Alipay
Group members:
ZHU, Shiman(1155082207)
DAI, Zhuo (1155082025)
Zhang, Xiaoyi (1155081679)
HUANG, Lei (1155089311)
SU, Tong (1155082126)LO Pui Ching Joanne (1004600634)
SWOT Analysis
（Internal）
- Strength
- Providing a combination of multiple functions and services like financial services（personal+financial） personal consumption, life services and so on.
- Collaboration with many companies and organizations. Partnerships with Taobao,Tmall, banks and credit card companies.
- Strong social network: Large scale user and high customer loyalty --- Fund raising and loan services from Alipay platform (眾籌) and accumulate funds which contribute to the economy.
- Substantial capital recourses of Alibaba group.
- Weakness
- Request on using real name registration in China, limitation on creating new accounts, inconvenient to business.
- Security and privacy problem, the risk of cyber crime higher, losing of privacy information to the corporates or government.
- Geographical limitation : China market only, not popular in overseas market, restrict to HK／Taiwan or overseas users
- Long settlement period, depends on the bank billing management system.
（External）
- Opportunity
- The ubiquity of smart phones and mobile apps: Rapid expansion in online consuming.
- Online consumption and finance management are generally accepted by young generations nowadays could attract more users use Alipay.
- The popularity of e-commerce: demand growth with the technology development.
- Threat
- WeChat payment and PayPal are the main rivals to Alipay.
- Other competitors such as traditional bank’s online services.
- Some restrictions set by banks such as bank charges.
- Uncertain government regulations
5 forces
- Threat of new entry
There is a high entry barrier of the market of mobile payment, and Alipay and Wechat payment dominate the market currently. Nevertheless, there still arise some competitors.
The cost of big promotion discount put great pressure on the new entries.
Customer base need long time to build.
Government regulations greatly influence on business. License issued by the government is difficult to get.
- Buyer power
Buyers want free transaction service, convenient life service and financial services with high profit.
Major function is similar to the biggest competitor WeChat payment and the cost of transfer is limited.
- Supplier power
Banks charge for transaction fee.
It’s impossible to substitute the bank and financial organisations.
- Threat of substitution
There are many kinds of payment substitutions, like WeChat payment, Android pay, Apple pay, paypal. And some offline stores require cash. Apple pay and Android pay deeply integrated on phones and generate many users.
Paying with credit card is popular and convenient. It’s easy to change the payment method.
- Competitive Rivalry
Wechat pay has large amount of loyal users with highly social connection.
The switching cost is low. Their major functions are similar. The difference is that Alipay has credit card function and WeChat pay can send red pocket in chatting windows.
Business canvas
Key Partners:
- Government
- Financial services organizations (e.g. banks, fund companies)
- E-commerce platform (e.g. 淘宝，小红书)
- Brick-and-mortar stores
|
Key Activities:
|
Value propositions:
-Making payment easy and secured
-An integrated platform for payment (including online/offline consumption and life bills) and financial services
|
Customer
relationships:
- Trying to build up customers’ sense of security by highlighting a trustworthy image
- Trying to build up the image of a convenient and omniponent payment tool
- Trying to embed into customers’ personalized daily lives with more social functions
- Trying to enhance engagement and loyalty by regularly organizing special events
|
Customer
segments:
Individual
Merchants
|
Key Resources:
- Permission from government
- Advanced electronic commerce payment technology
- Enormous financial resources
- Large customer base
|
Channels:
-Website;
-Mobile Apps;
-Traditional media;
-Outdoor advertisement;
-Brick-and-mortar stores;
| |||
Cost structure:
-Marketing expenditure;
-Technological infrastructure & platform maintenance;
-Transaction fee （bank charge)
|
Revenue streams:
- Service charge（transaction fee, value-added service )
- Interest (capital pool and loans)
- Advertising revenue
| |||
Blue Ocean Strategy
Eliminate
- Counter Service
- Membership service
Reduce
- Service fee
Raise
- Security
- Offline payment acceptance
- Personalization
- Ease of payment
Create
- Online financial products
- Online shopping guarantee
No comments:
Post a Comment