Question

Write a short business report about Alibaba Group. The report must includes: Their business model, their sources of revenue, their profit for the last five years, future plans, Internet technologies using to handle Internet traffic.

Answer 1

Today, Alibaba Group Holding Limited is one of China's largest enterprises providing consumer-to-consumer, business-to-consumer and business-to-business sales and various other services through e-commerce platform and offline portals. Electronic payment processing, exchange and data-centric cloud storage are the main revenue-earning processing.

Alibaba's business model is distinct from that of other players like eBay and Amazon. It based more upon business-to-business exchange. Unlike the normal business-to-consumer approach, Alibaba focuses on being a forum for manufacturers to sell goods in bulk at wholesale rates to small or medium-sized companies around the world, who then resell them in their domestic markets for a profit. While Alibaba focuses on business to trade, through e-commerce web portals it also supports other commerce. Taobao is for customers to trade where, just as Tmall is for China's next middle class to buy branded goods. There are a number of other companies Alibaba is making money from.

AliExpress is a global online platform allowing customers from around the world to buy directly from China's producers and distributors. The distinction between Taobao and AliExpress is that Taobao is based on selling to Chinese customers, while AliExpress enables buyers from countries such as Russia, the USA, Spain, Brazil, France, the UK, etc. to buy directly from Chinese companies.

Alipay is an electronic payment site for third parties to assist the customers with their transactions. It is just like Paytm in India, an eWallet platform that lets shoppers store funds and securely use the stored funds with ease to transact online and offline.

Alibaba was originally established as a B2B e-commerce portal in 1999 to link Chinese manufacturers with buyers outside the country. The service grew in 2003 to include Taobao, a C2C e-commerce marketplace, and in 2008 Tmall, a brand and online retail-focused B2C online shopping site. In 2010, community shopping and flash sales website Jujuasuan was launched to round off the digital offerings. Overall, Alibaba Group's largest share of revenue is generated by Chinese-based e-commerce, as company data states segment revenue in 2019 of 247.6 billion yuan. Foreign retail trade accounted for annual sales of 19.6 billion yuan.That year, retail e-commerce in China accounted for 66 percent of company revenue. Alibaba Group’s net income amounted to 80.2 billion yuan.

Alibaba's management retained its 500 billion-yuan revenue forecast for fiscal 2020. The near-term goal of the company is to raise annual active customers from the current 730 million in the next five years to over one billion and nearly double its annual gross product volume from 5.7 trillion yuan in fiscal 2019 to over 10 trillion yuan by 2024. Alibaba (ticker: BABA) aims to touch two billion global customers by fiscal 2036, generate 100 million jobs, and help over 10 million successful small to medium-sized enterprises on its platforms over the long term.