Category Archives: China

Jack vs Jeff: The two biggest ecommerce billionaires in the world are total opposites

 

In 1990, Jack Ma was teaching English to a group of university students at Hangzhou Dianzi University. Who would have thought that, 24 years later, he would be China’s richest man?

In that same year, Jeff Bezos was working at D.E. Shaw & Co., an investment management firm based out of New York City. After graduating summa cum laude from Princeton university with a Bachelor’s degree in computer science and electrical engineering, there was no doubt Bezos would end up in tech, it was just a matter of time.

Years later, both of them would come up with similar names for their companies. Bezos wanted Cadabra, a name that signified magic. Ma wanted Alibaba, hoping that the name would open doors with an “open sesame”. But that might be as similar as they can get: ecommerce and magic.

These origin stories are tell-tale signs of two diverging philosophies and the companies they gave birth to. And yet they meet in some inroads. Just one month after Alibaba’s IPO, let’s take a deeper look at the two founders and the companies that are destined to shape the future of online retail.

Putting customers first?

Amazon is notorious for its obsession with customers. In fact, it’s Bezos’ go-to mantra and arguably his number one rule when it comes to how the culture of Amazon should be set. Bezos is a customer-centric founder:

We have so many customers who treat us so well, and we have the right kind of culture that obsesses over the customer. If there’s one reason we have done better than of our peers in the Internet space over the last six years, it is because we have focused like a laser on customer experience, and that really does matter, I think, in any business. It certainly matters online, where word of mouth is so very, very powerful.

But Jack Ma has a slightly different angle. Ma told CNBC newscasters, minutes after Alibaba listed on the New York Stock Exchange on September 22, “Customers first, employees second, and shareholders third.” What the newscasters didn’t realize was that when Ma thinks of customers, he’s not talking about everyday consumers in the same way as Bezos. To Ma, his customers are the small businesses that use the firm’s Taobao and Tmall marketplaces. Speaking at Stanford in 2013, Ma outlined this clearly:

Alibaba is not a company for consumers […] I knew that we didn’t have the right DNA to become a consumer company. The world is changing very fast, and it’s hard to gauge consumers’ needs. Small businesses know more about the needs of their customers. We had to empower our power sellers and our SME’s to support their customers.

This divergence is profoundly clear when you dig into stories about Amazon’s dealings with small businesses. In 2006, Amazon throttled the sales of a 200-year-old German business selling knives. In 2007, when Amazon released the Kindle, it didn’t reveal the US$9.99 price to publishers until the day of the release. And just this year, Amazon is making it harder for customers to buy books from publisher, Hachette, all because, as Forbes notes, “Amazon wants a bigger piece of its suppliers’ profit margins to purportedly pass on to its customers in the form of lower prices.” Amazon functions like a monopolistic empire.

You just won’t see this kind of behavior at Alibaba. The philosophy is poles apart from Amazon’s. This is what Jack Ma had to say on this very topic at Stanford in 2011:

I believe in the internet time, there is no empire thinking. I hate the empire. Empire thinking means join me or I’ll kill you. And I don’t like that model. I believe the ecosystem. […] I believe everybody should be helping each other, connecting each other. It’s an ecosystem. So Taobao become so big, so fast, and I worry about that. Give the industry some opportunity, give the competitors some opportunity.

See: Jack Ma’s Last Speech as Alibaba CEO
## No money, no technology, and no plans

When you dig deeper into the business philosophies of these two giants, you start to see even deeper discrepancies. When Ma spoke again at Stanford in 2013, he outlined some peculiaritiesof Alibaba’s founding story.

The ignorant are not afraid. There were three reasons behind our success. They were very valid points. First, we had no money. Second, we didn’t understand technology. Third, we never planned.

Alibaba started with RMB 50,000. That’s about US$8,150. When Amazon started out, Bezos got US$300,000 from his parents.

Ma was an English teacher before starting his entrepreneurial journey. Bezos graduated from an Ivy League school.

