Alibaba: Competing in China and Beyond

Individual Report

Intercultural Management

Professor: Dr . Jacobo Ramirez

Aalto University

School of Economics

BachelorВґs Degree Program in Worldwide Business

Mikkeli Campus

Sept 3, 2012

Matti Uusivirta

Introduction

In this report I will examine the truth " Alibaba: Competing in China and Beyond. ” Alibaba within the leadership of Jack Mother, its owner has changed into one of the most good e-commerce companies in China. In the 2000s Alibaba had emerged while the largest web commerce company in China. The organization tailored its strategies to meet the needs of the customers and made a mark because of its knowledge of the Chinese language and culture. Nevertheless , some experts have also elevated doubts in the sustainability of Alibaba's business design.

In my record I will critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market. I will Talk about the rationale at the rear of Ma building Taobao. com. I will take a look at the factors that resulted in Taoboa's achievement in the Chinese online auctions industry. Furthermore, with Baidu's admittance into the ecommerce market, Let me discuss the challenges that Alibaba encounters with regard to sustaining its position inside the growing e-commerce market in China. Finally I will vitally examine Alibaba's business model, probability of global expansion and the general sustainability from the company.

Inquiries 1 .

One of the most significant factors that lead Alibaba Group sustaining its management positioning inside the Chinese e-commerce market was its capacity to understand the Chinese market by itself. Jack Ma, Alibaba Groupings founder understood that Oriental consumers and the preferences recognized them selves from those far away. Other companies such as eBay would not appreciate the local market circumstances in Chinese suppliers; instead, we were holding using the approaches that were employed in the United States. I believe for this reason Alibaba Group surely could sustain its leadership location.

Most of the competitors weren't getting understanding of the Chinese language as well as the culture. Moreover, Alibaba. com made its providers extremely easy for its consumers to use. Mum, himself, was a nontechnical person and this helped him maintain the websites even more user-friendly. In the article Mother refers to this stating: (Deresky, 2010). " If you stick to Google's approach, you always be considered a follower… We must make the Askjeeve! Search engine more human, more interactive... some thing for the 1 . several billion chinese who aren't technology-oriented, who have don't know how you can ask the best question into a search engine -- for people who are like me. " (p. 320)

An added aspect is the services that Alibaba. com provided. The company thought that the very first thing to do was to build a devoted customer base. Therefore , before adding any charges, a lot of the companies were totally free. Alibaba. com offered many services such while email and listings of products/services totally free. In addition , e-commerce was susceptible due to the fact that vendors and customers did not trust the idea of sending money prior to receiving their products and the sellers wanted the amount of money before they will shipped goods. For these purposes, Alibaba. com launched Alipay in 2005, which was an online payment solution that allowed the users to make money deals in an convenient, quick and safe way. Most and all Alibaba. com quite simply concentrated greatly on elevating costumer fulfillment even on the expense of not getting maximum profitability. The company manufactured its buyer and getting to learn what clients want it is number one.

Query 2 .

Jack Mother established Taobao. com in May 2003 to enter the rewarding e-commerce industry. Taobao. com also represented a part of Ma's Alibaba. com business model of joining SMEs, customers collectively, and helping SMEs expand. Taoboa's aim was to create an online trading platform for both equally B2C and C2C versions....

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