阿里巴巴集团价值链分析英文.doc

Contents:Contents.11. Introduction.22. Alibabas profit model and value chain.3 2.1 the profit model.32.2 value chain2.3 the influence3. Customers supply chain 3.1 Alibabas supply chain3.2 The Strategic Layout of Alibaba4. Supplier exporting activities4.1Marketing Channel value4.2 add value5. The proposal for the firm6. conclusion7. reference8. Appendix 1 .9. Appendix 2 .10. Appendix 3 .1. IntroductionA Limited is one of the worlds largest online business-to-business (B2B) companies. It is the flagship company of Alibaba Group. Alibaba Group is the trading platform for small businesses. And they had already to be the global leader of e-commerce market.The company was found by Jack Ma in 1999. Jack Ma said “ We registered the name Alimama, in case someone wants to marry us!(2007)The China headquarter is in Hangzhou and the international headquarter is in Hong Kong. In May 2003, they invested 100 million to build the personal trade platform-Taobao. In October 2004, Alibaba found Alipay company, it based on the safety intermediary serve for all the electric marketing. Until now, there are 11 company under the Alibaba Group. They are Alibaba, Tmall, Alipay, Ali software, Alimama, koubei net, Ali yun, Yahoo China, Yitao net, China 10 thousand nets, Juhuasuan. This assignment will analyse the business of Alibabas strategy and operating system in brief. How does it creat value as the leader of the global electronic commerce company and what is support for the buyer and seller, how they able to do export activities and do the assess for the firm.2. Alibabas profit model and value chain2.1 the profit modelAs the leader of the e-commerce market, Alibaba has their own profit model successfully. And the model is simple and useful. Alibaba is the business-to-business platform where the seller can meet buyers on the global scale. The seller could be the suppliers and manufactures, the buyer could be outsourcers or wholesalers. The seller could be the buyers at the same time. The firm support Chinese platform and international platform. One is in Chinese and another is in English. On the other hand, The resource usage is abundant. Especially for the supply network. Alibaba absorbs a great deal of member through the low and even free charge firstly, then it improved the charge standard after a member of low efficiency and eliminate some malicious users, thus firmly grasped through the pay the membership fee for earnings and old members, and then through the brand effect, the development of mouth new member, the growth of the membership fee is currently operating income main Alibaba composition. Lets see the China marketing operational data first:China marketplace operational dataAs of December 3120072008200920102011Registered users23,194,40230,120,70536,154,66943,776,28850,815,074Storefronts2,259,2833,648,5035,419,6586,847,6397,788,416Paying members266,009372,867501,316677,654658,800We can see the some information from the figure. From 2007 to 2011, the registered users increse twofold and the paying members almost be triple. For the example of 2011 year of Alibabas performance report shows, the registered user more than 50 billion, it was up 14% compare with 2010. whats more, the international marketplace operational data is also very good. Please refer to the appendix 1, from 2002 to 2007, Chinas Internet penetration rate had risen from 3.6% to 12.3% crossing an important threshold to catch up to countries like the US, Japan, and South Korea where penetration is over 65%(2009, p2)Actually,whats more, the profit comes from lots of kind, such as website copetitive rankings, Ali software services, pay treasure, Ali loans, all website advertising, trade training, Ali business school education industry and logistics. They are many channels to make profit.For the Ali software, it is a good example to combine the customer and supplier. In Nov 11th 2011, TaoBao mall do the promotion activity from the morning. When the dawn gets down, there are 3420,000 user coming in Taobao in one minutes. The promotion activity breaks through 100 million in 8 minutes. And after 21 minutes the Alipay turnover was more than 200 million. In one hour, the turnover was 439 million. In a day of double 11, the turnover was 3.36 billion.The figure shows the user has large demand of the goods online and the promotion activity is quite successful and both of the seller and firms do the sufficient job. The seller make big profit on this day. And for the Alibaba company, the cash flow would be benefit for them. So, all of the seller, buyer and Alibaba were get a cake.2.2 value chainThe value chain is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance(1996, p61-78). Location of sites basic activities include internal logistics, production operation, external logistics, market and sales, service and so on; And the auxiliary activity is including procurement, technology development, human resources management and enterprise infrastructure, etc. As for the biggest B2B electronic commerce enterprise company in China, Alibaba