Abstract
This chapter provided a synthesized understanding of Amazon and Alibaba from various dimensions. The two companies offer similar e-business services, such as e-commerce, cloud computing, artificial intelligence, and omni-channel businesses. Yet their business models and strategies are quite different. Amazon and Alibaba, as two e-business exemplars, provide many practical lessons on e-business. In this chapter, we firstly describe the lessons that businesses can learn from Amazon and Alibaba. Secondly, we separately analyze their e-business practices. The last section concludes by highlighting the practical implications of the strategic moves made by Amazon and Alibaba.
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Notes
- 1.
See Z. Kanter, 2017 “Why Amazon is eating the world,” Techcrunch, 15 May 2017.
- 2.
Section 16.2.1, 16.2.4, and 16.2.5 are adapted from: J.Batistich, “Understanding 7 Amazon.com,” 15 May 2017. Available at: 7 https://www.ami.org.au/imis15/librarymanager/understandingamazon-170515004436.pdf.
- 3.
This section is adapted from: Investopedia, “The Difference between Amazon and Alibaba’s Business Models,” 7 Investopedia.com, 2 August 2016.
- 4.
This section is adapted from: T. Brown, “Why is Amazon so successful? Learn these 6 keys to Amazon’s success,” Hookagency, 6 January 2018.
- 5.
See A. Balakrishnan, “Jack Ma explains the difference between Alibaba and Amazon: ‘Amazon is more like an empire,’” 7 CNBC.com, 18 January 2017.
- 6.
This section is adapted from: Alibaba, Annual and Transition Report (foreign private issuer), 2017.
- 7.
Investopedia, op. cit., 2016
- 8.
This section is adapted from: X.Pavie, “Seven reasons for Alibaba’s ground-breaking success,” BBN Times, 10 May, 2018.
- 9.
As described in Sect. 11.4. See also M. Krasinski “The Long Tail Effect theory in practice explained” 7 MilosKrasinski.com, n.d. Available at: 7 https://miloszkrasinski.com/the-long-tail-effect-theory-in-practise-explained/.
- 10.
For details on Transaction Cost Economics, see M. Ketokivi and J.T. Mahoney, “Transaction Cost Economics as a Theory of the Firm, Management, and Governance” Oxford Research Encyclopedias, Business and Management, October 2017. Available at: 7 http://oxfordre.com/business/view/10.1093/acrefore/9780190224851.001.0001/acrefore-9780190224851-e-6.
- 11.
See M.E. Porter “Creating Shared Value,” Harvard Business Review, January–February 2011.
- 12.
This section is adapted from: R. Yazdanifard and M.T.H. Li, “The Review of Alibaba’s Online Business Marketing Strategies which Navigate Them to Present Success,” Global Journal of Management and Business Research, 2014, vol. 14, no. 7, pp. 33–37.
- 13.
This section is adapted from: A.L. Deutsch, “What’s Next For Alibaba?”, Investopedia, 25 March, 2015.
- 14.
For more details, see C. Luo, “One Platform to Rule Them All: The Brains Behind Cainiao Network (PI)” e-Commerce IQ, 7 December, 2016. Available at: 7 https://ecommerceiq.asia/cainiao-logistics-southeast-asia/.
- 15.
At the same time, Amazon tried to enter the China market and failed. In 2018 Amazon diverted its focus to the India market (see P. Fuhrman, “Alibaba Grabs The IPO Money But The Future Belongs To Jeff Bezos And Amazon China,” Seeking Alpha, 10 September 2014, and Bloomberg, “After losing China, Jeff Bezos really wants to win in India,” India Times, 6 March, 2018).
- 16.
In A.M. Do, “Jack vs. Jeff: The two biggest e-commerce billionaires in the world are total opposites,” TechinAsia, 24 October 2014
- 17.
Both quotes are from A.M. Do, op. cit.
- 18.
Alibaba’s creation of the Cainiao network business unit suggests Alibaba may begin to offer logistics services to vendors.
- 19.
A.M. Do, op. cit
- 20.
A.M. Do, op.cit
- 21.
Source: C. Riley, “Alibaba is not the Amazon of China,” CNN Business, 16 September, 2014
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Further Reading
Investopedia. (2016). ‘The Difference between Amazon and Alibaba’s Business Models’, Investopedia.com.
Pavie, X., ‘Seven reasons for Alibaba’s ground-breaking success’, BBN Times 2018.
Yazdanifard, R., & Li, M. T. H. (2014). The review of Alibaba’s online business marketing strategies which navigate them to present success. Global Journal of Management and Business Research, 14(7), 33–37.
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Jelassi, T., Martínez-López, F.J. (2020). The Strategic Approach of the World’s Biggest e-Tailing Companies: Amazon and Alibaba. In: Strategies for e-Business. Classroom Companion: Business. Springer, Cham. https://doi.org/10.1007/978-3-030-48950-2_16
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