Case Study Of Alibaba

Jack Ma founded Alibaba Group, together with his 17 friends in 1999. Jack Ma was just an English teacher when he developed the idea of establishing an e-commerce site that will help sellers and buyers alike, as a platform for them to communicate, advertise and make transactions. The Internet was still not at the peak of its popularity yet back then, but Jack Ma had a vision. With a fund of he knew that he could help businesses in China to develop and compete competitively in the local and international markets. Today, Alibaba Group has grown so much and has created multiple platforms for the business-to-business, business-to-customer, and customer-to-customer trading site and been one of the largest e-commerce sites that ever established.

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Some of the services offered are online payments, listing solutions, transaction protection and authentication, instant messaging, member reputation and after sales services such as warranty programs. All these services have accelerated the company 's achievement. Pricing is another strategy that led to the success of Alibaba.com; the company has adopted a number of pricing strategies such as; product line pricing, penetration pricing and discounts. These pricing methods used are fair to the business-to-business customers and have increased the sales of the company. Small and big businesses has the option of using the free member service that Alibaba provided, which will allow them to do 50 product postings but with 4th priority ranking and no product showcases. If the business wants to have greater priority, unlimited product posting, product showcases for up to 25 products, and many other benefits including personalized customer service, they can opt for basic, standard or premium packages that starts from $699 per year. Alibaba uses complementary pricing in this case where they would offer basic services and have the option of adding on features to make the e-commerce experience more seamlessly. Below is the table that explains more on this