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E-COMMERCE-B2B E-BUSINESS ADVANTAGES OF B2B E-COMMERCE ELIMINATION OF COSTLY TASKS IS POSSIBLE. BETTER DECISION MAKING WITH EASE & LESS EXPENSE. BETTER INFORMATION ABOUT BUYER & SELLER. GLOBAL ACCESS TO MARKETS. • ANY ECONOMIC TRANSACTION WHERE BUYER & SELLER COMES TOGETHER THROUGH INTERNET FORMING A CONTRACTUAL AGREEMENT. • YEAR 1990-DEVELOPMENT OF WWW. • YEAR 1993-100 COUNTRIES ONLINE PRESENCE.
CHINA B2B MARKET-PROBLEMS PROBLEMS BIRD CAGE THEORY CONTROL INTERNET INFORMATION. FLOW. ECONOMICS. BUREAUCRATIC HASSLES FOR BUSINESS. • POOR TECHNICAL INFRASTRUCTURE. • LACK OF SECURITY • LACK OF A SYSTEM TO MONITOR. • CREDIBILITY OF BUYER & SUPPLIER . • INEFFICIENT DELIVERY SYSTEM. • LEGAL SYSTEM TO PROTECT RIGHTS OF BOTH THE PARTIES. • HIGH START-UP COSTS & FINDING THE QUALIFIED PEOPLE.
ALIBABA.COM PROFILE FEATURES OPENS THE DOOR TO BUSINESS. INTRODUCES ALL SMALL COMPANIES. SHRIMPS FROM ACROSS THE WORLD. THREE DISTINCT TARGET MARKETS: ALIBABA.COM-B2B ALIBABA CHINA-CHINA TAOBOA-C2C • STARTED IN 1999 BY JACK MA. • 2007-WORLD’S LARGEST B2B GLOBAL TRADING MARKET PLACE. • 25 MILLION REGISTERED USERS &2.5 LAC PAYING MEMBERS GLOBALLY. • 16 REGIONAL SALES OFFICE,MORE THAN 5000 EMPLOYEES.
ALIBABA.COM & STRATEGIES INITIAL INVESTORS TAOBAO STRATEGIES TO CAPTURE MARKET SHARE 67% OF MARKET SHARE. 26 MILLION GOODS ONLINE & 110 MILLION TIMES WEB PAGES CLICKED PER MONTH. WAIVING THE TRANSACTION FEES OF ALL SELLERS WAS A KEY TO SUCCESS. • US$60,000-PERSONAL SAVINGS OF JACK. • GOLDMAN SACHS-US$5 MILLION. • SOFTBANK’S –US$20 MILLION. FEEDBACK FROM B2B CUSTOMERS OVERCOMING THE CULTURAL DIFFERENCES • TAOBAO GIVES THE DISCOUNTS AND AUCTIONS TO MEET CUSTOMERS DEMAND. • E-COMMERCE IS SO EASY THAT COMPANY CAN BECOME LAZY AND LOOSE CUSTOMERS.
ALIBABA.COM & INNOVATION INNOVATION STRATEGIES TO PROMOTE HAVING A B2B RELATIONSHIPS WITH DIFFERENT BANKS THROUGH THEIR PORTAL ALIPAY.COM. PROVIDES SECURED WAY OF TRANSACTION. PARTNERING WITH CHINA POST FOR DELIVERING OF GOODS WITH FULL COMPENSATION IN CASE OF DAMAGE & EVEN CASH ON DELIVERY SERVICE. • HAS GIVEN OPTIONS ON TAOBOA TO SEND THE MESSAGES TO SELLERS INSTANTLY. • EBAY AS COMPETITOR ALSO COPIED THE SAME STRATEGY AND BOUGHT SKYPE.
FUTURE OF ALIBABA.COM NEW STRATEGIES CHINA & ALIBABA PUSHING CHINESE GOVT TO FOR GREATER INTERNET REFORMS TO SPUR B2B E-COMMERCE. RECOGNIZING MORE & MORE SME’S. • VALUE ADDED SERVICE. • TRANSPARENCY IN THE PROCESS. • COST CUTTING BY AWARING MORE AND MORE B2B PARTNERS GOING FOR ONLINE TRADING.