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Jack Ma was inspired by the character Alibaba from the story 'Ali Baba and the Forty Thieves,' particularly the phrase 'Open Sesame,' which symbolizes opening doors to opportunities. He believed the name was easy to spell and had global recognition.
Alibaba.com was founded on June 28, 1999, by Jack Ma along with 17 friends and students in his apartment in Hangzhou, China.
In October 1999, Alibaba received a US$25 million investment from Swedish Wallenberg family's Investor AB, Goldman Sachs, and SoftBank.
The primary goal of Alibaba.com was to improve the domestic e-commerce market in China and create a platform for small and medium-sized enterprises (SMEs) to export Chinese products globally.
Alibaba.com became profitable three years after its launch, in 2002.
After 2003, Alibaba launched several major platforms including Taobao Marketplace, Alipay, Alimama.com, and Lynx.
In 2005, Yahoo! invested US$1 billion in Alibaba, acquiring a 40% stake in the company through a variable interest entity (VIE) structure.
Yahoo!'s investment in Alibaba ultimately netted US$10 billion during Alibaba's IPO.
In 2012, the China Investment Corporation led a group of Chinese investors to buy out Yahoo!'s 40% stake in Alibaba.
In 2013, Alibaba planned to open traditional brick-and-mortar retail outlets in partnership with Wanda Group, a Chinese real estate company.
In early 2014, Alibaba purchased a 25% stake in Hong Kong-listed Chinese department store chain Intime Retail.
In early 2017, Alibaba and Intime's founder agreed to pay up to HK$19.8 billion (US$2.6 billion) to take the store chain private, increasing Alibaba's stake to about 74%.
Alibaba aimed to address challenges posed by the World Trade Organization (WTO) and improve the overall e-commerce system for Chinese enterprises.
Alibaba is viewed as a 'kind, smart business person' because the character Alibaba in the story helped his village, reflecting the company's mission to support small to medium-sized businesses.
The name 'AliMama' was registered by Alibaba as a playful alternative, indicating a willingness to collaborate or merge with other entities.
The founding team, consisting of Jack Ma and his friends, brought diverse skills and a shared vision to create a platform that addressed the needs of Chinese SMEs, which was crucial for Alibaba's early success.
The Wallenberg family's Investor AB was one of the initial investors in Alibaba, acquiring a 6% stake and providing essential capital to support the company's growth.
Alibaba's IPO had a significant financial impact, particularly for early investors like Yahoo!, who saw substantial returns on their investments.
Alibaba plays a pivotal role in the global e-commerce market by facilitating international trade for Chinese SMEs and providing a platform that connects buyers and sellers worldwide.
Alibaba's business model evolved from a B2B marketplace to include various services such as retail, payment solutions, and advertising, adapting to the changing needs of the market.
In its early years, Alibaba faced challenges such as establishing trust in online transactions, competition from other e-commerce platforms, and navigating regulatory environments.