3. Traditional business cycle
Search/
Evaluate Negotiate Transact
Discovery
Average sourcing cycle:
3.3 – 4.2 months
52% of time spent searching 20% of time spent on
for/identifying appropriate screening/sorting
suppliers proposals
18% of time spent on RFQ 10% of time spent on
development/ RFQ response contract negotiations
Traditional Sources of Supplier Information
Trade Shows, Industry Associations, Trade Directories, Trade
journals and Magazines, Existing Suppliers
5. Alibabaaaa
Mission
To solve the challenges of
small businesses in
procurement, sales and
Vision marketing, management and
To make it easy to do financing through
business anywhere information technology
6. Alibaba Business Cycle
Search/
Evaluate Negotiate Transact
Discovery
Average Time needs to be
sourcing spent only for
cycle: 1.6 – negotiation and
2 months realizing
transactions
New Sources of Supplier Information: Alibaba (Internet)
7.
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10.
11.
12.
13. Learn
• Secret to going global is going
local – Tradition and language
• First mover advantage
Unlearn
• Made in China
• Advertising
15. Global yet Local Brand ambiguity – Yahoo!
China
Strong Brand Name
Refund and Returns
Market Leader
Diversification Disadvantages of E-Commerce
SWOT
M-Commerce Ebay and Baidu
Untapped Market Segment New Entrants
Key success factors of Alibaba.com + How they drove the competitors away. Talk about competitors
Toyota – Japan, Hyundai – Korea, Lenovo – China.Traditional payment method – pay only after goods delivered
Bargaining power of suppliers – Not muchCompetitive Rivalry within an industry -- TaobaoBargaining power of customers – Very important to satisfy them Allows Free listing in their website for customers.. Customers can specify what they require and the suppliers can