Alibaba.Com Case Study

Alibaba.com

Summary

Alibaba.com is recognized as the largest and most successful business-to-business (B2B) web site in the world. On November 6, 2007, Alibaba.com's stock began trading on the Hong Kong exchange. By the end of the day the company had raised $1.7 billion, resulting in the biggest initial stock offering ever for a Chinese Internet company. Investors sought more than 180 times the number of shares offered. In spite of the economic downturn globally during the fourth quarter of 2008, Alibaba.com announced that total revenue for the company increased 39 percent over 2007, and registered users jumped by 80 percent. More than 1 million new members joined during each of the third and fourth quarters of 2008.

Questions

* What are the implications of the company's new ownership structure and shareholder expectations?

Over the years, Alibaba.com has developed an effective group of programs and tools to make using the site easier, safer, and more rewarding. Alibaba.com must keep the customers royalty by developing more easy to use, advanced tool on the website, better service to make distinct with the competitors. Alibaba.com also build C2C e-commerce program- taobao.com, AliSoft - a management software markets, Alibaba.com is trying to be diversified.

* How important is a rapidly expanding domestic market in Alibaba.com's strayegic assessment?

With more competitors shares the market share, Alibaba.com has positioned in the early stage having the advantage. As global economics changes rapidly, Alibaba.com covers all the industrial suppliers for the potential buyers then takes it to international. According to competitors the pricing strategy, make suitable adjustment and rewards for customers.

* What are the merits of proposed changes to Alibaba.com's pricing strategy?

Alibaba's primary revenue is derived from charging customers for value-added services and from subscription fees, listing fees and secondarily through advertising avenues. Free membership is an effective choice for buyers seeking suppliers. Gold Suppliers have been authenticated and verified by an independent and reputable third-party security service provider. In return for an annual fee, Gold Suppliers receive many benefits in addition to enhanced credibility. Among them are an unlimited number of product listings. Alibaba.com has found that Gold Suppliers generate an average of 22 percent more inquiries than free members do.

* How can the company position itself competitively against B2B giant Global Sources?

Alibaba.com is trying to build a SMEs system through its subsidiaries Alibaba.com, Alipay.com, Taobao.com, AliSoft, AliExpress and