Global Strategy - AliBaba's expansion in the U.S. market

TEAM 1

Stanley Igwedibia Panchito Daskalov Diana WangSumei Zheng Teja Reddy Yan HuangJiao Cui

TEAM 1

Stanley Igwedibia

Panchito Daskalov

Diana Wang

Sumei Zheng

Teja Reddy

Yan Huang

Jiao Cui

Agenda

1

A Chinese Group of various

online shopping sites

Jack MaFounder and

Executive Chairman of

Alibaba Group

The initial public offering in the US could

raise up to $25bn

What we don’t know about Alibaba?2

To last at least 102

years

MissionMake it easy to do business anywhere

GoalPlanning a full-scale e-commerce expansion in to the U.S. market

Alibaba’s Vision3

ChallengeWhat we want

ObjectiveWhat we gain

OpportunityWhat we aim at

AdvantagesWhy we win

ActivitiesHow we win

Choice Carousel

ESS Framework4

167.3

87.7

572.5

E-commerce Sales from 2010 (Billion Dol-lars)

U.S. China Rest of the World

1.13

2.1

3.47

2020 E-commerce Market forecast (Trillion Dollars)

Challenge – What we want? 5

Challenge – What we want?6

Rivalry

HIGHBargaining power of Suppliers

LOWBargaining power of Buyers

HIGH

Threat of new entrants

HIGH

HIGHThreat of Substitute products

Challenge – What we face?7

Low Brand Awareness Convenience

Quality Delivery Time

Payment Assurance

Trade Regulations

Local Market

Challenge – What we face? 8

Strengths

• Billions in Cash Reserves• Industry Expertise• Low cost leader for B2B• Strong relationship with

suppliers and Customers through Premium option services

Opportunities

• Sales have seen double digit growth each of the past 8 years

• Sell products globally • Growing business

technology sector• Gaining U.S suppliers

Weakness

• Lack regional knowledge• Only 67% response to

customer enquires

Threats

• Competitive markets with intense competition

• Government Regulations on imports and exports

Internal External

Opportunity – What we aim at?9

Revenue

Market share

Customer Satisfaction

Reduce Costs-Volume

Portfolio Built

Reputation-High profile

Objectives – What we gain?10

Billions in Cash Reserves

Industry Expertise

Low cost leader for B2B

Powerful networking effect

Suppliers CustomersAlibaba

Advantages – Why we win?11

TRUST

Value–added e-market

MARKET

PAYMENT

TRUST

TOOLS

o Reliable Inspectorso Trade Assurance

o The insight of datao The confidence of coverageo The power of influence

o Verification Statuso Quality Check Assurances

o Promotional Eventso Affordable Serviceso Acquisitions of new

companies

o Doing training programs for suppliers

o Ranking product searcho Providing success stories

o Secure Paymento Credit line services for

the first time

B2B SEGMENT

Activities – Red Ocean Strategy12

Stanley Igwedibia

Panchito Daskalov

Diana Wang

Sumei Zheng

Teja Reddy

Yan Huang

Jiao Cui

2020 2030

Win U.S. market ?

Exercising Foresight 13

Supplier Delivery warehouseWebsite Order

Customs Shipping Customs Transportation Customers

Quality Time (Tracking) Convenience

14 Alibaba’s Future Value Chain

Stanley Igwedibia Panchito Daskalov Diana WangSumei Zheng Teja Reddy Yan HuangJiao Cui

TEAM 1

Stanley Igwedibia

Panchito Daskalov

Diana Wang

Sumei Zheng

Teja Reddy

Yan Huang

Jiao Cui

TH

AN

K Y

OU

!

Act Local …

Think Global …