Alibaba’s Corporate Outlook

Alibaba’s corporate outlook

Alibaba is a Chinese online commerce company which has hundreds of millions of users, individuals can buy and sell freely on its main website-Taobao and it is the world’s biggest online commerce company nowadays. People can register their own online shops on the platform and let customers search for any types of goods they want. Normally, customers would be able to get their orders within two days, the large volume of transactions and high efficiency brought Alibaba a tremendous success.

According to Alibaba’s 2016 annual report, the total revenue was 101,143 million (RMB). China commerce contributed the most gains which was 84,321 (online marketing services accounts for 52,396, commissions 25,829, others 1,808, commerce wholesale business 4,288). The international commerce is at the start up stage and contributed 7,629 (international commerce retail business 2,204, wholesale 5,425). The cloud computing brought 3,019 and others made 6,174. About half of Alibaba’s revenue were from online marketing services (52,396), Individual shop owners are willing to pay advertising fees to outstand from their competitors to reach customers and boost their sales. The international markets were just started and the cloud computing was a newborn strategy. Moreover, Jack Ma, the CEO of Alibaba, said that data will become the most valuable resource after ten years, and he indicated that he had already set directions and business plans for Alibaba to use this powerful tool. Alibaba keeps its high growing rate for many years, the huge user bases gave it enormous potentials. In this case, the tight economy would not slow down Alibaba’s pace, but makes Alibaba outstanding with relatively strong financial statements. Also, Jack Ma is developing and trying his best to spread the international market, which will enlarge Alibaba’s pool and reduce its risks.