Alibaba: Competing in China and Beyond Individual Report Intercultural Management Professor: Dr. Jacobo Ramirez Aalto University School of Economics Bachelor´s Degree Program in International Business Mikkeli Campus September 3, 2012 Matti Uusivirta Introduction In this report I will examine the case “Alibaba: Competing in China and Beyond.” Alibaba under the leadership of Jack Ma, its founder has transformed into one of the most successful e-commerce companies in China. In the 2000s Alibaba had emerged as the largest e-commerce company in China. The company tailored its strategies to meet the needs of the customers and made a mark because of its understanding of the Chinese language and culture. However, some experts have also …show more content…
If they could move into Russia, this would effectively provide geographical access to the Middle East and Northern Europe in the future. However, after Russia, I would mainly focus on expanding through Southeast Asia all the way down to Australia. This would fundamentally provide an ecommerce solution that can link B2B, C2C, B2C, sales across the entire Eastern part of the world. Conclusion After reading the case and answering to the questions it seems like the case is too good to be true. Even though Jack Ma had proven his capability of being a good leader and business man it is impressive how he started from scratch and was able to gather good people around him and develop this successful multinational company. I truly believe that Ma’s and Alibab Groups key to success were the founder people in the company. Overall I see Alibaba Groups story as a big success. It is truly a inspirational story. In the words of Ma’s business partner Masayoshi Son: (Deresky, 2010). “If there’s a company outside of America that can introduce a new business model to the world, it is Alibaba.” (Founder and CEO of Softbank Corporation, in Japan 2005.) Reference: Deresky, H (2010). International Management: Managing Across Borders and Cultures. 7th ed. Pearson Boston.
Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely
Nowadays, high-speed development of the technology has changed the daily life and the computer and the Internet have become the mainstream in China markets. The expansion of the Internet rapidly leads the e-commence to develop and change the operation way of Chinese business. At present, there are many people who want to start-up a business on their own. Ma seizes the opportunity to establish a great stage ‘Alibaba’ for
* Opportunities also exist in the Asia Pacific region for online sales. Company has to keep an eye on the future opportunities and possible consumers. The region could be their next step ahead to become a continental corporation.
* Opportunities also exist in the Asia Pacific region for online sales. Company has to keep an eye on the future opportunities and possible consumers. The region could be their next step ahead to become a continental corporation.
eBay first entered the Chinese market in 2002 by acquiring a 33% stake in its local counterpart, EachNet, followed by a full acquisition a year later in 2003. Critically assess eBay.s choice of market entry strategy for China (use Key Country Matrix), listing both the advantages and disadvantages of its acquisition strategy (use Drivers (YIP) -CAGE Matrix). 30%
The biggest problem of Alibaba Corporate Governance is management powers, because Alibaba Corporate Governance structure lack of stockholder rights and independent board representation to select board members and have a nominal in the management of the company. Although the board of directors in publicly traded companies always fail in their responsibility to protect the interests of shareholders. Alibaba has deprived even this minimal power ways from shareholders which isn’t sufficient respect of shareholder rights in the structures being proposed. In Alibaba has a permanent lock on control of the company but hold only a small minority of the equity capital known as the Alibaba Partnership. This
Read the case carefully and answer the following questions: 1.Till 2005, eBay EachNet was the leader in the Chinese e-commerce market, controlling more than half of it. But eBay EachNet soon lost its market leadership position to Taobao.com (Taobao). In this context, analyze the reasons that can be attributed to Taobao’s edge over eBay. 2.a. To enable people to trade with each other, Pierre Omidyar created a marketplace in September 1995 which was later called eBay. By mid 1997, eBay received one million page hits per
One major flaw built within the business model of Alibaba is its ability on controlling the merchants and their quality of goods. Since both Taobao and Tmall relied on third party sellers to provide goods and services, it lacks the ability to enforce strong quality control and eliminate counterfeit goods. In fact, consumers were well aware of it and this issue had already been damaging Alibaba’s reputation in online retailing markets. However, its major competitor, JD.com would be having much stronger abilities and incentives to eliminate these
Alibaba’s sites have currently reached over 65 millions of registered users, hosted over millions of merchants and businesses globally. In 2005, its revenue had reached over approximately US$100 millions. Although China’s gross domestic product
With China emerging as a global power in business within the last decade, knowing about doing business in China has become more important than ever. There are both many advantanges and challenges with doing business in China in this modern era, and understanding both sides of this coin is the key to being successful in China. Some aspects to keep in mind include the cultural barrier, the price of the work force in China compared to the United States, and have the “made in China” brand be accepted back in the United States.
The Alibaba group has thrived in the Chinese e-commerce sector from its inception in 1998. They currently account for over 70% of online shopping in China and delivered annual revenues of $636 million in the 12month period ending June 2009 (case p1-2). Alibaba’s successes are due to multiple factors that have allowed them to create corporate advantage, and thus establish market leadership in China (Case p1). The configuration and coordination of Alibaba’s
Founded just before the turn of the millennium in Hangzhou, China, Alibaba Group has to date become the largest online retail website worldwide in the planet, its total transactions surpassing the sum of both Amazon and eBay’s (Erickson, 2013). The report explains its business and operation model and market strategy, before moving to explore the reasons for Alibaba Group’s success such as its established market share in the large market of Mainland China and its efforts to promote the perception of the reliability and security of e-commerce. Comprising of its future plans in logistics improvement, expansion into developing nations, integration with social networks, venture into mobile
Alibaba.com was launched in 4 of April in year 1999 in Hangzhou, Zhejiang in China. There are few phase that affected Alibaba’s growth. In year 1998 to year 2001, This is the period that Alibaba starts to recruit suppliers by providing them information and platform for entering the global market. Free online information and services were provided to the suppliers during that period. Jack Ma even hired experts from foreign country to assist the company to go into globalization. (Yazdanifard, 2014)
Alibaba is the largest leading e-commerce companies of B2B online retailer in China and it is giving a trading platform that associates worldwide purchasers to huge number of small medium enterprises to conduct business in their network. The market operate by Alibaba
Alibaba Group is the world's outstanding business-to-business e-commerce service company, which provides an efficient online trading platform for buyers and suppliers all over the world. It is China's largest e-commerce group which was founded by Jack Ma in 1999, and has developed into seven affiliated groups, namely Alibaba International Business Operations, Alibaba Small Business Operations, Taobao Marketplace, Tmall.com, Juhuasuan, e-Tao and Alibaba Cloud Computing (News, 2012). Besides, Alibaba Group has more than 24,000 employees in 70 cities which scattered in China, India, Japan, Korea, the United Kingdom and the United States (News, 2012).