operates it for the unique model and virtual value chain. In the short time, Alibaba grows quiet stronger enough and the target of the concept let it expend to the world.The statable let the enterprise come to stay longer and the value chain between the company is more important than the company itself. Throught the value chain, the form could be imporve the survrile opportunity and capability. So, more and more enterprinure support that the compete is not the fight by the enterprise but the battle of the value chain. To compared with the traditional value chain:Before: manufacture factory- general agency- the local agency - retailer-customerAfter: manufacture factory-retailer-customerThe charactristic of value chain:2.2.1. the virtual value chain is separate the information from the enterprise value activity firstly. Aliababa is the intermediary agent of electronic commerce to operate. So, the enterprise provide the user group a great deal of information. The information is both required by the buyer and seller and the Alibaba established a good channel to connect with both of them. It satisfy thems need and let all of them make profit. 2.2.2 increase in value be provided with independence and it be as a whole at the same time. Indepence find expression that could be form the new marketing opportunity, it based on the information technology and through the combintion to consist of the virtual value chain.2.2.3 It stands for the “to recreate the value”. The tradtional value chain thought the compete to increase the advantage, the virtual value chain stands for the value for the customer and open the new compete domain that is the information virtual space and it could be improve the intension of the company.2.3. The influenceThe virtual value chain changes the traditional value chain. The profit model both benefit to the buyer and seller. It can purchase and marketing online, no need complex process any more.Alibaba virtual value chain is combining with the people and the electronic, it improves the efficiency and reduce lots of unnecessary process.It shorts the enterprise value chain.3. Customers supply chainSupply chains link value chain (2006). The e-commerce supply chain management (SCM) included blow process:1. order processing: the order setting and receiving process order2. production organization: supply on time and formulate product plan3. Purchasing management: invite bids, select and purchase material to get on the stick.4. Distribution and transport management-supervise the distribution, delivery, transportation5. Inventory management-negotiate with supplier inventory information and reduce the cost6. Customer service-the technical support, the customer complaint.7. Payment management: online bank, electric payment method.For Alibaba, the SCM is similar. It is clear that once a product design is completed, it drives the structure of the supply chain, limiting the flexibility of the engineers to generate and evaluate different (potentially more cost effective) supply chain alternatives(2010,p20-30 ). And for the basic supply chain, there just four flows:Basic supply chain: four flowsPrimary cash flowInformation flowPrimary product flowReverse product flowPayments for products, supplies, etc.Invoices, sales lit., specs, blueprints, receipts, orders, rules and regs, etc.Returns for repair, replacement, recycling, disposal, etc.Material, components, supplies, services, energy, finished products3.2 the Strategic Layout of Alibaba:As for the e-commerce business, the core of the big problem is information, Capital flow and logistics. Alibaba has been found the B2B electronic commerce ( ) and it mixed together by B2C and C2C ( ), it could be offer plenty of information release and improved the Communication Service and communication requirement.3.2.1 The Information service columns about Alibaba:1. business opportunity : there are 27different kinds of industry and more than 700 product classify to look up the commerce opportunity. 2. Products exhibition: there are varies illustrated product information with product category. 3. The company database: the company included 40 thousand kind of company website, the user could be find the trade partner thought the company database. 4. Industry information: All kinds of industry classification released the latest dynamic information.5. price quotations: there are newest price and marketing price dynamic news. 6. business club: the club is for businessman to communicate with their industry insights and there would discuss how to analysis and how to operate the online marketing. 7. commercial service: Shipping, foreign currency conversion, credit investigation, insurance, taxation, consultation and service trade agent, etc.3.2.2 Capital flow: Alibaba found the “Alipay”. It solve the problem about the payment on internet and it realized the online payment, intermediate payment management and other function. The capital flow allows the trade operate online normally. To ensure the capital flow, Alibaba launched the TrustPass at same time, even though it havent complete enough, but it keep the guarantee in some extent. 