performance (2019): Amazon's annual revenue of 280.5 billion US dollars, net profit of 11.6 billion US dollars, Alibaba's annual revenue of 70.9 billion US dollars, net profit of 11.6 billion US dollars. Employee scale, Amazon has about 750,000 employees worldwide, and Alibaba has 122,000 employees. The company's market value and R&D expenditure (2019): Amazon US$1601.9 billion, annual R&D expenditure of US$22.6 billion, Alibaba US$703.6 billion, and annual R&D expenditure of US$5.97 billion.
It can be seen that there is still a big gap between Alibaba’s current market value and Amazon. This is mainly because Amazon is a global international e-commerce platform and started earlier than Ali. Although Ali also has overseas business, it is not yet complete. To achieve internationalization, now mainly rely on the Chinese market to generate income.
In addition, from the perspective of the scale of employees, Amazon is also much larger than Alibaba. This is because Amazon is, after all, an extremely early e-commerce platform and the most widely used e-commerce platform in the world. It has developed very rapidly and has branches all over the world. Naturally, there are more employees. However, if we look at profit margins alone, Ali has achieved the same net profit output value as Amazon with only about one-fourth of Amazon's annual revenue, so it is obvious that Ali's profit margin is higher. Moreover, the data on R&D investment by both parties also shows that Ali still has a lot of room for growth.
Since the “Five New Strategy” was put forward in 2016, Ali has invested heavily in R&D and research on new industries and new technologies, and has increased a lot every year. The results are obvious to all. For example, Alibaba Cloud is now ranked third in the world, second only to Amazon and Microsoft; this year's Dharma Academy's latest Xiaomanlu logistics robot, I believe that some school students and faculty members have seen it at the beginning of the month; There is the Xunxi factory that was unveiled two months earlier. For many people, the clothes are also marked with the production date. Is it the first experience?
These are all scientific and technological innovations that Alibaba has achieved in recent years. It can be said that each item has achieved very big innovations, and this also proves that Alibaba still has a huge market and technological potential that has not been developed. Judging from the current situation, its various businesses in the domestic market have stabilized, and it is time to expand its territory. In the face of such an Alibaba with strict internal defenses, great development prospects, and sufficient preparations , I think Amazon should be careful too!
