TRIBHUVAN UNIVERSITY

FACULTY OF MANAGEMENT
TRIBHUVAN MULTIPLE CAMPUS
TANSEN, PALPA
BCHELOR OF BUSINESS ADDMINISTRATION (BBA)

A Study On
Alibaba .com

Submitted By
Name: Muna Gaha
Exam Roll No.:21766/18
Name: Nabina Rana
Exam Roll No.: 21768/18
Name: Nirmala Sinjali
Exam Roll No.:21771/18
Name: Sirjana Neupane
Exam Roll No.:21788/18
Name: Sweta Udaya
Exam Roll No.:21794/18

Submitted To
Faculty of Management
Tribhuvan Multiple Campus
Tansen, Palpa

July, 2022
Table of Contents
Background.................................................................................................................................................1
Objectives...................................................................................................................................................1
1. Introduction of Alibaba.......................................................................................................................2
2. Organizational Structure of Alibaba...................................................................................................3
2.1 Company culture..............................................................................................................................5
3. Market strategy of Alibaba.................................................................................................................6
3.1 Product Strategy..........................................................................................................................6
3.2 Pricing Strategy............................................................................................................................7
3.3 Promotion Startegy......................................................................................................................7
3.4 Distribution Strategy....................................................................................................................7
4. Issues and Problems...........................................................................................................................8
5. Overcoming the Issues and Problems................................................................................................8
6. Conclusion...........................................................................................................................................9
7. References.........................................................................................................................................10
 Background

E-commerce (electronic commerce) is buying and selling of goods and services, or the
transmitting of funds and data, over electronic network, primarily the internet. E-commerce
draws on technologies such as mobile commerce, electronic fund transfer, supply chain
management, internet marketing, online transaction processing, electronic data interchange
(EDI), inventory management systems, and automated data collection systems. E-commerce is
in turn driven by the technologies advances of the semiconductor industry, and is the largest
sector of the electronics industry.

Alibaba is the most popular destination for online shopping, in the world’s fastest growing e-
commerce market. Alibaba is one of the largest e-commerce portals in China and perhaps the
world. Alibaba provides certain trade guarantee and secure payment methods to protect your
transactions. It also has protocols to make sure suppliers are legally registered, and allow you to
report a seller whom you suspect of fraud.

Objectives

Alibaba has set four major objectives for them which include extending mobile commerce,
increases active buyers in China and globally, expand the offering and increases cross-border e-
commerce. Alibaba has set its five-year objective to achieve 1 billion annual active user and has
over RMB 10 trillion sales until year 2036 (Alibaba, 2019 Dec 6) which CEO Mr. Daniel Zhang.

The company is following a three-pillar model to pursue their objectives of 2036 this includes
globalization, domestic consumption and data collection through technologies like cloud
computing. Alibaba is realizing the potential of the digital economy in different sectors:
agriculture, manufacturing and services.

Alibaba believes that he fusion of digital technology and commerce will create a substantial
number of opportunities for small and medium enterprises that will not be limited by borders.
Alibaba is applying the approach of ‘’go- to- market’’ which means ‘’Global buy Global sell,
Global pay, Global delivery, and Global fun’’ for the development of digital economy.

Alibaba also mentioned that ‘’we believe that in the era of the digital economy, productivity will
be defined by computing power’’. The fast and uniform of data is a vital aspects of today’s
competitive market. Alibaba objectives is to develop Alibaba business operating system and
develop their capabilities, financing and technology.

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1. Introduction of Alibaba

Alibaba is the world’s biggest e-commerce platform. Over 420 million people scooped
up. Alibaba’s e-commerce platforms cates to both Chinese and global consumers,
though the majority of its transactions are generated domestically. This domestic is
meant to supply you with all necessary information to you before you make an
investment.

Our survey was create using diverse resources including the company’s website and
financial document as well as sources that has an outside point of view of the company.
This information allow us to aces and analyze how the company sees itself and how they
believe, they are performing. It also allow us to know about the trends to see how
Alibaba is performing in comparison to other e-commerce industries.

This report contains a lot of information from different areas including who the
company is, how the organization trends affect the firm, as well as the area that covers
the company’s financial performance and their market strategy. Our analysis will not
provide a long history of Alibaba group. However, it only covers the information that is
related to your question as an investment decision. Alibaba group as a company also
provides significant information to help you in making investment decision.

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2. Organizational Structure of Alibaba

The organizational structure is a vital factor in the prospect and success of the company.
Alibaba’s organizational structure is planned in such way that the board of directors
governs all the operations. Alibaba organization structure has a three-level with the
board, senior management, and junior management. One of the most specific features
of Alibaba group is its internal management style. Based on its strong organizational
culture the company management functions in a professional and focused relaxed
manner. It supports participation, active contribution, independence and fun.

Overall, the company is led by the ‘’Iron Triangle’’ of Jack Ma (founder and chairmen).
The Iron Triangle strategy consists of three key term commerce, logistic, and finance,
with commerce consisting of the network of various Alibaba platform it operates, like
Taobao and Tmall. Logistics refers to the product quality and delivery systems
implemented. Finance refers to Alibaba’s customers relations and revenue management
based on the Iron Triangle Model, the company has designed its organizational chart so
that these functions become a vital independent core of the company as per its
functionality.

The organization chart of Alibaba also ensure that every function is overseen by the
board of directors which are nominated through an election process, further in senior
management the organization chart contains all the executive function heads, heads
with only customer relation, governance, and research and development department is
divided in the hierarchy to junior management.

