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CaseStudy

ITBusinessDotCom
Alibaba.Com
ExtractedfromAlibaba.comPresentations

SME:SmallandMediumSizedEnterprises
IPO:InitialPublicOffering

ThebusinessmodelofAlibabaisverysimple.
Itistohelpsellersmeetbuyers.Morespecifically,itprovides
anInternetbasedbusinesstobusiness(B2B)platformwhere
sellers(suppliers/manufactures)canmeetbuyers
(outsourcers/wholesalers)onaglobalscale.
Thecompanyofferstwoplatforms,oneinChineseforChinese
businesses,andanotherinEnglishfortheotherinternational
customers.
Customersareboththesellersandthebuyers,whoareable
topoststorefrontstoadvertisetheirproductsorneeds.
Alibabaoffersseveralservices.ByJuneof2007,Alibabahad
over19.8millionregisteredusers,with16.6withinitsChinese
marketplace.219,098ofthese19.8userswherepaying
members.

AsstatedbyAlibaba,theworkflowincludes:
1. Suppliersandbuyersposttheirlistings,matchingthe
inputsfromthecompanysstrategic perspective.
2.Listingsaresearched,contactsaremade,andinformation
isexchangedbetweenthesuppliers andbuyers.Thiswill
oftenincludeproductspecificationsandcapabilities.

Thiscorrespondstotheinformationmanipulationthe
companysserversandsoftwareuse togeneratethevalue
forthecustomers.
3.Customersthennegotiatewitheachother,whichisthe
outboundpartoftheworkflow.
4.Allofthecommunicationsforsuppliersandbuyersis
enabledthroughtoolswithinAlibabas software.

TraditionalValueChainModel

NewAlibabaValueChainModel

EnvironmentsofValueChainModel

TraditionalValueChainModelandPortalSite

SWOTAnalysis