Beruflich Dokumente
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JACK MA
A
SUMMER INTERNSHIP PROJECT REPORT
ON
SALMAN AHMED
MBA 3rd SEM
ROLL. NO.
ACKNOWLEDGEMENT
With immense please I am presenting “Customer account handling & service providing for
SME’s, project report as a part of the curriculum of Master of business administration. We wish
to thank all the people who gave us unending support.
I express my profound thanks to Mr. Sanjay kumar verma Chief Branch Manager of Bajaj
Allianz, project guide and all those who have indirectly guided and helped us in preparation of
this project.
We also like to extend our gratitude to all colleagues of G. L. Bajaj institute of Management &
Research, Greater Noida. Who provided moral support, a conductive work environment and the
much- needed inspiration to conclude the project in time and special thanks to my parents who
are integral part of the project?
Thanking you
SALMAN AHMED
TABLE OF CONTENTS
1. Abstract
2. Objectives
3. About Alibaba
4. History
5. Business Model
7. Target Users
8. Payment Methods
9. Tech-Giants
14. Findings
15. Recommendations
16. Conclusion
17. Questionnaire
18. References
Alibaba
Alibaba is China’s and by some measures, the world’s biggest online commerce company. Its
three main sites — Taobao, Tmall and Alibaba.com — have hundreds of millions of users, and
host millions of merchants and businesses. Alibaba handles more business than any other
e-commerce company.
One can think of it as a mix of Amazon.com, eBay and Paypal. Customers use Alibaba to shop
online, sell unwanted goods and make online payments. Alibaba has two retail sites: Taobao,
which features thousands of non-brand name products sold by smaller merchants; and Tmall,
which offers brand-name products sold by big merchants.
Unlike Amazon, which buys goods from suppliers and sells them to customers, Alibaba has
always acted as a middleman, connecting buyers and sellers and facilitating transactions between
them.
This Chinese B2B trading platform connects buyers in North America and Europe with suppliers
from China. Alibaba follows an aggregation of supply model (similar to other early B2B
players), helping to solve the pain of global sourcing.
History
Alibaba Group was established in 1999 by 18 people led by Jack Ma, a former English teacher
from Hangzhou, China. From the outset, the company’s founders shared a belief that the Internet
would level the playing field by enabling small enterprises to leverage innovation and
technology to grow and compete more effectively in the domestic and global economies.
Jack Ma named his company on “Alibaba Open Sesame”. Alibaba is a kind, smart business
person, and he helped the village. Alibaba opens sesame for small- to medium-sized companies.
During Late 90’s, Alibaba Group raised a total of US$25 million from SoftBank, Goldman
Sachs, Fidelity and some other institutions.
After Alibaba achieved profitability in 2001, it’s sister organization Taobao was founded as a
consumer e-commerce platform. Which further established TMall (TMall.com), a retail
website, to complement its C2C marketplace.
After about a decade since its inception Alibaba group also beta-launched eTao as a shopping
search engine.
Alibaba raised $21.8 billion in its debut, making it the biggest U.S.-listed IPO in history after the
IPO of credit card processing company Visa in 2008.
Business Model
The initial business model of Alibaba was simple ; a facilitate a 24/7 meeting platform for
suppliers and buyers around the world. From the start Alibaba did not just connect Chinese
suppliers with international buyers, but it had the goal of connecting all importers and exporters
around the world to each other. Although other B2B websites have always said “You cannot
have a global company out of china , it makes no sense.”. From the very beginning Alibaba was
, “the first global Internet emerging from china.”
In more technical terms three of the most prominent business models employed by Alibaba are:
B2B, C2C and B2C.
B2B:
Alibaba.com Limited the primary company of Alibaba, is the world’s largest online
business-to-business trading platform for small businesses.
Founded in Hangzhou in eastern China, Alibaba.com has three main services. The company’s
English language portal Alibaba.com handles sales between importers and exporters from more
than 240 countries and regions. The Chinese portal 1688.com was developed for domestic
business-to-business trade in China. In addition, Alibaba.com offers a transaction-based retail
website, AliExpress.com, which allows smaller buyers to buy small quantities of goods at
wholesale prices.
According to some e-commerce analysts. Alibaba is probably the one organization in the world,
which has been able to successfully provide a hassle free platform to small to medium sized
businesses to carry on over the internet.
C2C:
Taobao, is Alibaba’s yet another portal, which utilizes consumer-to-consumer model similar to
eBay. Taobao.com is China's largest shopping website, and tmall.com, which offers a wide
selection of branded goods to China's emerging middle class. It features thousands of non-brand
name products sold by smaller merchants
With around 760 million product listings as of March 2013, Taobao Marketplace is one of the
world’s top 10 most visited websites according to Alexa.
