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Chapter 7  E‑procurement

 He resigned, but in 1999, he gathered 18 people in his apartment and spoke to them for two hours about 

his vision. Everyone put their money on the table, and he got $60,000 to start Alibaba. He chose Alibaba as 

the name since it was easy to spell and associated with ‘Open, Sesame’, the command that Ali Baba used to 

open doors to hidden treasures in  The Thousand and One Nights . 

 During the  dot‑  com bubble, there were  lay‑  offs, such that by 2002 there was only enough cash to survive 

for 18 months. They had a lot of free members using the site, and didn’t know how they could make money. 

But they then developed a product for China exporters to meet US buyers online, which Ma said saved the 

company. By the end of 2002, Alibaba made $1 in profits! Each year since it has improved in profitability to 

the position where it was launched on the stock market. 

 Today, Jack Ma’s vision is to build an e‑commerce ecosystem that allows consumers and businesses to 

do all aspects of business online. They are partnering with Yahoo and have launched online auction and pay‑

ment businesses. His vision is expansive, he says: ‘I want to create one million jobs, change China’s social 

and economic environment, and make it the largest Internet market in the world.’ 

 You can view the video of CEO Jack Ma talking about the business on  FT.com . 

   Source : Ali Baba Press releases  Alibaba.com  Limited Trading Debut, 7 November 2007:  http://resources.alibaba.com/article/225276/

Alibaba_com_Limited_Trading_Debut_.htm . 

 Riding the Blind Tiger: The Unlikely Rise of Alibaba CEO, Jack Ma, 8 January 2008:  http://resources.alibaba.com/article/246718/

Riding_the_Blind_Tiger_The_Unlikely_Rise_of_Alibaba_CEO_Jack_MA.htm . 

  Web Explanation : Interview with Jack Ma (search on Jack Ma):  www.ft.com/cms/8a38c684‑2a26‑11dc‑9208‑000b5df10621.html .   

 Figure 7.6 

 Jack  Ma,  CEO   Alibaba.com         

 Source:  FT.com .  

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