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Running head: AN E-BUSINESS ANALYSIS OF ALIBABA 1
An E-Business Analysis of Alibaba
Institutional Affiliation
Date

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AN E-BUSINESS ANALYSIS OF ALIBABA 2
Executive summary and an overview of the company, its history, background, and stage
in the company life cycle
Alibaba was founded back in 1999 to provide buyers and suppliers with a convenient
online interface where their needs can be matched. Most of the dotcom empires have fallen
because of the inability to balance the way they manage their businesses and their ambition for
growth. The success of this company amidst the expontaneous dotcom bubble can largely be
traced to their foot-print principle. This has seen them learn from their initial limitation of
resources by minimizing exposure to risks. The company started with very limited capital when
its initial 18 founder investors put together $60,386 seed capital (IFIP Conference on e-Business,
e-Services, and e-Society, and Godart, 2009).
Alibaba’s business model is unique in a number of ways as most of its customers are still
using the traditional supply chain. Rooted in the three of its virtual supply chain components’ the
company places emphasis on its suppliers to match their chain supply needs, information
management, and buyers seeking for business relationships.
The company’s phenomenal growth during its early years was largely due to huge capital
injection from its investors. It was the three “B2C” strategies that saw the founder, Jack Ma
clarify the company’s market definition charting the roadmap for its future business relationship
with its customers. The “B2C” strategy adopted by the company has the elements; “Back to
China”, “Back to coast”, and “Back to Center.”
The “Back to China” element in its strategy saw the company focusing more on
developing a dependable network of suppliers from China within a small budget. This core value

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Running head: AN E-BUSINESS ANALYSIS OF ALIBABA An E-Business Analysis of Alibaba Institutional Affiliation Date 1 AN E-BUSINESS ANALYSIS OF ALIBABA 2 Executive summary and an overview of the company, its history, background, and stage in the company life cycle Alibaba was founded back in 1999 to provide buyers and suppliers with a convenient online interface where their needs can be matched. Most of the dotcom empires have fallen because of the inability to balance the way they manage their businesses and their ambition for growth. The success of this company amidst the expontaneous dotcom bubble can largely be traced to their foot-print principle. This has seen them learn from their initial limitation of resources by minimizing exposure to risks. The company started with very limited capital when its initial 18 founder investors put together $60,386 seed capital (IFIP Conference on e-Business, e-Services, and e-Society, and Godart, 2009). Alibaba’s business model is unique in a number of ways as most of its customers are still using the traditional supply chain. Rooted in the three of its virtual supply chain components’ the company places emphasis on its suppliers to match their chain supply needs, information management, and buyers seeking for business relationships. The company’s phenomenal growth during its early years was largely due to huge capital injection from its investors. It was the three “B2C” strategies that saw the founder, Jack Ma clarify th ...
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