On the 6th of last November, one week after its introduction, the Alibaba stockmarket was quoted for the first time: it acquired 190% of its introduction price .
Other than being a testimony that both China and the internet have a habit of going to the heads of investors, Alibaba was created from the increasing need of having a comprehensive and reliable base of information while sourcing and doing business particularly in China. It helps to skip the common barriers while trading with another country (E.g. language, knowledge of the market, reaching remote manufacturers with limited exposition or marketing resources).
Alibaba has increasingly become what eBay once was and created buzz in the B-to-B market.
At the beginning of the month, one week after its introduction in the stock market, the value of the stock increased by 190% after its first quote. We will attempt in this study to determinate whether this a translation of a strong enthusiasm of the investors in diversifying their portfolios (e.g. shifting from some ‘cash flow dying' market such as the US) and investing in anything Chinese, or a real testimony of the strength of this new born company.
We will first analyze the situation of the company. Then we will determinate the segmentation of the market. Lastly we will look at their market strategy.
[...] The trust pass offers four advantages: As we said, an unlimited access to all buyers or suppliers It offers a priority listing in buyer searches Increased buyer confidence of buyers prefer to make business with the trust pass) Continuous promotion: you can display your company website and address According to the Alibaba website, the information lacks authenticity is the most considered fact. Alibaba offers another member pass, which is the gold member card. When you buy this card, it means that you have a high level of credibility. [...]
[...] Strengths Weaknesses Alibaba is a well-known company A large network: sometimes A large network of suppliers, difficult to check all the traders and buyers factories' capabilities Easy to use and free in order to The sales of counterfeits can give test the service (and then, you a bad image have to buy the gold member pass) Too much ‘low' businessmen (want to Alibaba set up a new website in set up a company but they do not Japanese know where to find goods ) Cheaper than other sourcing ways Global Resources which is more Alibaba's introduction in the stock focused on quality than quantity market has been a success Opportunities Threats New merging countries such as India Alibaba facilitates the trade of or south America shark based products, legal More and more companies will want practice within Asia but mostly to use internet to increase their condemned in the west. [...]
[...] Foreign companies have to share their technologies with China if they want to work with this country. However, for many companies, going into China is a danger because they have to protect their technologies. By the way, the Airbus Company decided to open a factory in China and share its technologies with China instead of China starting to produce its planes. II) Marketing Strategy 1. Four Ps Product As we said, Alibaba is a link between buyers, traders and suppliers. How Alibaba earns money? Alibaba is a free website. [...]
[...] But it is also important to mention that one of the sole values of such a website, is indeed, its customers, not unlike social and networking websites such as Viadeo and Facebook. Bigger the buzz, bigger is the success. Global Resources has also arguably the advantage of having a long history of involvement in doing business. The company was created as a support for B-to-B related international trade for more than 36 years and launched its first B-to-B e-portal 12 years ago. [...]
[...] Moreover, Alibaba website often sends to your email provider emails to know how you can use Alibaba more efficiently. Place Alibaba is present only on the web. In order to increase the brand recognition, Alibaba is also present as a commercial website on search engines. On the Alibaba website, you can find a lot of advertising for trade shows. Alibaba is very often present in trade shows especially in China. Alibaba was more local. But nowadays, Alibaba is a global company (even if Alibaba has different websites). [...]
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