I don’t know if you know something about Alibaba’s business model and management model? Then do you know something about Alibaba’s business model and management model? Below I have compiled some Alibaba products for you Let’s take a look at Baba’s business model and management model.

Alibaba’s business model

Yiwu model

The overall characteristics of the Yiwu model are: buying both nationally and locally, and selling both nationally and globally. The combination of labor-intensive small commodity production and large markets is the basis for Yiwu market development.

After more than 20 years of development, Yiwu Market has always reflected a circulation pattern that emphasizes both distribution and origin. The market’s products present the distinctive characteristics of small, comprehensive, and cheap, bringing together 1,901 large-scale products in 41 industries. There are more than 400,000 kinds of products. A sea of ??small commodities and a shopper’s paradise are becoming synonymous with Yiwu market.

Yiwu Small Commodity Market (also known as China Small Commodity City) used to sell mainly small commodities, but now the range of products is getting wider and wider, and almost everything is available; it used to be synonymous with fake and inferior products, but now The products are all genuine and many of them are high-quality products. In the past, Yiwu itself had no industry. The products it sold came from Wenzhou, Guangdong, Fujian and other parts of the country. Yiwu was just a hypermarket. Later, many products gradually shifted to local production. Yiwu has changed from a purely intermediary market to an origin market. Now, 40% of the products sold in Yiwu market are locally produced. The annual transaction volume of Yiwu market is about 50 billion, and that of local production is about 20 billion. In other words, because there is a market, local industrial development is driven. So far, the annual export transaction volume of Yiwu's small commodity market is about 30 billion yuan, and it has grown significantly year by year. Every day, more than 5,000 foreign businessmen from all over the world purchase goods, and more than 200 foreign companies are stationed in Yiwu to wholesale Yiwu goods for sale in their own countries. Yiwu Small Commodity Market has become an authentic international market. Some people even think that with the Yiwu market, there is no need to hold the Canton Fair every year. Because the Yiwu market is already open every day for the Canton Fair.

There are two ways to succeed in Yiwu Small Commodity Market:

First, the way to success lies in the three lows, namely low cost, low taxes and low prices. Everyone who has been to Yiwu is interested in things in Yiwu, mainly because they are cheap. In the past, low commodity prices in Yiwu mainly came from large-volume purchases and large-scale imports and exports; now, there are both large-scale imports and large-scale exports, as well as local production. Local production becomes an important factor supporting low costs. The government imposes low taxes and fees on it. The management fee of 800 15 years ago has not changed yet.

Second, the key to success lies in businessmen. The success of Yiwu Small Commodity Market is not due to how well-built the scene is, but because there are a large number of very capable businessmen who can endure hardships. These merchants gathered goods from all over the country to Yiwu and sold these goods to all parts of the country and all over the world.

Therefore, the secret of market construction lies in cultivating and protecting businessmen.

Alibaba Model

As the world’s largest online trade market, Alibaba is a well-deserved representative of e-commerce. The overall characteristics of Alibaba's model are: online transactions and offline delivery.

Business activities include four flows, namely information flow, business flow, capital flow, and logistics. E-commerce activities represented by Alibaba have obvious advantages over traditional business activities in these four aspects.

First look at the information flow. Traditional commerce delivers product information through physical objects. E-commerce uses electronic information to replace physical information. For example, when buying a trinket, you no longer need to take it out, but just display the relevant picture to explain it. Use electronic information to replace physical information, saving huge information transmission costs. Moreover, e-commerce saves extremely expensive information media shopping malls. It does not require expensive stores and there is no inventory depreciation. This is an important reason why e-commerce is superior to traditional commerce. More importantly, information transmission through the Internet is not limited by time and space.

You can instantly transmit a certain product's pattern, animation, specifications, price, delivery method and other information to all parts of the world thousands of miles away. Whether the product is good or bad, the price is expensive or cheap, everyone on the earth knows it in an instant, and you can make deals with users all over the world. Therefore, Alibaba has 2.1 million merchants around the world in just a few years.

Of course, not all product information can be transmitted using electronic media. For example, for some products, people have to smell them; for some high-end fabrics, people have to mold them by hand. Information about these products must be delivered in kind. But most product information can be replaced by electronic media in place of physical media.

Next, look at business flow, that is, customers negotiate price, quality, transaction methods, payment methods, etc., until the business is concluded and the transaction contract is signed. Business flow is completely information flow. Not only the content of the conversation between the two parties can be realized through e-commerce, but even the conversation process between the two parties can also be transmitted through sound and phase to achieve remote interaction.

Third, look at capital flow. Because of the development of Internet technology, online settlement is no longer a problem for us. It is no longer necessary for both parties to pay by physical currency such as cash or check. Electronic currency replaces physical currency, which not only saves money printing and circulation costs, but also makes electronic currency safer and more reliable because of the use of Alipay.

Finally, logistics is the transportation of goods from the seller to the buyer. After the emergence of the Internet, not only information flow, business flow, and capital flow can basically be transmitted online, but part of the logistics of goods can also be replaced by the Internet. For example, newspapers, music, TV program CDs, etc. Of course, the logistics that can be replaced by the Internet are very limited. For the circulation of most products, only information flow, business flow and capital flow can be carried out online, while logistics must be carried out in traditional ways. However, the Internet will continue to change logistics routes and distribution models, making logistics more reasonable and logistics costs lower.

Alibaba’s management model

There are many reasons for Alibaba’s success, and its advanced management model is very necessary for research and analysis. Alibaba's unique management model enables Alibaba to achieve organizational goals more effectively.

