MBA ME 阿里案例分析.docx

1、MBA ME 阿里案例分析Assignment FormCourse:MicroeconomicsInstructor: Hu SonghuaHomework:Case analysis Name:Student ID No.:Class:14PASTUDENT DECLARATIONI declare that this assignment is my own work, which all sources of reference are acknowledged in full and it has not been submitted for any other course. Si

2、gnature: Date:How Ma Yun Built Up His Business Empire By Means of MicroeconomicsPart 1. E-commerce or nothingAlmost every business concerns about how to increase profits and reduce costs. In manufacturing enterprise, production cost and management cost currently have many effective measures to contr

3、ol, but the external cost of sales，as for the impact of various aspects of uncontrollable factors, is difficult to control, especially the channel cost.Cost of sales is mainly composed of the channel cost, and the channel cost is mainly paid to the dealer sales rebate. If remove the sales link of th

4、e dealer, and allow enterprises directly face the customer, can greatly reduce the total cost of the enterprise, lower commodity prices.For example, the retail giant WAL-MART, that has been at the lowest price of commodity that dominated the market. Because WAL-MARTs products are directly from the f

5、actory at the lowest ex-factory price of purchase, so it can keep the lowest selling price.Taobaos success counts on that let all the sellers directly face to consumers via internet, which reduces the intermediate interface, thus benefit consumers by reducing the cost of sales and lowering commodity

6、 prices. Under the condition of unchanged consumers income, the falling of commodity price actually makes the spending budget constraint line move from A1 to A2 which improved the level of spending budget constraint line. So that more commodities are consumed and market demand is increased.(A1 is th

7、e original spending budget constraint line while A2 is the one which is influenced by E-commerce.)In view of the characteristic of the low marginal cost of electric industry, we think the industry, compared to traditional industry, is easier to form scale economy. Alis IPO financial report shows, th

8、e main operating cost of the enterprise is the sales and marketing expenses, accounting for more than 70% of the total cost. In this case, Alis every increase of a client to its marginal cost is almost zero. So the average total cost (ATC) curve shows downward trend, as the formation of scale econom

9、y.Part 2. Asymmetric informationIn the e-commerce market, the seller knows much more about the quality of the product than the buyer does. Unless sellers can provide information about quality to buyers, low-quality goods and services will drive out high-quality ones, and there will be market failure

10、.So Taobao allows customers to rate and comment on products, the rating and commenting feature reduces the lemons problem by giving customers more information and motivating the sellers to uphold their end of the bargain.Based on the sales revenue and the buyers comments, Taobao will give the seller

11、 a reputation rate, such as the crown class, the diamond class and so on. Under the pressure of the reputation, the seller has less motivate to sell low-quality products.Part 3. Double EleventhThe promotional strategy of Singles day that Launched by Alibaba achieved remarkable success in past severa

12、l years in a row , which broke continuously historical Sales Peak in only 24 hours on Nov-11-2014.A key factor contributed the success was the effect of Price differentiation, which is a pricing strategy where largely similar goods or services are transacted at extremely Low prices In certain period

13、 , Sales Volume is manipulated for the purpose to realize Profit .Alibaba took good use of this Strategy and precisely captured Consumer Psychology and Behaviors , with union with store owners , they created unprecedented campaign with the intention of enlarging one day Sales Scale to stimulate over

14、all Sales Amount. Products in “11-11 “ decreased significantly in just one single day, Customers paying willingness had already been stimulated and encouraged to an unbelievable level with the day “11/11” approaching.From the report of Single Day we can see that Customers enthusiasm had been success

15、fully aroused , A large number of them became irrational ,its NOT strange at all that we heard some of them lost their mind buying products that turned out to be useless and some worried about Bank bills . Although unit cost of products in that day looked decline from appearance, the economies of sc

16、ale were actually realized , which enabled store owners earn much more profits from millions of customers purchasing. In addition, Competitive Lower price can be regarded as an advertisement that keeps attracting thousands of potential and old customers revisit and consumption.The shopping strategy

17、of Double Eleventh in Alibaba is very successful which made a turnover rose year by year. This strategy is made full use of price discrimination and further earn much more consumer surplus. Part 4. The long tail theoryAfter occupying the half market of E-commerce, Taobao launched The Balance of Trea

18、sure into the financial services market in 2013. Alibaba make full use of its resource advantages and develop the economies of scope.Alibaba launched The Balance of Treasure under the strong support of the huge number of users from Alipay, which cost is very small. Launching Alipay and The Balance o

19、f Treasure together cost much less than separately, because these two operations can share the majority of fixed costs such as: server purchase, so Alibaba have scope economics.The success of The Balance of Treasure owe to the long tail theory. Most of the user consumption amount is very small, but

20、the number is huge. The traditional fund management averaging raising 70000 to 80000 yuan of investment, but the user of Alipay only contribute ￥1912.67 per person. Although every user invest only a few hundreds, it amounts to 800 million, and surprise the financial market.The traditional business c

21、onsider that 80% of the sales come from 20% of the products, but the long tail theory argues that the rise of the Internet has broken the rule.The long tail theory says that, as long as the storage and distribution channels are large enough, the small demand products can earn even bigger market shar

22、e compared to the strong demand products. Many of the small market that can rival the converging with the mainstream market.The long tail theory has become a new economic model and has been successfully applied in the network economy. In the financial product market, the target customers are usually

23、 those with higher incomes which make a high barrier to financial product. However, quite to the opposite, according to the long tail theory, The Balance of Treasure expands the scope of target customers which are warmly welcomed by those low-income people. That is really a big impact on the financi

24、al product market.Part 5. The future Business Trend of ChinaOligopoly Competition Actually, The Industry of E-Commerce Business in China can be regarded as Oligopoly Competition .In Q3 of 2014 , T-mall , A well-known E-Commerce Brand under Alibaba Group took 57.6% , while JD, its biggest competitor,

25、 took 19.3% of the B2C network retail Market Share .According to the graph above, B2C markets have initially formed a Duopoly of Tmall and JD.Tmall and JD are actually providing genuine commitment to electric service, their services are actually no difference in the products, on JDcustomers can buy

26、the same thing as on Tmall. They are alternative productsto each other.Economists like to forecast the future Business Trend of China. As students of Business school, We hereby make our assumption at the end of this article. In our point of view, we believe that E-commerce will become Single Monopol

27、istic Market in future.For example, divided by operation mode, or commodity classification (fast consumption goods and durable goods) etc. But in these subdivision market will finally leave only the existence of an oligopoly.Reasons can be elaborated as bellows :1. Despite the property of minor diff

28、erence and Easy-Duplicated Mode between major E-Commerce companies, we estimate the trend is moving forward, whose business structure is irreplaceablein nowadays.2. The advantages of E-commerce as the forerunner are obvious with no doubt,Including Brand, varied Sources of customers, Internet, Loyal

29、Clients and the barrier that additional cost to be paid if switching service to other E-commerce.3. Considering the undifferentiated service, The operation cost and expenditure would be minimal as long as there is only one E-commerce existing in this Industry.4. the retail giant WAL-MART, also can become USA industry oligopoly in the presence of geographical restrictions of competition in retail sales. So in no geographical restrictions or traffic restrictions, and even online shopping market asymmetric information we believe business industry will usher in a single oligarch times soon.