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Porter's Five Forces Analysis Of Alibaba

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Assignment: Portfolio Income & costs and profit measures of performance Alibaba.com is a China’s B2B e-commerce company which owns a U.S. IPO that worth $25 billion has become the largest B2B e-commerce company in the world in just a few years and barely anyone expect the company can achieve this results so successful. Referring to the Appendix A, the income of Alibaba has been increasing from year 2010 to 2014. This is because of there has a few key factors of success that carried out by the founder of Alibaba.com, Jack Ma to operate the e-commerce business in the global marketplace. Furthermore, Alibaba’s primary income basically is derived from subscription fees, listing fees and advertising avenues in the International marketplace and China marketplace. Alibaba earns the income from the …show more content…

Among all of these five forces, new entrants is one of the consideration to enter Alibaba.com industry however it do not pose as major threat of Alibaba.com currently. Moreover, high returns will be draw to the firms with the development of B2B market that has constant high profit of Alibaba.com. As results of many new entrants attempt to enter the Alibaba.com caused the profitability of Alibaba.com decrease effectively. Basically, new entrants try to learn and copy the way of Alibaba.com operates their business by placing its target market to a single industry. For instance, there has two e-business firms attempt to enter B2B market, there are finechemical.com which produces the chemical products and Textilehome.com which produces the textiles. In addition, these companies with their professional and target to share the success business market of Alibaba.com although they do not have the broad market as

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