Wednesday, December 11, 2019
Analysis of Alibaba - Click Now to Get Solution!
Question: ExplainAnalysis of Alibaba and its purpose and vision. Answer: The Alibaba Group was established by Jack Ma in the year 1999 comprises of 18 people. Previously Jack Ma was an English teacher in Hangzhou, China, who has started the enterprise with small businesses and planned with the help of internet the small businesses will be innovative and leverage the technology to be more competitive in national and international market. The company with its technology, infrastructure and marketing strategy has given a platform to the merchants, latest brands and other entrepreneurs that deliver services and digital content to serve a wide range of customers. The enterprise has rapidly expanded in more than 240 countries and regions. The group comprised of 25 business units and aimed to develop a transparent, collaborative and a robust e-commerce ecosystem. The company has 24,000 employees in its affiliation around the world and 70 offices in Greater China, India, UK, and the USA. The companys culture is based on the value system, which focuses on the cust omer to deliver excellent services charaterised, by innovation, honesty and entrepreneurship. The company's mission is to operate business from anywhere its latest technology and services facilitates the traders and the customers to operate business from anywhere across the globe The companys vision is to create infrastructure for business and commerce to provide a service to the customers in a most effective way (Dermol,2012). Strategic profile The company aims to build a infrastructure to stimulate commerce which will provide better service to the customers. Since it is one of the dominant players, a leading online store in retail and wholesale business it provides technology, payment platform and also helps the consumers and traders to operate the business in a most viable way possible. Its strategy focuses on connecting the suppliers and buyers to conduct the business in a most convenient way and to generate profit for the company. It aims to provide a largest online marketplace for global consumers by creating innovation, trust, convenience in delivering the services. Its strategy continuously concentrates on uplifting the brand value in the market and maintaining good relationship with the investors and Chinese Government, expanding the business to create more traffic and value to provide uninterrupted services and better customer experience (Verbeke,2013). Alibabas strategy Assessment As the Company grows and achieves economies of scale and cost leadership, it has taken the strategy to expand the business globally to gain benefit and earn the profit by scanning the foreign market and utilizes the market opportunities to increase the market share for the company. The company has developed a website called AliExpress to draw more international customers and emphasizes to build strategic alliances to gain competitive advantage (Leonidou et al.,2013). The rationale for developing international competitive capabilities One of the reasons for developing the global marketing skills is to provide the wide range of accessibility, convenience to the customers globally and to increase the revenue for the company. The company has widely expanded internet market in China which is larger than U.S. A recent survey has revealed that it is having 560 million internet users and consumers spending more than 20 hours weekly online (Berthon et al.,2012). The company has reached economies of scale, is able to display wide range of products and services therefore it provides customers wide variety of products globally. It has two local online website one is Taobao which displays many unbranded products by smaller merchants and the other is Tmall which offers branded products to fulfill customer needs and requirement A recent survey reveals that the company is focused on profit gathered from the massive sales achieved through the two retail site that is Taobao, Tsmall which estimates $163 billion that has exceeded Amazon and eBay. The company has developed the widely expanded network to serve the broad range of customers making it easier for the merchants to join the network which helps them to increase the traffic to attract more customers to it (Berthon et al.,2012). The company has developed good relationship particularly with Chinese Government who is one of the discerning factors that influences the business policy of the organization. It has Alibaba.com is a website that is created to serve the broad range of vendors and buyers and the target customer is some other company or its staffs. A business-to-business website ensures the exchange of product between businesses and serving diverse customers. As the large numbers of customers are using the website they need to maintain a huge database in order to overcome the usability challenges to provide smooth transaction and order processing. The enterprise has developed core competency to handle the complex steps that the buying process involves. Therefore, Alibaba.com has made it possible to do business online. According to the director Mark Tanner emphasized that Alibaba needs to have seamless marketing strategy. It includes spreading the brand name through social media and developing mobile applications taking a strategy of product differentiation at competitive prices. The enterprise has made tie up with major Chinese banks allowing the traders to execute the transaction safely in a secure way. The three alternative global corporate strategies Business level strategy: cost leadership The company has reached economies of scale and becomes a leading market player, which has helped it to expand the business and get more opportunities. It has helped the SMEs and merchants to get a reliable platform to sell their products. Corporate level strategy that is diversification strategy Alibaba has a huge, diverse marketplace to attract buyers and sellers; its market includes Taobao, Tsmall.com, Juahuasuan.com to cater the needs of target customers. In addition to that, it has AliExpress to draw foreign consumers. The company further diversifies the business by providing cloud computing, mobile Apps, and online payment solution. The market is characterized by latest technology and diversification to increase revenue and market share. Transnational strategy The company is getting more global by launching its latest website AliExpress in 2010 to attract the global customers in long run whereas its short-term goal continues to focus on the Chinese market. To get the competitive advantage in a long term, the enterprise has concentrated on building brand name through its strategic alliances with global leaders such as Apple (Killing,2012). Strategic development and implementation However, the Alibaba must ensure that its business segments must adapt to the changing dynamism of modern technology and marketplace. So while exploring the new strategy for product diversification the company must understand the target market and potential customers to expand the businesses in a global economy. As the recent survey reveals that the groups revenue has reached $5.7 billion from the products sold online. It further highlighted the fact that Tmall and Taobao is generating more revenue than other competitors such as Black Friday and Monday (Goerzen et al.,2014). Reference List Berthon, P. R., Pitt, L. F., Plangger, K., Shapiro, D. (2012). Marketing meets Web 2.0, social media, and creative consumers: Implications for international marketing strategy.Business horizons,55(3), 261-271. Dermol, V. (2012). Relationship between mission statement and company performance.Annals of the Alexandru Ioan Cuza University-Economics,59(1), 321-336. Goerzen, A., Asmussen, C. G., Nielsen, B. B. (2014). Global cities and multinational enterprise location strategy. InLocation of International Business Activities(pp. 137-180). Palgrave Macmillan UK. Killing, P. (2012).Strategies for Joint Venture Success (RLE International Business)(Vol. 22). Routledge. Leonidou, L. C., Katsikeas, C. S., Fotiadis, T. A., Christodoulides, P. (2013). Antecedents and consequences of an eco-friendly export marketing strategy: The moderating role of foreign public concern and competitive intensity.Journal of International Marketing,21(3), 22-46. Verbeke, A. (2013).International business strategy. Cambridge University Press.