top of page

How Jack Ma Chose “Alibaba” and Built a Global Empire

Writer: Startup BellStartup Bell

Some names just stick. Apple. Google. Tesla. But one of the most memorable brand names in the business world came from an unexpected moment of inspiration—a casual conversation in a San Francisco restaurant.


Jack Ma, co-founder, Alibaba
Jack Ma, co-founder, Alibaba

Photo: Bloomberg


Jack Ma, the founder of Alibaba, didn’t just stumble upon the name. He tested it on real people before making his decision. And that small decision played a massive role in shaping Alibaba into the global powerhouse it is today.


But what makes a name great? Why do some names stand out while others fade into obscurity? Let’s dive into the power of naming, with stories of entrepreneurs who got it right—and those who didn’t.


Who is Jack Ma?

Jack Ma is one of the most iconic entrepreneurs of our time. As the founder of Alibaba, he built a global e-commerce empire that has transformed the way people buy and sell goods. Starting from humble beginnings as an English teacher in China, Ma’s journey is a testament to vision, perseverance, and the power of thinking big.


But before Alibaba became a household name, there was one critical decision: what to call it.


The Waitress Who Named a Billion-Dollar Company

In the late 1990s, Jack Ma was looking for a global name for his internet company. He knew the internet would break down borders, and he wanted a name that every culture could recognize.


While having lunch in San Francisco, he casually asked the waitress, “Do you know Alibaba?”

She immediately replied, “Yes! Open Sesame.”


That was it. That was the magic phrase that unlocked the treasure in the famous Arabian Nights story. And when Ma asked 20 more strangers on the street, they all recognized the name. That’s when he knew—this name was universal.


But Alibaba wasn’t just a cool-sounding name. It had three hidden advantages:

  1. It was easy to remember.

  2. It started with ‘A’, meaning it would appear at the top in alphabetical listings.

  3. It had a built-in story—a legendary tale of unlocking opportunities.


That’s what a great brand name does. It sticks in people’s minds, stands out, and hints at what the company is about.


The Company That Almost Had the Worst Name Ever

Now, let’s look at a naming disaster that was barely avoided.

Before Jeff Bezos settled on Amazon, he almost named his company... Cadabra (short for Abracadabra).


The problem? When he told people the name, they misheard it as “Cadaver” (a dead body). Not exactly the image you want for an online bookstore.


Bezos quickly pivoted and picked Amazon—a name that suggested something big, powerful, and full of endless possibilities. And just like Alibaba, it had an extra advantage: It started with ‘A’ and would appear at the top of search directories.


One small name change, but it made all the difference.


The Man Who Renamed an Industry

Sometimes, the right name doesn’t just build a company—it creates a whole new industry.

Take Howard Schultz, the man behind Starbucks.


In the 1980s, Americans drank weak, watered-down coffee. It was nothing like the rich, deep flavors of Italian espresso.

Schultz wanted to change that, but he knew Americans weren’t ready for “espresso” culture. So instead of just serving Italian coffee, he rebranded the entire experience.


He used words like:

  • Grande instead of Large

  • Venti instead of Extra Large

  • Barista instead of Coffee Maker


This wasn’t just clever branding—it made people feel like they were part of something premium and exclusive. The result? Starbucks didn’t just sell coffee—it sold a lifestyle.

And it all started with choosing the right words.


What Can You Learn from These Stories?

A great name isn’t just a label—it’s a shortcut to meaning. It instantly tells people what your brand is about, makes it easy to remember, and helps you stand out.

So if you’re naming a business (or rebranding one), here are three golden rules:


1. Make It Instantly Recognizable

Jack Ma picked Alibaba because people already knew the name. It was built into global culture.

Ask yourself: Would a random person recognize or remember your brand name? If not, it might be time to rethink it.


2. Think Beyond the Name—Build a Story

Howard Schultz didn’t just name a coffee shop. He built an entire world of Italian coffee culture around Starbucks.

Your brand name should hint at something bigger than just a product. It should tell a story, spark curiosity, or evoke emotion.


3. Simplicity Wins

Amazon, Google, Apple—all easy to say, spell, and remember. The simpler your name, the more likely it is to spread like wildfire.


Final Thought: Your Brand Name Is Your Open Sesame

Jack Ma wasn’t just lucky. He understood that a great name can open doors.

Alibaba wasn’t just a word—it was a key to unlocking opportunities, a name that would help the company become a global force.


So if you’re naming your startup, product, or even your personal brand, take a page from Jack Ma’s playbook. Test your name. See how people react. Make sure it sticks.


Because in the end, the right name isn’t just a name.

It’s your "Open Sesame."


Subscribe to our newsletter for weekly insights, tips, and stories to help you build a brand that stands out!


Watch Jack Ma:

Comentarios


bottom of page