All praise to the glorious Allah
Attiq Shah
IntroductionE-COMMERCE
E-commerce was introduced in China in 1993.
E-commerce market are influenced by govt.
regulations, logistics and payment systems.
IntroductionE-COMMERCE
Trudy Dai used to spend all night sending e-mails
from her friend Jack Mas apartment through
Alibaba, an online listings service
Mr. Ma, a teacher, had just started.
From 22.5 million users(1.7% of internet users of
China) in 2000, the usage rose to 162
million(12.3%of internet users)in 2007,and has
been growing continuously since then.
Introduction
Sear
ch
Engi
ne
Taobao MarketPlace
[Link]
JuHuaSuan
AliTrip
AliExpress
[Link] [Link]
AliMama
AliPay
AliBaba Cloud Computing
Mark
etpla
ce
Ban
k
All in
One
Introduction
Ali Baba -Country wise business
Scenario (2008)
Country/Regio Business(in
n
%)
USA
21
Europe
21
India
South east Asia
China
Hong Kong
Singapore and
Malaysia
Canada
Australia
Others
27
Customer Driven Strategy
The first was that many Chinese are tight-fisted.
So Alibaba made all the basic services it offers
free to both buyers and sellers.
It earns money through online advertisements
and extra services it offers clients, such as
website design.
Customer-relationship building
The second is that many Chinese are
reluctant to trust strangers. So Alibaba has
provided tools to build trust.
One is an independent verification service
through which third parties vet the claims
made by sellers; the sellers pay for the
process. Another is the Alipay payments
system.
Visio
n
To Last 102 Years
To be one of the worlds top 10 Internet
Sites
To be essential partner for all business
people
Developme
nts
Case
1999
Raised
money from Venture Capitalist
analysis
Platform for Trade B2B
2 lac members at the end of year
Attracted other companies into e-Commerce
Stood hard in dotcom bubble
Dotcom Crash
200
0200
3
200
4200
Advertising Revenue
Bankruptcy
Mergers
Early 2001 Alibaba offered Alibabies
Late 2001 created a Community
China Suppliers
Set a Trustpass Membership
Entry into C2C and B2C
Winning over eBay
Yahoo! china Acquisition
Developme
nts
Objectives
1999
200
0200
3
200
4200
Gather Work Force
Build Customer Base
Establish Brand Name
Withstand Dotcom Burst
Consolidate Firms Position
Image Building
Retain Employees
Expansion within China
Global Presence
Better Revenue Model
Developme
nts
Finance
1999
200
0200
3
200
4200
Debt Fund Raising
Venture Capitalist
Soft Bank
Revenue Model
Selling of Advertising Space
Charging of Membership
Debt Leverage Concept
Merger and Acquisition
Expansion of revenue Model
Waseem Akbar
Assets
Total Assets of Ali Baba = $17.94 billion
Total Current Assets = $ 10.78 billion
Total Fixed Assets = $ 7.16 billion
Revenue = $8.58 billion
Net Income = $3.81 billion
Interest Expense = $358.53 million
For the year 2013-14
How it stands with the competitors?
Ali Baba
Amazon
eBay
2012-13
2013-14
2012-13
2013-14
2012-13
2013-14
$5.5B
$8.58B
$74.45B
$16.05B
Net Income
$1.36B
$3.81B
$274M
$2.86B
Total Assets
$10.27B
$17.94B
$40.159B
$41.49B
$6.95B
$10.78B
$24.625B
$23.28B
Revenue
Total Current Assets
Data fetched from [Link] (Stock
Exchange)
Ratio Analysis of AliBaba
Assets
Current
Assets other
than
Inventories
Balance
Sheet
Liabilitie
s
$10.78B
Current
$5.36B
$11.37B
Inventories
Total Current
Assets
$10.78B
Total
Liabilities
Total Assets
$7.16B
$17.94B
$6.01B
Liabilities
Non-Current
Liabilities
Non-Current
Assets
Some Elements
ofIncome Statement
O.E
$4.72B
Common
Equity
$1.84B
Other O.E
$6.56B
Total O.E
$17.94B
Sales
$8.58B
Net
Income
$3.81B
Total L+O.E
Data fetched from [Link] (Stock
Exchange)
Website to Visit!
[Link]
mentals--Alibabacom_Limited
For ratio analysis!
Profit Analysis
Analysis of Returns
Asset Turnover Analysis
Other Things
Beta = 0.0395
Altmans Z-Score = 2
Criteria for Altman Z-Score:
1.
z > 2.99 (Safe)
2.
1.8 < z < 2.99 (Grey)
3.
z < 1.8 (Red)
Muhammad Hussain
Who is an underwriter?
What is an IPO?
What is Secondary Public Offering?
When did the world see its first IPO?
Comes Wow!
Ali Babas IPO
AliBaba raised $25 Billion (Pakistani: Rs.25 Arab) = 10 Mian Manshas
Initial expected price: $60-$66
IPO on $68
IPO on 18th September, 2014
Biggest IPO so far
Broke the record of Agricultural Bank of China ($22.1 Billion)
Underwriters earned $300 Million
Out of which $121.8 million was to be paid by AliBaba and $178.6 by
Shareholders
Stock price on 24th November, 2014: $112.15 (10.15 pm. Pakistani time)
Authorized shares = 320.1 million
Issued shares = 123.1 million
They had supposed to raise $8.371 Billion with $68 per share
But, they actually raised $25 Billion
Market Share
Potential of E-Commerce in China
A Chance for AliBaba
Waseem Akbar
To Close it All!
The Great Jack Ma
Thank you
