What is the difference between Amazon and Alibaba's business model admin - pinvest.co.id Thursday, 09 Jan 2020 The world of e-commerce continues to develop, especially now that technology is also very much supported 5G infrastructure and the other side is due to the increasing number of consumers preferring it buy goods online. Currently, many companies both large and small have take advantage of the advantages of digital-based businesses to meet the needs of most consumer. 2 e-commerce giants, such as Amazon (stock code: AMZN) and Alibaba (stock code: BABA), has become the largest player in the world market by operating through an online presence only. Both, namely Amazon and Alibaba have in common but both have at the same time differences respectively, Amazon is a major retailer of new and used goods, and Alibaba operates as an intermediary between buyers and sellers. Amazon's Business Model Yes, Amazon is the world's largest online retailer that operates a business model with many lines and types. Mainly Amazon is a company that sells goods directly. A wide variety of products are offered to buyers via Amazon's online storefront at prices competitive as well as a small markup, and Amazon has a very large warehouse network. The majority of consumers choose Amazon because it has formed a mindset that is product-wise they are cheaper and are available for easy delivery. As well as selling directly via online, Amazon also provides a platform for retailers to sell its products to buyers. Products are sold through Amazon retail agents frequently times are less common goods or items with a higher purchase price, allows Amazon to avoid holding onto its slow moving inventory can reduce profits. Amazon also retains a portion of the sale price as commission. Amazon also maintains a subscription-based business model through its Amazon P. service (Prime), as well as electronic product lines. By having a subscription account the customer is required pay an annual fee to get express delivery benefits like two days or on the same day for free on goods that meet the terms and conditions, Then these subscribers can also have access to streaming media, such as digital music or film. Amazon also generates revenue from sales of e-readers, Kindles, and purchases of ebooks and mobile apps offered to Kindle owners.

Alibaba's Business Model Just as Amazon is known to most American consumers as an e-commerce giant, the Chinese and Asian e-commerce markets are dominated by Alibaba. Even though it's Alibaba operates through a very unique combination of its business model, Alibaba's core business actually quite the same as eBay. So Alibaba acts as an intermediary between buyers and online sellers and facilitate the sale of goods between the two parties through proprietary platforms Alibaba. Alibaba's largest site, Taobao, operates as a free marketplace where buyers and sellers are not charged a fee to complete transactions, so the point is not. there is an admin fee. In contrast, nearly 7 million active sellers on Taobao are paying for get higher rankings on their site's internal search engine, this is generate ad revenue for Alibaba that mimics Google's business model. While most of the sellers who use the Taobao website are small traders or in Indonesia it is called as UMKM, Alibaba also has a special room for players who greater than. Yes, Tmall is an e-commerce site owned and operated by Alibaba which serving well-known brands, namely Gap (GPS), Nike (NKE), and Apple (AAPL). Apart from its e-commerce site, Alibaba has also emerged as a competitor in the financial system at China. To address customer concerns about the security and validity of a transaction completed online, Alibaba created Alipay. As a secure payment system, Alipay protects the buyer if the seller is unable or refuses to deliver the item on sale. In addition, Alibaba's Alipay also generates revenue from the lending business unit (P2P newly launched micro lending that caters to individual borrowers. Conclusion Amazon and Alibaba are 2 e-commerce giants that operate without a physical store. Amazon dominating the American to European shopping space, while Alibaba is doing its thing same in China and Asia. Amazon sells products directly temporarily and also acts as a go-between another salesperson, taking a cut of the sale. Well, Alibaba charges merchants a fee for appears higher in his search rankings. Both of them have a good and stable performance for the Stock.

Question: 1. If you are an investor looking for a business with a superior business model, Will you choose Amazon or Alibaba? Explain your reasons in detail? 2. If it is assumed to use Systematical Feasibility Study where there are 4 analyzes, namely: Product / Service Feasibility Analysis, Industry / Target Market Feasibility Analysis, Organizational Feasibility Analysis and Financial Feasibility Analysis, which analysis is the most important analysis for Copt? Explain logically.