The Alibaba Group, China's e-commerce (E-business) Titan can generate tremendous amount of money provided the country have the right policies in place for it to operate.
China is already on
its way of becoming the world's largest economy, as if it's not enough it's
already making another important historical change. It e-commerce (E-business)
sector is overtaking that of America's. and it's only one giant Company that is
dominating the market: Alibaba, it already the world largest e-commerce firm
(company) by looking at it at a different angle of business transactions. In
year 2012 Alibaba handled $170 billion (1.1 trillion yuan) in sales from two of
its portals that is even more than the sales from Amazon and Ebay combined.
Alibaba is already on the right track of becoming the first e-commerce company in the world to manage $1 trillion US dollar in business transactions a
year. What's extraordinary about this success is that it's major consumers are
mainly from China and so many people that is living outside China have hardly
noticed the dominanting power of this private e-commerce colossus. The initial
public offering of the company have turned the global market attention to the
remarkable success of the Alibaba Group and there are other numerous reasons to
closely look out for future strives by the company. Alibaba is constantly
moving into new market area and because of this, the business empire have expanded alot
more than expected and that have change China for Good.
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The Story Of The Crocodile Dominance In The Yangzi River.
The story of Alibaba so far over the years have been that of smart technological innovation and strategies on how to dominate the competitive market in China. Jack Ma once said that "EBay may be a shark in the ocean, but I am a crocodile in the Yangzi river. If we fight in the ocean, we lose; but if we fight in the river, we win.” in 1999 The so called crocodile in the Yangzi river as he is now know founded the company with Alibaba.com online portal a business to business website that connect Small to large scale Chinese manufacturers and entrepreneur (buyers) around the world. Its next Great Innovation was Taobao online Shopping mall, a consumer to consumer online portal just like Ebay.It have almost a billion number of products and it's among the top 20 most searched and visited websites around the world. Tmall online Shopping, the newest among them is a business to consumer website that is just like Amazon. It helps top global brands like levi's and Disney to reach a large number of China population. Alibaba will grow rapidly because of the policies it have put in place ; business forcast have shown that by year 2020 the China e-commerce (E-business) sector will be larger than the existing markets in Britain, America, Japan, France and Germany Combined. Though it's not out to challenge America E-commerce giants like Ebay and Amazon. Alibaba is Growing (expanding) rapidly around the Globe by taking advantage of the spending habit of Chinese citizens living abroad,and by entering into emerging markets (economics).Its vision is helped by the company online payment system called Alipay it operate on the escrow policy (which means sellers can only be paid after the buyer have commented on the products and are pleased with it) this have helped Alibaba deal with the issue of trust from both parties. It seems the greatest untapped assets (resource) of Alibaba treasures is it's consumers databases because its various e-commerce site account for more than 60% of different parcels that is been delivered across China. It even know more than the Government and everyone else about the creditworthiness and spending (buying) habit of the Chinese people,added to the millions of Chinese manufacturers and merchants at their disposal. Alibaba have a subsidiary called the Alifinance that is in charge giving and lending micro to medium loans to small businesses. It even have plans to extend the lending to the ordinary consumers. In order words it is helping in the liberalisation of Chinese finance; the big state China Banks that are in charge of giving out cheap capital to the various states own company have neglected other Enterprises for so long. Alibaba is using its state of the art online platform to render this services it also give out insurance too and have plans to add more services in future. Alibaba is thus operating the bamboo capitalism
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