Alibaba.

com
 Traditional Sourcing Lifecycle

Search/
Evaluate Negotiate Transact
Discovery

Average sourcing cycle: 3.3 – 4.2 months

52% of time spent searching for/identifying 20% of time spent on screening/sorting

appropriate suppliers proposals
18% of time spent on RFQ development/ 10% of time spent on contract negotiations
RFQ response

Traditional Sources of Supplier Information

Referral Industry associations
Trade shows Trade directories
Industry magazines, trade journals Existing suppliers

Source: The Aberdeen Group

 The Sourcing Lifecycle, 2.0

Search/
Evaluate Negotiate Transact
Discovery
Finding Suppliers on-line
is a matter of hours, not
days and weeks.
52% of time spent searching for/identifying 20% of time spent on screening/sorting
appropriate suppliers proposals
18% of time spent on RFQ development/ 10% of time spent on contract negotiations
RFQ response

Average sourcing cycle: 1.6 – 2 months

New Sources of Supplier Information

Internet Referral

Source: The Aberdeen Group

Alibaba’s Mission and Vision

Marketplace To Make It Easy To Do Business Anywhere

Community To Be an Essential Partner to All Businesspeople

Long Term Vision To Build a Company that Lasts “102 Years”

Products and Services

• B2B (market place): alibaba.com, divided into

china.alibaba.com (serving Chinese customers),
japan.alibaba.com (serving Japanese customers),
alibaba.com (serving global customers)

• C2C: taobao.com (founded in May 2003), free

website, business volume in 2005 is USD 967 M.

• Alipay: online payment tool (founded in October

2003, one of the main electronic payment tools)

• Yahoo China (after the deal)

5
 The Alibaba Network

• Search products
Buyer • Contact Suppliers

• Post products
Supplier • Reach international buyers

• Manage Account Information

Alibaba.com My Alibaba • Check messages
• Buying and selling tools

• Online Forum
Community • Open Sesame Events

• Trade Essentials
Tools & • Tradeshow Channel
Resources • Trade Alert
• TradeManager
Largest Online B2B Marketplaces

Sellers Buyers

 Typically  Across more

SMEs than 200
International
InternationalMarketplace
Marketplace countries
 Ten to a few
thousand 4.4
4.4million
millionregistered
registeredusers
users (1)
(1)
 Companies
employees of all sizes
 5,000+  Diverse end
product markets
categories
in 30+
industries China
ChinaMarketplace
Marketplace
23.2
23.2million
millionregistered
registeredusers
users
(1)
(1)
Alibaba.com synergies

As a neutral marketplace, Alibaba.com is building a

platform to bring together all relevant trade services

Associations Trade shows Media/Publications

Alibaba.com

Logistics Financial Institutions Inspection

 Our International Marketplace
 Over 4.4 million registered members from 200 countries &
regions
 USA is our most active region in the world
 Approximately 800,000 members from the USA
UK 6% EU 9% India 8% China 7%

Canada 3%

USA 18%
South East
Asia 13%

South America 3% Middle East 4% Australia 3%

9
Business Strategy:
 Keep the leading position in e-commerce. Provide business
opportunities to medium and small-sized enterprises, esp. to
foreign-trade enterprises
Enlarge the online value-chain like the pay system and the
searching system of the e-commerce
The target is to be a leading global player of C2C and
B2B internet business.
The vision is to be one of the top 10 websites globally, that all
the business man will use Alibaba.
10
The success story of Alibaba.com
Entrepreneurial opportunities
Manufacturing arm of the world
Cheap labor, door to door salesmen
The point of entry
Alipay service.
Variety of products
User friendly interface
Right strategies at right time