In contrast to Ma’s “no plan” (he goes into it much deeper here), Bezos is the meticulous planner. In a short video in 2009, following the acquisition of Zappos, Bezos outlines the “only things he knows.” The list includes: obsessing over customers, inventing, and thinking long-term. Bezos adds:

Any company that wants to invent on behalf of customers has to be willing to think long-term. And it’s actually much rarer than you might think. I find that most of the initiatives that we undertake may take five to seven years before they pay any dividends for the company […] It requires and allows a willingness to be misunderstood.

But in one or two ways, these tech titans are growing. Today, Ma’s net worth is US$21.8 billion, making him the 37th richest person in the world. Bezos is worth US$30.5 billion, putting him 21st on the list.

Epilogue: Beyond Alibaba, beyond Amazon, beyond money, beyond humanity

https://www.techinasia.com/jack-ma-jeff-bezos-amazon-alibaba-billionaires-ecommerce/

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    The largest technology stock offering in history is looming, but few in Silicon Valley seem to care. http://www.nytimes.com/
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How Would the Buddha Handle North Korea? Mindfulness in Diplomacy

(source http://www.huffingtonpost.com/seokhyun-hong/how-would-the-buddha-hand_b_6027544.html )

Today’s diplomacy is dysfunctional, and it seems as if the more we try to fix things without negotiations, the more serious the problems become. Recently the challenges in places like Iraq or Syria have grown so dire that we have to wonder whether we simply have the fundamentals wrong.

It may seem odd that this age of global integration would give birth to serious diplomatic tensions and occasionally to brutal conflicts. Part of the problem can be traced back to fundamental assumptions in the Western diplomatic tradition that have dominated international strategy since the seventeenth century.

The Western frame of mind that informs international relations assumes rivalry to be an essential principle. Throughout Western diplomatic history it has been assumed that one side must win over others through a winner-take-all struggle for hegemony.

But is such a vision appropriate for this age of the global community and of shared concerns such as climate change? Do all our exchanges have to take place in a Hobbesian world of all against all?

My experience in diplomacy suggests that the Eastern philosophical traditions of Daoism, Hinduism and above all Buddhism offer alternative approaches to diplomacy that have come of age. Buddhism places emphasis on harmony, rather than rivalry, and offers concrete strategies for engagement that help us to respond to the diplomatic challenges of an interconnected world.

The Buddhist approach does not naïvely assume that humans will always cooperate. Rather, it provides insights into the potential for true progress in all circumstances, a potential one can only grasp when one sees the duality and complexity of relations. There are deeper patterns in human relations that go beyond the simplistic impressions of good and evil that we find everywhere in the media, depictions that often apply and exploit an unstated religious framework in a Judeo-Christian interpretive matrix.

Many assume that diplomacy is a ruthless game of hegemony in which one just gives lip service to harmony as a strategy for justifying one’s actions. But what if harmony was actually the goal of diplomacy?

To be sure, the concept of harmony among nations is not foreign to the Western diplomatic tradition. The historical diplomatic aim of achieving a “concert of Europe” would seem to appeal to just such a longing for peaceful, cooperative order. Despite the appealing metaphor, though, we would better understand this term as a euphemism, a pleasant name for the disposition of the affairs of small countries by the great powers, to the advantage of the latter. In the words of one historian, the “concert of Europe” implied a harmony that “really meant that the smaller nations were coerced into carrying out what the great powers had agreed upon among themselves.”

Buddhism regards such hegemonic approaches to international relations as simply less effective in assuring security than simple dignity and a commitment to harmony. There is a deeper order beneath the surface of things and our sense of harmony, played out through small symbolic steps, can change the very nature of the debate in a positive direction.

The game of chess has come to symbolize diplomacy in the Western tradition. Just as in the game of chess, the Western strategist assumes a zero-sum framework wherein you must take the opponent’s pieces and eventually checkmate his king. (Tellingly, the English word “checkmate” derives ultimately from a Persian expression that means “the king is dead.”)

But the more dignified approach to game-play in the East is based on the assumption of the possibility of co-existence and co-prosperity. Asian games like weiqi (Chinese chess) or baduk (known as go in Japanese) differ from Western chess fundamentally in that the game assumes a mutual harmony even in competition, rather than ruthless elimination of the enemy.

