1.
0 Introduction
Alibaba is known as one of the most popular place for online shopping, and it is the fastest
growing ecommerce market in the world. It was launched in year 1999 by its founder Jack Ma
and Alibaba Group in Hangzhou, China, refer to Figure 1. It is a Chinese online business that
provides business-to-consumer, business-to-business and consumer-to consumer sales services
through web-based interfaces. Alibaba.com, Taobao and Tmall which are the three main sites of
Alibaba have host millions of shippers and organizations and hundreds of millions of users.
Alibaba is the world's biggest retailer with operations in more than 190 nations, and additionally
one of the biggest Internet companies, it handles more business than any other e commerce
company (Billboard. 2017).In November 2017, the ecommerce monster Alibaba set Singles Day
records and produced 168.2 billion CNY (25.3 billion USD) in net stock. (Forbes.com, 2017)
Figure 1 Company Logo
Source: Adopt from Logok Webpage, 2017
Alibaba Group said it would set up a coordination center point in Malaysia, the most recent in a
string of Chinese investment incorporating into land ventures and foundation, underscoring the
nearby ties between the two nations. In a statement, Alibaba said that “The center point, expected
that would be propelled end-2019, will work as an incorporated warehousing, traditions freedom
and satisfaction office for Malaysia and the religion, to convey quicker clearance for imports and
export.”Alibaba additionally said that the coordination office was a piece of an "e-center" and it
was setting up at the unhindered commerce zone, some portion of Ma's Electronic World Trade
Platform (eWTP) activity that means to evacuate hindrances to exchange for littler firms and
developing countries.The "e-center point" in Malaysia will be the primary such office outside
China, and will likewise incorporate joint effort between Alibaba members and other Malaysian
organizations. In addition, the banks will enable Chinese voyagers to utilize Alipay e-wallet
benefits in Malaysia. (U.S., 2017)
1.1 Executive summary
Alibaba was founded in 1999 in Hangzhou and Jack Ma is the leadership and also other 18
people. To obtain business ecosystem support, Alibaba group operate a number of businesses,
and also from the associated company’s services and business. Alibaba group’s business includes
Tmall, 1688, Ant Financial, Taobao etc. Alibaba announced has become the world’s largest retail
trading platform on April 6, 2016. China internet business in the previous 10 years, in not so
distant future will be more than United States. Alibaba group in China's internet business market
is dominance. In year 2016, Alibaba revenue was 101.1 Billion CNY. Today Alibaba revenue
turnover reached 158.2 Billion CNY (Yuan, 2017). Alibaba group six values for how to attract
talents, how to run the business, evaluation staff, and decided to reward employees play an
important role, the six values are: teamwork, customer first, integrity, innovation, dedication and
passion.
Discussion
2.0 Service blueprint and quality control of Alibaba
Service blueprint
Service blueprint is planning tool for operation that provides direction on how service will be
provided, specifying staff actions, physical confirmation and infrastructure support system
needed to convey the service across its diverse channels. Blueprint is also guidance for executing
a service plan by demonstrating the arrangement of steps expected to convey a service. It
arranges the work done by the administration staff in the company by pointing out their part in
the general framework.
Physical Website Employee’s Credit card Product Appliance
Evidence description on store receipt tracking delivery
product and receipt
price tag
Customer Visit website Discusses Makes Notified of Appliance
Actions features, price purchase estimated delivered
and time arrival
availability
with sales
person
Front stage Welcome to Check Provides Automated
Actions store and inventory and delivery times call with the
Support chat delivery times date of
delivery
Back stage Responds to Inventory Point of sale Account
Actions complain and management system department
questions system proceed with
payment
Support Analytics Appliance Payment 3rd party
process visitors distributor process delivery
service
Management Collect Update and To make sure
process database purchase customer
software and information is
hardware protected
Quality control of Alibaba
Quality control is a procedure or set of methods planned to guarantee that a performed service or
manufactured product adheres to a characterized set of value criteria or meets the necessities of
the customer or client (WhatIs.com, 2017).
One of the most important quality control in Alibaba is branding service product experience.
Branding service is how the way customer perceives the company. A strong brand is
invaluable as the battle for customers intensifies day by day. Brand is a foundational piece in
Alibaba marketing communication. Branding is vital and marketing is strategic and what Alibaba
use to get their brand in front of consumer. That is the reason it conveys a lot of significance
inside a business or organization. Brand serves in as a manual for understanding the reason for
business destinations. It empowers Alibaba to adjust a marketing plan with those goals and
satisfy the general technique (The Balance, 2017).
The value of brand does not simply occur before the buy, but it is about the life of the brand
experience it provides for consumer. Brand additionally makes loyal customers and faithful
workers. Brand gives them a comment in, a remark behind. It causes them comprehend the
reason for the organization or the business (The Balance, 2017).
Consumer is the one bring profit for the company. When consumers generally buy a product for
the first time, they hopes that it provides quality experience. They hope a computer that works
efficiently and helps them perform personal or work tasks effectively. Recognized brand names
regularly have demonstrated a consistency in item quality that has added to the development of
the brand. Despite, consumers also depend on prior experiences or public word-of-mouth when
choosing brands (Smallbusiness.chron.com, 2017).
