Ma Yunfang 20 years: How does Alibaba define a good company?

 Ma Yunfang 20 years: How does Alibaba define a good company?

I want to tell the world about Chinas culture, economy and trade. If I dont succeed, someone will succeed. But I hope the Chinese will succeed.

Twenty years ago, Ma Yun, the founder of Alibaba, might not have forgotten that night when he said this on the bus back home after failing to sell yellow pages everywhere during the day. There are reluctance, helplessness and perseverance in the tone. Ma Yuns eyes flashed like lights in the bright and extinct carriage. This picture is very impressive.

Now, 20 years later, as he wished, the Chinese people have achieved remarkable success in the construction of the Internet information superhighway. This person is no one else, but Ma Yun himself, the founder of an e-commerce empire with a market value of $465.583 billion. Alibaba has redefined the concept of good company in the 20-year growth of Chinese e-commerce. And what supports it today is the unique values behind it, namely customer first, teamwork, embracing change, honesty, passion and dedication.

Among them, the core is customer first. Throughout the e-commerce ecosystem, there are millions of small business owners who have changed their destiny because of Alibaba. Eventually, because of the adherence to values, tens of thousands of Alibaba employees have souls, and give Alibaba Internet Whampoa Military Academy praise.

Ma Yun says his ideal is that 200 CEOs from Alibaba will be among the 500 good companies in China in the future. How to define good? Ma Yuns answer is that it does not depend on how strong it is. It should be affirmed by employees, users and companies. It is the so-called self-interest, self-interest can enable enterprises to obtain a certain living space in the short term, while altruism is long, only altruism can make enterprises truly achieve evergreen foundation.

Customer First Becomes the Iron Law

As we all know, since the mid-1990s, Japans economy has entered a stagnation period, lasting for more than 20 years. Low fertility, ageing, low desire and other social problems are becoming more and more serious, and the technological innovation of mobile Internet led by China and the United States is even more difficult to find in Japan. However, there are still a number of old Japanese companies that have gained negative growth, such as Muji, 7-11 and so on.

As Ma Yun said before, All the major decisions in Alis history have nothing to do with money, but with values. If you look back at the 10 toughest decisions in Alis history, they are all about values.

Back in 2000, after the dotcom bubble burst, Alibaba experienced a period of kneeling for the winter. Ma and his eighteen team of Rohan were too poor to afford a car. By 2001, the situation had become more difficult, and Alibaba B2Bs core business Chinese suppliers were facing tremendous performance pressure.

In order to get more orders, some employees asked, Can you give customers a little rebate according to the industrys latent rules? To this end, Ma Yun organized a meeting in which all the executives were locked up in a room and quarreled for eight hours from morning to night. Finally, Ma Yun clapped the board: resolutely do not give rebates business, because it violates Alis integrity values.

If we cant survive, we can shut down the company. Ma Yun persuaded his colleagues in this way, and continued his business with his consistent altruism. Therefore, in 2003, Alibaba was not only not knocked down by SARS, but also unexpectedly gave birth to Taobao.

In April of that year, there was a suspected SARS epidemic in Guangdong. Because 50 customers had promised to take their samples to the Canton Fair for free promotion, Ali employees chose to attend the meeting. At the Canton Fair, they brought 50 Chinese suppliers with them, and more than 10 received intentional orders.

However, when he returned, unfortunately, an employee was found to be suspected of SARS, and the whole company was urgently quarantined. In order not to lose contact with customers, 400 Ali employees moved desktop computers, address books and customer service phones home in the great crisis, and seamless links started SOHO office. It was during this period of isolation that Alibaba launched Taobao.

Finally, Jiao Zhen, an ordinary student at Xian Technological University, used Alipay for the first time to do secured transactions, and he became the first person to use Alipay in the world.

In this regard, Alipay said, because he was brave then believe that Alipay came into being.

Good deeds melt into doing business

In 2005, Alipay launched the you dare to pay, I dare to pay, to further solve the users worries. It can be said that without Alipay, there would be no era of mobile payment today. For more than 10 years, whether it is Micro-net loan or sesame credit, it is based on solving the problem of social trust, rather than purely for commercial interests.

Recently, the annual report of 2018 issued by the Internet Commercial Bank shows that by the end of 2018, the Internet Commercial Bank has served 12.27 million customers of small and micro enterprises and small and micro operators, with an average balance of 26,000 yuan. In addition to providing micro-loans, online commercial banks have lowered lending rates for small and micro enterprises for two consecutive years.

