Alibaba founded in the year 1999 by Jack Ma (Ma Yun), a Chinese business magnate. Alibaba is a group of internet-based business.
At first, I thought Alibaba is just an online e-commerce platform. But I am wrong after I find out more about Alibaba. I believe, if a person has the visual and want to grow a business inside out, he will looking from multiple angle and time is essential in doing this.
Why is Alibaba huge?
Background of e-commerce
Let’s look from an angle from a normal online business. When running e-commerce, if you are a retailer or a merchant who sell an item online, you will come across some common platform such as eBay or Amazon, where you can list used or new item for sale. The marketing effort is being covered by eBay or Amazon; they will help you to reach the potential buyer. Once interest buyer query on your product details, then they will send in payment and secure the deal. Here is where buyer chooses payment gateway such as “PayPal”, who has buyer and seller protection. You as a retailer will have to pay an amount of commission for using the online platform and the online payment gateway. If the item is physical item and buyer choose for delivery, you will have to involve logistic services to ship the item. Either by air-freight or sea-freight, the cost is bear by buyer.
Now, you already see a lot of parties is involved from client selection to closing the deal.
Innovation – solving the old problem using the new method.
Alibaba has examined the problem and efficiency of the process flow. They optimise them and manage to come out multiple networks and internet based company. Following will show some of the company which included in the group and the group member are expending from day to day.
In this platform, Alibaba has already completed the eco-system of the whole buying and selling flow of the e-commerce.
They have created T-mall and Taobao to for retail product distribution, whereas they created 1688.com for leading wholesale marketplace for domestic China trade among small business. They have created Cainiao for logistic and Alipay to collect payment. Besides, Aliyun is a scalable platform which provides cloud computing and data management. And they recently have ventured into online insurance and electric vehicle (EV) business.
Important milestone year 2014: Ant Financial (source)
- The rebranding of the Alipay unit to Zhejiang Ant Small and Micro Financial Services Group Co, or Ant Financial for short, is part of a strategy by Alibaba and its affiliated companies to accelerate development of financial business
- Ant Financial now oversees 5 entities including payments service Alipay and Alipay Wallet, investment fund Yu’e Bao, P2P lending platform Zhao Cai Bao, MYBank, a private bank and user credit scoring system Sesame Credit
1Alipay apps - Frontpage
(co-created by Alipay and Ant Financial)