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Case Study Of Alibaba

1298 Words6 Pages

Alibaba – the company
Jack Ma, a teacher, became acquainted with the internet in 1995 and realized the power of the internet. Also during his initial searches, he found that while webspace contained a lot of information, it contained no information regarding goods being manufactured in China. This led to the creation of Alibaba.com, a business to business e-commerce marketplace platform connecting Chinese sellers to the rest of the world with a vision to make easy for buyers to get connected with sellers, in 1999.
With the passage of time, the company experienced growth because of infusion of capital and growth of internet users. From a company started by 18 members, it grew to a company which handles transactions worth more than 1 trillion …show more content…

It has established 8 hubs for easy warehousing and transport.the hubs are established in major industrial provinces. This model of operations helps Alibaba to ensure that the operations metrics into tight control. The important metrics that Alibaba controls are Warehouse utilization and logistics partner performance. By controlling these parameters, Alibaba is able to deliver in an average of three days. Alibaba has formed a Joint Venture with 5 other logistics company to create China Smart Logistics (CSL) in order to reduce this delivery time …show more content…

It uses all the available means to capture the user data accurately. It has 62 million registered users and 0.25 Million paying users.(Data as on November 2007) The strong and accurate database allows Alibaba to accurately predict trends and ensure availability of product as well as platform in peak demand. Accurate trends also help Alibaba to deliver accurate data to the value chain partners
Disciplined Value Chain Partners:
Alibaba acts as an intermediary. Hence the entire success of the business is dependent on its value chain partners. In order to ensure discipline amongst the partners, it gives them access to its platform only after an intense third part scrutiny. The partners which pass this scrutiny are then given Golden status which gives them better visibility and acts as an incentive to perform as per Alibaba metrics.
Small, Simple Yet Diverse:
Alibaba has 12 product category which covers entire range of merchandise available on Alibaba. Also, the internal structure of Alibaba viz its division in 1688.com, Taobao.com, Tmall.com,Aliexpress.com etc help in efficient operations, as well as cost reduction since this, helps them to serve specific segments of

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