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Analyze Alibaba`s business model relative to all the different forms of digital and online marketing covered...

Analyze Alibaba`s business model relative to all the different forms of digital and online marketing covered in this chapter

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Alibaba has come a long way since its beginning in 1999. As of April 2016, It is the world’s largest retailer surpassing Walmart, with operations in over 200 countries. The business model of Alibaba is different from other players like eBay and Amazon. It focused more on trade between businesses. Unlike the usual business-to-consumer approach, Alibaba focuses on being a platform for suppliers to sell products in bulk at wholesale prices to small or medium-sized businesses worldwide, who then resell them for a profit in their domestic markets.

Although Alibaba focuses on business to business trade it also supports other trade through e-commerce web portals. Taobao is for consumers to trade, where as Tmall is for the upcoming middle class of China to purchase branded products. There are many other subsidiaries through which Alibaba makes money.

Alibaba’s Busines model is made up of three major web portals: Alibaba.com, Taobao, and Tmall. All of them serve to connect various types of buyers and sellers. However, there are 6 more subsidiaries of Alibaba which include Aliexpress, 1688, Alimama, Alibaba Cloud, Ant Financial, and Cainiao Network. All these subsidiaries are so well integrated that they make the Alibaba group a big ecosystem.

Alibaba business model is really profitable and scalable and their momentum is ever increasing. They have the advantage for any upfront challenges in new markets.

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