Study after class13 Finance 1
IPO (initial public offering) is a type of public offering in which shares of stock originally traded in a private company now go into public market. Through the process of IPO, the ownership is diluted while assets and equity increase.
Recently, one of the biggest e-commerce companies (online shopping website) in China called Alibaba went public in the New York Stock Exchange. Accordineg to <the economist>, “measured by the value of goods sold on its platforms, Alibaba is bigger than eBay and Amazon combined.”
Alibaba’s success largely depended on the correct analysis of Chinese market and Chinese customers’ behaviour. Marketing research has always been Alibaba’s advantage, then I will focus on that and state my point of view.
E-commerce has been develping at an alarming rate during recent years in China. The situation has been changed dramatically due to the development of Alibaba’s fierce competitors, such as JingDong. Alibaba’s position dropped from the top to maybe one of the top three. Entering the US market probabily was a market strategy of Ali’s CEO Jack Ma, to raise money for the poor financial situation in the company. To be honest, as a Chinese, I feel proud to see a Chinese company entering the US market, but this time, I feel more worried about the incentive of this raise-funds.