Western chess assumes only one simplistic victory based on hegemony: you go after the king and destroy him, at which point the game ends. But in weiqi, there are millions of ways of winning the game. You can win with a half-house, or you can win by several hundred houses. There is a winner, but the myriad of potential games unfolds like a dance, without an assumption of total domination. Success in weiqicomes from harmony and balance.

The metaphor of balance, like that of harmony, has long had a place as a term of art in the Western tradition of diplomacy. From the eighteenth century through the early twentieth, the concept of a “balance of power” guided the conduct of international relations among the European great powers. Acting in accordance with this principle, diplomacy wove shifting alliances and international understandings in an effort to prevent the rise to hegemony of any one power or bloc. Yet the nature of the balance sought was curiously limited. This approach recognized and served only the aims and interests of the established club of the great powers; other nations and peoples often played the role of pawns, or of the stakes of the competition, in the scramble for domination and colonial mastery.

Also, the constant need to reestablish equilibrium among the powers was made necessary by the very fact that no nation regarded the principle of balance as, in itself, a desirable goal or guiding principle. Rather, it was the means available to prevent rivals or enemies from achieving the unstated goal privately maintained by each participant in the game, namely that of reaching the top of the hierarchy of relative status and power and of exerting a determining influence in the affairs of the other competitors. In this light we see that the balance maintained by this system of relationships was of an unstable sort that could last only so long as circumstances did not allow one side to upset the balance to their own advantage: there was no commitment to balance, or to the benefits that could follow from it, as worthwhile ends in their own right. The dangers inherent in this unstable equilibrium can hardly be overstated, as clearly shown by the outbreak, one hundred years ago at this writing, of the First World War.

Balance is an essential value in Buddhism, and that approach to human affairs has an immediate application with regards to North Korea. Many Western strategists approach Pyongyang with a hegemonic way of thinking. They simply assume that you “go after ” North Korea and win by changing the regime, or by getting rid of the top person. But, as we know from experience, such an approach does not necessarily lead to success. Decades of US intervention in Latin America and the Middle East have shown that each unilateral intervention carries with it the threat of later “blowback,” the unforeseen consequences that complicate and escalate conflicts. Although you may achieve your short-term goal, you will so disrupt the harmony as to create new problems, especially for ordinary people. After all, where North Korea is concerned, eliminating nuclear armaments is important, but if that process is disruptive, it will lead to only greater problems.

In my own diplomatic career, I have constantly fallen back on the wisdom of Buddhism, finding uses for mindfulness, balance and awareness in all aspects of international relations.

It is essential that when one is distressed by a diplomatic situation, when the situation seems hopeless, to take time out and return to one’s inner self. I find that taking time to meditate, to feel at peace with oneself and regain composure, can do wonders for one’s perspective. One should not make a serious decision until one has been centered.

Whomever I may be working with, I want to imagine a win-win situation, rather than fantasizing about destroying my opponent. The act of seeking harmony as an end in itself can lead one to discover previously unimaginable solutions. And in today’s interconnected world, we have no choice but to think about harmonious solutions that avoid dangerous confrontations.

One valuable concept in Buddhism is “mushim” which is an important part of my personal practice. Mushim means something like “no mind,” or more precisely “no fixed thinking.” It is a state in which the mind is open to all things and is not occupied by a thought or an emotion. In such a state, one is always neutral and calm, with a perspective from outside of one’s self. In such a state one can move beyond one’s prejudices and see one’s counterpart as he is.

Step one is taking the emotions out of diplomacy. There is no reason to lose your temper at the remarks or the actions of your counterpart. They are not part of you. You should be like a mirror that reflects back those comments and actions. A mirror does not become irritated by the images that it reflects back. They come and go. But of course one should be aware of those images, those shifts in message and in direction. And one should be aware of one’s own emotional responses. If one can keep up that detachment, can be aware of what is happening and of one’s emotional responses, then one reaches a state of mushim.

