Reasons for Alibaba's success
1. conforms to China's unique national conditions: there are many small and medium-sized enterprises in China. Although some small and medium-sized enterprises are doing business around some state-owned enterprises or large companies, these centers are far from enough, so there will be many small enterprises and small business transactions. Small businesses, small businesses, testing one or a few customers can not survive, you need to find dozens of customers. In this case, Alibaba provides such a platform. The rapid and mature development of Alibaba's B2B model in China is closely related to China's economic structure and traditional business culture.
Second, a solid business layout: In addition to B2B, Alibaba also makes Taobao, Alipay and Ali software, but all successful companies in the world focus on doing core business. Why is this? At the end of 2006, Alibaba spent three months? The biggest organizational structure change in history? , defined the structure of the group, turned it into a holding company, and split all business departments into five wholly-owned subsidiaries, namely Alibaba, Taobao, Alipay, Yahoo China and Ali Software, covering corporate e-commerce, personal e-commerce, online payment, Internet search and Internet portal. Dharma five fingers? The framework is a layout centered on e-commerce. Obviously, the front line is a bit long, but fortunately, there are complementarities among businesses, forming a complete industrial chain. But in fact, Alibaba is almost just doing one thing, serving the small and medium-sized enterprises of the municipal party Committee and providing Internet services for them.
What was Alibaba's core business before 2004? China supplier? And then what? Honesty? Its value lies in: by setting different levels of membership system, corresponding to different levels of credit system and ranking, members (suppliers) will pay due remuneration for Alibaba after gaining the trust of buyers (buyers) and reaching a deal. Through these two businesses, Alibaba acts as a trade information intermediary between buyers and sellers, and gets paid, similar to brokers in traditional trade but innovative.
In 2005-2007, Alibaba's core business was not just originality? China supplier? And then what? Honesty? In addition, commercial search and commercial software have been added, and the target user group has expanded from sellers to buyers and sellers. Commercial search is Alibaba's new business direction. The combination of search technology and e-commerce business has produced more new profit points, such as industry vertical search, bidding ranking, search push and so on. The strategic significance of commercial software is even more significant. With its huge user base and various commercial software, Alibaba can penetrate into all aspects of users' business processes, increase customer stickiness and increase revenue sources.
Third, unparalleled enterprise barriers: Alibaba's credit accumulation in the past eight years. Is it? Honesty? Or? China supplier? Everyone has recorded and accumulated the integrity information of traders' previous transactions, which is undoubtedly a huge entry threshold for later competitors. Of course, another competitive barrier brought by credit accumulation is that Alibaba itself has become the signboard of B2B. For B2B e-commerce, a business model that relies heavily on scale effect, the first-Mover brand advantage will be another core competitiveness.
From the above analysis, it is not difficult to see that Alibaba's success has the following reasons:
1, positioned as an information exchange platform.
Then, when the capital flow is relatively solved, Alipay, the corresponding interface tool, takes the lead to provide strong support for its own platform.
2. The traditional channel field has provided strong support for Alibaba.
Sutherland, the first director-general of WTO, became a consultant of Alibaba. The US Department of Commerce, the Japanese Ministry of Economy, Trade and Industry, the European Federation of Small and Medium Enterprises and other government and non-governmental organizations all recommend Alibaba to local enterprises.
3、? China supplier? provide services
Relying on the world-class online trade community and conforming to the trend of international buyers' online business, China suppliers recommend excellent suppliers of China's export commodities and get more and more valuable international orders.
This innovative business model is mainly oriented to export-oriented enterprises, relying on the online trading community to recommend China's export suppliers to international merchants who purchase through e-commerce, thus helping export suppliers to obtain international orders. Its services include independence? China supplier? Account number and password, establish an English website, and let more than 420,000 professional buyers from 220 countries around the world browse the enterprise online.
4. Alipay was born on demand.
In order to solve the security problem of e-commerce payment, in June 2003, Alibaba first launched an independent third-party payment platform on Taobao? Alipay officially entered the field of electronic payment.
The operation process of Alipay is: after the buyer confirms the purchase, the payment will be remitted to Alipay, and Alipay will notify the seller to deliver the goods after confirming the receipt. After the buyer receives the goods and confirms satisfaction, Alipay will remit the money to the seller to complete the transaction. Buyers and sellers do not charge any fees through Alipay transactions. In the transaction process, Alipay, as an honest and neutral third-party organization, plays a role in ensuring payment security and safeguarding the interests of buyers and sellers.
By the end of March 2007, there were more than 36 million users using Alipay, and more than 300,000 merchants supporting Alipay's trading services, covering virtual games, digital communication, commercial services, air tickets and other industries.
5. No one can make a market expansion strategy.
The talents used by Alibaba are updated at a rate of four years, keeping the team young and innovative. In terms of market expansion, the purpose of Alibaba's acquisition of Yahoo China is to be a search engine, and Alibaba is now concentrating on cultivating Taobao.
6. Unique e-commerce mode and e-commerce are different from the rapid growth rate of traditional industries.
According to the prospectus, in 2007, Alibaba's net profit is expected to nearly double that of 2006. According to Xue Cunhe, CEO of Softbank China, the total number of Alibaba members exceeds 24 million, but the paid members are only 1%. According to the report of market research organization iResearch, in terms of revenue, Alibaba occupied about 5 1% of the B2B e-commerce market in China in 2006. Alibaba's revenue growth space is very huge.
7. Another huge space for Alibaba's revenue growth is the growth of fee-based business types.
At present, Alibaba's charging business types are only bidding ranking and? Gold booth? Wait a minute. At present, the development of e-commerce is still in the primary stage. With the rapid economic growth in China, e-commerce will also develop at an even more alarming rate, and Alibaba will continue to explore more types of charging services.
abstract
Generally speaking, Alibaba.com is a successful online trading platform, which provides information on business opportunities and exchange communities for businessmen from all over the world. All its supply and demand information is automatically registered by buyers and sellers, and members can find trading partners and negotiate business in a free and open form on this platform. It can be said that a free trade market without geographical and time barriers has been established on the Internet, from which users can gain unprecedented business opportunities.
It has achieved amazing success in the past eight years, which is inseparable from its successful and unique business model. But when we study it, we should also see the failure of many enterprises that imitate this model.
Judging from Alibaba's business model. Com, we can draw a conclusion that e-commerce, which is truly open, content localization, information globalization and strong synergy, has strong vitality. China people should not be superstitious about any country's e-commerce model when doing e-commerce, but should learn from it and stand on their own feet.