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2.1 Company culture
Alibaba’s company culture is the building block of the company, as
said by CEO Daniel Zhang ‘’Culture is the bedrock of Alibaba, while innovation is in
our DNA’’. The Alibaba use a corporate administration model that follows the
paradigm of the partnership model. The company follows the partnership model
which is based on its values.

The company has also reported finishing the structural changes in the management
team on 10th September by putting their focus on innovation and encouraging the
young developers in the company, and taking such steps for becoming more diverse
and globalized workplace.

Furthermore, with the nice logistics and infrastructure and company primary focus
on research and empowering the youth for innovation initiatiues will help its work
culture to develop into more modernized space and will help the company to
expand intemationally in a different market; however, to do so Alibaba will have to
make its company process more democratic.

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 3. Market strategy of Alibaba
Alibaba is a big e-commerce which serves million of small and mediums enterprises around the
world. The growth of the company depards on its marketing strategy to provide its product and
service globally. We will analyze how Alibaba is reaching its target market and how it’s deciding
on four Ps of the marketing that is price, product, promotion, and place.

Target Market
Alibaba trget two market places which include the global market place based in
English language that cater to international exports and importers and the China
marketplaces whose aimis to focus on supplier and buyers trading locally in China.
Alibaba’s main customers are trade agents, retailers, wholesalers small and medium
enterprise and manufactures. Alibaba provides a direct buyer to buyer interaction
on its platform providing import nd export supply chain services. Over 190 countries,
Alibaba hhas customers. Alibaba group owned many shopping platforms like Taobao
which was launched in 2003, to provide personalized experience to its customer
wich are mainly individual and merchants, Aliexpress: launched in 2010 which is
made for buyers around the world to buy directly from the distributors and
manufacturers in China, Alimoma: launched in 2007 to provide the retailers and
enterprise with media resources and many more platform.

At lst to maintain its platforms and provide utility service to its customers, Alibaba
has Alibabacloud which was established in 2009 to provide small and medium
enterprise with storage services, modern large scale computing, data analysis,
security and management servies.

3.1Product Strategy
Alibaba is one of the leading e-commerce wesite companies based out of China.
There are many different services and product offered in its marketing mix. There is
Alibaba.com which is the world’s largest B2B sales platform for small enterprise.
Aliexpress is an online retail store for buying products which are exported to a whole
lot of countries, Taobao for customer to customer online shopping, Alipay for
transaction etc. It also provides promotion and marketing service to its customer by
associating with third party media platforms like apps and websites to create
advertisement etc.

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3.2 Pricing Strategy
Alibaba Group has used the price penetration startegy to make inroads far and wide
to almost all the parts of the world, to launch new products, compete against other
brands and gets a foothold in the new market.

The various brand offers discount as well as cashback to customers on e-commerce

and web portals. Sometimes also offer comission-free transactions to merchants in
new market. It also adopted competitive pricing for some of the product lines as it
want to keep the price range at par with those other brands to maintain lower price
of product as the higher price will take customers to other brands.

3.3 Promotion Startegy

Alibaba promotes the brand through a number of channels. Its advertise through
traditional channels like bost TV ads, newspaper, radio, hording and billboards to
boost the brand name. As most of the services offered are online Alibaba promotes
through digital media as well. Also uses different strategies like discount on product
sales, festival sales, cash back, coupons to attract customer. They have also been the
sponsor for international events like Beijing Olympics, Austria-China Business week
etc. The Alibaba alsoprovides learning and training centers for suppliers to provide
them with the knowledge of e-commerce, international trading, industry analysis
and many more, this strategy attract many small and micro startup business.

3.4 Distribution Strategy

Internet is used by Alibaba as the inter-mediary. Its service are online and therefore
are distributed through websites. Almost 80% of e-commerce in China happens on
Alibaba because of the digital platform for conducting business they are able to cut
down on distribution costs. It also uses personal selling nd direct salea service so
that it can reach the target cuatomers far and wide and gain better market share,
advancement nd robust logistical distribution model has helped Alibaba o realtime
access to communicate and trade to its buyers anywhere and anytime.

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 4. Issues and Problems
Alibaba has low brand recoginition nd is no efficient enough outside of China to compete with
it’s worldwide competitors. Alibaba opportunities are expanding to new markets raising
finance, and expansions through collaboration. Alibaba’s issuses and problems are mentioned
below:

i. Its inefficient delivery time.

ii. Lack of global reach.
iii. Lack of advertising.

5. Overcoming the Issues and Problems

We have many alternatives to help with their issue, however implementing technologies to
help expand their business. This is possible if the company follows the three step in our
implementation which include the following:

i. Organizing the resources available to the better suit the organization’s long term goal.
ii. Gaining full control of the strategic advancements being made during the process.
iii. Finally following through with the plan in an

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 6. Conclusion

Alibaba is the largest e-commerce company of the world. The rise of Alibaba can be contribute
to its company culture and implication of knowledge to its success. Alibaba is a 24 hours
operating virtual store. It allows the customers to search, buy, and pay the products not only
during daytime but also during nighttime. Alibaba provides an excellent virtual payment system
to selllers and buyers. Alibaba choose to use ecommerceto help their company to boost sales
and marketing. Alibaba is most popular Business-to-business (B2B) e-commerce in the world.

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7. References
 Saud, A.S & Bhusal, E-commerce: kriti boos and publisher.
 Adhikary, S.N (2075). Essentials of E-BUSINESS AND E-COMMERCE. Kathmandu: Buddha
Publications.
 www.alibaba.com
 www.investpedia.com
 www.wikipedia.org

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