China’s largest e-commerce company, Alibaba, is set to make history in the coming months. Founded in 1999, Alibaba has the potential to set the largest initial public offering (IPO) in the US for a Chinese company and even exceed Facebook’s initial valuation in 2012.
While Alibaba has declined to comment on why it moved its IPO from Hong Kong to New York City, its decision is largely based on a disagreement between company executives and the Hong Kong Securities and Futures Commission. Unlike Hong Kong’s stock exchanges, the NYSE and the NASDAQ do not maintain a one-share per one-vote standard, allowing Alibaba’s key partners to maintain control over its board of directors.
Holding its IPO in the United States could also facilitate future acquisitions of American companies. Its recent investments in the Silicon Valley start-ups Tango and AutoNavi indicate that Alibaba is seeking market expansion at the international level. More than just a middleman between sellers and buyers, Alibaba allows its customers to pay bills, buy insurance, and even take out loans. Its wide range of servic...
...and investors to invest. No shareholder or investor wants to see that the company they are putting their money into is not performing as they had hoped. Furthermore, by having more investors AdCom will be able to expand its product lines and grow their company.
To gain a big market share is the second reason for ASOS to enter China market.
At the beginning of launching of a search engine in China by Google, the firms need was to incorporate the Chinese language into the Google search engine. However, Google gave the Chinese government mandate to decide the content that would be censored. Later, the Chinese search was shut down by the government. As a result of this, Google decided to put a computer in china to help investigate illegal sites of websites. The computer was programmed outside the vicinity Chinese government which helped Google identify the restricted websites. And as a result, Google launched a new product that gave users the best and high quality internet services.
When retained earnings and the debt for funding is lacking, then an IPO becomes one of the most probable ways to have continued growth for the business. This strategy is used to help maximize the value of the company. Historically an IPO has been an offer to a large number of retail and institutional investors that become shareholders of a company. With a huge magnitude of a large number of investors with their confidence with the liquidity of the investment in a public entity will assure current owners of maximum share valuation.
The deal extends a recent push by Tencent into Alibaba’s home turf of retail, where the firm hopes to leverage its messaging service WeChat, which has nearly a billion
Chet Craig is the Central Plant Manager of the Norris Company. He started as an expediter in the company's eastern plant and was quickly promoted to Production Supervisor in three years. After two years, he was promoted to Assistant to the Manager of the Eastern Plant. Five years later, Chet was transferred to the central plant as an Assistant, and after one month, was promoted to his current position.
Initial Public Offerings (IPOs) are common ways for small companies to grow and expand by increasing their availability of capital. The Initial Public Offering started seeing a strong increase in popularity in the late 1990's. As a result of the growing popularity resulting in the dot com explosion, the term "IPO" became a household name. In order to understand how IPOs work, its best to first know how IPOs are created.
Lee, T. (2013, August 2). Best Buy CEO Indicates Company Will Stay in China. Retrieved from http://www.startribune.com/business/218123261.html
Jack Ma founded Alibaba Group, together with his 17 friends in 1999. Jack Ma was just an English teacher when he developed the idea of establishing an e-commerce site that will help sellers and buyers alike, as a platform for them to communicate, advertise and make transactions. The Internet was still not at the peak of its popularity yet back then, but Jack Ma had a vision. With a fund of he knew that he could help businesses in China to develop and compete competitively in the local and international markets. Today, Alibaba Group has grown so much and has created multiple platforms for the business-to-business, business-to-customer, and customer-to-customer trading site and been one of the largest e-commerce sites that ever established.
Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market.
Alibaba is a biggest e-commerce company with the biggest IPO in the world, Alibaba works on “Business to Business to Consumer” and “Consumer to Consumer” business model through the online portal.
Alipay, launched by Alibaba Small and Micro Financial Services Group in December 2004, is now one of the leading third-party online payment platforms in China (Wikipedia, 2014). Linkedin (2014) shows that Alipay offers online payment solutions to help the retailers to sell directly to consumers in China and provides an easy and secure way for in individuals and businesses to make and receive payments through the internet and the mobile phones.
Position: Google wants to acquire “.cn” as soon as possible before firms from other countries step in.
Tesla Motors, Inc. is an American company that is most famous for its electric cars. Based in Palo, Alto, California, it is named after the great electrical engineer, physicist and inventor Nikola Tesla. Currently the company has produced three car models – Tesla Roadster, Model S and Model X. More models are expected to be made in the coming years. Model 3 will be ready by 2017 when its deliveries will begin. Electric cars are still something new to most of the people throughout the world. The cars have to be recharged instead of refueled. There are less than 30 Tesla stores in Europe but the demand is rising. These cars will not be available to everyone as their price varies from $70 000 to almost a $100 000. But there will always be wealthy
On Jan. 23, 2003, Cisco Systems, Inc. announced that it has filed a lawsuit against a Chinese equipment manufacturer, Huawei Technologies, Co., LTD and its subsidiaries, Huawei America, Inc. and FutureWei Technologies, Inc. over Huawei's unlawful copying of Cisco's intellectual property. Cisco is the worldwide leader in networking for the Internet with the headquarter located in US. Huawei, based in Shenzhen, China, is China's biggest telecommunications equipment maker, has a wide reach in Asia, and recently entered the U.S. market, challenging Cisco on the pricing front. Because the lawsuit happens between two representative companies of telecom industry in US and China respectively, so it attracts many attentions in IT industry from the beginning of Cisco's announcement.