Alibaba's 5 divisions are expected to make $75 billion for full-year fiscal 2020
(1) China Commerce Revenue $49.1 billion (65%),
(2) China Wholesale & Other Revenue $8.9 billion (12%),
(3) Cloud Computing Revenues $5.9 billion (8%),
(4) International Commerce Revenues $5.7 billion (8%), and
(5)Digital Media & Innovation Initiatives Revenues $5.6 billion (7%)
Alibaba's Business Model
What Need Does It Serve?
Alibaba makes money through its e-commerce, logistics, cloud, digital media and other subscription software. While the company reports its business in four segments, we have reworked its structure into five segments that better capture Alibaba’s business based on its operations.
Has 5 Operating Segments
China Commerce: Segment revenues are derived from retail e-commerce and associated marketing services in China.
China Wholesale & Other: Segment revenues are derived from wholesale commerce and logistics services, primarily driven by Chinese consumption.
Cloud Computing: Segment revenues are derived based on customers' duration and usage of Alibaba's service.
International Commerce: Segment revenues are derived from retail and wholesale operations as well as from advertising services outside China.
Digital Media & Innovation Initiatives: Segment revenues are derived from content subscription, software subscription and merchant advertising offerings.
What Are The Alternatives?
Alibaba is a conglomerate with business interests spanning across digital and physical goods and services. The company's most direct competitor is Amazon.
However, since Amazon does not operate at scale in China, some other competitors include Baidu, Tencent, Sina.
What Is The Basis of Competition?
It competes to attract, engage and retain consumers based on the variety and value of products and services listed on its platforms. It also competes on the overall user experience of its products and services and the effectiveness of its consumer protection measures.
In addition, it also competes to retain brands and retailers on its platform.
 Cloud Computing Division Revenues to grow by about $5 billion over the next two years due to increase in average revenue per customer, wider partnerships, and Alibaba's launch of newer cloud products.
Cloud Computing Revenues
Alibaba's recently-launched SAAS accelerator helps deploy cloud native technologies across customer IT environments to speed up adoption of Alibaba's cloud.
 Digital Media & Innovation Initiatives Division Revenues to grow by about $2.7 billion over the next two years due to increase in local language content consumption.
Digital Media & Innovation Initiatives Revenues
Over the next 2 years, the incremental $2.7 billion is likely to be driven by continued growth in local language content consumption.
DISAGREE WITH OUR FORECASTS? CREATE YOUR OWN
1. How to save your forecasts:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts. Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.