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ALIBABA CASE STUDY
Alibaba Case Study, The Chinese Innovative Giant
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Alibaba Group Holding Limited operates web and offline commerce operations in the People's Republic of China and worldwide through its subsidiaries. Core Trade, Cloud Computing, Digital Media and Entertainment, and Infrastructure needed and others are its four sectors. Taobao Marketplace is an online retail attraction; Tmall is a seventh online and price signals channel for retailers; Alibaba Health Internet runtime environments for pharmaceutical and biopharmaceutical products; Alimama is a monetization platform; 1688.com and Alibaba.com are registration form retail outlets; AliExpress is a consumer marketing; and Lazada is an e-commerce platform.
The Company also offers search engine optimization for payroll and display, and a real-time online marketing offering from Taobao Ad Network and Exchange. It also offers computer, database, storage, virtualization, computer-based services for large-scale computer, security, administration and application, machine learning and business Internet; money transfers and escrow services; and films, TV programmes, animations, video content. The company is also operating a Youku social network; a mobile phone, traffic information and actual information traffic application; a DingTalk, business performance app; and an AI smart-powered AI speaker; Alibaba Pictures and other delivery capabilities that offer online videos, movies, sporting performances, news feeds, literary works, Music, and more. The firm was formed in 1999 and is headquartered in Hangzhou, China.
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SWOT Analysis of Alibaba
The sheer volume of operation and the market, where it operates mostly, is one of Alibaba's initial assets. China is one of the most populous and economically leading countries in the world and has a solid position and lead in this industry is no small achievement. A success storey of this sort will certainly go a long way in the creation of Alibaba's development. Alibaba's 58% market share in China was 55 years ago and its closest competition was 22%. One of China's great assets is that this dominance of the market share comes from the support of strong enterprises that are able to produce mass production and provide world-wide.
The existence of the visionary as Jack Ma at the leadership of the firm is another strength, although of a qualitative kind. We have all heard Steve Jobs innovative ideas and Apple's success is generally attributed to him. It is vital to have an iconic founder/leader that can bring to the popularity of Jack Ma and his views on the firm do not let them down. Alibaba also gives all those who engage in writing their success a highly conducive atmosphere.
The number of vendors that register for the firm is not restricted to Alibaba. This has led to the competition of a large number of merchants on the online market. While this is great for the purchasers, the purchasers may not be as excellent. The vendors will not be able to enjoy success because of the enormous competition. There were over 8.5 million active vendors when Alibaba was released a few years ago, and the number only increased each since. As a result, the Alibaba platforms of Taobao and Tmall have been marketed by a few reputable companies.
Another problem of the firm is that it cannot allow sellers to sell at fair and lucrative pricing. By selling advertising places for retailers, it generates most of his profits. The sellers are now restrained and are not free to sell at a lucrative rate.
Alibaba has enormous potential to offer. The strengths of most of these are the outcome. Since its base on the Chinese market is solid and its e-commerce business is thoroughly understood, it has huge potential to reach other markets. If there are two major actors in the Indian market, Alibaba is guaranteed to have a large blown entrance that may produce waves. The level of trust Alibaba has earns very few e-commerce platforms. Of course, as Alibaba grows to a new nation, the years of confidence on the brand are coming. It therefore provides local e-commerce firms strong competition. Moreover, the producers have the backing. Its models, based on the aggregator, contribute to cost reduction and lean operations. In other markets, this also offers a chance to duplicate the model.
The existence and strengthening of Flipkart & Amazon will be the main danger, if Alibaba aims at expanding its operations to other countries, in particular to India. Alibaba takes a long time to implement its complete capabilities and the two main competitors in the Indian e-commerce market are beginning to embrace new methods to prevent competition. Other companies such as Tencent and JD.com compete in China against Alibaba, whilst Amazon and eBay are the world's dangers. As the need for e-commerce portals for services rises, profits for most e-commerce companies are declining, which is also a cause for concern for Alibaba.
PESTLE Analysis Of Alibaba
An unpredictable political scenario is one of Alibaba's key macro-environmental challenges. Alibaba just chosen to take part in the Börse of Hong Kong. But Alibaba has failed to prosper in Hong Kong because of China's recent direct demonstration of power in Hong Kong as it raises doubts about the initial public offering of the firm. Moreover, as an authoritarian country, China's government is able to grab power and take control of the firm that is a cause of certain investors and the reason behind specialists valuing the stock of Amazon more than its BABA stock (the Alibaba stock). The leaving of its founder, Jack Ma, may also be a cause for concern to Alibaba and can affect both short-term, and long-term, investors and stakeholders' trust. Apart from the dangers listed above, the government backing for Alibaba cannot be ignored and this is one of the main reasons behind the expansion and the success of Alibaba.
There have also been dismal outcomes in the e-commerce industry. This is a big cause for Alibaba's worry. Although the company's sales grew, the growth rate since 2016 has been weakest. This suggests a decrease in customer trust. Alibaba invests extensively in various sectors, such as publicity, cloud computing and so on, with the goal of acquiring new consumers. However, this might lead to a rival attacking the main competence of the firm, namely e-commerce and gaining a portion of its customers. As the industry has a tremendous potential, the business should focus on rural or level 3 cities.
The Mobile App Taobao of Alibaba is a business platform where consumers may shop from either the listed items line. The software gives users with enticing social media features that enhance user involvement and spend more on them. It is pleased to argue that more than seven times a day the typical user accesses Taobao. The software also allows users to take part in live sessions where individuals may talk about a business and share their stories.
One of the main reasons why Alibaba thrives is due to the widespread usage of different technologies such as artificial intelligence, cloud computing and machine learning. Customers of Alibaba may monitor their imported order delivery status via their 'Tmall Global' site and check it. The firm has invested enormous money in the processing of items of a logistics network called Cainiao. A cloud-based RMS is also used in Cainiao (Remote Monitoring System). The company's AI Chatbot allows purchasers and sellers to converse each other, also out of their own language, by interpreting the content of the other party.
Alibaba is an internationally renowned corporation for 'counterfeiting.' The American brands are the most hit by this fake. Fake GUCCI wardrobes have also been reported on one of the sites of Alibaba. Alibaba has changed its current IP Protection Platform for damage control, so that appropriate action may be undertaken in the event of a violation. The firm should introduce rigorous changes aimed at protecting intellectual property in order to be present in other countries and attract new investments. Otherwise, the investors will find it difficult to convince.
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Alibaba does its share to help sustainability in the environment. The firm promises to support the following social responsibility projects such as employment creation, rural development, poverty reduction, sustainable environment. The firm says that more than 8 lakh health insurance programmes have been given so far, as stated on its web site. The firm is proud to donate over $37 million to charity organisations. Alibaba started 4 years ago pushing its workers to work in the community at least 3-4 hours. In order to improve consumer loyalty, Alibaba must retain these activities in the next years.
The report concluded that the case study and SWOT analysis represents a useful method for analysing current strength, weakness, opportunity and threats as well as effect on the Alibaba Group's new business model. Alibaba is founded by Jack Ma, his qualitative power; his presence, ideas and purpose add to the development of Alibaba. Alibaba.com is another online B2B marketplace in which global purchasers and sellers may make deals and interact. It is a safe, trustworthy platform utilised by millions of companies. Alibaba.com was established by Jack Ma in 1999 and is a part of the Alibaba Group.