Rabu, 04 Juni 2014

Small and Medium Enterprises is the begining for the successful of Alibaba.com


Oleh : Lia Dahliasari
NIM : 1701344163

Starting from my new hobby, purchase online from various online shop in Indonesia such as lazada.co.id, blibli.com, oxl.com, berniaga.com etc. I have an interest to find out whether other countries doing online shopping. Finally, I got the results of interesting information about a shop buying and selling online shop in China, namely Alibaba.com, encourage me to explain how Alibaba.com could be global market equal with Amazon from USA? Alibaba.com is an online company comes from China which is able to take the floor in the U.S. stock market and become a global online company.

Economic activity wouldn't be separated from the transaction between producers and consumers. Both parties will benefit in accordance with their respective goals. Along the development era buying and selling don't need to be done in the market or in the supermarket, but also can be done by online. The transactions can be done without bring together the sellers and buyers in one place. Because the transaction process easier and that happens to Alibaba.com, which is an online shop in China that managed to dominate the market in China, could even compete with Amazon. How the success of Alibaba.com? Before I am describing more about Alibaba.com, maybe you can visit the website Alibaba.com.

As in the fairy tale that tells the story of Alibaba,
Alibaba tried to do what the robbers did when they open the door of the cave as a place to store loot of  the treasure thieves, he shouted, " Alakazam! Open  " then the cave door were open. The same case with these Alibaba.com. Once recites the mantra " Alakazam! Open, " the door of the second largest exporting country in the world opened.


Jack Ma, an English teacher in China saw a business opportunity promising e-commerce , although at the time it wasn't too famous online shop system. Starting from a seedy apartment in 1999, Alibaba constructed. By the time, participants have been consisting of 28 members of the partnership for making Alibaba.com grow rapidly. Alibaba.com managed to become an online shop in China with 231 million active transaction participants; local and foreign.

"Small is beautiful. SMEs provide an engine of economic growth in Asia and they are the future of e- commerce," saud CEO and founder of Alibaba.com, Jack Ma, at the APEC SME Summit in Singapore. Jack Ma revealed, financing mechanisms or support to SMEs is not maximized because there is no standard mechanism which can be used .Jack Ma argues that SMEs deserve attention because of all the big businesses started with small steps, "like a baby  everyone knows that this baby will grow up. All businesses will be successful because they are confident of success. They succeeded because it continues to keep the dream of magnitude. People can withstand a week without food, three days without a drink , but people would die if lost their hope in one minute," said Jack Ma.

Jack Ma's life journey after graduating from university, he is the only one of his class of 500 students assigned to be lecturer at the university. When the salary of Ma was 100-120 renminbi a month, equivalent to Rp 114,000 to Rp 142,500 per month. Jack Ma always dreamed of, after serving for five years devoted himself, he will start a hotel business or the other . 

"In 1992, China's economy has started to grow up, I applied a lot of jobs, but none have escaped. Eventually I became secretary general manager of Kentucky Fried Chicken , " said Jack Ma.
Jack Ma's friend show him the internet for the first time. When he searching for the word "beer" on the Yahoo search engine, he found the fact that there is no data about China. This made Jack Ma interested in set up a computer company even though he wasn't computer experts, by borrowed money 200 dollars to his relative, he ran the computer company. The company pioneered by Jack Ma compete with China Telecom for one year . Finally, China Telecom offers to invest to Jack Ma's companies of 185,000 U.S. dollars.

Unfortunately, Jack Ma gets only one board seat. For everything that he proposed rejected. Being a public company is also an important turning point. Alibaba.com managed to earn funds IPO of 1.7 billion U.S. dollars in Hong Kong Stock Exchange in November 2007. It was an initial public offering ( IPO), the largest Internet IPO since Google in the Nasdaq .Based on the IPO document, quoted by the BBC, on Thursday ( 08/05/2014 ), the value of all merchandise sold on the various platforms capable figure reached USD248 billion, with more than 11.3 billion requested. In addition, Alibaba claimed control of 72 percent of  e-commerce in China.Recon Analytics analyst Roger Entner said that Alibaba is able to defeat a similar company from America, the Amazon. According to the company e-commerce powerhouse Alibaba is a truly global scale. Once successful, Alibaba continues to corporate action  Alibaba will take the floor in the U.S. stock market, Wall Street, through the mechanism of an Initial Public Offering (IPO). All 28 partners were also offered a company that will take place in the long -term scale. The market participants expect that Alibaba could gain success in the domestic market to global stock markets. Analysts said that it is likely interest in this IPO as investors expect the company to replicate the success that occurs in China , on a global scale . 
Alibaba able to generate revenue of more than 40.5 billion yuan, equivalent to $ 6,5 billion in the nine months ended of December 2013, and a net profit of $ 2, 9 billion . 
McKinsey as a Global Institute predicts that, by 2020 online retail sales in China will reach numbers in the range of USD420 - 650 billion. That number would match the U.S. market, Japanese, English, German, and French . 
Alibaba.com users have been reached 8 million and revenue continues to increase. Late last year Alibaba.com revenue rose 39 percent to 440 million U.S. dollars. Alibaba.com also provides that Aliexpress allowed consumers to order one unit of goods only .The successful of Alibaba.com as global market, based on SMEs. In this case an important role in economic activities is SMEs. The SMEs are able to penetrate the global market are able to compete in the free trade. Then, how about Indonesia? Is Indonesia still able to compete with other countries in the free trade? The answer is certainly NOT YET . The Small and Medium Entrepreneurs do not yet have a good ability to compete, the price of local products still high, the low quality goods, as well as the role of government in managing the SMEs is not optimal. Meanwhile  the banks still give credit loans big interest rates around 22 %, and it is the bottleneck of the development of SMEs. The Government should solve its problems. Because not all SMEs were able to survive in the competition, and when it happens , then it is the government can be relied upon to handle .

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