Tuesday, 1 September 2009

Ali Baba drops Profit - Sacrificing Margin for Market Share

Alibaba, the leading online B2B marketplace in China, went public in HK in November 2007 (trading under 1688.HK), gaining 200% on its first day.

Its initial strategy was to charge high membership fees to choice importers and exporters in China, turning to a volume strategy, of subscribers paying 40% of the annual fee.

Jack Ma is founder and chairman.

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