TABLE OF CONTENTS
Executive Summary……………………………………… …………. 3
1. Company Background…………………………………………… 5
2. Research Design and Methodology……………………………… 8
2.1. Research Design………………………………………………………... 8
2.2. Scope and Limitation…………………………………………………... 9
3. Vision and mission…………………………………………….…..11
3.1. Vision statement and evaluation………………………...…………......12
3.2. Vision statement and evaluation……………………………….……....12
4. External Analysis…………………………………………….…...15
4.1. General Environment………………………………………….……....15
4.1.1. Economic Performance and Forecast………………………….....15
4.1.2. Social-cultural, Demographic Trends…………………………….19
4.1.3. Political, Governmental and Legal Aspects……………………...22
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...128
7.2. Recommended Business Strategies……………………………......129
7.3. Financial Projections and Overall Evaluation of the Strategies…...131
8. Action plan……………………………………………………137
8.1. Strategy map implementation……………………………………..137
8.2. Departmental actions and functional strategies…………………...138
9. Strategy Evaluation, Monitoring and Control………….....141
9.1. Balanced scorecard……………………………………………….141
9.2. Contingency planning………………………………………….…144
Appendixes
Financial report of Alibaba.com (2007-2009)………………………………...145
EXECUTIVE SUMMARY
Alibaba.com is competing in the fast growing China B2B e-commerce industry. The company is in a very good position of competition as it is in the leading position in terms of market share. Alibaba.com is rated as 3.55 out of 4.0 in the competitive profile matrix, higher than its competitors as the number 1 in China B2B e-commerce industry.
Alibaba.com is also responding to its external environment in an above average manner with a rating of 3.1 out of 4.0. The main opportunities of the company are increasing e-commerce expanse in China, increasing number of paying members. As for the threats, the issues are China Yuan appreciation, e-commerce logistics is not perfect and China credit system is immature.
Internally, the company is in an above average position with an IFE rating of 3.45 out of 4.0. Its strengths include more and more paying members, good quality service, and high-skill technical personnel. The challenge of the organization is the raise in price of products will lead to lose paying members.
Based on the strategy formulation tools and the inputs on the internal and external analysis, the company will need to focus on product development and horizontal integration to address its strategic issues.
Product development strategies include providing an optimization and humanization service, providing complete e-commerce logistics and fund flow. Horizontal integration strategy is to acquire B2B competitors and search engine companies.
These strategies project 26%, 27% and 34% incremental increase of revenue from 2011 to 2013 respectively. For net income, the strategies project 26%, 27%, 34% incremental increase of net income from 2011 to 2013 respectively.
1. Company Background
Alibaba.com (HKSE: 1688) (1688.HK) was founded in 1999 in Hangzhou city, China; it is the global leader in B2B e-commerce industry.
B2B (Business-to-Business), a transaction that occurs between two companies, as opposed to a transaction involving a consumer. It also may describe a company that provides goods or service for another company. It’s different from B2C (Business-to-Consumer) or C2C (Consumer-to-Consumer).
The business model of Alibaba.com: This company operates as a third-party, to help enterprises find suppliers and buyers through its website platform. This company earns from the suppliers’ yearly membership fee (Trustpass, Global golden supplier and China golden supplier), online...
