Alibaba Group Holding Ltd
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Transcript of Alibaba Group Holding Ltd
ALIBABA GROUP HOLDING LTD
-Mercy Jane P. Ballesteros-
A publicly traded Hangzhou-based group of Internet-based e-commerce businesses.
Alibaba was established as a group on 1999.
It has three main sites TaobaoTmallAlibaba.com
DEFINING ALIBABA
Alibaba- a popular destination for online shopping.
Commercial transactions are conducted electronically on the Internet.
Estimated transactions on its online site totaled $248 billion in 2013.
E-COMMERCE
Alibaba became one of the most valuable tech companies in the world.
It has raised an initial $25 billion from its U.S. IPO making it the largest initial public offering in U.S. history.
MARKET CAPITALIZATION
Apple
Microso
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Faceb
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IBMOrac
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Samsun
gInt
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Aliba
ba
Tence
nt
601
401 384
200 193 185 178 170 168 153
Market Capital as of Sept. 18, 2014 US Billion-dollar
Alibaba Ebay0
1020304050607080
Gross Merchandise Volume, 2Q 2014
US Billion-dollar
The website helps connect exporters in China and other countries with companies.
The company offers online marketing, cloud computing and logistics operation.
WHAT DOES ALIBABA DO?
Alibaba is competing for China’s smartphone users in its search for growth.
It is forging into new businesses and bumping into powerful players like Chinese banks and regulators.
CHALLENGES
Internet users are migrating to smartphones as it scramble among the country’s Internet giants.
Companies are spending billions of dollars to invest that can help them compete.
RACE TO GO MOBILE
Alibaba has used that rapidly increasing online market to pioneer smartphone technology in China.
It now controls over 75% of all mobile retail in China.
THE SECRET OF ITS SUCCESS
Alibaba does not charge listing fees. It makes most of its revenue from
advertising.It simply connects customers and
businesses charging only small commission.
HOW DOES ALIBABA MAKE MONEY?
The Man behind Alibaba
JACK MA
A Chinese entrepreneur and philanthropist.
Founder and Executive Chairman of Alibaba Group.
Ma was born in Hangzhou Zhejiang Province, China.
He developed a desire to learn English by conversely guiding foreigners around the city to practice and perfect it.
EARLY LIFE
Ma founded China Yellow pages in 1995.
Alibaba was established in 1999 in Ma’s apartment in Hangzhou.
A China-based business –to – business marketplace site.
CAREER
Only fools use their mouth to speak. A smart man uses his brain, and a wise man uses his heart.
PHILOSOPHY
Jack Ma controls Alibaba even after stepping down as its Chief Operating Officer (CEO) in January of 2013.
He earns money out his 8.9% stake in Alibaba with an estimated worth of $22 billion.
WEALTH
Jack Ma as a Philanthropist
Jack Ma and Joe Tsai (one of the founders of Alibaba Group) sets up trusts funded by share options that represents 2 percent of the company’s current equity.
Alibaba launched its charitable trust to combat pollution and improve education in China.
JACK MA’s PHILANTHROPIC TRUST
ALIBABA GROUP’s THREE MAIN SITES
Taobao Marketplace or Taobao is China’s largest consumer –to - consumer online shopping platform.
It’s growth was attributed to offering free registration and commission-free transactions using free third party payment platform.
Taobao.com
An online retail platform to complement the Taobao business – to – consumer portal.
It is a platform for local Chinese and international businesses to sell quality, brand name goods to consumers in mainland China, Hongkong, Macau, and Taiwan.
Tmall.com
An online business –to- business trading platform for small business.
Alibaba.com handles sales between importers and exporters from more than 240 countries and regions.
It also offers a transaction-based retail website, AliExpress.com, which allows small buyers to buy small quantities of goods at wholesale prices.
Alibaba.com
Five Reasons For Alibaba’s Initial Public Offering
Jack Ma promised to repay his lenders by going public within a specific timeframe.
INVESTOR PAYBACK
Jack Ma “I think the most likely outcome that we could see just after the Alibaba IPO…is that either Alibaba or Softbank buys Yahoo!”
FLIP THE SCRIPT AND ACQUIRE YAHOO!
Alibaba’s growth potential is limited as it needs to increase its presence in some crucial footholds.
FILL PORTFOLIO GAPS
Alibaba will need to have the means to fund its future plans.
Beyond cash, the ability to issue and award stocks is an effective way to backstop growth.
GAIN SOME CURRENCY
Jack Ma’s plan on taking Alibaba public has build its brand’s reputation as public interest doubled after its Initial Public Offering (IPO).
BUILD BRAND AWARENESS
THANK YOU!