1.0
1.0Executive SummaryExecutive Summary
Alibaba Group (AG) is Jack Ma for leadership and other 18 people, founded in 1999 in Alibaba Group (AG) is Jack Ma for leadership and other 18 people, founded in 1999 in Han
Han!ho!hou.Au.Aliblibaba aba GroGroup up opeoperatrates es a a nu"nu"ber ber of of busbusineinessesses, s, and and alsalso o frofro" " the the assassociociateatedd co"pan#$s business and ser%ices to obtain business ecos#ste" support.Alibaba roup$s business co"pan#$s business and ser%ices to obtain business ecos#ste" support.Alibaba roup$s business includes& 'aobao, '"all, barain, 'he lobal speed sell ton, Alibaba international tradin includes& 'aobao, '"all, barain, 'he lobal speed sell ton, Alibaba international tradin "arket, 188, Ali"other, Alicloud, 'he ant old, *o%ice net+ork, etc.n -epte"ber 19, 01/, "arket, 188, Ali"other, Alicloud, 'he ant old, *o%ice net+ork, etc.n -epte"ber 19, 01/, Aliba
Alibaba ba roup officiaroup officiall# listed on ll# listed on the *e+ the *e+ ork stock ork stock echaneechane, , stock code stock code 23A3A23A3A2, 2, founder founder and chair"an of the board for Mr Ma. 'hrouhout 014, Alibaba total re%enue of 9/.58/ billion and chair"an of the board for Mr Ma. 'hrouhout 014, Alibaba total re%enue of 9/.58/ billion #uan, net profit is 8.8// billion #uan.n April , 01, Alibaba announced has beco"e the #uan, net profit is 8.8// billion #uan.n April , 01, Alibaba announced has beco"e the +orld$s larest retail tradin platfor".6hina$s eco""erce ro+th in the past 10 #ears, in the +orld$s larest retail tradin platfor".6hina$s eco""erce ro+th in the past 10 #ears, in the near future +ill be "ore than the 7nited -tates. Alibaba roup in 6hina$s eco""erce "arket near future +ill be "ore than the 7nited -tates. Alibaba roup in 6hina$s eco""erce "arket do"inance. Alibaba$s '"all dail# turno%er reached 10. billion #uan.Alibaba roup si %alues do"inance. Alibaba$s '"all dail# turno%er reached 10. billion #uan.Alibaba roup si %alues for ho+ to run the business, to attract talents, e%aluation staff, and decided to re+ard e"plo#ees for ho+ to run the business, to attract talents, e%aluation staff, and decided to re+ard e"plo#ees pla# an i"portant role, the si %alues are& custo"er first, tea"+ork, inno%ation, interit#
pla# an i"portant role, the si %alues are& custo"er first, tea"+ork, inno%ation, interit#, passion, passion and dedication.
2.0
2.0 BackgrBackground of Aliound of Alibaba Group (AGbaba Group (AG))
Alibaba Group (AG) is Jack Ma for leadership and other 18 people, founded in 1999 in Alibaba Group (AG) is Jack Ma for leadership and other 18 people, founded in 1999 in Han!hou, Jack Ma belie%e that the nternet can create fair co"petition en%iron"ent, for s"all Han!hou, Jack Ma belie%e that the nternet can create fair co"petition en%iron"ent, for s"all businesses to epand
businesses to epand business throuh inno%ation business throuh inno%ation and technolo#, and participate in and technolo#, and participate in do"estic or do"estic or lobal "arket co
lobal "arket co"petition in a "petition in a better position.:6'better position.:6'AA'* Ali14 ;l 1055 '* Ali14 ;l 1055 <<
Alibaba Group=s "ission is to "ake it eas# to do business an#+here. AG ha%e the 'aobao, Alibaba Group=s "ission is to "ake it eas# to do business an#+here. AG ha%e the 'aobao, '"all
'"all, , >a# treasure to "ore than >a# treasure to "ore than 10 kinds of 10 kinds of ser%iser%ices such as ces such as businbusiness. Aless. Alibaba roup$s oal inibaba roup$s oal in %ision is to build the future of business infrastructure. AG belie%es that the custo"ers +ill li%e %ision is to build the future of business infrastructure. AG belie%es that the custo"ers +ill li%e and +ork
and +ork in AG +ill continue in AG +ill continue for at for at least 10 AG. : least 10 AG. : 6'6'AA'* Ali14 ;l 1055 <'* Ali14 ;l 1055 <
