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Alibaba Strategy Analysis

In: Business and Management

Submitted By jonathanwang333
Words 3008
Pages 13
Alibaba Group
Management recommendations and preparation

Company summary:
Alibaba is one of the Chinese biggest e-commerce company, with hundreds of millions of customers buying products from three main sites: Taobao, Tmall and
Alibaba.com. Since the development of Alibaba, the company has established a leading in the e-commerce, online payment, B2B online marketplace and cloud computing business. They provide a platform for small businesses and individual entrepreneurs to open online stores that mainly cater to consumers in China and abroad as well. I think they will grow over the next five or ten years with the 564 million Chines internet users. Furthermore, Alibaba is improving their business to comprehensive level. They have invested in some high-potential companies that could fuse well with its e-commerce business. To face the competitions from the companies in the same type, I agree with that they are going to make a virtual world to further reduce the competition. Moreover, while fighting to stay at the front line in Chinese e-commerce, Alibaba has ambitions of going international. Its initial strategy to bring
Taobao abroad is clear: target Chinese users outside mainland China.
As the mere description in Part 1, expanding to Korea with wholly owned model is the best way for a company like Alibaba. I think Alibaba’s main goal is maintaining their status in Asian by entering Korea. Alibaba’s intermediary model has replicability, which provides samples for other competitors to enter the industry, also increased their own competitors. It’s easy to enter the service industries with low barriers.
Entering Korea could increase the popularity of Alibaba and bring more foreign capitals for them. With the international brand and huge capital’s help, Alibaba can beat new competitors easily. Moreover, with the China-South Korea Free Trade...

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