How Could Alipay Dominate Chinese Market Essay Example

situations. By embracing this concept, we can effectively promote our product while delivering excellent support services.

Although Alipay has often been referred to as the Chinese equivalent of Paypal, it offers a more flexible and information-packed payment system for the general public. According to Christina (2015), while Paypal is primarily recognized as a payment option that customers can access during online transactions, Alipay allows customers to directly use its app and website for making payments, managing investments, and purchasing movie or plane tickets. The Alibaba group has integrated all these options, including buying tickets or paying utility bills, on the homepage of the Alipay App.

The design of the home page promotes the efficiency of finding necessary items in the Alipay App. An example of Alibaba's decision in 2014 is launching Alipay ePass, a secure tool for cross-border transactions. Rachel Strugatz(2014) explains that ePass simplifies shipping, tax, and customs processes for U.S. brands entering China through the e-commerce ecosystem.

According to Matt (2014), ePass provides direct access to their products for affluent Chinese individuals who desire foreign brands and merchandise. This initiative aims to enhance the customers' shopping experience worldwide by offering cheaper, quicker, and easier options, aligning with Woodruff's idea of creating value for customers. Additionally, Alibaba has improved operating productivity by collaborating with physical stores like supermarkets, restaurants, and other entertainment industries. This means that if you find yourself in a situation where you need to make a purchase but don't have enough money, having your cellphone handy will prevent you from feeling helpless.

Simply open the Alipay app and display your Alipay bar code to the cashier. The cashier will then scan your code using a

scanner, completing the transaction. The advancement of technology and operations has made people's lives more convenient, as they prefer using their cellphones to handle all transactions. Alibaba aims to provide value to customers without causing them any costs or losses. Therefore, the Alibaba group dedicates significant resources to safeguarding network security and reducing users' risk. As a preventative measure against fraud, each user's bar code changes every minute.

In terms of creating value in the market concept, there are two tools available - creating value through benefits and creating value through costs. Alipay, for example, utilizes the "Yu-e bao" function to allow users to deposit excess money and earn higher interest rates compared to traditional banks. This marketing strategy not only benefits customers by improving asset productivity but also poses a threat to the traditional banking industry. This is a key factor contributing to Alipay's success in beating its competitors.

Alibaba is continuously striving to enhance the quality of its support services and relationship management. In 2012, the number of employees at Alibaba was 21,930 according to data from The Statistical Portal. However, this number increased to 34,985 by 2015 as Alibaba hired more workers to handle and collect valuable information while removing irrelevant data. Alipay, a product offered by Alibaba, does not charge any fees for transactions and occasionally provides substantial subsidies and promotions to its customers.

Alibaba group will bear the cost themselves, thereby saving customers money. Alipay is famous for its innovative payment method that eliminates the need for users to carry a wallet. This ultimately leads to reduced expenses, time, and effort for users. Moreover, by delivering value to customers, it also enhances

the firm's overall value. According to a report by Matt (2014), Alipay accounts for 80% of all online retail sales in China. Consequently, an improvement in the company's performance will result in an increase in Alibaba group's share price. Given the significant value creation that Alipay brings to customers, it undeniably influences other marketing concepts as well.

Alibaba group effectively retains customers and enhances customer loyalty by achieving higher productivity and quality in their goods and services. According to data, Alibaba's marketplace has 289 million monthly active mobile users and 12.7 billion annual orders (Craig, 2015). This not only contributes to the building of brand equity for the firm but also attracts more customers and enables resistance against competitors. Additionally, it allows for expansion and development in future global markets. In summary, Alibaba group serves as a valuable example of how to utilize available resources to create value.

Designing and developing products to benefit users, providing better customer services and management, and establishing brand value are all ways in which companies can create value. Additionally, firms can create value through cost aspects such as bearing maintenance or financing costs in order to provide more interests for customers. Creating customer value not only enhances customer loyalty but also brings value to the company. Thus, setting creating customer value as a goal is crucial for any company.

The text provides references to three different websites:
1. http://www.technologyreview.com/news/534001/alipay-leads-a-digital-finance-revolution-in-china/
2. http://expandedramblings.com/index.php/alibaba-statistics/
3. http://www.forbes.com/sites/schifrin/2014/10/15/meet-jingming-li-architect-of-alibabas-killer-app-alipay/