B2C:
In 2008, Alibaba Group also established another online website Tmall, to compliment it’s C2C
market. Although Tmall is mainly a business-to-consumer platform is known for offering
brand-name products. The two sites (Taobao.com and Tmall) are hugely popular, and
collectively account for more than half of all parcel deliveries in China. According to The Wall
Street Journal, their combined transaction volume in 2012 topped one trillion yuan ($163
billion), more than Amazon and eBay's revenue combined.
● Electronics
● Online marketing
● Cloud Computing
● Logistics Operations
Alibaba is one of those online resources which claims a “Get everything and anything”
availability. A consumer can literally buy products ranging to simple toys to automobiles. Hence,
Alibaba is proving to be a one-stop platform where a consumer can choose among a wide variety
of options.
Target Users
Alibaba Group primarily operated within China, where e-commerce is synonyms to Alibaba. But
within last decade Alibaba has expanded to almost all the corners of the world, consisting its user
base from about 190 odd countries.
Alibaba has been turned into a global organization but still holding China as it’s major focus.
Almost 75% of China’s ecommerce market is dominated by Alibaba. China has 560 million
internet users - twice as many as the U.S. - who spend an average of 20 hours a week online.
Although to get a hold on other emerging markets Alibaba Group has also established offices
in the U.S., U.K., India, Japan and Korea.
Apart from small-to-medium businesses Alibaba group also provides online platform
to individual customers through its parent websites Tmall.com and Taobao.com.
Payment Methods
Actually Alibaba Group has it’s own payment solution named as Alipay, is a third-party online
payment platform with no transaction fees. Other than that, Alibaba also offers many ways to
pay suppliers. Six most commonly used ways are Telegraphic Transfer(TT)/Bank Transfer ,
Letter of Credit, DA/DP, Western Union, PayPal and Escrow. Buyers are advised to consider
each option carefully before committing to one.
In terms of innovation, Alibaba is introducing a new secure mobile payment method as it gets
ready for its IPO.The Chinese e-commerce giant will get ahead of its competitors Amazon,
Google and Paypal with an innovative and secure method of payment using fingerprints instead
of passwords.
Huawei, the world’s thirdlargest smartphone vendor by shipment volume , will also employ
high-level encryption and verification to ensure only approved third-party applications, such as
Alipay Wallet, are allowed to access the fingerprint information for transactions.
It’s worth remembering that Alibaba is a pretty safe platform to purchase on. Not only do you
have the standard protection that your payment provide gives, but Alibaba hold mostly all
payments in Escrow until the buyer confirms they’ve received the goods and they’re as expected.
Until the buyer confirms receipt the seller doesn’t receive the funds.
If the item that you received is not what you ordered, do not clear customs! You can
always request for a customs officer or a third-party inspection company to conduct an
onsite inspection before being issued a customs clearance certificate. If you only inspect
the delivery after customs clearance, you might encounter legal hurdles should you
decide to dispute the delivery.
Comparison of Alibaba with Other
Tech-Giants
Alibaba is really a technology company that serves retail customers and controls 80% of the
Chinese e-commerce market.Alibaba will compete most directly with on-line retailers like
Amazon, EBay or Zalando in Europe, Rakuten in Japan, Kobo in India, Wuaki in Spain and
other major on-line providers with strong presence in their home and adjacent markets.
Take market capitalization, or the total value of available shares times the value of a
single share , Alibaba’s market capitalization value is estimated at $155 billion. That number
makes it look pretty small compared to the top three US tech giants: Apple ($593 billion),
Google ($400 billion), and Microsoft ($378 Billion). But it compares nicely to Amazon, which
also has a market cap in the $150-billion range. And it’s growing.
“Gross Merchandise Volume (GMV), the metric the company likes to highlight, is the total
sum of goods and services transacted on all its sites.”
In 2013, Alibaba hosted GMV of $248 billion in transactions last year. That’s more than
Amazon and eBay managed to do — combined. And while Amazon takes home a lot more
revenue than Alibaba from its fewer transactions, Alibaba takes a much higher net income from
its revenue than Amazon. Alibaba now takes home 80 percent of its revenue as profit.
Alibaba’s revenue is the cut it takes out of each sale. In comparison, WalMart’s nearly $250
billion in revenue represents the total value of all the goods purchased along with its built-in
margins.This shows how complicated it is to value Alibaba.
To really understand how big a deal Alibaba is you’ve got to understand the growth of China’s
China has over 618 million internet users and they’re spending lots of money. That’s twice the
population of the United States, but only half China’s total population. So there’s lots of room
for growth in a sector that’s already exploding. In 2010, China’s ecommerce market was $74
billion dollars. In 2013, it was $295 billion. By 2017, it’s estimated to reach $713 billion.
