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alibaba By snoworb | xecutive Summary 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…show more content…
As for, it earns secondary revenue through its Gold suppliers accreditation which promises reliability. Though Alibaba Group is famous for its primary site, its first business now accounts for only a small part of its portfolio (Osawa, 2013), and is often dogged by criticisms from the finance world, notably referred to as “the worst asset that [Alibaba Group] has” (CNBC, 2012). On the other hand, Amazon sells its own products such as its Kindle and offers additional services such as streaming (Rayburn, 2011). It also deals with web design for external companies looking into e-commerce (Layton, n.d.). Market Strategies 1. Differentiation Strategy The reason behind Alibaba’s success is its ability to tap into markets that its competitors struggle with by providing special services that target strategic needs of the Chinese population and its potential trading partners. Alibaba’s services are specifically catered to small to medium sized businesses(Liquori, 2009), by being an easily accessible advertising platform that is also cheap to set up. These small businesses can be discovered by other companies who search Alibaba for specific products rather than by brands. Furthermore, the escrow services offered by Alibaba in which its competitors are unable to provide, differentiates itself from the rest in

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