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  • Ali Baba Vs Amazon Summary

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    A battle is looming between Amazon and Alibaba to dominate Southeast Asia's growing online shopping market. Alibaba has been aggressively expanding in the region, while Amazon plans to launch in Southeast Asia in early 2017. Both companies have large ecommerce businesses and logistics networks, though their models differ - Alibaba operates marketplaces while Amazon sells directly to consumers. With over 600 million consumers in Southeast Asia and online shopping accounting for less than 5% of retail currently, both companies see potential for significant growth in the region. However, the market is fragmented across countries with different rules and infrastructure challenges.

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    Ali Baba vs Amazon Summary

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    A battle is looming between Amazon and Alibaba to dominate Southeast Asia's growing online shopping market. Alibaba has been aggressively expanding in the region, while Amazon plans to launch in Southeast Asia in early 2017. Both companies have large ecommerce businesses and logistics networks, though their models differ - Alibaba operates marketplaces while Amazon sells directly to consumers. With over 600 million consumers in Southeast Asia and online shopping accounting for less than 5% of retail currently, both companies see potential for significant growth in the region. However, the market is fragmented across countries with different rules and infrastructure challenges.

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    82 views3 pages

    Ali Baba Vs Amazon Summary

    Uploaded by

    UFC 247
    A battle is looming between Amazon and Alibaba to dominate Southeast Asia's growing online shopping market. Alibaba has been aggressively expanding in the region, while Amazon plans to launch in Southeast Asia in early 2017. Both companies have large ecommerce businesses and logistics networks, though their models differ - Alibaba operates marketplaces while Amazon sells directly to consumers. With over 600 million consumers in Southeast Asia and online shopping accounting for less than 5% of retail currently, both companies see potential for significant growth in the region. However, the market is fragmented across countries with different rules and infrastructure challenges.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    of 3

    A momentous battle over Southeast Asia’s online shoppers looms.

    On one side, there’s US-based Amazon, the granddaddy of


    internet shopping sites, and in the opposite corner is Chinese
    heavyweight of Alibaba.
    Alibaba, owned by billionaire Jack Ma, has been making
    aggressive moves in Southeast Asia, while Amazon is related to
    jeff besoz which is planning a debut early next year.
    Alibaba has begun to wage a battle with Amazon in the US, just
    like Amazon has with Alibaba in China, and the two giants are
    running after India.
    We know that these two companies are the most notable players
    in the ecommerce space, their business models differ.

    Amazon, started by Jeff Bezos, sells goods direct to consumers


    and keeps inventory in its network of warehouses.

    Ali baba business is online marketplace and its largest site which
    is taoboo. it a platform for sellers and buyers to trade goods. The
    company also has Tmall for larger retailers where it generates
    commissions.

    Over the past few years, Amazon has been shifting toward an open
    marketplace and Amazon warehouses, allowing for quick shipping
    to buyers.

    Ali baba has 80 percent of china's online business and Amazon


    has 60 percent in US.

    The rivals might soon be clashing in Southeast Asia, where there’s


    over 600 million consumers. While internet shopping accounts
    for less than 5 percent of all retail in this region.
    Southeast Asia is diverse and fragmented, with each country
    having its nuances and import rules also differ across countries;
    corruption is rampant; and poor infrastructure makes shipping
    and delivery slow and expensive.

    Yet Alibaba is unfazed. Jack Ma’s tech titan knows the perfect way
    into Southeast Asia

    Amazon supposedly tried to buy its way into Southeast Asia with
    an offer for Redmart earlier this year, but talks between the
    parties reportedly collapsed.It was this week that TechCrunch
    reported that Amazon is finally launching in the region in the first
    quarter of 2017.

    Where “the level of customer spend and consumer culture is more


    closely aligned with Western markets.”

    Those refrigerated trucks suggest Amazon would initially offer


    AmazonFresh – which makes groceries the first round of its
    Southeast Asian battle with Alibaba.

    Both companies are profitable, but Amazon only as of late.

    In the third quarter of 2016, Alibaba had a revenue of US$5.1


    billion and a net income of US$1.1 billion.

    With US$32.7 billion in revenue for the same period, it seems


    Amazon’s performance dwarfs Alibaba. However, despite the gap,
    Amazon recorded a net income of only US$252 million.

    While Amazon makes money from its store, Prime, and AWS. and
    Alibaba has strength through diversity, pulling in cash from ads,
    some commission etc.
    Overall, Alibaba already has the upper hand in Southeast Asia but
    Amazon isn’t a contender you’d take for granted. With both
    possessing expertise in ecommerce and logistics, massive
    economies of scale, and deep pockets – it’s going to be a
    bloodbath.

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