Individual Research Report
Five Forces Analysis
The Financial Analysis
Alibaba Group(Chinese: 阿里巴巴)has operated in Hangzhou which is a e-commerce and e-auction company and specializing in global trading. It was founded in 1999 by Ma Yun operates total six e-commerce sub-companies. Alibaba Group operate different aspects of trading tomakes it easy for anyone to buy or sell online anywhere in the world.
Sub-companies which included:
1. Taobao.com: The web site of online auctions for customers. 2. Alipay: The web site of online payments which can process mainly payments in China. 3. Alisoft: To provide the web services to the marketplace of Chinese Small and Medium-sized Enterprise.
4. Alimama: To provide the online advertising exchange, and allows trade online advertising inventory between web publishers and advertisers. 5. China Yahoo! : To provides high-quality basic application services for internet users with a powerful portal with excellent searching engine which including email, IM, information services and so on. 6. Koubei.com: It is the China's largest community’s basic life information exchange such as that on clothes, food, housing and travel.
2. Business Model
The advertisements or payment of members is the main revenue of Alibaba.com. Search the results in the websites by anyone, but if the firms like to sell the products through the platform, they have to be the members of Alibaba.com and need to pay money for it. This is very high profit from the advertisements in the websites for the high visibility of Alibaba.com. This advertising for many cities in the world,
The cost of Alibaba.com has the fixed cost and the variable cost. The fixed cost includes the cost of revenue, operation and development and research about 45% of the total cost. The variable cost includes the cost for...
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