability at all
times,
Alibaba's success also lies in offering a set of services to its customers to ensure the satisfaction of
the platform's end customers, i.e. the customers of the businesses that use Alibaba to sell. This
includes communication tools, payment and refund options, seven-day returns, etc.