And Alibaba is cashing in big time. It controls 80 percent of online sales. Even though it’s not
yet putting up the gross revenue numbers of Amazon and Apple, its 80 percent control of the
market and 80 percent profit take from its revenue adds up to a huge, massive, crazy, growing
amount of money.
iTech Ecommerce LLP
Khalid Isar
Founder and CEO of Itech Ecommerce (LLP)
Started with becoming the largest channel partner of ecommerce giant – ‘Alibaba.com’, iTech
Ecommerce LLP eventually bootstrapped to rebrand the product and services of Alibaba and
enabled businesses of Indian SMEs to extend their reach to the right audience with the aid of
latest technological developments. It made ecommerce and IT aspect a lot more simple, cost
effective and interactive.
We are progressive in our approach be it products, services & processes. We diligently study all
plausible aspects of a business to provide the best consultancy. Keeping a strong roadmap into
introspect, iTech Ecommerce LLP envisages a big scope for future in blending its automated and
integrated technologies of e-commerce with the Marketing and Advertisement of SMEs through
integration with internet.
We’re looking to cater immersive experiences by exploring the scope and possibility of I.T.
based solutions for ecommerce, while revamping the whole market sphere by venturing our
emphatic dream to undertake the untouched segments of the current Indian market and
transforming it into real.
Since the inception iTech Ecommerce LLP has been one of the largest channel partner of
Alibaba.com leading its operations in India. Headquartered at Noida with regional offices and
presence at Ahmedabad, Chennai, Mumbai, Jalandhar, Jaipur, Surat and other metro and non-
metro cities across India, iTech Ecommerce focus and energize on success of Indian SMEs. Our
depth and breadth of past experience with its ex-Alibaba.com management & leaders gives us
unique perspective and edge to prevail. iTech Ecommerce provide solutions to suit small,
medium and enterprise level businesses with technology at our disposal with bespoke
functionality
Integrated with Alibaba, iTech Ecommerce facilitates high conversion ecommerce for Indian
SMEs, harnessing the limitless potential of internet attracting the buyers globally while nurturing
them through experience and seasoned professionals. iTech Ecommerce deploys wide range of
creative and impactful digital solutions to online businesses maximizing their returns including
value added services and specialized training to SME’s.
iTech Ecommerce has established itself as The Best Global channel partner of Alibaba.com in
India and successfully servicing more than 3000 plus Customers across pan India. Core mantra
of iTech remains “ Facilitating SMEs to Grow Their Business BIG”
Customer Service
Sales
Sales Support
Technical Assistance
Customer Compliant
When other service providers find the problems of customer’s too complex, iTech Ecommerce
thrives at solving the same. iTech Ecommerce invests in people who have the ingenuity and
creativity to deliver impactful services that shape our customer’s success. The very fabric of
iTech is built on integrity, competence, and innovation.
iTech Value Added Services
As part of other value added services and initiatives, iTech ecommerce also expertise in
delivering the followings –
When other service providers find the problems of customer’s too complex, iTech Ecommerce
thrives at solving the same. iTech Ecommerce invests in people who have the ingenuity and
creativity to deliver impactful services that shape our customers’ success. The very fabric of
iTech is built on integrity, competence, and innovation.
Customer Service
Sales
Sales Support
Technical Assistance
Customer Compliant
When other service providers find the problems of customer’s too complex, iTech Ecommerce
thrives at solving the same. iTech Ecommerce invests in people who have the ingenuity and
creativity to deliver impactful services that shape our customers’ success. The very fabric of
iTech is built on integrity, competence, and innovation.
What We Do
iTech Ecommerce provide digital solutions & services to suit small, medium and enterprise level
businesses with technology at our disposal with bespoke functionality. Leveraging the power of
e-commerce, iTech Ecommerce is missioned to change the face of the e-commerce for Indian
SMEs, with international solutions and intuitive software to match. We help businesses attract
buyers, while nurturing them through marketing into sales funnel. We build effective ROI-based
marketing campaigns that help B2B organizations achieve core business objectives.
Awards & Achievements
We Believe that “A dream becomes a goal when action is taken towards its achievement”
Best Channel Partner For The Quarter-2017 GSD FY2018 Excellent Service Team
Global Top 1 Alibaba India Top 1
PRISES
(3) Enter your location, contact information, email address, and create a
password in the registration form.
(4) Click “Create My Account”
(7) Enter a brief description that will help users find and better understand
what your product is.
(8) Click “Next”.
(13) Select the payment and shipping terms that best suit your needs. This
is where you will select how customers will be able to pay for your
product, the minimum order quantity, and the price per product.
(14) Select the production capacity, estimated delivery time requirements,
and packaging details. This will help buyers get an idea of your delivery
services and whether or not you can meet their requirements.
(17) Select a Business Type and fill in what Products/Services you sell.
