May 22, 2016
“Household spending in the United States drives two-thirds of the economy, but in China it barely accounts for one-third. Compared to developed countries, Chinese people don’t consume enough. The reason? They save too much and spend too little.”
May 22, 2016
“Just as Google is synonymous with searching online, in China to “tao”7 something is shorthand for searching for a product online”
May 22, 2016
“But let’s look at the three real factors that underpin Alibaba’s success today: the company’s competitive edge in e-commerce, logistics, and finance, what Jack describes as Alibaba’s “iron triangle.”
Alibaba’s e-commerce sites offer an unparalleled variety of goods to consumers. Its logistics offering ensures those goods are delivered quickly and reliably. And the company’s finance subsidiary ensures that buying on Alibaba is easy and worry free”
May 22, 2016
“But Taobao’s success is not explained by the xiaoer alone. The site works because it succeeds in putting the customer first, bringing the vibrancy of China’s street markets to the experience of shopping online. Buying online is as interactive as in real life. Customers can use Alibaba’s chat application10 to haggle over prices; a vendor might hold up a product to his webcam. Shoppers can also expect to score discounts and free shipping.”
May 22, 2016
“Groceries are another popular category because, as Jack explained, “supermarkets in China were terrible; that’s why we have come out on top.” Already more than 40 percent of Chinese consumers buy their groceries online as compared to just 10 percent in the United States. ”
July 7, 2016
“Alibaba has continued to push the boundaries of private sector involvement in financial services, including providing microloans to the merchants and consumers trading on its platforms. Still relatively new, the lending business is expected to grow into a billion-dollar business within a few years. Offering credit also increases the “stickiness,” or loyalty from customers, of Alibaba’s e-commerce platforms.”
“A new business, Sesame Credit Management, provides credit ratings on consumers and merchants to third parties.”
July 7, 2016
“The iron triangle is a key factor in making Alibaba such a dominant player in China’s e-commerce market. But it is the charisma of the company’s founder—his “Jack Magic”—that bound together the people and capital who would build on these foundations.”
July 7, 2016
“Most companies bear the imprint of their founders, but few more than Alibaba. Jack Ma’s outsize influence stems from his passion for teaching. Although he left the profession two decades ago, Jack has never really stopped being an educator. He used to joke that in his case CEO stood for “Chief Education Officer.” Fourteen years after founding the company Jack relinquished the title to become chairman. But the switch served only to heighten his authority. His chosen successor as CEO lasted barely two years in the job.”
July 7, 2016
“So, Jack doesn’t look the part of a corporate chieftain. He possesses all the trappings, including luxury homes around the world and a Gulfstream jet, but otherwise Jack doesn’t really act the part, either. ”
July 7, 2016
“Where other business moguls like to talk up their connections or academic credentials, Jack enjoys talking down his own: “I don’t have a rich or powerful father, not even a powerful uncle.” Having never studied abroad, he likes to describe himself as “one hundred percent Made in China.” He stands out as a tech company founder with no background in technology. At Stanford University in 2013 he confessed, “Even today, I still don’t understand what coding is all about, I still don’t understand the technology behind the Internet.”
Jack has made a career out of being underestimated: “I am a very simple guy, I am not smart. Everyone thinks that Jack Ma is a very smart guy. I might have a smart face but I’ve got very stupid brains.”
July 7, 2016
“On the first day of trading of Alibaba’s shares, Jack was interviewed by CNBC live on the floor of the New York Stock Exchange. When he was asked which person had most inspired him, Jack replied without hesitation, “Forrest Gump.” His interviewer paused, then said, “You know he’s a fictional character?”
July 7, 2016
“Jack’s ability to charm and cajole has played an important role in attracting talent and capital to the company, as well as building his own fame. Jack has a unique Chinese combination of blarney and chutzpah. One of his earliest foreign employees3 summed up for me his qualities in two words: “Jack Magic.”
July 7, 2016
“Central to Jack’s own distortion field are his skills as a communicator. Jack’s speaking style is so effective because his message is so easy to agree with, remember, and digest. ”
July 7, 2016
“Jack always speaks without notes. His oratorical skills are so effective because his repertoire is so narrow. Jack can dispense with notes because he already knows much of his material: a well-honed stable of stock stories”
July 7, 2016
“ I have turned around to look at the faces of the audience, trying to understand what explains his enduring appeal.”
July 7, 2016
“Humor is a big part of it. As a quick look at any of the hundreds of videos available on YouTube of his most popular speeches will reveal, Jack is very funny.”
Notes From: Duncan Clark. “Alibaba: The House That Jack Ma Built.” iBooks.
