December 30, 2014, Jack Ma (or Ma Yun) attended the second joint meeting of the Strategic Cooperation Between Alibaba Group And Hangzhou City during which Ma said that in the coming year of 2015, Alibaba will carry out a comprehensive upgrade in term of organization management, culture and human resource management to gear up to meet the challenges in the next 10 years.
Corporate Social Responsibility of Alibaba
Ma said that: “This year, Alibaba has achieved the 8th most valuable company in the world after passing Walmart and IBM. As a company making an initial public offering at $25 billion and creating billions of annual profit, we used to follow the evaluation standard “what Alibaba can do for China”; but for the coming 15 or 20 years, the evaluation standard should be “what Alibaba can do for the world”. Only with the change of thinking, we can fulfilled the Corporate Social Responsibility as one of the top 10 most valuable companies.”
Development Focus For Alibaba For The Next 5 Years
Ma suggested that Alibaba will focus on three main areas in the coming 5 years: globalization, e-commerce in rural areas and cloud service. Alibaba hopes to achieve e-business globalization by gathering 2 billion consumers, the company will start with the building of global payment, global logistics & establishing of a set of new trading rules. Ma likes to have more countries to get involved by using its cross-border e-commerce platforms.
Positioning of Alibaba: To be China’s “National Enterprise”
Ma claimed that Alibaba is not an ordinary private enterprise nor state-owned enterprise, the company targets to become a “National Enterprise” to China, like Samsung to Korea, Google and Apple to the United States. China needs to have a generation of young people to represent China’s innovative technology, innovation capacity and the unique contribution to the world. An important indicator of a “National Enterprise” is that: “40% of its revenue is from oversea”. Ma hoped that Alibaba can bring changes to the world in the next 10 years by developing cross-border e-commerce.
Alibaba paid 1.2 billion yuan ($192 million) in the deal for GuangzhouEvergrande Football Club in June 2014 renaming the most famous foot club in China to Guangzhou Evergrande Taobao F.C. (Taobao is the biggest online shopping platform similar to eBay and Amazon which is operated by Alibaba Group). Ma also talked about his view on the sports business in the meeting. He said that Alibaba does not want to get involved in sports industry or sports career, but sport economy. He predicted that contribution of sport to the economy in China will exceed everyone’s imagination.