How Jack Ma came up with an idea of
travelled to Seattle, USA, in 1995 for the conference and was introduced to the
world of the Internet, where he famously typed in a search query for “beer”.
There were nothing about Chinese beer. Jack then searched for “China” and found
no entries for the country either. “Why don’t I make something about China?”
(Jack Ma), he asked his friend Stuart Trusty, who worked in Seattle as an
Internet consultant. And that is how “Chinapages.com” was born in 1995.
website did well, but the lack of a revenue model meant the company was short
of cash and vulnerable to takeovers. In 1996, a state-owned enterprise, “Zhejiang
Telecom”, took over the company. Ma lost control of his pioneering enterprise,
and had to move back to Beijing to take up a job in the ministry of foreign
trade and economic cooperation, where he built trade websites for the
under layers of bureaucracy was frustrating, and in 1999, Ma left the ministry
to start his new Internet venture called “Alibaba”, which would cater to small
businesses, and go on to become one of the world’s largest ecommerce companies.
Four years and two failures later, he persuaded seventeen (17) of his friends
to invest in his plan for “Alibaba” and finally for him, it was his first and
probably the most important success in his life.
1 – The iron triangle:
begins this chapter by describing the events that occurred on 11/11/2015 – a
global shopping gala, Jack Ma stated that he only wanted to display the power
of the consumers. On that day, the sales crossed well over $14 billion,
staggering amount that were many times greater than the cyber Monday sales that
were launched in the US after a weeks.
Chinese rarely bought anything online, but “Alibaba” has changed that over the
years. For instance, household spending drives about two – third (2/3) of the
US economy, but in China it did not even amount to one – thirds (1/3). The
Chinese spent very little and saved their money. Further, Jack says that
Alibaba was the result of an accident. With no plan and money, the company had
no bright future, but thanks to its advantage in logistics, finance and
e-commerce (the company’s iron triangle) the company finally made headway.