Alibaba roup=s "ain operation of the business is the 'aobao, '"all and Juhuasuan. 'aobao is Alibaba roup=s "ain operation of the business is the 'aobao, '"all and Juhuasuan. 'aobao is the one of the AG +as founded in Ma# 005. t is a focus on di%ersified choice, %alue and the one of the AG +as founded in Ma# 005. t is a focus on di%ersified choice, %alue and con%enience of 6hinese consu"ers preferred online shoppin platfor". Asia >acific reion is a con%enience of 6hinese consu"ers preferred online shoppin platfor". Asia >acific reion is a larer net+ork of retail. '"all is Jack Ma$s ne+ buildin in 36 (3usiness to 6onsu"er) larer net+ork of retail. '"all is Jack Ma$s ne+ buildin in 36 (3usiness to 6onsu"er) online retail "arket. 'he interate thousands of brands, "anufacturers, bet+een businesses and online retail "arket. 'he interate thousands of brands, "anufacturers, bet+een businesses and consu"ers to pro%ide on
consu"ers to pro%ide one stop solution. e stop solution. : 6': 6'AA'* Jit14 ;l 1055 '* Jit14 ;l 1055 <'he hihest dail# <'he hihest dail# tradin cantradin can reach 10. billion. 'he Juhuasuan is the 6hina$s "ost popular roupbu#in "arket b# its reach 10. billion. 'he Juhuasuan is the 6hina$s "ost popular roupbu#in "arket b# its "onthl# acti%e users. Accordin to official data released its clinch a deal a"ount of 10 billion. "onthl# acti%e users. Accordin to official data released its clinch a deal a"ount of 10 billion. : 6'A'* Gen1 ;l 1055 <
.0 S!"#
A -?' anal#sis is carried out on 5>@ 6o"pan# of Alibaba Group (AG). 'he "ain focus of -?' is to present a detailed strateic anal#sis of the roup related to its 5>@ ser%ices. dentified the opportunities for the co"pan# is on the basis of the assets, +hich the co"pan# can use as opportunities. t is also to anal#!e %alue chains used to "easure AG. n addition to +eakness and threats are also identified for the business and a stroner a+areness that +ill help AG strateies in the future. t=s also takes >-' to help AG. -?' anal#sis is a full strateic anal#sis tool but unlike other tools, it could be a +ide rane of products in the eternal en%iron"ent, the business +ould not take the i"pact of the co"pan#, +hich could be a disad%antae for the -?' anal#sis.
$ a l u e % & a i n A n a l y ' i ' Strengt&
1. Bocus on the product %alue added in the "arket
. -killful +orkforce is the ke# of success in AG
5. Alibaba ha%e a stron brand na"e in the eco""erce "arket /. 'echnolo# infrastructure
!eakne''
1. Hue nu"ber of sellers co"petin in the online "arket place
. nitial public offerin +ill eposed ahoo
5. @ack of lo#alt# on eco""erce Alibaba ( E S # "pportunity
1. A ood relationship +ith the o%ern"ent
. 'he econo"# of circu"ference in Alibaba
5. -ocial and cultural aspect of 6hina pla#s an i"portant role /. 'he technolo# in 6hina is
#&reat
1. 6hina o%ern"ent is opposed a "onopol# on 6hina=s basic online
. ntrepreneurial opportunities in 7- are 6hina=s real econo"# hit
olitical actor'
'he 6o""unist >art# of
Cietna"
>opulation& 90.58 "illion 6apital& Hanoi
@arest cit#& Ho 6hi Minh 6it# 6urrentl#, Cietna" has for"al
diplo"atic relations +ith nearl# 10 countries, trade relations
3eca"e a "e"ber of ?' in
00
the dispute and tension bet+een
Cietna" and 6hina has a bi effect on consu"er reactions
Economical actor
'he inflation rate of Cietna" is
18.8D, rank 10th
'he inflation rate +as recorded
at .81D in Eece"ber 01,
n 01, the situation has been
i"pro%ed sinificantl# since the eports eceeded 100 billion 7-E.
n%est"ent policies should Ai"
at i"pro%in the Fualit# and adaptin +ith Cietna"$s econo"ic structure.
Social* %ulture factor
45 other ethnic "inorit# roups Hanoi capital, , "illion
people in +hich 9.D of the population are in the ae rane
of 14/ #ears
3ein ruled b# 6hinese lea%e
the traces of 6hinese culture
#ec&nology factor
'echnolo# and infrastructure
in Cietna" has been de%elopin
6onsu"ers faster and "ore
"odern technolo#. nternet has also beco"e an i"portant part in both public and pri%ate sectors.
.+ Strengt&'
Alibaba Group=s %alue proposition for clientele is a ne+ creation of %alueadded as a result of the orani!ation inter"ediaries business processes are interated ser%ed closer to suppl# sources that accord cost effecti%e business strenths.
