Alibaba is an e-commerce platform which is based in China. It is actually the equivalent of Amazon. This has become massive in sales because, for one reason, it has gained the trust of the Chinese people. Alibaba has been made in order to have an e-commerce platform that focuses on the Chinese market. Upon its rise, it needed to overcome what eBay has already achieved in the same country.
Jack Ma, the founder of Alibaba is your perfect example of rags to riches man. He did not come from a well-off family. In fact, in a communist China where he grew up, their family can even be hardly considered to belong in the middle class. However, the young Ma did not let poverty hinder his way through success. Even at such a young age, he managed to trade. And now, he has an estimated net worth of $29 billion. This includes his 7.8% stake in Alibaba and the 50% stake in Alipay, another one of his business which offers a payment-processing service.
Ma’s hometown is Hangzhou, and when President Nixon has visited the place back in 1972, it has become a tourist spot. Ma took this opportunity and had excellent proposals to the visitors who are staying in the main hotel of the city. A tour in the city for an English lesson. With one step at a time, Ma managed to learn. He even took the chances of attending college. However, he was not successful on this one. He actually failed an entrance exam twice and later on revealed that he has failed Harvard ten times already. But failures can only drive a person to do better. This was the reason why Ma took a great deal of studying and finally passed his entrance exam for the Hangzhou Teachers Institute.
One day, he visited in the US back in 1995 and was amused of the capabilities of the internet. He searched for beer but since no Chinese beer turned up in the results, he had the greatest idea. He wanted to found an internet company in China. But this too failed.
Apparently, Jack Ma is not the one to lose. He thought of another possibility and after four years, he had 17 of his friends in a room and talked about his proposals in making an online marketplace which is the Alibaba. This is an e-commerce platform where people from China can have their own product listings and let the foreigners buy it directly. From 17 friends, the company has grown in the number of members. This has been made better than with the money raised by both Goldman Sachs and Softbank, $5 million and $20 million, respectively. But since they are still too close to their budget, Ma had a way of cheering up the members. He reminded them that they are all young and they do not give up.
In fact, Yahoo has even made their mind in investing $1 billion in Alibaba as well and as an exchange, they have the 40% of the company that Jack has founded. Alibaba is really making its efforts in order to beat eBay in China which has been created just ahead of it.
Jack Ma is making names right now because aside from the fact that he is the richest man in China, he actually has just met with Trump and made a resounding announcement on giving jobs to the people of US.
So, how did Alibaba go from the day it was founded?
As mentioned earlier, Jack Ma managed to gather 17 of his friends in order to help make his vision of a Chinese online store possible. With 18 of them in his own apartment in Hangzhou, the Alibaba group was officially established. As Jack had the idea, he led the group.
In 2000, the Alibaba Group was able to raise a total of $25 million dollars from institutions such as Softbank, Goldman Sachs, Fidelity, and others. This helped Alibaba become profitable by the year 2002.
By 2003, Jack Ma and company has once again founded the Taobao, a website for consumer e-commerce. This is still in connection with the advantages that Alibaba has to offer. As the Alibaba group has thought of improving their business possible, they have once again launched the online payment service which is the Alipay.
Jack Ma has always been smart when it comes to trading. In fact, during the years 2005 and 2006, the Alibaba group has made a strategic approach in both having a partnership with Yahoo! Inc. and an investment in Koubei.com. Both of these events have led to the launch of Alisoft which is an internet-based business software company. You can see that his amazement on the internet when he was having a trip to the US has done him a lot of great improvements. In fact, on the November of that same year, 2007, the group has launched another website that can help in the progress of Alibaba, the Alimama. This is an online advertising exchange company that is being managed by the Alibaba group.
In the following years, Taobao, Koubei, and Alisoft have made a lot of improvements. There has been a Taobao mall already to complement the marketplace of Taobao, the Koubei.com has merged with the China Yahoo! and formed Yahoo! Koubei for an impressive improvement of services offered to the people. In fact, the later month of 2008, Alimama has integrated with Taobao.
There has been a lot of merging and forming another website just to improve the sales of Alibaba. And, as expected with all the efforts of the group, it has reported a profit of $220 million in 2010. By 2016 it has reached $10731.77 million already. And as of this moment of 2017, it has $6206.12 million already.
From rags to riches, Jack Ma really soared high. It all started with gaining the trust of the Chines people in order to have their big sales success. Another factor that made this massive e-commerce platform grow and develop is that teamwork and the wise investments that the Alibaba group has. Without these, there will be no unity among them and success is not going to be achieved as they now have it.
This somehow serves as a lesson to everybody who wants to have the same success that Alibaba is having, or even greater than that. With the right investments that you are bound to have, you are surely going to achieve the dreams that you want your online store to have.