Alibaba Group Holding Ltd

ALIBABA GROUP HOLDING LTD

-Mercy Jane P. Ballesteros-

A publicly traded Hangzhou-based group of Internet-based e-commerce businesses.

Alibaba was established as a group on 1999.

It has three main sites TaobaoTmallAlibaba.com

DEFINING ALIBABA

Alibaba- a popular destination for online shopping.

Commercial transactions are conducted electronically on the Internet.

Estimated transactions on its online site totaled $248 billion in 2013.

E-COMMERCE

Alibaba became one of the most valuable tech companies in the world.

It has raised an initial $25 billion from its U.S. IPO making it the largest initial public offering in U.S. history.

MARKET CAPITALIZATION

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Market Capital as of Sept. 18, 2014 US Billion-dollar

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Gross Merchandise Volume, 2Q 2014

US Billion-dollar

The website helps connect exporters in China and other countries with companies.

The company offers online marketing, cloud computing and logistics operation.

WHAT DOES ALIBABA DO?

Alibaba is competing for China’s smartphone users in its search for growth.

It is forging into new businesses and bumping into powerful players like Chinese banks and regulators.

CHALLENGES

Internet users are migrating to smartphones as it scramble among the country’s Internet giants.

Companies are spending billions of dollars to invest that can help them compete.

RACE TO GO MOBILE

Alibaba has used that rapidly increasing online market to pioneer smartphone technology in China.

It now controls over 75% of all mobile retail in China.

THE SECRET OF ITS SUCCESS

Alibaba does not charge listing fees. It makes most of its revenue from

advertising.It simply connects customers and

businesses charging only small commission.

HOW DOES ALIBABA MAKE MONEY?

The Man behind Alibaba

JACK MA

A Chinese entrepreneur and philanthropist.

Founder and Executive Chairman of Alibaba Group.

Ma was born in Hangzhou Zhejiang Province, China.

He developed a desire to learn English by conversely guiding foreigners around the city to practice and perfect it.

EARLY LIFE

Ma founded China Yellow pages in 1995.

Alibaba was established in 1999 in Ma’s apartment in Hangzhou.

A China-based business –to – business marketplace site.

CAREER

Only fools use their mouth to speak. A smart man uses his brain, and a wise man uses his heart.

PHILOSOPHY

Jack Ma controls Alibaba even after stepping down as its Chief Operating Officer (CEO) in January of 2013.

He earns money out his 8.9% stake in Alibaba with an estimated worth of $22 billion.

WEALTH

Jack Ma as a Philanthropist

Jack Ma and Joe Tsai (one of the founders of Alibaba Group) sets up trusts funded by share options that represents 2 percent of the company’s current equity.

Alibaba launched its charitable trust to combat pollution and improve education in China.

JACK MA’s PHILANTHROPIC TRUST

ALIBABA GROUP’s THREE MAIN SITES

Taobao Marketplace or Taobao is China’s largest consumer –to - consumer online shopping platform.

It’s growth was attributed to offering free registration and commission-free transactions using free third party payment platform.

Taobao.com

An online retail platform to complement the Taobao business – to – consumer portal.

It is a platform for local Chinese and international businesses to sell quality, brand name goods to consumers in mainland China, Hongkong, Macau, and Taiwan.

Tmall.com

An online business –to- business trading platform for small business.

Alibaba.com handles sales between importers and exporters from more than 240 countries and regions.

It also offers a transaction-based retail website, AliExpress.com, which allows small buyers to buy small quantities of goods at wholesale prices.

Alibaba.com

Five Reasons For Alibaba’s Initial Public Offering

Jack Ma promised to repay his lenders by going public within a specific timeframe.

INVESTOR PAYBACK

Jack Ma “I think the most likely outcome that we could see just after the Alibaba IPO…is that either Alibaba or Softbank buys Yahoo!”

FLIP THE SCRIPT AND ACQUIRE YAHOO!

Alibaba’s growth potential is limited as it needs to increase its presence in some crucial footholds.

FILL PORTFOLIO GAPS

Alibaba will need to have the means to fund its future plans.

Beyond cash, the ability to issue and award stocks is an effective way to backstop growth.

GAIN SOME CURRENCY

Jack Ma’s plan on taking Alibaba public has build its brand’s reputation as public interest doubled after its Initial Public Offering (IPO).

BUILD BRAND AWARENESS

THANK YOU!