+. ocu' on product value*added
international "arketplace +ebsite +ould constitute "ore than 50 percent of sales and do"estic %alue%alue added ser%ices re%enue +ill be / percent. 3esides that, Alibaba s "ost popular %alue aded ser%ices last Fuarter +as the Alipress +holesale transaction platfor" , Ali Ad%ance ke#+ord listin , pre"iu" place"ent for searchin process and Ali@oan. :6'A'* -ou10 ;l 1055 <
2. Skillful !orkforce
Jack Ma is the founder and 6 of Alibaba Group. Jack Man is one of the +orld leadin e co""erce +eb portals, he=s ke# of success are true and inspirin for all e"plo#ee to i"pro%e the +orkforce and hu"an resources. Alibaba is not Iust ha%in an eco""erce co"pan# and also the 5 "ain platfor"s 'ao3ao (consu"er to consu"er co"pan#), '"all ( business to consu"er fir" ) and Alibaba.co" (business to business operation ). 'his sho+s that Jack Ma ha%e pro%idin the reat +orkforce and the co"pan# is ettin reater and skillful. :6'A'*
Mic1/ ;l 1055 <
. Strong Brand ,ame
Alibaba Group=s ha%e the stron brand na"e +hen 1999 Jack Ma founded the +ebsite Alibaba.co". Alibaba is a 6hinese A"erican e co""erce co"pan# that pro%ides business to business, business to consu"er and consu"er to consu"er. Alibaba is the +orld=s larest e co""erce business and handles sales bet+een i"porters and eporters fro" "ore than /0 countries and reions. (Alibaba, 01) Gi%in so"e ea"ple under Alibaba Group +hich is 'ao3ao, '"all.co" , e'ao, Alipa#, Alipress , ia"i , Alibaba.co" and etc.
-. #ec&nology nfra'tructure
AG technolo# is "ade possible b# access +ebsite to search infor"ation rele%ant to the eecution of business transaction and it is easil# and sa%e ti"e and cost interaction o%er the +eb interface. Alibaba is bridin the ap bet+een direct "anufacturers and producers +holesale and retail custo"ers throuh its technolo# based solution and ha%in loistics support for the deli%er# postae transactions to co"plete the "arketin process +hich #ield the ulti"ate %alue. Bor ea"ple 6hinese +holesalers and "anufactures suppl# to lobal consu"ers on Alipress and lobal +holesalers and "anufactures suppl# the +holesale on Alibaba.co". (Keuters, 01/)
.2 !eakne''
+. #oo many 'eller'
Alibaba roup ha%e a lot of seller +ho" ha%e been partner in ross nu"ber in online "arket. Alibaba roup has enlare the eco""erce seller hiher because the# i"port their ite"s o%ersea. 'he co"pan# continue to increase their forein products since the# see lare a"ount custo"er people their products. 'he result of capital dischare forein in%estors "o%e out Alibaba at one point of ti"e the co"pan# +eaken the econo"#. 'he proress as the o%ern"ent strule to sti"ulate eports throuh a softer currenc#. 'he Alibaba roup rand up +eaken co"pletel# the second half of 014. Eurin the ti"e period those products ha%e been sales displeasure the co"pan# but the# rebound in 01. Alibaba roup ha%e seen forein oods consu"er +ho" trustable and safer sells their products. 'he sellers are bein too freedo" and hih opportunit# to sell at profitable rates. ts "akes "ost the re%enue b# sellin pro"ote scope for the sellers. : 6'A'* Gen1 ;l 1055 <
2. nitial ublic "ffering (") /ill expo'ed a&oo
A deal +ith ahoo, +hich o+ned /0D of Alibaba roup shares. t "eans that the > it=s done +ould allo+ Alibaba to bu# back its share and end often stor"# relationship. 'he effect of it etre"el# difficult to concei%e the dra+back of ettin L10 billion in cash fro" +hat +ill likel# be the "ost producti%e tech > e%er. t been outside li"it ahoo pro"pt pa#da# fro" its /D
stake in 6hinese eco""erce hue Alibaba and thins aren=t so ros#. Alibaba i"ple"ent an dra+ attention platfor" for in%estors tr#in to ain back the profit fro" 6hina=s internet econo"#. 'here could be so"e alertness. 'he shares end up been bouht back b# Alibaba Group after "uch losin their epense %alue. : 6'A'* Mar15 ;l 1055 <
. 1ack of loyalty on e*commerce Alibaba
'here +as a lack of trust fro" the consu"ers because of the hue a"ount of fraud ha%e
co""itted throuhout "arket places. 'here is a "assi%e cultural influence on Alibaba +ith "ost of the suppliers bein affected. Alibaba hierarchies and shares ha%e been break do+n due to the effect of >. A lot of forein consu"er stop purchase Alibaba products lack of technolo#, the trust to le%erae "assi%e se%er to kill their earnin as +ell. -o"e of the lo#al custo"er to+ards Alibaba after the cheapest deals and best knockoff to retain the custo"er trust. Alibaba hih
%alue and hihl# secure users attract brands and "erchants decreasinl# rel# on Alibaba online "arketin proble" to reach and enae +ith these consu"ers. : 6'A'* Mar15 ;l 1055 <
-. Alibaba Group rely on t&e government
Alibaba roup apparentl# "aIor fact is eco""erce +hich is internet infrastructure 6hina. Alibaba %er# dependent rel# on o%ern"ent. Alibaba is %er# ne+ to the 7- "arket ha%e been onl# traded since 01/. ?hen 7.- de"onstrate the strenth in 6hina, the 6hina bets the risks. Eurin the ti"e period 6hina +as been shaken and the o%ern"ent policies been "ore difficult. 'he specific o%ern"ent bans al"ost "ost of the internet access and internet support is under control b# ad"inistrati%e throuh stateo+ned teleco""unication operators. Alibaba ha%e biest lost +here all the net+orks super%ised b# nfor"ation 'echnolo# in 6hina. Alibaba Group not per"itted to connected +ith an# alternati%e net+orks e%en thouh in the e%ents of disruptions, failures or other proble"s +ith 6hina=s internet infrastructure. n addition this cause a biest straiht for+ard i"pact on Alibaba the reputation tre"ulousl# shaken. : 6'A'* Ja#1 ;l 1055 <