3.2.3 Logisticis: Alibaba was cooperate with many logisticis company, such as Yuan Tong, shentong, shunfeng and so on. Its fast and convenient. But Alibaba company try to start logistics by themselves. In china, the logistics is not mature enough. Even thought, the logisticis is quiet convenient than before.4. Supplier exporting activitiesAlibaba is the typically B2B e-commerce. But the B2B e-commerce have varies of kind, such as concentrate marketing, centralized purchasing, online trading, invite bids and so on. But Alibaba is base on the buyer to operate the B2B e-commerce. The B2B e-commerce base on the buyer is also named purchasing online, it is one buyer trade with many seller.When the buyer release some information to all supplier to quoted price, the information is included the products name, standard, quantity, date of delivery and so on. So the activities is vary. 4.1Marketing Channel valueMarketing channel could be the direct channels an indirect channels. The picture shows clearly and Alibaba Group got the hightoch channels alreday. 4.2 add valuethere is guidance from Alibaba on how to find potential buyers. There is a good example Taobao, taobao is a subsidiary of Alibaba, it quite successful in China. First, it start in long time ago, when the internet is not common in China, its the faster than others to do business online, so, it attracts the first potential buyers and most of them are the loyalist. Second, it supports lots of job for the young person. Taobao gives ESQ for the college students. You would be take part-time job for them and help them to find the potential buyers. This strategy uses the less money to do the effective work. Thirdly, the connection about each of the subsidiary of Alibaba lets them more stronger. When we registe to be the user of Taobao, we must to be the user of the Alipay, just in that, we can buy things in Taobao. So, each of them are closely connect. 1. Alibaba provides credibility authentication as well as helps find reliable inspector to ensure product quality, which lower the risk level buyers might otherwise have to take.2. there is an professional complaint center department to help both of the buyer and seller to solve the unfair problem in their business trade. And their work is always strike a fair deal. 3. cost involved with finding or carrying out the channel work is largely reduced. When we stroll in website, the system could be offer somethings or some goods may interested you. The goods is the same style of what you see in website.Alibaba atracted realated firm to stronger their company. For instant, it purchased Yahoo China in 2005. After alibaba buy Yahoo China, it with the help of real name, searching, Yahoo assigement and so many functions to strengthen Alibabas communication and seeking.5. The proposal for the firmEven though Alibaba is success and large now, it could be better. There are some threaten for the company and I have some suggestion for the firm.Threaten:1. The biggest problem for the e-commerce is scams. Such as people in the UK tend not to trust Alibaba because of scams. There are too much imitated website to cheat customers. The senior management must be solve the problem, at least down the risk. 2. Jack ma parpered to start their own logistics. But many of logistics company has been successful until now and the logistics is a big deal in business, it will take long time and abundant finance. It too hard to compete with others.3. There are lots of goods that Alibaba ignores now that there are markets for. Like medicines. And there are many goods are not be in sort and not professional. Suggestion:1. Time slots are popular to make the best use of resources, even deliveries of groceries from supermarkets use time slots2. They would need English speaking employees and maybe even open warehouses in foreign countries.3. They could even sell goods made in the West in China. Luxury goods from the West are finding a growing market in China for example.4. For the logistics, they could buy other small firms or do cooperation with them.5. If the product enter the golobal trade, i think the pricing strategy should be vary from country to country. When the products entred the foreign country, the price such as tax, insurance, exchange rate would be make the cost higher than itself. Even thought if the product price is different than to make the products more complex to management, the more detaile could be make success. 6. conclusion:Without doubt, Alibaba is the one of the most successful Internet business platform, and it also will make value in the future development prospect. But at the same time, the subsidiary such as Taobao and Alipay would be face lots of competitor and they will be face the challage from other industry such as bank and logistics. In addition, we can see that the development up to now, although Alibaba have molding and tend to mature business model, but due to the lack of a lot of resource management function, it still