Jack Ma, who has a foreseen, started the Alibaba Company after his visit to U.S. He found that China jump into the online commerce market really soon. The company was focused on B2B business and its initial goal is to help small Chinese manufacturers connect with buyers. Alibaba grew quickly and still growing. It launched several wholly owned subsidiaries, such as Taobao, Alipay, Alisoft. Alibaba group is considered to be a huge success among international and domestic, but it has its own limitation and problems. In this essay, I ill illustrate the reasons that made the Alibaba Group to be success, the challenge they have at that time and give some suggestions based on the case. Success:
There are too many things that Alibaba did right, because I am personally a big fan of this company. It is considered to be one of the most success companies in China. Its founder, Jack Ma, is also considered to be a legend among business people. His talent leaded the company and his wisdom on business forecast inspired a lot of entrepreneurs. Below are three things I concluded from the case that I think Alibaba did right. 1.
Found the pathogen of Chinese online commerce
China is a country that growing fast in the last few decades and still keep growing. The online purchase in china was barely developed in 90s. Chinese small businesses were not able to connect with outside world and even with each other inside China. The critical difficulty is the trust issue between business partners. The Alibaba Company came up as an intermediary to assure business participants that the risks are small for doing online trading. 2.
Low price strategy
The Alibaba’s revenue grew fast, and it became break even just after 3 years of operation. The reason is that they always trying to get stable transaction volume to be able to get discounts and transfer those benefits to the customers and itself. They negotiated with the providers for the...
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