. "pportunity
'he possibilities Alibaba Group has in store are i""ense. Most of the result fro" forces. As it has a solid foundation in the 6hinese "arket and a deep understandin of eco""erce, it has tre"endous opportunities to tap into other "arkets. 'houht the ndian "arket has t+o do"inant pla#ers, a lare influ of Alibaba has certainl# the abilit# to create +a%es.: 6'A'* Hit1 ;l
1055 <
+. olitical
Alibaba Group and the 6hinese o%ern"ent bet+een the ood relations. Althouh these relations are i"portant in all countries, the 6hinese o%ern"ent$s Ianitor decides +ho +ill do it. Bor ea"ple, Alibaba is one of the fi%e co"panies selected b# the 6hinese o%ern"ent to enter nternet bankin, a hue opportunit# for a o%ern"ento+ned bank countr#.: 6'A'* >-14 ;l 1055 <
2. Economy
n Alibaba >ost> da#s doubted business anal#sts suspect that the co"pan#$s shares in 014 "a# reach 140 billion 7- dollars. 3ut in -epte"ber the net assets +as 1/4 billion 7- dollars. Jack Ma +rote the best practices in industr#. Ma kne+ he had to do so"ethin different to cancel the other bi ones. Jack Ma understands that there is a ne+ bold strate#, fa"iliar +ith the loistics process, the trust bet+een suppliers and custo"ers, and "obile and onde"and technolo#. : 6'A'* >an1/1 ;l 1055 <
Alibaba$s ad%antae is circular econo"#. 6ost sa%ins are part of the Fuotation related to the %arious products that sell a sinle co"pan# throuh the sa"e distribution channel. n this case, Alibaba has t+o outlets, that is, 'aobao +ith thousands of nonbranded products, sold b# unkno+n dealers and '"all, branded products. All aspects of %arious products, especiall# 'aobao, are incredible. : 6'A'* >-14 ;l 1055 <
Jack Ma understands the purchasin po+er in 6hina is %er# stron. t +as affected b# the content and recordin of a price of the product fa"il# and the a%ailabilit# of credit. As it has been sho+n that the recent econo"ic situation has sho+n a sinificant decline, it +ill ha%e a bad influence on the purchasin po+er of consu"ers. Bor co"panies that +ant to sell products to hihinco"e and
affordable custo"ers, the current econo"# +ould be a disaster for the".: 6'A'* >an1/1 ;l 1055 <
?ith "ore sales related to si!e, cost sa%ins. 2?hat is the eternal di"ension of Alibaba,2 +rote Ea!a+a. 2'he co"pan# said that 'aobao and @#n are responsible for "ore than half of 6hina$s parcels, 01 'aobao and '"all$s total transactions reached 1 trillion #uan (15 billion
7-dollars), "ore than A"a!on and e3a#. . Social
6hina$s social and cultural aspects of the population due to chanin and pla# an i"portant role. Bor ea"ple, population ro+th and ae distribution are constantl# chanin. 'his can also chane social trends and cultural %alues. Ba"il# si!e and social beha%ior often affect the +a# decisions are "ade. ther social factors are consu"er lifest#les, education, reliion and i""iration. 6hina is a collecti%ist culture based on the %alue of Hofstede. : 6'A'* >-14 ;l 1055 <
6hina$s literac# rate is abo%e 90D. 6hina e"phasi!es that the for"ation of "ost countries is literall#.
'here are /0 "illion nternet users in 6hina. 'here are nternet access, 6hinese shoppin is often online. 'aobao is the larest local eco""erce site, "an# people spend a lot of thins fro" the site. 'he 3oston 6onsultin Group epects the fiure to ro+ %er# Fuickl# in the future. co""erce has chaned the +a# local consu"ers see it at the ti"e of purchase. Ho+e%er, there is an orani!ation that +ants to a%oid the risks associated +ith online purchases. 6usto"ers like to shop and enIo# facetoface contact. : 6'A'* >an1/1 ;l 1055 <
-. #ec&nology
'echnolo# has a %er# ood ad%antae in 6hina. 6hina is the +orld$s larest nternet "arket, it is t+ice the 7- "arket, +ith 40 "illion nternet users spend 0 hours per +eek. Most i"portantl#,
2As 6hina$s +ireless co""unications technolo# continues to e%ol%e, 6hina$s tiles retail sales are acti%el# le%erain eco""erce leaps, +hich offer hue opportunities for nternet "erchants, especiall# earl# +orkers, such as Alibaba,2 Nen Hao said. : 6'A'* >-14 ;l 1055 <
Alibaba$s lonter" strate# is to focus eco""erce sites as part of the "obile platfor". Has been dealin +ith this strate#& June, "ore and "ore "obile host "ore than 00 "illion 6hinese nternet users to bu# Alibaba Alipa#, electronic pa#"ent association and cloud ser%ices sector. : 6'A'* >an1/1 ;l 1055 <
.- #&reat' +. olitical
n 6hina, Alibaba is the larest and "ost popular online retailin co"pan#, Alibaba Group has a "onopol# on 6hina$s basic online retailin, the 6hinese o%ern"ent is opposed to a co"pan# "onopol# an industr#. 6hina has been carried out on the Microsoft antitrust in%estiation, resultin in a decline in the status of the Microsoft in 6hina a lot. Alibaba Group "a# be hit b# the 6hina polic# at an# ti"e.: 6'A'* Hit1 ;l 1055 <
'he 6hinese o%ern"ent has al+a#s defended its position as a bank. Alibaba Group to pro"ote online bankin action "a# also be cauht in a dispute +ith the o%ern"ent. ?hen a business is in conflict +ith the o%ern"ent, co"panies are often hit hard. 'hat is to sa#, in 6hinese politics, #ou should be careful not to cross the line.
