I read a blog written by Xin Qing about the No.1 E-commerce company in China. “At $68 per share, Alibaba is valued at about $167.6 billion and is one of the most valuable technology companies on the planet.” Obviously, Alibaba is a very competitive rival of even Amzaon, which is valued at $150.2 billion.
What makes Alibaba so successful? From my perspective, the success can be summarized by its business strategy. They are successful making e-commerce available to consumers in China. At Taobao, one of Alibaba’s e-commerce websites, everyone is able to start his business because it is free. However, if the owner wants to gain more attention out of millions of sellers in the same product market, he can pay Alibaba for advertisement. Because of zero set-up cost, there are more people who want to give it a try. Customer segments also varies due to the low cost. It benefits not only the unemployed but also people who are employed because many of them are taking this business as a part-time job.
From the perspective of consumers, they can feel safe during the process of purchasing. At the same time, they work with some delivery companies. So the products are transported smoothly within China.
Alibaba’s differentiation within the e-commerce market plays an important role in its business strategy. At the same time, they are consistent to carry out.
Comment on Xin Qing’s blog:http: //blogs.ubc.ca/xinqing/
Work Cited:
http://www.dw.de/what-makes-internet-giant-alibaba-so-successful/a-17910825