Alibaba, the Operating System for Commerce, Make Business Easy Anywhere

Alibaba is the largest enterprise in China by market capital right now, and it only has 20 years history, which aim to last at least 102 years. The most important founder, Jack Ma, is like a rock star. In China, Alibaba and Tencent provides the digital life and transformed everyone’s life. Alibaba aim to build the operating system for commerce, and buying items online is a basic lifestyle. Tencent has built infrastructure for social life online, everyone’s phone has Wechat or APP, and I will discuss about Tencent in another post. 

Alibaba history is based on an idea. Jack Ma traveled to USA in 1994, and discovered Internet. An idea just prompt in his head, people from all over the world can buy things from China on the Internet. So after several years preparation, he found Alibaba in 1999, and teach merchants sell things on the Internet. 

As eBay entered into China, Jack Ma has the sense that C2C mode will be popular, and founded Taobao to compete with eBay. Taobao is tremendously successful afterwards. Then, if the strangers trades on the Internet, trust from both sides has to be resolved. Alipay is created to make trust fro the strangers. 

With the development of eCommerce in China, Alibaba faced different challenges, however, Alibaba has created different services to resolve these challenges. Currently, in the digital era, Alibaba has a bundle of services to make it easy to do business anywhere. 

Alibaba businesses are comprised of core commerce, cloud computing, digital media and entertainment, and innovation initiatives.

For example, Taobao Launched in 2003, Taobao Marketplace provides consumers from both large cities and less developed areas with an engaging, personalized shopping experience, optimized by big-data analytics and technology. Through highly relevant and engaging content and real-time updates from merchants, consumers can learn about products and new trends. They can also interact with each other and their favorite merchants and key opinion leaders. Merchants on Taobao Marketplace are primarily individuals and small businesses.

Tmall Launched in 2008, Tmall caters to consumers’ ever-growing demand for high-quality products and premium shopping experience. It serves as a platform for consumers in China and overseas to buy both homegrown and international branded products as well as products not available in traditional retail outlets. A large number of international and Chinese brands and retailers have established storefronts on Tmall

The first business of Alibaba Group, is China’s largest integrated international online wholesale marketplace in 2019 by revenue, according to Analysys. It connects Chinese and overseas suppliers to overseas wholesale buyers, who are typically trade agents, wholesalers, retailers, manufacturers and SMEs engaged in the import and export business, and provides sourcing, online transaction, digital marketing, digital supply chain fulfillment and financial services to them. In the 12 months ended March 31, 2020, over 20 million buyers from approximately 190 countries had sourced business opportunities or completed transactions on

Established in 2009, Alibaba Cloud is the digital technology and intelligence backbone of Alibaba Group. It offers a complete suite of cloud services to customers worldwide, including elastic computing, database, storage, network virtualization services, large-scale computing, security, management and application services, big data analytics, a machine learning platform and IoT services. Alibaba Cloud is China’s largest provider of public cloud services by revenue in 2019, including PaaS and IaaS services, according to IDC. Alibaba Group is the world’s third largest and Asia Pacific’s largest IaaS provider by revenue in 2019 in U.S. dollars, according to Gartner’s April 2020 report.

In addition, Ant Group, an unconsolidated related party, provides payment services and offers financial services for consumers and merchants on Alibaba platforms. A digital economy has developed around Alibaba platforms and businesses that consists of consumers, merchants, brands, retailers, third-party service providers, strategic alliance partners and other businesses. The Alibaba digital economy generated RMB7,053 billion (US$1 trillion) in GMV in the twelve months ended March 31, 2020,

Actually, Alibaba is more than enable merchantes to do businesses on the internet now, it is transformed into the operating system for commerce. Alibaba cloud is the the data platform to support different services, including retail, logistics, finance, etc, 

Alibaba is an international company, make a lot of investment abroad and keep its words: make business any where. 


Relative Posts:

1. Taobao and TMall, the Massive and Fast Growing Online Retail Ecosystem in China

2. Ant Group, Building Payment and Financial Services Infrastructure through Technology Innovation


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