2. Economy
Alibaba Group filed a prospectus +ith the 7.-. -ecurities and chane 6o""ission, plans to "arket in the 7nited -tates >. >rospectus disclosure details of Alibaba holdins,
nstitutional holdins, Japan$s -oftbank roup holdin 9/980 shares, the shareholdin ratio of 5/./D AH (/0.95, 1.1, ./D) holdin 4544/1 shares, the shareholdin ratio of .D.
n ter"s of personal o+nership, chair"an of the board of directors of Alibaba Ma holds 01005 shares, the shareholdin ratio of 8.9D. n other +ords, the Alibaba to the hue +ealth to the A"ericans and the Japanese.: 6'A'* ri1/ ;l 1055 <
'he e"erence of Alibaba, there are "an# Iobs are %irtuali!ed, and "an# entrepreneurial opportunities are transparent. 6hina$s real econo"# has been hit. Keal econo"# is the "ain dri%in force of national econo"ic de%elop"ent.: 6'A'* Ja#1 ;l 1055 <
. Social %ultural
for about 48.D of the share, the basic flat +ith a #ear earlier. Ho+e%er, Jindon "all share increased to .8D fro" 19.D last #ear.: 6'A'* ri1/ ;l 1055 <
n 6hina, people feel that Alibaba$s 'aobao to sell oods, eiht# percent of all fakes, +hich is the biest threat to an enterprise. 'his is often a corporate social and cultural proble"s.
-. #ec&nology
'he biest threat is lobali!ation and technolo# Alibaba +ireless ter"inal technolo#, ho+ can let the user at the ti"e of pa#"ent card pheno"enon does not appear, ho+ to "ake users "ore con%enient and efficient pa#"ent, ho+ to allo+ users to Fuickl# find the oods, and %ie+ the loistics infor"ation, is the priorit# a"on priorities. ?hen #ou bu# oods in the Alibaba, caton pheno"enon +ill often appear, +hich +ill "ake bu#ers ps#choloical a%ersion. f such e%ents
occur "an# ti"es, bu#ers +ill slo+l# drain.
?ith the rise of science and technolo# 'encent, 'encent also bean to Ioin the online retail industr#. 'encent nc$s products ?e6hat is the "ost deadl# threat to Alibaba in co""unications technolo#. n 6hina, 'encent "icro credit households eceeded 500 "illion dail# inco"e of nearl# L500 "illion. Alibaba inno%ation is not as ood as 'encent, 'encent to carr# out %ideo technolo# to enhance the status of 'encent. >eople in the purchase of oods Alibaba, is in%isible to the entit# of the oods, +hich "eans that +e do not kno+ the Fualit# and st#le of this product, onl# throuh the seller to "odif# the picture to understand the oods. And 'encent$s %ideo technolo# can see the co""odit# entit#.: 6'A'* Her14 ;l 1055 <
Alibaba to sell "ost of the Fualit# of the oods are defecti%e, it also "akes the scrap rate of these oods is particularl# hih.
-.+ Strategic %ompetitive Advantage' and 3a4or !eakne''e'
6hina$s population of 1.5 billion, the current a%erae annual ro+th rate of GE> reached 9D to 10D o%er the past 50 #ears, 6hina in the 7nited -tates +ill soon beco"e the second larest econo"# in the +orld "ore and "ore i"portant and influential. 'his positi%e chane can also be seen, the rapid de%elop"ent of 6hina$s "iddle class.
'his fa%orable econo"ic situation and the accu"ulation of "an# 6hinese societies ha%e created tre"endous opportunities for ro+th and established a reat "arketin e"pire. Alibaba Group Holdins toda# in 6hina$s eco""erce "arket do"inated, the effecti%e use of these opportunities.