An analogy to the ocean is useful. Your mind is like an ocean rocked by waves throughout the day. Shocks and insults cloud your thinking. But if one achieves an even, level state with few disruptions, the ocean can reflect the sky perfectly. So also can the mind reflect on the world with remarkable accuracy if it is not churned by emotions. Things come and go. When you can let things come and go, you catch the essence. You become a more objective observer of yourself and your counterpart as your ego fades from the dialogue.

The most common error we make is to mistake our obsessiveness, our fascination with events and images, with true mindfulness.

Buddhism suggests that meditation helps in any profession. Even thieves will do a better job if they meditate! That is to say that meditation is not a matter of value judgments. It is rather about focus and awareness. For the same reason, Buddhist practice does not conflict with any particular religion. Mindful practice mixes well with Christianity or Islam.

After all, moral judgment is a matter of perspective. If you think in terms of history on the scale of thousands of years, you can come to a judgment of an event or actor with some detachment. But you will be far away from the actual moment. But if you focus in on the moment and make a value judgment, what you thought was right may prove to be the opposite in a month, a year, or a decade.

Thus I once met an American who spoke about the North Korean regime and said to me, “We cannot trust North Korea, we should attack the WMD sites and push for a regime change.”

In response, I started out by expressing my agreement with the goal in a general sense of transforming North Korea and eliminating nuclear weapons. But I then continued his logic, asking about what the consequences of our actions would be for ordinary North Koreans. I kept coming back to the ultimate purpose of change in North Korea, suggesting that co-prosperity and coexistence, in whatever form, was the goal. I also suggested that, although not everything is possible at one time, there is a win-win out there. I never denied the validity of his position. I only suggested that there were other approaches that needed to be exhausted first.

I sensed that he was obsessed with one goal without thinking out the variety of paths by which that goal might be reached. I tried to get him to focus more on process, on the issues faced by specific people in the North, in the South, in surrounding nations.

While I was ambassador to the United States during the regime of the Roh Moo-hyun government, I received many comments to the effect that Korea is not sufficiently concerned about human rights in North Korea. My response then was to say: I’m very concerned with the human rights issues, in a big sense. I fully understand the tragedies that the people from the North suffer through.

I then explained that if we become obsessed with the images we see in the media, and fail to understand the larger institutional and cultural issues behind these injustices, then we are likely to respond impulsively and will inadvertently make human rights issues worse for the short and medium term.

In this sense, mindfulness means a true awareness of human rights as something more than just the right to vote or freedom from arbitrary arrest. We need to consider the millions of people who are undernourished or starving to death. How are we bringing human rights to them? That is an essential question for us.

Buddhism offers to diplomacy a focus on the long term and on balance in all relations. Progress can be made in international relations, but we must consider always the Buddha’s middle way. To the degree that we can create a win-win for all players, and avoid extremes, we can go forward in a meaningful way. If we try to force the issue by insisting on one perspective and by falling back on military strikes, we are unlikely to get more than a temporary result that will soon be reversed. Action undertaken in this spirit could easily lead to a worse result than doing nothing.
Only by remaining mindful of how our impulsive reactions, winner-take-all outlook, and shifting policy objectives can undermine our deeper commitment to the common causes of humanity can we establish a balance, not of power, but of perspective, and in the process aspire to a harmony among nations worthy of the name.

The author is chairman of JoongAng Media Network — one of South Korea’s leading media groups, including the prestigious JoongAng Ilbo daily and a former South Korean ambassador to the United States.

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Is this a warning signal ? China FDI Slides to Four-Year Low as Anti-Monopoly Probes Widen

Foreign direct investment into China, a gauge of external confidence, slumped to a four-year low amid antitrust probes into multinational companies that have spurred a letter of complaint from the U.S.

Inbound investment was $7.2 billion in August, down 14 percent from a year earlier, the Ministry of Commerce said today in Beijing after a 17 percent drop in July. It was the first back-to-back decline of more than 10 percent since 2009, based on previously reported data compiled by Bloomberg.

