Ali baba, You might have heard this name before. No? Don’t worry as you’ll roll down you’ll learn about How This Chinese B2B Chinese Giant became one of the most sought company of the country and then of the world. The Alibaba Model became viral exponentially as soon as the years passed by. The company now successfully helps small, big and various local vendors grow their business using Online Method. Ali Baba, the company with only 66,421 employees wherein the company worth a total $46.6 billion.
So Lets get Inside the Ali Baba Model t get to know more about the community that Ma has built with his positive web of notion……
What is an Ali Baba?
Baba(Alibaba) is the one of world’s largest E-Commerce business of the world. The company came out of the box in 1999 in Hangzhou, Zhejiang, China. The company is specialised in AI(Artificial Intelligence), retail, internet, technology and multi-national E-Commerce business. Baba came to the market in 1999 but it never got that much attention or any kinda attraction that the company’s head, CEO Jack Ma wanted to have. Baba got its name from Alibaba and that means “Open Sesame” – the beautiful treasure to delightful things.
Who is the owner and founder of the Ali Baba?
The Owner and the Founder of the Baba is none other than “Jack Ma”. Currently he’s holding the chairman position of the company. The company is currently been run by the CEO Daniel Zhangh(2015-now).
The History of Ali Baba….
Baba was primarily an online E-Commerce online store that helps customers to get all necessary products at your doorsteps. It’s a B2B (business to business) services. Products like major groceries, antiques, beauty products, electronics, automobiles, house and a variety of other products that any customer wants to have. All the products are inside the Ali baba’s online store. It was established by the 18 founders that was led by Jack Ma itself. Later on, the company launched 1688.com where local traders can make business in a large sum. The 1688 was known as the good prophecy in Chinese. While the 88 refers to the Baba itself. It’s the website where local business leaders can interact with each other to help themselves grow out of their small businesses online. The websites serve as an all-in-one store where customers can buy/sell on their own.
Later in the year 2000, Ali Baba got its major funding of $20 million from SoftBank. By the end of 2001 Alibaba.com crosses over 1million active users in their websites. On 2003, TaoBao was founded by Jack Ma and his partners in his own apartment. In the coming years the company gained alot of attention of some of the largest and biggest prevailing companies of the World like Yahoo. They joined hands with Yahoo.In, created a messenger bot and launched Alimama(a marketing platform).
The Mission of the company is to make business easy and available to all. It had broke a largest IPO(initial public offering) in US in 2014 offering all the citizens to participate in the offerings. Before this Ali Baba had also broke out with the IPO on the Main Board of Hong Kong Stock Exchange. After settling down with various offerings and endorsements the Ali Baba again came up with another major Online retailer shop in the name of TaobaoMall(currently known as TMall).The same year Ali Baba’s R&D centre was established in China. With passing days the company renamed its first website from alibaba.com to 1688.com and introduced Aliexpress for the exporters to directly contact with the Chinese marketers to send the goods with ease of operation. Apps like Taobao and Tmall was launched successfully for mobile users. Ali Baba Group had also invested in the Chinese Pictures Group that makes Movies and TV Programs, previously known as ChinaVision. Launched Taobao Travel called as Altrip which is currently known as Fliggy.
Launched the China’s first Global Conference on Women and Entrepreneurship to get a lead in Hangzhou. Koubei was launched in order to capture the Chinese Local Market lead by both Ali Baba and Ant Financial Services.
Last year 2017, Ali Baba Group gets an engagement with the International Olympic Committee for about 2028. Ali Baba launches its first ever Tmall International as an initiative to help out more than 100 million merchants across the globe. Ali Baba cures problems of public by funding billions.
USP(unique selling point) Model of Ali Baba
First of all Ali Baba came into existence in 1998 in Hangzhou, China which was initiated and managed by Jack Ma. The company provides an immense opportunity to both the customers and sellers. Alongside the Ali Baba is a B2B(Business to Business) propaganda. They have tons of products on their Online Ali Baba websites where you can buy stuffs from groceries to riding a bike. There is nothing like you don’t get on their website. Thinking of living in a new home? Don’t worry you’ll get one finely structured home here.
It offers all International sellers across India, Pakistan, China, USA and Thailand to sell their product on their website. You’ll never believe me but you’ll extreme exposure to the large number of audiences/buyers. That’s why its ranked #1 in China in accordance with the Online E-Commerce websites of China.