@et take a closer look at the 6hinese iant$s strateic co"petiti%e ad%antaes and the "aIor +eaknesses
-.2 Strategic competitive advantage * Strong Brand ,ame
Alibaba Group (AG) is the larest 33 +ebsite. Has the +orld$s larest online tradin pro%ider, the +orld$s larest business foru", Keistration of AG "e"ber of "ore than 000 e%er# da#. -i"plified 6hinese, Norean and nlish +ebsite for the lobal "erchants to pro%ide professional ser%ices. AG$s business reputation is %er# hih. -uch as 'aobao, '"all, corporate publicit#, al"ost all o%er the +orld ha%e AG$s ad%ertisin. : 6'A'* Gen1 ;l 1055 <
Alibaba Group has a uniFue corporate culture, as +ell as the po+erful influence of Jack Ma, caused the co"pan# to "aintain a stron co"petiti%e ad%antae. Ouite a lot of entrepreneurs to the +orship of Jack Ma and AG, the AG brand are ettin stroner and stroner. At this point there is no other eco""erce co"panies can co"pete +ith AG. AG$s corporate %alues& custo"er first, tea"+ork, e"brace chane, interit#, passion, dedication. AG allo+s "illions of s"all businesses to obtain capital, and to pro%ide the necessar# help for s"all businesses to for" a
ood reputation in the industr#.
Alibaba Group to use its o+n stron brand benefit, established the Alibaba >ublic Boundation. AG announced since 010 to the annual inco"e of 0.5D set aside for public +elfare funds,
protection fund. AG chair"an Jack Ma to 1./ billion #uan in donations, the ne+ title of 26hina$s national capital2.: 6'A'* >an1/1 ;l 1055 <
?ith the nternet ro+th, Alibaba has "ore than 10 #ears of de%elop"ent histor# and operatin eperience. 'hrouh the nternet de%elop"ent period, +ell into the current rapid de%elop"ent. Alibaba Group "aster po+erful nternet technolo#, deep understandin of user needs, in a ro+in user has a hiher %isibilit# and credibilit#, stron brand appeal.
-. Strategic competitive advantage * Skillful !orkforce
-killful +orkforce +hich "ean the Bounder and 6 of Alibaba Group +ho" success and inspirin all e"plo#ee and i"pro%e the +orkforce. Alibaba Group ha%in 5 "ain platfor" of e co""erce co"pan# +hich is 'aobao (consu"er to consu"er) '"all ,(business to consu"er fir" ) and Alibaba.co" (business to business operation).'here is so"e proble"s occur in 3usiness to business and consu"er to consu"er. : 6'A'* >an1/1 ;l 1055 <
3ased on the Alibaba 6o"plaint 6entre, so"e custo"er "a# co"plaint about recei%ed the fake products and old %ersion of the products, so"e custo"er did not recei%ed the order for a "onth,
and another co"plaint is there is no ans+er or repl# to the co"plaint centre.( Alibaba 6o"plaint 6entre , 01) 'his is the hue proble" that Alibaba is facin.: 6'A'* Mar15 ;l 1055 <
-.- 3a4or /eakne'' 5 #ec&nology i''ue
n Jul# 014, 6hina released a draft c#bersecurit# la+ that +ould i%e the o%ern"ent an al"ost unfettered access the user=s data +here national securit# is concerned. 'he o%ern"ent ties the securit# +here Alibaba cannot access o%ersea net+orks. 'he 6hinese o%ern"ent announced a plan to ha%e police officers stationed in internet co"panies so the co"pan# can better secured the strict policies. At the end of 014, 6hina passed a contro%ersial antiterroris" la+ that reFuired teleco""unication and internet ser%ice pro%iders to pro%ide the 6hinese o%ern"ent +ith 2technical support and assistance2 such as decr#ption, in terroris"related in%estiations. Alibaba business plan is to continue focus on the s"all and "idsi!ed that dro%e Alibaba=s ro+th.
3randin co"petition and the cultural barriers associated +ith 6hinese co"panies are Iust a fe+ of the obstacles Alibaba +ould ha%e to o%erco"e if it tareted the 7- "arket. Eurin the ti"e
6hinese internet co"panies lost the trust on o%ersea countr# especiall# 7s. Alibaba ha%e losses a lot because 7- echane chaned. t=s e%entual > is epected to be one of the biest but it=s drop e%entuall#.
-.6 3a4or /eakne'' 5 olitical ''ue'
7nderstandin en%iron"ent of Alibaba Group can also be used in a political issue because 6hina is far fro" a co"pletel# free "arket. 'he 6o""unist >art# leads the "aIorit# of lare co"panies b# direct control or b# la+. 3ut the o%ern"ent in the field of eco""erce polic# is relati%el# absolute, Alibaba Group is an ea"ple of the spirit of inno%ati%e entrepreneurs, depends on the o%ern"ent$s friendl# support. Ho+e%er, due to the leadin role of the 6hinese 6o""unist >art#, 6hina$s political fa%or can disappear o%erniht +hich "a# lead to econo"ic "onopolies or other neati%e choices that deter"ine the restriction of econo"ic and social po+er. 'hese political risks "a# be the biest financial threat facin Alibaba Group.
