Since Alibaba’s IPO in NYSE its shares rose by 29% since their initial offering in September, there are currently two other Chinese technological companies listed on the New York Stock Exchange. Alibaba is a Chinese e-commerce firm that linked American firms to Chinese producers directly (commerce to commerce).
Since the electronic advancements of the 21st century, electronic companies have gain the advantage of advancing rapidly, allowing the ease of trade between consumers and business around the world without having the hassle of customers going to a physical retail store. Whilst allowing companies to reach a bigger target audience and gaining sales volume, the e-commerce firms benefit from the transaction fees for every purchase the customer makes online. Hence, this breaks the traditional retail concept of customers physically having to interact with a physical upfront of the company. Market capitalisation value of e-commerce companies have surpass retail companies such as nike, the market capital value of Alibaba is 225 billion while nike has a market capital value of 78.31 billion.
This challenges traditional business concepts that business have been using for decades as we live in the century where everything evolves around technology. As a business student in the evolving age, we would have to change our perspective of how businesses operates in today’s concept and have the will to constantly learn and adapt to the changes simultaneously.
http://www.cnbc.com/id/102020026#.
http://www.theverge.com/2014/5/7/5690596/meet-alibaba-the-ecommerce-giant-with-more-sales-than-amazon-and-ebay
picture:http://sirulu.com/alibabas-mega-21-1-billion-ipo-soon/