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Business Model Canvas of Alibaba

Agam Mishra
Anamika Pandey
(MBA 3rd Semester)
CASE FACTS:
Chinese multinational conglomerate.
Founder – Jack Ma
Year of Establishment – 1990 (Hangzhou, China)
CEO – Daniel Zhang (present)
Revenue – 37,684.4 Crores (2019)
World's fourth-largest internet company by revenue.

http://www.alibaba.com
World's fourth-largest internet company by revenue.
Cost
Structure
Customer Segments
Alibaba operates on a MULTI-SIDED BUSINESS model.
Two interdependent customer segments (Buyers and Sellers)
These segment include consumers and businesses in different combinations
(B2B, B2C, & C2C).
Value Proposition

Alibaba offers 5 primary value propositions:


Accessibility
Customization
Convenience
Risk reduction
Brand/Status
Channels

Main channel: Website


http://www.alibaba.com

Other channels:
Sales team
Telephone sales personnel
Social media
Customer Relationships

Primarily Automated Self-Service

Limited human interface at all Customer


Touch Point

Self-help resources such as videos and


answers to frequently asked questions
available on the website

Personal assistance in the form of phone, e-


mail, and live chat support
Key Activities

Maintaining a robust common


platform between two parties:
Product/Service
Buyers and Sellers.
Key Partners

Marketing Affiliates
Logistics Service Providers
Retail Operational Partners
Independent Software Vendors
Professional Service Providers
Key Resources

Proprietary software platform


Depends on human resources
(In the form of more than 12,000 engineering and data
analytic)
Relied heavily on funding from outside
parties
(Raising $8.91 billion as of June 2016)
Cost Structure
Cost Structure

Cost-driven structure
(aiming to minimize expenses through significant automation and
low-price value propositions)
Cost driver is cost of revenue
(a variable expense that includes staff, maintenance, and traffic
acquisition costs)
Other major drivers like SALES/MARKETING
AND PRODUCT DEVELOPMENT, BOTH
FIXED COSTS
Revenue Streams

Alibaba has three revenue streams:

Commissions
(Revenues generated from fees charged to sellers
for each sales transaction)
Advertising Fees
(Revenues generated from fees charged to
advertisers for online marketing services. These
account for the vast majority of company
revenues)
Service Fees
(Revenues generated from fees for various online
services)
MOBILE driven
Cast your net wide in search of OPPORTUNITIES
Power of NETWORKING
“Focus first on customer satisfaction and second on teamwork.
Shareholders’ interests come third because they are outcomes, not
inputs.” – Jack Ma
References

Alibaba.com
Clevrism.com
Google images
You tube.com
Quora.com
Wikipedia.com