'he 6hinese o%ern"ent accused the eco""erce iant Alibaba Group in rare public disputes in these places refused to sell fake and shodd# acts of corruption and other illeal acti%ities. 'his "a# be the double +arnin sin of Alibaba Group, +hich has the 2risk of credibilit#2 and the potential threat of a sinle countr# and other +eaknesses.
6.0 7ecommendation'
6.+ Strategic 7ecommendation 6.+.+ Strong brand name
'he +ebsite of Alibaba is an inter"ediar# for" "ode, the Alibaba can use the stron brand appeal, to in%ite the international bi brand products enterprises and Alibaba, +hich not onl# i"pro%e the sales of other products, but also can i"pro%e the Alibaba$s re%enue and reputation.n
recent #ears, the business "odel of 33 has not onl# de%eloped rapidl# in the +orld, but also raduall# for"ed a trend eco""erce alliance that is, the trend of "erers and cooperation, +hich +ill lead to increasinl# fierce co"petition.
-uested that Alibaba$s search enine can support fu!!# search. 6lear old, useless infor"ation to ensure the effecti%eness and a%ailabilit# of infor"ation. Alibaba$s re%enue fro" ninet# percent do"estic, Alibaba should increase in%est"ent in the international "arket and publicit#. 6hinese products are uaranteed in ter"s of price and Fualit#, and "an# foreiners are interested in 6hinese products.
6.+.2 Skillful !orkforce
Bollo+ up the strateic co"petiti%e ad%antae of skillful +orkforce, there "a# be ood and bad, it is successful to be a eco""erce business and use to help Alibaba Group (AG) to be "ore better and i"pro%e"ent for" the bads. 'hus, the reco""endation for this proble" is to check the supplier=s profile correctl#. %er# AG +ill ha%e a supports %erification ser%es +hich to ensure the sellers are leall# reistered co"panies of representati%e of AG. 3e sure that the suppliers profile infor"ation is correctl# leall# acco"plished b# AG. 'herefore, consu"er could also use the onsite check and assessed supplier.
nsite check is %erification processes +hich to confir" that the supplier co"pan# pre"ises are checked b# Alibaba.co"= staff to ensure that onsite operation is eist in AG. Burther"ore, assessed supplier is define as the independent and i"partial thirdpart# %erification of #our prospecti%e
suppliers. 'his is to ensure the AG co""issions se%eral aencies is based on the international reputation and pro%en credibilit# to test the clai"s. Assessed suppliers +hich represent the assess"ent report, %ideos and Cerified Main >roducts. (Bake products of Alibaba, 01) @astl#, it could "ake sure that Alibaba can helps the user or consu"er to a%oid the fake products and increase the skillful +orkforce on the ti"e.
6.+. #ec&nology ''ue
Alibaba start to build up traditional business econo"# because the custo"ers ecos#ste" cannot be isolated fro" the participants. Alibaba=s de%elop"ent therefore "ust e"brace rapid chane accordin to our e%ol%in en%iron"ent. Alibaba ro+th rise up in 6hina buildin "ore consu"er brands, +here a lot start bu#in and in%est "ore than epected. 3ut +hether or not Alibaba can be successful in the 7.-. shouldn$t +orr# in%estors, not #et at least, 2t doesn$t ha%e to be successful in the 7.-. an#ti"e soon because there is so "uch roo" for ro+th in 6hina,2 6ohen said. 2'he "arket potential in 6hina is still hu"onous and ro+in.2 6ohen said. After public co"pan# in 7- faced a lot challenin issues. ?hen the nternet +as scale up fro" 6hina enter lobal scene. Alibaba creates inno%ation le%el the pla#in field for s"all business and transfor"ation for social and econo"ic ro+th.
6.+.- olitical i''ue
Alibaba Group +ill continue to be the eco""erce co"pan# and the "ain technolo# in 6hina, and on the +a# to beco"in one of the eco""erce business and the "ost i"portant technolo# in the +orld. Alibaba Group should look for reater in%est"ent in o%erseas technolo# co"panies, suppl# chain infrastructure in 6hina and platfor"s to help forein co"panies of all si!es and for"s help the 6hinese consu"ers. co""erce +ill continue to ro+ in all areas in 6hina and "obile technolo# easier. 'his can a%oid o%ern"ent proble"s in 6hina and keep the financial strenth of the co"pan#.