U.S. Treasury Secretary Jacob J. Lew said in a missive to Vice Premier Wang Yang that China is using competition law to force companies to cut prices its consumers pay for products relying on foreign intellectual property, according to a person with knowledge of the correspondence. Lew said such steps might have consequences for bilateral ties, according to the person, who asked not to be identified because the letter isn’t public.

http://www.businessweek.com/news/2014-09-15/china-fdi-slides-to-four-year-low

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Warning sign :: Chinese property developers borrow at record pace

Global investors are lending money to Chinese property developers in record amounts this year, in spite of a deteriorating housing market and warnings from rating agencies over the state of the sector.

Offshore bond issuance from mainland property companies is on track for a record year, with $18bn of debt sold year to date, according to Dealogic – fast approaching the $19.5bn total for all of 2013. The year’s biggest deal came in July, when Sino-Ocean Land borrowed $1.2bn in the dollar bond market.

The rise in offshore borrowing has coincided with tighter credit conditions within China that have forced developers to look overseas for funding.

Beijing has been trying to reduce leverage in the domestic economy following a period of rapid credit expansion. As a result, banks have cut back on lending to certain sectors and the growth of alternative funding channels such as trust loans has slowed.

Falling housing sales have also hit the most important cash generator for developers. Sales have dropped 8.2 per cent so far this year by value, while price cuts introduced to entice buyers have dented margins.

Read more here : http://on.ft.com/1rc70Ey via @FT

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China real-estate: A bubble bursting

For 31-year old Beijing resident Wang Yuanzhi, talk about a bubble in Chinese property is not something to be too concerned about.

“If you look at the real estate market in China, it has already seen a golden decade of extreme fast growth. There will still be room for growth in this market, even in the next ten to twenty years,” said Wang, who bought a home under construction last December. “The whole housing bubble is a fear; it is a concentration on the risks that the real estate market faces.”

Underlying confidence expressed by residents such as Wang may be what China’s authorities hope will aid a recovery in a market that has seen prices fall for three straight months.

http://www.cnbc.com/id/101945949

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Top One Percent Has One Third of China’s Wealth

 A recent academic report on wealth inequality in China shows that the top one percent of households holds one-third of total assets, while the bottom fourth holds only one percent.

The report, published by a research institute in Peking University, says the Gini coefficient, better known for its application in income distributions, shows that the gap in wealth between households in the country has considerably widened. The Gini coefficient has increased from 0.45 in 1995 to 0.73 in 2013.

A Gini coefficient of 0 would mean that every household has the same amount of property, while a coefficient of 1 would indicate that all wealth is owned by one household.

These statistics, provided in the Institute of Social Science Survey’s 2014 China Welfare Development Report, are not out of the ordinary by global standards. But they mark a dramatic change from the situation as recently as 2000, when China had the second most equal distribution of wealth in the world according to the U.S. National Bureau of Economic Research.

The lead author of the report, Institute director Xie Yu, said in an interview with Caixin that wealth inequality in China is relatively high, but hasn’t passed a level where it would be likely to cause social instability. Excerpts of that interview follow.

Caixin: Is the Gini coefficient for wealth inequality like the Gini for income inequality, which has an internationally accepted “warning line” that shouldn’t be crossed? Will the current level of wealth inequality have an impact on China’s social development?

Xie Yu: I don’t agree with this view. The so-called “warning line” doesn’t exist, in either wealth inequality or income inequality.

Actually, the public is still tolerant of growing wealth inequality, as long as wealth is amassed legitimately. We place more emphasis on the reasonableness and legality of the way someone gets rich than on how much money they have. What Deng Xiaoping’s famous pronouncement – “Let some people get rich first” – really means is that “you can be rich, and I can also be rich.”

But on the other hand, relatively poor people in countries like the United States don’t have too much to worry about, because their health care and pensions are guaranteed by society. In China, where those costs aren’t provided for as well, poor people without property as a safety net are more anxious.

In addition, the vast majority of rich people in the U.S. donate a portion of their wealth to charity, but wealthy Chinese people still donate very little. In this and other ways, private property can help provide for the needs of public goods.

Why do you think Chinese people are willing to accept wealth inequality?

In my 2010 article Understanding China’s Inequality I argued that inequality is unlikely to lead to political and social instability for three reasons.

First, China’s inequality is manifested more through a collective form as a group compared with another group rather than individuals against individuals. That means the hard feelings about inequality are softened by the sense of belonging to a group.

