In a short span of 15 years, Alibaba has emerged as the ruling E-commerce business in China. A global marketplace and online sourcing portal, Alibaba is an ever prospering online company with a phenomenal listing on the New York Stock Exchange. Having launched its online shopping website for the US called ’11 Main’ this June, Alibaba has amplified its already existing worldwide prominence.
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A Hangzhou-based internet company trading in various e-commerce businesses, Alibaba was founded in 1999 by an ambitious gentleman named Jack Ma from China, who dreamed of making it to the world’s top ten companies and reigning for more than a century’s time. The Chinese online Hercules, Alibaba shattered the largest initial public offering (IPO) record in Stock Market history by raising a lot this year!
A man of great ambition and clear-sighted vision, Mr Ma recently shared his dream of getting bigger than Wal-Mart in the next 15 years. The history behind naming his internet enterprise ‘Alibaba’ was that people from various nations knew about ‘Alibaba and the 40 thieves’ from the ‘Arabian Nights’ and the famous phrase ‘open sesame’ signified that the company could ‘open gates to success for small enterprises’.
The proprietorship arrangement of the company has been controversial and was also questioned at a US listing when Alibaba revealed its 20 and more owning partners. At a filing with US regulators too, the company asserted their belief in vesting management powers in a large team of partners as opposed to a dual-class ownership approach which focuses authority in a few founders.
Taobao, Alibaba’s consumer-to-consumer shopping platform is China’s largest marketplace that grasps more than 90% of the Chinese market, having over 800 million products listed on their portal and nearly 500 million users registered with them. Another platform Tmall.com, also belonging to the Alibaba clan, is a business-to-consumer online portal and has a strong clench on more than half the market in China for related transactions.
There has been a jet rise in Alibaba’s share price following the remarkable NYSE Friday listing. According to Forbes, this makes Mr Jack Ma the richest man in China. For the quarter ending 30th June this year, Alibaba went on record stating that they enjoyed profits of almost $12 billion.