2.1 Alibaba competitors and customers decision process
Alibaba competitors
One the largest competitor of Alibaba is Amazon. Amazon and Alibaba each have different
business plan that make them purely e-commerce companies. Amazon is a massive retailer for
both new and utilized merchandise, and Alibaba works as an agent amongst purchasers and
dealers. In the view of performance, Alibaba shares have increased 75.18% in the previous year
compared to 26.20% of Amazon. There are a few reasons for that why Alibaba shares are
exchanging at a small amount of Amazon’s shares. One of the reason is Alibaba’s business plan,
Alibaba’s business plan has been helped by few variables.For example, Alibaba in China. The
are 560 million Internet users spending 20 hours online every week, China is by a wide margin
the biggest Internet market in the world, twice the size of the U.S. market. Another factor is
economies of scope, the cost reserve funds related with offering an arrangement of items
available to be purchased through similar deals channels. For this situation, sites. Alibaba has
two retail sites which are Taobao, which highlights a large number of thousands of non-brand
name products sold by smaller-unknown merchants; and Tmall, for brand name products
(Forbes.com, 2017)
When come to customer review, the review Alibaba get from consumers is a bit of a positive
and negative aspect, but generally speaking, there are a couple of regular issues that become an
integral factor. These incorporate issues with delivery times, customer service, and general
quality. For example, consumer of Alibaba reviews on SiteJabber give Alibaba a general rating
of 2 stars out of 5, with very nearly 70 percent of all analysts granting a 1-star rating. Numerous
of consumers who left positive reviews purchased on jewelry or accessories, and some cautioned
different customers to expect longer delivery times and lower quality as a give up at less
expensive costs. In comparison, Amazon consumers reviews on SiteJabber are overwhelmingly
positive. Amazon gets a total of 4.5 stars, only about 4 percent of consumers giving a 1-star
rating out of 5. Where Amazon reviews really sparkle is through consumers with Amazon Prime
memberships. With quick, guaranteed delivery, an easy return process, and overall high-quality
items, numerous of Amazon reviewers analysts Prime as the best feature of Amazon ecommerce
(AdvisoryHQ, 2017)
Customer Decision Process
Customer Decision Making Process is the method strategy utilized by marketers to identify and
track the procedure of a customer journey from start to finish. There are three stages in the
customer decision process which are pre-purchase stage, service encounter stage and post
encounter stage (Academy, 2017).
Pre-purchase stage:
The first stage of customer decision process is the pre-purchase stage, during this stage customer
acknowledge their needs or wants towards Alibaba service, after their intention was caught up,
customer will likely search for reliable information from the internet or maybe friends and family
who had tried with Alibaba service so that they can sums up the information collected. Thus they
can persuade themselves it is safe and good to use Alibaba services. The information they will be
collecting is Alibaba products brand which is company’s brand reputation in the market. For
example, Alibaba reviews from other critics websites and previous user’s review. Service
Variation which how many types of service Alibaba are providing, For example, types of courier
option available, internal or third party, domestic or international partner. Service quality which
is indicating how Alibaba satisfy customer’s need and how company resolves problem
encountered (www.tutorialspoint.com, 2017).
Service encounter stage:
During the second stage which is the service Encounter stage, the consumer will have a closer
interaction with Alibaba’s sales person, can be through hotline or front desk. During this stage
customer will re-evaluate the information receive through the first stage, and get to co-create
experience and value from customer themselves, either positively or negativity. These processes
within Alibaba are generally the product exporting and importing service. During this stage,
Alibaba will have customer service person to workout with client 24/7 domestically and locally,
either using internet web sessions or hotline. After the product is then landed on their city
Alibaba courier will report back to the HQ and the Alibaba’s webpage support person will
update consumer item’s delivery status on the net to make sure client’s satisfaction
(ResearchGate, 2017).
Posts encounter stage:
When come the last stage which is post counter stage, which is when the customer made their
final decision to purchase the services, with the post 2 stage influences and evaluation the
customer will finally have a picture of what service they are going to get which is also their
expectation towards the company’s service. For example, when customers receive the product
from Alibaba, Alibaba will request customer to provide some feedback and review, thus Alibaba
will look in details into the questionnaire distributed to them regarding their satisfaction level, if
the satisfaction level is low the questionnaire will request them to drop the fault, after receiving
the data, representative from Alibaba will follow up on the matter to resolve matters involve.
Maybe in reimbursing the item that is faulty or provide voucher for minor matter just to rise their
satisfaction on Alibaba services.
3.0 Conclusion
In conclusion, Alibaba has becoming a pioneering e-commerce company within China because it
has pursued a highly effective strategic plan. In this situation, Alibaba become a major player in
the global economy with Alibaba business model. After the first sale of stock, no doubt Alibaba
is in an incredible position to proceed with its custom of extension and abnormal state execution.
3.1 Recommendations
With respect to exceptional rivalry among players in the web based business industry, these are a
portion of the suggestions made for Alibaba for future advancement. To ensure the security of
customers’ information and payment details is secured, Alibaba should keep improving on the
technology. Next, improving the accuracy of inventory and reinforcing the control of logistics
system. Then, additionally subdividing the objective customer according to their categories and
industries. Nevertheless, adopt new pricing strategies and fee-charging patterns in order to attract
more buyers. Lastly, improve customer’s relationship management to provide better services and
reduce difficulties and attract new members (Enterprise Innovation, 2017).
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