The second reason is ideological. Despite the strong moral appeal of equality in China, the country’s traditional culture is relatively tolerant of inequality. But I think that most people tolerate inequality only when they can advance to a higher class of social status through their own efforts.

Third, some Chinese people believe that economic development itself may lead to inequality. We want to develop and improve people’s lives, and it is difficult to avoid inequality in the process. Thus some of the people dissatisfied by inequality grudgingly accept it.

These three factors mean that the problem of inequality in contemporary China is unlikely to lead to social instability. And I think that Chinese society also has certain mechanisms, such as politics, culture, public opinion, family, social relationships, etc., to regulate the social harm that inequality does cause.

What is the influence of wealth inequality on the solidification of social classes?

There will be some impact. The higher the wealth gap, the higher the possibility that classes will solidify in place, because the current generation’s wealth can be transferred to the next generation. If a child of rich parents doesn’t live up to expectations in school, the parents can let the child inherit their company.

What is distinctive about property inequality in China, as compared to the rest of the world?

China’s income inequality is relatively high, and its wealth inequality, as measured by the Gini index, is greater than its income inequality. The U.S.’ income inequality index is lower than China’s, but its wealth inequality is higher – Its Gini coefficient for household wealth was 0.8, compared with China’s 0.73.

This is because the United States has a relatively mature market economy, where wealth has been accumulated slowly through income and investment. Many in China, however, own homes allocated to them by the government. As those homes’ value increased, so did their wealth. That means wealth is less related to income in China than in the U.S.

So compared with the United States, is more of China’s wealth in real estate?

Yes. This is also why some rich Chinese people don’t feel rich: their property is mainly in real estate, and their income isn’t high enough to buy the same kind of house again. Many wealthy Chinese people are rich simply as a result of luck. A bus driver, for example, can claim to be wealthy because he has been allocated a home even though his income is low.

Source : http://english.caixin.com/2014-08-04/100712733.html

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Why VC firms missed out on Alibaba and other big Chinese opportunities

Alibaba’s recently announced $16 billion IPO has VentureBeat reporters scratching our collective head: Why weren’t more U.S. growth funds involved in Alibaba’s rise to domination?

Alibaba has a hand in every game imaginable: Social networking, payments, travel, online commerce, and dozens more. Its own list of investments rivals that of any major VC firm.

But somehow, while one U.S. private equity firm (Silver Lake Partners) and Yahoo participated in the mega-giant’s funding, most American firms sat it out.

http://venturebeat.com/

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    http://www.teslamotors.com/sites/default/files/blog_attachments/gigafactory.pdf
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    Why do we say so ? Easy money policies of recent years could lead to big problems. Warning indicators like the significant number of original general public offerings of organizations that are unprofitable, and substantial degrees of financial debt issued to firms, often with weak credit score.
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How An IPO Actually Works

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Jack Ma is the founder, chairman and CEO of the Alibaba Group.

Jack Ma is the main founder of Alibaba Group, China’s largest e-commerce business whose IPO may be one of the world’s largest this year if it finally happens. After failing to win Hong Kong regulatory support for a listing under its current shareholder structure last year, the company held off on an expected IPO that could value it at as much as $150 billion. Besides Ma and vice chairman Joseph Tsai both members of this year’s Forbes Billionaires list–key investors include Yahoo and Japan’s Softbank. Elfish Ma, an Internet icon for years, is a former English teacher and active philanthropist.[*]

In May 2009, Ma was honored by Time magazine with inclusion into the Time 100 list of the world’s 100 most influential people. In reporting Mr. Ma’s accomplishments, Adi Ignatius, former Time senior editor and editor-in-chief of the Harvard Business Review, said, “Meeting Jack Ma, you might be forgiven for thinking he’s still an English teacher. The Chinese Internet entrepreneur is soft-spoken and elflike — and he speaks really good English. But as founder and CEO of Alibaba.com, Ma, 44, runs one of the world’s biggest B2B online marketplaces, an eBay for companies doing international trade.  Alibaba and Ma’s consumer-auction website, Taobao.com, did so well that in 2006, eBay shut down its own site in China.” He was also chosen as one of “China’s Most Powerful People” by BusinessWeek, and one of the “Top 10 Most Respected Entrepreneurs in China” by Forbes China in 2009. Ma received the “2009 CCTV Economic Person of the Year: Business Leaders of the Decade Award”.