6.2.+ ea'ibility
6.2.+.+ Alipay and 7egulatory 7i'k
Alipa# is part of the pa#"ent ser%ice in 6hina, Alibaba is used to deal +ith "ost of the transactions on its +ebsite it is rearded as Alibaba$s e3a# or >a#>al. Accordin to records, Alipa# deal +ith Alibaba$s business in 6hina, accountin for about 8D of all pa#"ents if the central bank to propose ne+ financial reulations,
"a# be a proble". : 6'A'* Her14 ;l 1055 <
'he bank is proposin li"its on the si!e of pa#"ents on processors like Alipa#, to the tune of about L800. 'hat +ouldn=t be a proble", ecept a si!eable a"ount of the transactions Alibaba does are businesstobusiness epenses, +hich often run into the thousands of dollars. n other +ords, if those rules o throuh, it could "ake it a lot harder for a bi part of Alibaba=s custo"er base to use it. : 6'A'* Her14 ;l 1055 <
6.2.+.2 9ncertain 7evenue Gro/t&
ne of the "ost shockin parts of Alibaba=s financials is Iust ho+ fast its re%enues are ro+in for a "ultibilliondollar co"pan#. Bro" 010 to 015, for ea"ple, it re+ b# /00 percent, e%en thouh b# that point it +as alread# bookin sales in the billions. n%estors, then, are likel# to be epectin a certain a"ount of upside +hen the# put their "one# into it P perhaps an unreasonable a"ount of upside. As Alibaba notes in its filin, the co"pan# doesn=t ha%e an# onoin aree"ents +ith its custo"ers that +ould lock in its ro+th. 'hat "eans "aintainin its re%enues at e%en the eistin le%el is not assured.: 6'A'* Gen1 ;l 1055 <
n particular, Alibaba=s current ro+th has been fueled b# its ro+th in "ainland 6hina. nl# about 15 percent of its re%enue currentl# co"es fro" o%erseas, and ro+th in those sales has not kept pace +ith its do"estic re%enue ro+th P in the future
(Bro"01 to 019), o%erseas sales accounted for about 5/ percent of Alibaba=s business.: 6'A'* Her14 ;l 1055 <
2010 2013 2016 2018 2019 0 1 2 3 4 5 6 7 8 9
Fiscal Year U.S. Dollar
6.2.2 Acceptability
t=s not all doo" and loo", ho+e%er. 6ruciall#, the li"it doesn=t affect escro+ pa#"ents, and Alibaba does ha%e a +ellused escro+ business. As lon as it$s able to "o%e custo"ers o%er to its o+n escro+ business, Alibaba thinks it +ill still be able to collect the fees that "ake up "ost of its inco"e. 3ut +ith all the "o%in pieces in%ol%ed in this, and the i"pact that e%en "odest increases in the difficult# of "akin a pa#"ent can ha%e on an eco""erce co"pan#=s botto" line, this is definitel# so"ethin that potential in%estors should +atch closel#.
countr#), and recent econo"ic esti"ates suest that the 6hinese econo"# is slo+in do+n after #ears of sk#hih ro+th. 'hat "eans that its future ro+th "iht depend in lare part on its abilit# to ro+ that o%erseas re%enue nu"ber, so"ethin it=s not #et de"onstrated "uch abilit# to do. : 6'A'* Her14 ;l 1055 <
:.0 %onclu'ion and %on'e;uence'
n conclusion of the +hole assin"ent, accordin to the strateic reco""endation there are / +a# to conclude Alibaba Group(AG). Birstl#, stron brand na"e of AG can use to increase the stron brand appeal, and brins in the international bi brand products enterprises. AG can increase in%est"ent in the international "arket and publicit#. 'herefore, the skillful +orkforce +ill follo+ up to reco""endation custo"er proble"s to "ake a different chane. Bor ea"ple to check the supplier=s profile correctl# and onsite check and assessed suppliers. 'his +ould ha%e to %erification ser%es +hich to ensure the sellers are leall# reistered co"pan# of representati%e of AG. Bollo+in is AG start to build up traditional business econo"# because the custo"ers ecos#ste" cannot be isolated fro" the participants. AG creates inno%ation le%el the pla#in field for s"all business and transfor"ation for social and econo"ic ro+th. -o, AG ro+th rise up in 6hina buildin "ore consu"er brands. @astl# is the political issue. AG +ill continue to be the e co""erce co"pan# and the "ain technolo# in 6hina. AG beco"e the "ost i"portant technolo# co"pan# and the best suppl# chain infrastructure in 6hina and platfor"s to help forein co"panies of all si!e and for"s help the 6hinese consu"ers. A could a%oid o%ern"ent proble"s in 6hina and keep the financial strenth of the co"pan#.
Burther"ore, there +ill be the Iustification of strate# +hich ha%e included feasibilit#, Alipa# and reulator# risk, uncertain re%enue ro+th, and acceptabilit#. Alipa# is a pa#"ent process ser%ices +hich +ill process about 8 percent of Alibaba pa#"ents in 6hina, it "iht be a proble" if ne+ financial reulations proposed b# 6hina. t could "ake a lot harder for a bi part
of Alibaba=s custo"er base. 'hus, the uncertain re%enue ro+th is Iust state that the re%enues are ro+in for a "ultibillion dollar co"pan#. Alibaba=s current ro+th has been fueled b# its ro+th in "ainland 6hina. 'he ro+th in those sales has not kept pace +ith its do"estic re%enue ro+th and international for about 5/ percent of Alibaba=s business. *et +ill be the acceptabilit#. 'he li"it doesn=t affect escro+ pa#"ents, and Alibaba does not ha%e a +ell used escro+ business. 3ut Alibaba +ill collect the fees and "o%in pieces in%ol%ed in this, and the i"pact that e%en "odest increase in the difficult# of "akin a pa#"ent can ha%e an eco""erce co"pan# botto" line. 'his sho+ the future ro+th "iht depend in lare part on its abilit# to
