Prepare a brief note analyzing the opportunities and threats faced by Chinese e-commerce companies. He was able to build up an Internet business in China from scratch and this led to the flourishing of the Internet market in China.
Alibaba started its operations when e-commerce in China was in its infancy stage. It put an innovative business model in place where customers could try out its services without any cost. Alibaba would therefore do well to forge some strategic alliance with some local player in these markets.
The groups can discuss the basic issues and the questions given to facilitate further discussion. The company already held a dominant position in the B2B arena and felt that its local knowledge would help it topple eBay and dominate the C2C market as well. Analyze the factors that led to the success of Alibaba in the Chinese e-commerce market.
The moderator can lead the discussions and then conclude with a summary of the highlights of the case. Baidu already accounted for 60 percent of the Chinese web search market and it aimed to leverage on its strength of search engine user base to foray into the C2C market.
It can be said that Alibaba had negotiated the challenges posed by the emerging market quite well — it had taken advantage of the opportunities while mitigating the risks of operating in such a market.
The additional readings and references given will help the students to get a thorough understanding of the case.
Alibaba had emerged as the largest e-Commerce company in China. The case will help students to: With money coming in from its IPO, it had the opportunity to increase its global footprint.
For instance, its decision to start a payment system in collaboration with a reputed bank in China was due to its local knowledge. The Internet was highly regulated in the country and that was one of the reasons that foreign companies found it difficult to succeed in China. Finally, the leadership and vision of Jack Ma cannot be underestimated.
References and Suggested Readings: From an early stage, Alibaba had been focusing on differentiating itself by providing better services to its customer.
Considering the potential of the budding e-commerce market, Alibaba started with operations that concentrated on providing B2B services to SMEs that were aspiring to go global. However, Alibaba lagged behind in the Chinese web search market despite acquiring Yahoo!
The students may be given the following assignments before the actual discussion of the case. This is how it identified areas for improvement and created a unique value proposition.
In such circumstances, Alibaba. The teaching note includes the abstract, immediate issues, basic issues, teaching objectives and target audience, teaching methodology, session plan, assignment questions and analysis, feedback of case discussion, and suggested readings and references.
After a successful IPO, the company was preparing to strengthen its competitive position in China and also to provide tough competition to other Internet and e-Commerce companies in the global arena.
The company required its consumers to pay through credit cards while the Chinese consumers preferred to pay by cash. They can be formed into groups and asked to prepare a note on any of the two questions given here.
The company should also have a relook at its business portfolio. Baidu, on the other hand, had to contend with Taobao.
Taobao weaning away customers from eBay Eachnet was a case in point. These three factors also helped Alibaba achieve a sustainable business performance. It did not provide a phone number that customers could call in case of any queries.
Suggested Assignments for Students. The Internet market in China is still in its early stages of maturity and losing focus could lead to Alibaba losing its dominant position.
It was also able to provide a simple yet efficient website that helped SMEs which were not too tech savvy to navigate the site effectively. Till then, one has to rely on alternative streams of revenue.
Even in more developed markets, a business model such as this could work. The case explains in detail the rationale behind Ma starting an e-Commerce website and his efforts to bring about the growth of the company.
We have seen how Alibaba, which was so successful in e-commerce, struggled in the web search market. Alibaba had proved that its business model was a force to reckon with. 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.Alibaba: Competing in China and Beyond Objectives Background History Jack Ma Chinese born entrepreneur founded an e commerce website known as Alibaba.
Lara Hull Alibaba: Competing in China and Beyond Analysis of factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce Market. The case highlights how Ma successfully competed with foreign e-commerce companies like eBay Inc.
(eBay) by establishing a rival website, mint-body.com, in the online auctions market. However, Alibaba lagged behind in the Chinese web search market despite acquiring Yahoo! China's operations in 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.
ICMR HOME | Case Studies Collection To download Alibaba: Competing in China & Beyond case study (Case Code: BSTR) click on the button below, and select the case from the list of available cases. Alibaba is the biggest B2B and B2C e-commerce company in China; it has leading position for past years.
However, the situation has changed in recent 3~4 years, more and more users access the internet including buying goods and services via cell phones.Download