History of Alibaba Group

By | February 15, 2024

According to ezhoushan, Alibaba Group ( Chinese: Alibaba Group Holding Limited ) is a world-famous Chinese e-commerce company. The creator is Jack Ma. The head office is located in Hangzhou, People’s Republic of China.

Origin

Jack Ma came up with the idea of ​​naming his project after the hero of the Arabian fairy tale in a cafe in San Francisco. To those around, “Who is Alibaba?” he asked. After receiving the obvious answer “Alibaba and the Forty Thieves” from everyone, he realized that this name is world famous and decided to name his website “Alibaba”.

Jack Ma, who is looking for investors to finance his project in the field of Internet-commerce, when his search is unsuccessful, calls 18 close friends to his house and tells them about his project for two hours. Everyone agrees to help him financially. Yun Ma manages to raise $60,000 from his friends. Thus, on April 4, 1999, “Alibaba.com” was created in the B2B arena.

At first, they treated “Alibaba” as a trading platform for small and medium-sized entrepreneurs. But the company quickly manages to serve citizens of 200 countries – 12 million people. At the same time, it attracts the attention of foreign investors who once stonewalled the project. In 1999, the famous investment bank Goldman Sachs invested in Alibaba, and in 2000, the Japanese telecommunications company Softbank Corporation invested. In those days, the company does not have any business plan:

“In order to realize my project, I wrote a business plan when you were looking for investors. But the people I approached rejected the project, saying that it was not correct. Since then, I have not had the desire to write a business plan.”

In 2002, Yun Man’s project became a profitable business. In 2003, the businessman creates “Taobao.com”, which implements payment through the Internet in the C2C model. It’s an alternative to America’s ” eBay ” somewhere.

In 2007, the shares of “Alibaba Group” (Alibaba.com) are listed on the Hong Kong stock exchange.

In 2010, “Tmall.com” was created. This website allows Chinese and foreign suppliers to sell branded products to China, Taiwan, and Hong Kong.

In 2011, the number of official users of the Internet-commercial website “Alibaba.com” reached 240 countries.

Structure

Currently, “Alibaba Group” manages several structures. This includes:

  • “Alibaba.com” (Alibaba China, Alibaba International);
  • “AliExpress.com” (online store);
  • “Taobao.com” (online market, internet auction);
  • “Tmall.com”;
  • “Juhuasuan, eTao”;
  • “Alibaba Cloud Computing”;
  • “China Yahoo!”;
  • “Alipay”.

Financial indicators

As for the financial indicators of the company, in the second quarter of 2014, its revenues were 2.54 billion dollars. Net income was 1.99 billion dollars. The market value of the company is estimated at 160 billion dollars. It should also be noted that in 2014, “Alibaba Group” announced that it would go public. The company’s IPO price is $60-$66. This price is expected to change with the demand from international investors. After going public, the company is said to add $20-25 billion in revenue to its balance sheet.

Yun Ma explains the reason for Alibaba’s success compared to other companies:

“They had too much money. When competitors wanted to do something, they relied on their money to start. On the contrary, for us, money was an important tool to achieve our goal. At first, the capital of the company was so small that we counted every dollar. For example, the office is in my apartment “At that time, Alibaba’s competitors were stronger in terms of resources, but they didn’t realize it quickly. As a result, their mistakes helped our company rise.”

History of Alibaba Group