Image Courtesy : GreenZonerEgypt
First things first, Alibaba is the world’s biggest E-commerce company that has hundreds of millions users and host millions of vendors, merchants and businesses. The size of this mammoth Chinese company is so big that in simple words to describe, it handles more business than any other country’s several e-commerce businesses put together. In today’s fast changing, fast consuming and fast buying world, its growth has been quite on par with the demand and popularity it has generated across the world, where- to give a small statistical idea then it was $248 billion revenue generated in 2013, which by the likes of global leaders in electronic commerce is a more than the combined revenue of Amazon and eBay. The biggest driver of this growth in online purchase and the overall explosion of popularity in e-commerce is the Chinese economy and Chinese market that has propelled this thriving success to this height. Chinese are highly adaptable to the latest technology, and they have been for a long time. Alibaba dominates with as much as 80% market share in China.
What’s new with Alibaba?
The company which was founded in 1999, Alibaba has filed its documents for a public share sale with an initial public offering (IPO) in the USA. Why is USA? Because the Hong-Kong exchange did not seem as promising, where the control over Alibaba will be the most crucial, that is, the board along with the founder Jack Ma, will be nominated to have more control after it goes public. Alibaba is looking forward to propose to open itself to large and small investors, as it is a great potential opportunity for regular Americans to profit from the promised and continuous shift of China’s importance on exports to the actual and real demand-driven growth. Since Alibaba is no ordinary company, this move could be prosperous and excellently beneficial for many people.
What will the going public move do for Alibaba?
In its entire dominance in China with more than 4/5th market share, it has proven to be a tough. While being a dominant force, it remained highly valuable that created employment, economic boost and a successful model for other competitors to see and learn. As it goes public, it will be one of the most valuable technological giants in the world, and one of the biggest Chinese public companies on par with the state-owned enterprises in China.
Analysis : How could this seem actually successful?
If only there is mutual understanding between the American democratic values and the economic ambitions, and while Chinese government’s plan to keep consumers happy and politically contained as well, since the conflicts related to internet accesses, control over securities registrations and many other issues play an important role in this whole scenario of a mammoth company going public. Not to forget the industrial policies, regulations of industrial development by different set of policies and proper allocation of resources, payment of foreign exchange where currency dominated obligations, monetary policies and financial services usually end up creating few cracks in the deal. And with the latest reports coming in about how diverse in the matter of gender the company is, it kind of puts a perspective into how well managed the whole progressive the board is. It comes from the fact that out of its 18 founding partners, 6 include women.
It might seem a bit frivolous statistic to the male dominated market, but in the silicon valley it puts the most top tech giants to shame where the estimated women founding or women leading VC funded start-ups has been humiliating mere 2%. What this diverse fact does for the company is it makes them one step better. For most prosperous and healthy business, the founder of Alibaba observes, “most companies, when they’re doing good, they enjoy today’s wonderful life. They don’t worry about five years later—but I worry about five years later.” signifying the motive and foreseeable growth with which every enterprise has to make a mark in this market. But the market being the way it is, that is total ruthless and shrewd, the biggest challenge would be for everyone true to Alibaba’s principles, which since its inception put customers before shareholders, and the services mattered more than the revenue.