Business Analysis : Alibaba 's Business Model

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from distributers and manufacturers based in china from their extensive collection at aggressive prices. But let me tell you, these are not the only business alibaba group depended, where they make money. Alibaba has many other businesses to make money from like, Alibaba Pay (it’s an online payment system which is somewhere similar to PayPal service), Aliwangwang (instant chat service), Alibaba group also invest in film business and mutual funds, Juhuasuan (similar to Groupon service for flash sales). Alibaba operate like a mediator to connect their buyers and sellers and make smooth transactions between sellers and buyers. Marchant pay Alibaba to get exposer in the huge online market and let them to compete with others. The most important strategy of Alibaba and their team is the larger network they will have the great profit they will earn. 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. Alibaba’s business model covers, payment platforms, web portal, online distribution of product and services, cloud computing services, search engine related to shopping etc. Alibaba Revenue Model: Revenue model help us to understand that how a company makes profit and how the firm going to produce return and growth. As mention before Alibaba directly work with their merchant to give them a platform for profit than compete with them directly and this helped Alibaba to grow and have strong flow of cash. Because alibaba works on Business to Business model and focus on wholesale business, so they accept orders as minimum as one piece. Subscription: As we all know Alibaba play a very big part in o... ... middle of paper ... ...s to come on their website and buy item, also amazon matches prices just like a local store does, so people prefer to buy things on amazon. According to the data from 2015 there was 36.8 Million order was placed on Amazon on Cyber Monday sale and from there they made around $2.68 Billion, whereas on Alibaba’s single day sale in 2015, 278 million order was placed and they made 9.3 billion profit out of it. So Alibaba’s single day sale event is equal to USA’s Thanksgiving and Cyber Monday sale. This figure shows data for china but I would say the one-day sale event is global now because according to 2016 data, alibaba crossed revenue of $14 billion in their Single Day Sale, which is twice the combination of USA black Friday and cyber Monday of $ 5.8 billion. These data show, Alibaba group is not only doing great in china but stepping out of china and growing globally.

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