Alibaba Strategy
Autor: Như Mai • October 25, 2017 • Essay • 414 Words (2 Pages) • 624 Views
ABOUT THE COMPANY
Alibaba Group Holding Limited is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. The company's English language portal Alibaba.com handles sales between importers and exporters from more than 240 countries and regions. It is the world's largest and most valuable retailer as of April 2016, surpassing Walmart, with operations in over 200 countries, as well as one of the largest Internet companies.
PRODUCT AND SERVICES
Founded in Hangzhou in eastern China, Alibaba.com has three main services including electronic payment services, a shopping search engine and data-centric cloud computing services
BUSINESS MODEL
Though the company operates through a unique combination of business models, Alibaba's core business resembles that of eBay. Alibaba Group holds no inventory and owns no warehouses. Rather, Alibaba has created software platforms that facilitated the exchange of goods and services.
Alibaba focused more on trade between businesses, being a platform for suppliers to sell products in bulk at wholesale prices to small or medium-sized businesses worldwide, who then resell them for a profit in their domestic markets. Alibaba acts as a middleman between buyers and sellers online and facilitates the sale of goods between the two parties through its extensive network of websites.
BUSINESS STRATEGY
“Global leader, local win”
New retail strategy (2017)
Boosting sales for branded products
Alibaba (BABA) is pursuing a new retail strategy where it is focused on blurring the line between online and in-person shopping. It has recently taken several actions to achieve this goal as it focuses on unlocking new growth opportunities. In May, Alibaba acquired a controlling stake in Intime Retail Group, for which it paid $1.6 billion. Alibaba is banking on its relationship with Intime Retail Group to support its strategy of transforming traditional retail. Alibaba expects to ride on Intime Retail Group’s retail infrastructure to boost its sales of soft goods and branded product
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