how is Amazon and Alibaba similar and different?

Please read attached file Chapter 10:(Managing the Digital Firm, Chapter 10, pp.380-424) and answer following questions.

Q1:Please write a concise (one page, in 1.5 spacing 11-point Calibri font.) position statement on the importance of the internet on a company’s business model. Please provide an example of a successful company using the internet for its business model and an example of an unsuccessful company. What were the key lessons learned in both?

Q2: From an eCommerce business model how is Amazon and Alibaba similar and different? Which one would you invest in as a long term investment? Please provide one succinct paragraph(about 200-250 words) answering these questions.

Q3:Please write 2-3 sentence of your opinoin to reply following discussion.


Both Alibaba and Amazon are based on e-commerce business, supplemented by cloud services and digital media.


Amazon is a B2C platform,it uses proprietary mode to buy and sell products through its own hands, and it has its own inventory.

Alibaba, has two mode, one is B2B, and one is C2C, in both mode, Alibaba acts as a platform, not involved in sales, but only provides a platform for businesses to contact buyers. Sellers and buyers communicate through the platform by themselves, it dose not have its own inventory.

From my perspective, in the long term, I will choose to invest Amazon. Look at the financial statement, Amazon’ net income per year is much lower than Alibaba, actually Amazon put their money in R&D , product innovation, and expand their market, so in the long-term, maybe I will choose to invest Amazon.


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