TaoBao(a Chinese word which means “hunt for treasure”) is another Online C2C(consumer to consumer) and a B2B(business to business)officially came into existence on the year 2003. The website uses a PHP(Hypertext Preprocessor), a light-weight server-based programming language that can handle almost huge load without any hiccups. The TaoBao is primarily be owned by the Ali Baba. The company gave all small businesses to lead a successful Online store where buyers and sellers can directly interact with each other.
There’s no way any third party could be cheating you while reserving your product. Here the buyers can directly get to talk to the selling party without any other thought. This way there’s close interaction between the Ali Baba Group’s Merchants and buyers. The Online sellers can now put their marketing ads on the Main Page of TaoBao to attract more visitors and buyers. In this way the company Ali Baba makes their income by putting ads of the various Merchants on their Main Page.
As per reports the website TaoBao has 370,000,000 users have been registered out of which there are 60,000,000 users who daily visits the website and almost 800,000,000 products actively present in the Online Store of TaoBao. And Yeah TaoBao isn’t just a profit-making company that compels their visitors to buy their products but has provided a huge number of 182,000,000 jobs by their own and 500,000,000+ jobs of similar profile. About 48,000 products were sold every minute on Taobao setting a preferably huge record by their own. 300,000,000+ USD of trade volume takes place Online on their website and that is more than any of the major countries of China – Beijing, Ganzhou, Shanghai and Hongkong.
Nonetheless TaoBao is one of the largest or the only largest Online Active B2B,C2C,B2C store where you can get almost all of your major as well as minor products. The website has been ranked #3 in China and #8 in the whole world. While it is still in the emerging state in many of the countries of the globe.
Tmall is obvious be created by Jack Ma in 2008 for the sake of connecting different buyers across China(operating language is Chinese). Tmall is a B2C(business to consumer) Online Store similar to the TaoBao that contains almost all major products from grooming to groceries. It is China’s one of the largest buying/selling Online website and this why the website rank for #3 in China whereas its #8 in the globe.
Tmall is undoubtedly the world’s largest consumer online store. And that too is the safest one. The safety here refers to – “suppose you unfortunately happen to receive damaged products or it might not work properly or the product might happen to harm you in a way “. But here comes the superhero as wearing the Tmall’s shopping cart on his head.
At the same time the small business owners will find it difficult as there’s a lot more competition on their site and in order to outrank others the business owner s have to pay for advertisements. So it poses a little difficulty and that too the Tmall is limited to the China country itself meaning the one who has registered for the business card on China is eligible for the marketing. Although it’s quite easier to make a good market on this Online platform “Tmall”. The sellers can have an insight on their Online Store like total page views, total clicks, the transactions made, various rating and all. This could help out the sellers to target more accurate customers Online.
Tmall was the first one to dig out the keyword “Singles Day” in 2009. On this occasional day for the Ali Baba Group there’ll be a huge discount for all the consumers. It charges a small fee for transactions relating to –deposit fee, commission fee and an annual fee. All in all the Online business that Ali Baba is running currently is put of reach of other marketers
11Main is another US-based Online shopping website that endorses 1000+ merchants across the globe. The site works in accordance with the Ali Baba Group and OSP. Through the successful use of the technology the 11Main.com helps a variety of merchants across US and other countries sell their product using this site.
Ali Pay is like any other transaction unit currently operated across all over the globe when it first came into existence in 2004. China is also adopting for the cashless digital ecosystem. With over 699+m mobile users it’s the largest payment gateway that has been used in China and accepted across all over the globe. The payment first accepts the amount in Yuan(Chinese currency) then you’ll get an opportunity to get the Yuan into your preferred currency.
The company has now grown up and is currently known as Ant Financial(2014) owing almost $150 billion, a parent company is an Ali Baba Group. Headquartered at Xihu District, Hangzhou, China has a wealth that recedes the two most renowned and biggest companies of the world – Goldman Sachs and American Express. Holding a world record of largest and fastest growing company with the title – Unicorn Company(a startup company that has a total worth of $1 billion). The companies like Huaibei and Jeibei also provides loans to the consumers and small business owners. Like Facebook, Amazon, Twitter, Google, Ali Pay also collects user data and that too can be used by the Chinese Government as per their requirement.
Lazada is the one-stop selling and shopping website which was completely held by the Ali Baba group. The Ali Baba group decided to invest in the Lazada Group in 2014 that proved a real miracle to the growth of both Lazada and Ali Baba Group. Lazada is currently been working actively in South-Eastern countries like Indonesia, Malaysia, Philippines, Thailand, Singapore and Vietnam. The company is one of the largest and fastest shopping websites where it sells from basic electronic needs to baby toys, sports equipments. The shop consists of all primary requirements of any kinda human needs.