The Alibaba trading platform revealed 2326 Chinese suppliers suspected of fraud, and hundreds of Alibaba sales staff involved. On that day, Alibaba B2B CEO Wei Zhe and CEO Li Xuhui resigned. External speculation on this matter is varied, and Ma Yuns external interpretation only let people understand the protection of values, never relentless.

I like Wei Zhe very much. When I found out about it, I began to feel sad. Once it was confirmed that it was true and there were so many employees involved in it, there was only one solution. Someone must pay for it, and the CEO must bear the greatest cost. Otherwise, Alibabas values are only for employees, that is, scrap paper pasted on the wall. Ma Yun is resolute in this regard.

Until September 2014, Alibaba was listed on the New York Stock Exchange. Eight unfamiliar faces appeared at the bell ring to announce that Alibaba was officially listed in the United States. They are online shopkeepers, couriers, users, e-commerce service providers, as well as online models and a foreigner. Eight different identities and occupations represent the eight most important types of customers of Alibaba at that time, and represent the real value of Alibaba.

This very Ali move made the whole New York Stock Exchange uproar. At the same time, this is also an ecological company, reasonable measures, only the win-win between customers and the platform is successful.

When a small business grows into a huge tree in Alibabas soil, Ma Yun may realize his success. When Alibaba was founded 20 years ago, it was already in its infancy and failed four times in a row. Five years ago today, when Alibaba was listed on U.S. stocks, Ma Yun said in New York that he had traveled to New York to raise $2 million, but was rejected by 30 venture capitalists and failed. I havent given up for 15 years, Ma said. This time Im in New York just to get more money back. This time, Ma Yun not only did it himself, but also helped small ecological enterprises to get more capital.

Three squirrels raised 400 million yuan and 6.17 million US dollars three years after they first joined Tianmao Mall in 2012, and successfully listed on the Shenzhen Stock Exchange in July 2019 as the first share of national snacks. This Internet snack brand, which originated from Taobao and is better than Tianmao, is actually full of Alis shadow. This wave of learning Ali is not only a reference for business models, but also a transmission of cultural values. This is the greater value of Alibaba platform to e-commerce ecology besides the commercial ecology.

Rough statistics show that since 2008, 54 companies have been listed in Tianmao, and another 10 companies are in the stage of market sprint or guidance. Among them, Tianmao Platform was first installed in 2008, and most of them have been in touch with the Internet for nine to ten years. China Gold, Zhou Dasheng and Yuanzu Foods, which are closely cooperated with Alibaba, have already been listed. Orchards, mankaron jewelry, tofu and so on are also in preparation for the market.

Established in 2006, Xiaoxiong Electrical Appliances, a small household appliances brand, has relied on Alibaba B2B, Taobao, Tianmao and other platforms from the start to today. Recently, Xiaoxiong Electric Co., Ltd. was launched on the Shenzhen Stock Exchanges small and medium-sized board. According to the companys prospectus, Xiaoxiong Electric Co., Ltd. has grown at an average rate of over 39% in the past three years, with its revenue exceeding 2 billion yuan in 2018. Ouyang Guirong, deputy general manager of Xiaoxiong Electric Appliance Co., Ltd., has deep feelings about the support behind it.

He said Xiaoxiong is an innovation-oriented brand. The whole industry is very difficult. It cant find a better direction and its competitors are too strong. In this case, Xiaoxiong has been trying to find his own way, so he has cooperation with Taobao and Tianmao. I think the biggest feeling is Alis culture. In the early stage, Ali always feels that it is changing. Later, we slowly understand that Ali has the same unchanged thing, that is, it is always user-oriented.

Today, Alibaba is about to celebrate its 20th birthday. Some have changed, but some remain unchanged. Ma Yuns goal is to build a century-old shop. We will continue to adjust ourselves on the basis of user orientation, follow Alibaba to grasp user groups, seize market opportunities, or to seize the winner. It can be said that on the Ali platform, as long as you try your best to match products and services, you will certainly find space. Ouyang Guirong further explained that.

Hu Qimu, senior researcher of Digital Economy Think Tank and senior economist of China Steel Group, believes that enterprise value is enterprise strategy at the executable level. Values are the foundation, business strategy, organizational strategy and cultural strategy are the process and result. Alis effort to seriously explore corporate values is actually to set the direction for future development, which is the most pragmatic action. Only by cultivating market foundation diligently and cultivating customer ecology patiently can enterprises form a fate community with the market and store more ample ammunition for the next charge.