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Amazon vs alibaba

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It deals about the two e-commerce giants Amazon and Alibaba.

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Amazon vs alibaba

  2. 2. Amazon • Amazon.com, Inc. founded in 1994 by Jeff Bezos. • American electronic commerce company with headquarters in Seattle, Washington. • Started as an online bookstore and diversified to selling DVDs, CDs, electronics, apparels, furniture, toys, jewellery. • Serving in 7 countries, 21 fulfilment centres and globally more than 9 million square feet of warehouse space.
  3. 3. Value Chain Analysis
  4. 4. • It wants to be the “world’s most customer- centric” company and so their focus is on the “Customer Service” as a part of the value chain. • Offers lowest possible prices to their customers through low everyday product pricing and free shipping offers, including through membership in Amazon Prime.
  5. 5. Primary Activities • Goods are received from the Amazon suppliers. • They are stored until there are needed to sale online Inbound Logistics • Includes separate fulfilment centresOperations • Goods are now finished and need to be sent along the supply chain to final customersOutbound Logistics • Focus on marketing and promotion mixSales & marketing • Includes web training, complaints handling and after sales servicesService
  6. 6. Secondary Activities • Responsible for outsourcing and e-purchasingProcurement • Includes high investments in technology investmentsTechnology • Manages recruitment and selection, training and development and rewards and remuneration Human Resource • Single platform Frim Infrastructure
  7. 7. Some of Amazon's competitive advantages from a value chain perspective include: • Strong technological infrastructure with a single platform • High investments in technology development (e.g., Kindle) to best leverage digital products • Great product forecasting system • Print on demand • Constantly soliciting suggestions on new products • Easy and fast payment system • 24 hour operations • Free returns within 30 days
  8. 8. Alibaba.com • Alibaba Group Holding Limited founded in 1999 by Jack Ma. • Chinese e-commerce company that provides consumer-to-consumer, business-to- consumer and business-to-business sales services via web portals. • Provides electronic payment services, shopping search engine and cloud computing services.
  9. 9. Value Chain Analysis
  10. 10. Step 1 Value is created here because a website is provided to our customers, which has a reputation of being reliable, where they can establish their presence online. (Firm Infrastructure, Inbound Logistics) Step 2 Value is created by filtering out listings for buyers and suppliers so they only need to look through the listings which meet their needs. (Technological Development) Helps suppliers to buy additional keywords to improve their rankings in the listings. (Marketing & Sales)
  11. 11. Steps 3 and 4 Value is created in these steps by providing buyers and suppliers with a safe and secure place which they can trust, where they can communicate with each other and negotiate deals. (Operations) Step 5 Value is created here by giving customers the convenience of placing their orders and paying for their orders through our website. (Procurement and Outbound Logistics) Step 6 In this step, value is created for customers by keeping records of their purchase and selling history for them and letting them maintain their relationships using our website.
  12. 12. THANK YOU