The website ranks #9 in Malaysia and under 1500 in the globe. The majority of the Southern people makes use of this Online Store to buy various products.
Aliyun is the Online Cloud Computing services where users, company, etc makes use of Online Cloud Computing Company to handle various websites, store data online. Various other services like Security, Data Management and Analysis, Networking, Storage, Elastic Cloud Services, Monitoring and Management, Domain and Websites, Application Services. Ali Baba Cloud Computing service has now become one of the largest growing and used network in the world. It’s become the #1 services in China with 18 data centres, 1500+ CDN(content delivery network) nodes around the globe.
This is why the website of Aliyun has been ranked as a #45(under 100) and under 500 in the globe. Still the data that’s been collected by the company isn’t that much secure as this can be used the government of China as and when required. There is no clue about how these data are breached
Ali Baba Pictures
After buying the Ali Baba pictures, earlier known as ChinaVision Media in a 60% Stake for $804 million in 2014. Became one of the most renowned and the biggest Chinese Entertainment Company in just a year. The company rose from average popularity level to one of the most popular Movie making company.
1688 is another major company of the Ali Baba Group that is operating successfully in the China. Its the Chinese version of the Alibaba.com. In “1688” ‘6’ and ‘8’refers to the fortune in Chinese While ‘88’ refers to the Baba. Overall meaning “wanting the fortune”. This is how the name 1688.com came into existence in the Chinese Market. The 1688 provides an opportunity to all the small vendors and wholesale business owners to attach their products for the selling purpose. For the buyers the products could be bought in a very low price but there’s a minimum order that you need to purchase.
Everything seems pretty cool but there comes the trouble since the company is based out of China so there’s trouble while speaking or chatting with the Chinese Customer Care executive. You must take care of the time as there’s a different time-zone that Chinese people usually follow. Also, there’s some minimum amount of order that you must on in order to get your goods. The working time of the 1688.com is from 8:30am to 5:30pm for Monday to Saturday. That mean the drop shippers might not be active at that time when you’re active and waking up. The only payment gateway present is CNY(Chinese Yuan) that this Online Shopping site accepts. The payment could be processed via Alipay only and not Bitcoin
The Ali Baba group is generating tons of their wealth by making huge investments in various startups and long-running companies. Lazada Group, NewTV, Shanghai Canxing Cultural and Broadcast Company, DeepMap, BabyTree, Paytm Mall, Ordere, Seven Ages, GetLinks and Wanda Films are some of the investments that Ali Baba Group has made until now. All major investments proved a healthy money generating schemes. While the Ali Baba Group’s current Vice Chairman said “The Ali Baba Group is investing in those which have a High-level of user engagements and High-level of user interface”. These two are the major factors that the company is taking for granted. This is why the Ali Baba Group have invested in Paytm and Big Basket. Both of which are India’s one of the largest and fastest growing Online business.
Well, the company’s well-being resides in three major companies – Taobao, Tmall and 1688.com
Conclusion to all…..
The major business strategies of the Ali Baba Group is – Scope & Ease of Operation.
Scope – The company Ali Baba Group and the Founders never settle with the less but always tried to dig out the most out of business in order to deploy their rising empire. They create their own fate and is not dependent on anyone else. The company keeps hustling all day long to grow themselves. Nobody ever hanged them to the top of the business leaders but themselves. They crafted a scope when there’s nobody in 1998. This was the year when the company Ali Baba started growing exponentially and it never stopped up till now.
Ease –The company focuses on customer first strategy to serve them the best out of all. Second comes the employees and then the shareholders and this strategy of the Ali Baba Founder – Jack Ma proved true by expanding their business Online. In China there’s huge loot on the market product the consumer have to pay alot out of the manufacturing price. Meaning there’s a huge amount of added taxes in any single product. So the consumer had to unwillingly pay for the product required. In this way the companies get extremely high revenue by just selling the same product in the market. Then comes the Ali Baba, an Online Shopping Store where anyone can act as a seller or a buyer. Ali Baba successfully proved an antidote to the consumer’s unwanted costly products. It came as a Superman rescuing all the consumer from the unhealthy high rated products. And delivering all the goods without any delay and that too quite securely. This made people of China a strong angelic belief on the growing Chinese E-Commerce website Ali Baba. This is how the company built a firm foundation in the roots of China. By the time the company surprisingly grew harder that it hit all other companies in the market screwing down many of its biggest Online E-Commerce companies.