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Alibaba Group Holding Limited ( Alibaba )

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Company Overview Alibaba Group Holding Limited (Alibaba), Chinese e-commerce giant, was founded in 1999 by Ma Yun (Jack Ma). It offers a platform for both domestic and international traders to conduct business. It aims to create a convenient trading platform for small and medium sized enterprises all around the world. Alibaba was the first company entered into the Chinese e-commerce industry, so it brought an Internet revolution to China. During these years, its wonderful ability of expanding make it stay on the top of the industry. Alibaba operates various businesses. Its main subordinates and affiliates include: Even thought Alibaba has involved in diverse business fields, it is still planning to expand its business range, such as …show more content…

In September 2014, it went public at New York Stock Exchange (NYSE), and become the fourth largest technology company after Apple, Google and Microsoft. It also became the second largest Internet company after Google. Company Performance In the past years, Alibaba has developed to the largest e-commerce company in China. According to WSJ, Alibaba dominates 80% of China’s e-commerce market. In 2014, its total transaction value was $248 billion which is more than eBay and Amazon’s total. Its revenue increased stably over these years. The total revenue was $8.58 billion, which increased 56.06% comparing to the revenue $5.5 billion in 2013. The net income was $3.81 billion, which increased 180.35% from $1.36 billion in one year. Since Alibaba operates many different kinds of businesses, it also has many different kinds of competitors in the industries. Compare to them, Alibaba had a much stronger profitability ratios than its competitors. In 2014, Alibaba’s return on invested capital (ROIC) was 22.30%, which is used to measure how efficiency the company invests its capital. It can evaluate a company’s ability to create returns. The high ratio means the company is very strong and well managed, and it has the ability to create positive returns. The second highest company was Globe Sources.com (9.76%). Alibaba’s return on assets (ROA) was 13.23%, which is an index to measure how much net profit per unit of assets creates. The higher the ratio

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