In 2010, Ma was selected by Forbes Asia as one of “Asia’s Heroes of Philanthropy” for his contribution to disaster relief and poverty.

It is clear that Jack has clearly found an algorithm of success that works. In addition he appears to seriously consider making it possible for his whole team to win as well.

Jack Ma isn’t a self obsessed silicon valley kid that is all about the money and personal fame. He seems to be looking beyond the cash and prizes and establishing real sustaining practices to build businesses, creating opportunities for employees to be happy at their jobs and developing products that are useful. [*]

Here are several quotes and ideas of Jack Ma:

v  Customers should be number 1, Employees number 2, and then only your Shareholders come at number 3.

v  Your attitude determines your altitude.

v  Don’t make complaining and whining a habit

v  A real businessman or entrepreneur has no enemies. Once he understands this, the sky’s the limit.

v  Always let your employees come to work with a smile.

v  Rather than having small smart tricks to get by, focus on holding on and persevering.

v  You should find someone who has complementary skills to start a company with. You shouldn’t necessarily look for someone successful. Find the right people, not the best people

v  A leader should have higher endurance and ability to accept and embrace failure

Only fools use their mouth to speak. A smart man uses his brain, and a wise man uses his heart.[*]

 

Jack Ma’s advice to entrepreneurs

  1. The opportunities that everyone cannot see are the real opportunities.
  2. Always let your employees come to work with a smile.
  3. Customers should be number 1, Employees number 2, and then only your Shareholders come at number 3.
  4. Adopt and change before any major trends or changes.
  5. Forget the money; Forget about earning money.
  6. Rather than having small smart tricks to get by, focus on holding on and persevering.
  7. Your attitude determines your altitude. )[*]

Jack Ma on entrepreneurship

  1. A great opportunity is often hard to be explained clearly; things that can be explained clearly are often not the best opportunities.
  2. You should find someone who has complementary skills to start a company with. You shouldn’t necessarily look for someone successful. Find the right people, not the best people.
  3. The most unreliable thing in this world is human relationships.
  4. “Free” is the most expensive word.
  5. Today is cruel, tomorrow will be worse, but the day after tomorrow will be beautiful.[*]

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Meet Alibaba – and five other billion-dollar giants who will soon be taking over the world

What’s Alibaba? It’s one of dozens of internet giants you haven’t heard of.

There’s been a big stir this week, caused by the float of Alibaba.com, a website that most of us have never heard of, that is about to have a mammoth IPO on the New York stock exchange. Analysts are talking about a £10 billion valuation.

While big tech floats are nothing new, Alibaba is a rock-solid, established business that’s been going for years. It’s basically the Chinese Amazon – it flogged £146 billion worth of stuff last year, and made £1.9 billion in profit on those sales.

None the less, hardly any of us have ever heard of it until now. It’s partly because our internet – and most places where the Latin alphabet is common – is dominated by US brands. However, foreign places with different alphabets have created silos where non-western firms have thrived, freed of the need to compete with US giants, and able to forge their own paths.

In addition, the lack of fixed line internet in many of these places has given these firms a huge leap in mobile technology, currently something of a bugbear for Western firms. In the West, a nice mobile site that works on phones is an optional extra – in Africa, no mobile site means no business. On top of that, the potential for growth in these nations is huge; less than 40 per cent of Africa and Central Asia are online; just less than 50 per cent of China and India are. Once those citizens get online, the potential for giving them all sorts of services is immense.

Here’s five of the breed of billion-dollar businesses you’ve never heard of:

http://blogs.telegraph.co.uk

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      In 1990, Jack Ma was teaching English to a group of university students at Hangzhou Dianzi University. Who would have thought that, 24 years later, he would be China’s richest man? In that same year, Jeff Bezos was working at D.E. Shaw & Co., an investment management firm based…
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