(18) Create a Member Profile by entering your Gender and Contact Address.
(19) Click “Submit” to submit your product listing to the Alibaba approval
process.
Research Methodology
The research has been carried out pursuing the avenues of both primary and
secondary sources.
2. A number of Alibaba (itech Ecommerce) staffs ( Manager’s, salesmen ) who were on duty
were interviewed.
3. A B2B survey was carried out covering a total of 10 customers of Alibaba. These customers
were given a questioner designed for this survey.
2. A few online articles regarding Alibaba were consulted to view expert opinions as well as
perceptions of customers regarding this chain.
3. Annual reports of the company were also consulted to gather necessary information
including some financials.
Findings
● Some of the important findings in Alibaba.com were that most of the suppliers were very
reluctant to spend money on the online promotions of their products.
● They have a very good knowledge of the online promotional tools which are prevalent in
the market and they are interested also.
● They are also aware of the other competitors in the market like IndiaMart,Tradeindia.com,
etc.
● Most importantly they have enough faith on Alibaba.com and they are very much
interested in promoting their product through the Alibaba as they know the number of
clients in Alibaba.com is very high.
● They are also in the belief that if they want to promote their business globally, online
promotions are necessary.
● The suppliers are also in the opinion that print media, trade fares are very much
beneficial in the online promotion activities.
● During the interaction with the suppliers, it was very much clear of the fact that the
service rendered by Alibaba.com is of supreme quality and they want to be the client of the
company.
Recommendations
For an effective online promotional marketing strategy for a manufacturer,
there are some recommendations which need to be followed so as to increase
the revenue of the company.
Build a Website:
A website that covers complete product and company information along with client testimonials
has become a prerequisite for manufacturers looking for web presence. Updating the product
catalogue and other latest happenings such as trade fare participations at regular intervals is also
essentials to keep the customers and visitor’s interest. The company must be prompt in replying to
business queries from buyers over email or phone.
E-mail Marketing:
A concrete database of the target customers from a reliable source should be obtained and send
mailers using a service that gives detailed statistics of its rate, click through, etc.
Build Trust:
Online marketing is mainly based on trust. You can capitalize on mechanism which bridge the
trust gap associated with the online medium and enhance your credibility. Alibaba.com has a
business verification service ‘Trust Seal’ and that needs to be used in a very fair way to obtain
the customer’s trust.
1. They have a very good knowledge of the online promotional tools which are prevalent in the
market and they are interested also.
2. They are also aware of the other competitors in the market like indiamart.com, tradeindia.com,
etc.
3. Most importantly they have enough faith on Alibaba.com and they are very much interested in
promoting their product through the Aliibaba.com as they know the number of clients in
Alibaba.com is very high.
4. They are also in the belief that if they want to promote their business globally, online promotions
are necessary.
5. The suppliers are also in the opinion that the other Available Resources of the internet are very
much beneficial in the online promotion activities.
6. During the interaction with the suppliers, it was very much clear of the fact that the service
rendered by Alibaba is of supreme quality and they want to be the client of the company.
Questionnaire
1. NAME
______________________________
2. Email Address
______________________________
3. Phone No.
______________________________
______________________________
5. City
______________________________
______________________________
(a) Which ones of the following categories are you interested in sourcing at Alibaba.com?
Check all that apply.
Shop products
Look for the latest market/product information for my business (e.g.
popular products, price trends, etc.)
Search for suppliers
Other:
(c) Which of the following BEST describes your purpose for shopping products on Alibaba.com?
[Please select one.]
Other:
(d) Which of the following best describes your sourcing attitude on branded products? Mark only
one oval.
(e) How many years have you been involved in international trade? [Please select one.] Mark only
one oval.
Manufacturer
Import/Export Company
Wholesaler/Distributor
Online Retailer
Offline Retailer
Large Supermarket/Hypermarket/General Merchandise Store
(g) How many employees are there in your business (including yourself)? [Please select one.]
Mark only one oval.
2 to 4
5 to 9
10 to 49
50 to 100
(h) What is your role in the company? [Please select all that apply.] Mark only one oval.
I am the owner
I am the general manager/director.
I am the purchasing manager.
I am a purchaser/merchandiser/purchasing assistant
Other:
(i) Which B2B portal you preferred to generate your business? Mark only one oval.
India-mart
Alibaba
Trade India
Amazon Business
Go4world business
Jim Trade
Other:
(j) Have you ever used any portal for your product's Promotion? Mark only one oval.
Yes
No
(k) How did you know about Alibaba.com? Mark only one oval.
Internet
News paper
Exhibition/Trade shows
Magazines
Other:
Weekly
Monthly
Quarterly
Annually
Other:
(m) What benefits do you look for when you purchase? Mark only one oval.
Price
Durability
Comfort
Other: