This web app uses cookies to compile statistic information of our users visits. By continuing to browse the site you are agreeing to our use of cookies. If you wish you may change your preference or read about cookies

close

Why Ali Sports's Business Model is so successful?

Get all the answers


Ali Sports’s Company Overview


Ali Sports is a leading sports marketing company based in China. It is a subsidiary of the Alibaba Group, a multinational conglomerate specializing in e-commerce, technology, and various other sectors. Established in 2015, Ali Sports focuses on professional sports services. It aims to integrate sports, entertainment, and health to create a comprehensive sports ecosystem. The company’s primary operations include sports copyrights, sports media, events operation, venue commercialization, and professional sports equipment. It is also involved in the digitization of sports events, leveraging Alibaba's technological prowess to enhance the sports experience for both athletes and spectators. Ali Sports operates on a unique business model, which is a blend of sports and technology. It uses Alibaba's digital platforms to provide sports marketing, e-commerce, and cloud computing services to the sports industry. The company collaborates with sports organizations to digitize their events, enhancing the reach and engagement of these events. It also operates an online marketplace for sports equipment and merchandise, leveraging Alibaba's e-commerce expertise to provide a seamless shopping experience for sports enthusiasts. The revenue model of Ali Sports is multifaceted, reflecting the diverse range of its operations. A significant portion of its revenue comes from the sale of sports copyrights and media rights to broadcasters and digital platforms. It also earns revenue from the operation and commercialization of sports events, including ticket sales, sponsorship deals, and venue commercialization. The company's online marketplace for sports equipment and merchandise provides another significant revenue stream. Additionally, Ali Sports monetizes its digital services, such as cloud computing and data analysis services, by selling them to sports organizations and other businesses in the sports industry.

https://www.alisports.pk/

Country: Zhejiang

Foundations date: 2015

Type: Subsidiary

Sector: Consumer Services

Categories: Entertainment


Ali Sports’s Customer Needs


Social impact:

Life changing: motivation, affiliation/belonging

Emotional: fun/entertainment, wellness, provides access

Functional: organizes, integrates, connects, informs, variety


Ali Sports’s Related Competitors



Ali Sports’s Business Operations


Advertising:

This approach generated money by sending promotional marketing messages from other businesses to customers. When you establish a for-profit company, one of the most critical aspects of your strategy is determining how to generate income. Many companies sell either products or services or a mix of the two. However, advertisers are frequently the source of the majority of all of the revenue for online businesses and media organizations. This is referred to as an ad-based income model.

Affiliation:

Commissions are used in the affiliate revenue model example. Essentially, you resell goods from other merchants or businesses on your website or in your physical store. You are then compensated for referring new consumers to the company offering the goods or services. Affiliates often use a pay-per-sale or pay-per-display model. As a result, the business can access a more diversified prospective client base without extra active sales or marketing efforts. Affiliate marketing is a popular internet business strategy with significant potential for growth. When a client purchases via a referral link, the affiliate gets a portion of the transaction's cost.

Customer loyalty:

Customer loyalty is a very successful business strategy. It entails giving consumers value that extends beyond the product or service itself. It is often provided through incentive-based programs such as member discounts, coupons, birthday discounts, and points. Today, most businesses have some kind of incentive-based programs, such as American Airlines, which rewards customers with points for each trip they take with them.

Customer relationship:

Due to the high cost of client acquisition, acquiring a sizable wallet share, economies of scale are crucial. Customer relationship management (CRM) is a technique for dealing with a business's interactions with current and prospective customers that aims to analyze data about customers' interactions with a company to improve business relationships with customers, with a particular emphasis on retention, and ultimately to drive sales growth.

Digital:

A digital strategy is a strategic management and a business reaction or solution to a digital issue, which is often best handled as part of a broader company plan. A digital strategy is frequently defined by the application of new technologies to existing business activities and a focus on enabling new digital skills for their company (such as those formed by the Information Age and frequently as a result of advances in digital technologies such as computers, data, telecommunication services, and the World wide web, to name a few).

eCommerce:

Electronic commerce, or e-commerce (alternatively spelled eCommerce), is a business model, or a subset of a larger business model, that allows a company or person to do business via an electronic network, usually the internet. As a result, customers gain from increased accessibility and convenience, while the business benefits from integrating sales and distribution with other internal operations. Electronic commerce is prevalent throughout all four main market segments: business to business, business to consumer, consumer to consumer, and consumer to business. Ecommerce may be used to sell almost any goods or service, from books and music to financial services and airline tickets.

Ecosystem:

A business ecosystem is a collection of related entities ? suppliers, distributors, customers, rivals, and government agencies ? collaborating and providing a particular product or service. The concept is that each entity in the ecosystem influences and is impacted by the others, resulting in an ever-changing connection. Therefore, each entity must be adaptive and flexible to live, much like a biological ecosystem. These connections are often backed by a shared technical platform and are based on the flow of information, resources, and artifacts in the software ecosystem.

Experience:

Disrupts by offering a better understanding that customers are willing to pay for. Experience companies that have progressed may begin charging for the value of the transformation that an experience provides. An experienced company charges for the feelings consumers get as a result of their interaction with it.

Group buying:

Group purchasing, also referred to as collective buying, provides goods and services at substantially discounted rates in exchange for a minimum number of customers. Typically, these websites offer a discount of the day, which becomes active after a certain amount of individuals agree to purchase the goods or service. In addition, numerous group purchasing sites operate by arranging discounts with local businesses and increasing foot traffic in return for lower pricing.

Licensing:

A formal agreement in which the owner of the copyright, know-how, patent, service mark, trademark, or other intellectual property grants a licensee the right to use, manufacture, and sell copies of the original. These agreements often restrict the licensee's scope or area of operation, define whether the license is exclusive or non-exclusive, and stipulate whether the licensee will pay royalties or another kind of compensation in return. While licensing agreements are often used to commercialize the technology, franchisees also utilize them to encourage the sale of products and services.

Online marketplace:

An online marketplace (or online e-commerce marketplace) is a kind of e-commerce website in which product or service information is supplied by various third parties or, in some instances, the brand itself, while the marketplace operator handles transactions. Additionally, this pattern encompasses peer-to-peer (P2P) e-commerce between businesses or people. By and large, since marketplaces aggregate goods from a diverse range of suppliers, the variety and availability are typically greater than in vendor-specific online retail shops. Additionally, pricing might be more competitive.

Sponsorship:

In most instances, support is not intended to be philanthropic; instead, it is a mutually beneficial commercial relationship. In the highly competitive sponsorship climate of sport, a business aligning its brand with a mark seeks a variety of economic, public relations, and product placement benefits. Sponsors also seek to establish public trust, acceptability, or alignment with the perceived image a sport has built or acquired by leveraging their connection with an athlete, team, league, or the sport itself.

Embed code:

x
Copy the code below and embed it in yours to show this business model canvas in your website.