Traditional Culture Encyclopedia - Traditional stories - Try to analyze the following case from an economics point of view (or from a financial management point of view), thanks a lot! It's urgent!

Try to analyze the following case from an economics point of view (or from a financial management point of view), thanks a lot! It's urgent!

First of all it's not an economics story it's a life philosophy story! But there are some aspects about economics involved in it! We usually call it the snowball effect! This one is a generic approach to asset growth! It is more suitable for small business. Here's an example for you

"Madman" Jack Ma's Alibaba website is such a snowball - from 1999 with 500,000 yuan to 2005, just seven years, Alibaba managed to take a 40% stake in a company that is not listed on the stock exchange for the cost of the company. Alibaba managed to get 1 billion dollars and all the assets of Yahoo!

This "miracle" did not occur because Jack Ma and his Alibaba have special strengths, but largely because they entered the market in advance, and through the snowball effect, the geometric progression of the incremental market to eat up the first.

Alibaba is practicing a more aggressive form of enclosure, which is to snowball by offering free services. Its profit model rests on the size of the membership, through large-scale absorption of members to realize the "headcount economy". From the initial few e-commerce enterprises began to roll up, Jack Ma's snowball rolled bigger and bigger, the vast majority of domestic e-commerce enterprises have become Alibaba's customers, and its services to Chinese enterprises have more than 3.5 million members.

"Alibaba is cement, sticking a large number of small and medium-sized enterprises together, it has the strength to fight against large enterprises." Jack Ma explained his "snowball" concept.

AGI Graney calls the virtuous cycle between "treating employees well" and "company performance" the "snowball effect". He believes that employees should be provided with good benefits, and after the company provides them, they will have better work results, and as a result, help the company earn more money, and the company will then have the resources to continue to provide good benefits. The more this snowball rolls, the better it is for the company and for the employees.