Why has Alibaba succeed so far?

Why has Jack Mr. launch the global e-commerce marketplace – Alibaba so successfully?

We all may know Amazon as the global e-commerce market place for shopping and other services and recently the name of Alibaba has rapidly known as the new king of global marketplace.  Like eBay and Amazon and other online marketplaces, Alibaba doesn’t own the stuff that it sells on its Web site: It takes a cut from sellers who use it and charges a little extra to advertise.

What is Alibaba?

The headquarter of “Alibaba Group Holding Limited (Alibaba)” is located in China, established by Mr. Jack Mahr in 1999 which is a way to connect Chinese factories and suppliers with global retailers

Alibaba mainly provides business to business (BtoB) platform (Alibaba.com), and they provide many other EC sites for business to customers so far. Some representative sites include payment service – Alipay, which is used mainly by people in China, BtoC site called Tmall, AliExpress for global transaction within customers- business, and Alibaba.com as the irreplaceable market site for global business to business.

Why did you succeed so far?

Why has Alibaba, which is now being used by many people as a global company and expanding its market share, have achieved great success so far? Let’s see some success factors here.

1. Chinese commerce infrastructure was devastating

As world economic superpower America has “giant” Amazon with advanced commercial infrastructure compared with China. Meanwhile, China’s e-commercial transaction infrastructure was undeveloped and controlled by its government, the success of transforming the e-commerce industry of China by making “Alibaba” easily made huge influence in not only Chinese business but also citizens.

2. Half of the employees are female

Even in modern times where diversity is always broadcasted as the unlackable element for any firms, how many companies really prioritize the role of woemn and women is practically more powerful and dominant when it comes to work ? Mr. Jack Mahr, CEO of Alibaba, firmly said that Alibaba is aiming for becoming a company that is chosen from women. For men who only work for men, they become biased thinking, and innovation is less likely to be born. However, by employing more and more women, diversity is born, old tradition is somehow fade away, new products are born, and it will become a company which can be accepted from women.

3. Made a business model to help SMEs in China

Mr. Jack Ma had numerous experience of failing to start a business in China before succeeding the world big company “Alibaba”. So he runs the company in the way that tried to create more routes to deliver products of many small and medium enterprises in China to the world, this, consequently, succeeded unexpectedly and increased a lot of profit. And as the world’s largest EC site “Alibaba” gets bigger and bigger, SMEs in China will be able to make more money and the new generation of SMEs was born accordingly.


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