Talent management

(1) Let the experts come here because of their reputation

When Jack Ma first started his business, the material conditions were very difficult, but there was always a group of Excellent professionals join on a voluntary basis. On the one hand, it is related to Jack Ma’s unique charm. On the other hand, Alibaba has great ideals and common goals, and can provide a platform for franchisees to show themselves. What’s more, Alibaba is a new thing, which is attractive. Talent is the key. For example, Tsai Chongxin, who has an economics degree from Yale University, a PhD from the Law School, and an MBA from Harvard University, and Wu Jiong, the famous searcher king and the patented inventor of Yahoo search technology, gave up their original high-paying careers and came to Alibaba. This is the uniqueness of Jack Ma and Alibaba. They don’t need to hire other experts, but let them come here because of their reputation.

(2) Spend money on training

There are generally two ways for an enterprise to build its talent team: one is to rely on introduction, and the other is to rely on self-cultivation. Introducing can easily lead to many unstable factors, while cultivating one's own can make it easier to instill the company's values ??into employees, train employees on good behavioral norms, and enable employees to consciously work according to routines, thereby forming a good and harmonious working atmosphere. i Alibaba management realizes this, so the annual employee training costs are as high as several million yuan. Indeed, only through formal training can Alibaba employees be of high quality and have the same goals, so that the team can be efficient and the team members can coordinate with each other.

Corporate culture

(1) Only a cultured website can gather popularity

Corporate culture is the soul of an enterprise and an inexhaustible driving force for the development of the enterprise. Alibaba's corporate culture construction can be roughly divided into three stages. Stage 1: Credible, approachable, and simple culture. The second stage: Dugu Nine Swords culture, that is, nine values: innovation, passion, openness, mutual teaching, teamwork, quality, concentration, service and respect, and simplicity.

The third stage: Six-Pulse Shenjian culture, that is, customer first, teamwork, embracing change, integrity, passion, and dedication. Alibaba does not stop its corporate culture in slogans, but implements it into practice. Because they know that in a competitive culture, a company's reputation, image, brand and popularity are immeasurable intangible assets, and the thoughts, behaviors and mentality of business people will also be affected and influenced by them.

　(2) Chivalrous Culture

In Alibaba, many members have the names of Jin Yong’s martial arts characters. For example, Jack Ma calls himself Feng Qingyang. Every member of Alibaba has a martial arts spirit of perseverance, adversity and resistance, and a spirit of unswerving pursuit of their mission until death. The sense of justice in martial arts culture affects almost every employee in the company. This culture also creates a relaxed and pleasant working atmosphere for employees, allowing them to put aside stress and work to their best. Alibaba's team culture also permeates a chivalrous culture of owning, enjoying, living, and dying. Because of this, Alibaba employees will be more united and there will be no interest groups. There is no political struggle.

Enterprise innovation

(1) Model innovation

(2) Concept innovation

Innovation must be based on concept innovation. There is no concept. Innovation, all innovations are out of the question. If it is not broken, it cannot be established. This is the essence of conceptual innovation. Concept innovation plays a leading role. Only by constantly breaking the original concepts and expanding thinking can lasting innovation be achieved. iiIn Alibaba, there are many innovative concepts, such as new model concept, new team concept, etc. The new model view is that if you find a gold mine, you will never dig it yourself, but hope that others will dig it. If others dig the gold mine, you can give Alibaba a piece of it. Regarding the new team concept, Alibaba prefers the Tang Monk team. Because Tang Seng is a good leader and has a strong sense of mission, no one can change his mission to learn scriptures from the West. Sun Wukong is the most difficult to restrain due to his powerful magic power, and is likely to become Alibaba's wild dog. Although Zhu Bajie is lazy and reactionary, he is cute and acts as a lubricant, adding fun to the entire team. Of course, a team also needs people like Monk Sha who do their job down-to-earth.

Efficient execution

Jack Ma has always believed that a third-rate idea plus first-rate execution is always more important than a first-rate idea plus third-rate execution. Execution in Alibaba is very efficient. For example, when Jack Ma chose the graffiti (BBS) mode as the mode of operation, he wanted to be simple and practical, and did not pursue a beautiful and gorgeous appearance. Although he was opposed by his colleagues and partners, when Jack Ma was angry, he said: You guys do it immediately, now, immediately! Immediately! !Now! Immediately!, everything begins to be executed step by step and efficiently.

Efficient execution is achieved by enterprises over time. Indeed, any excellent strategy or outstanding plan requires efficient execution to be effective. How well an enterprise executes will determine its rise or fall. Enterprises should focus on improving execution capabilities. On the one hand, it is the need for enterprises to cope with external competition. On the other hand, it is also the need for the enterprise's own survival and development.

Alibaba’s brand value

In 2013, investment banks valued Alibaba at approximately US$70 billion to US$80 billion. Such a large order will inevitably trigger a battle among investment banks. Returning to the top spot in global IPO fundraising will also play an important role.

Regarding the valuation of Alibaba Group, the capital community has different views. China Renaissance CEO Bao Fan believes that Alibaba’s market value of US$100 billion is a bit high. He pointed out: Facebook's IPO was a failure, and investors still lost a lot of money. If Alibaba was like Facebook, everyone would think it was a money trap.

Tencent’s market value is approximately 606.8 billion yuan, with a price-to-earnings ratio of approximately 37 times. The performance of Alibaba Group and Tencent is quite similar. Alibaba Group's net profit in the first quarter of 2013 was about US$669 million, while Tencent's was about US$640 million. This can also support Alibaba's valuation of more than 600 billion yuan. Some analysts believe that investment banks' continuous upward revision of the overall valuation of Alibaba Group can also be seen as removing obstacles for Alibaba Group to reach the valuation limit of US$100 billion as soon as possible.

Wu Ronghui believes that compared with eBay, Tencent and other companies, Alibaba Group’s valuation is in a more reasonable range.