Success Behind Alibaba Group Holding Ltd

Table of Content

Pages

1.0 Introduction 2

2.0 Background of Alibaba Group 2

3.0 PESTEL Analysis 3

3.1 Evaluation of PESTEL 4

4.0 Porter’s Five Forces Analysis of E-commerce in China 7

4.1 Evaluation of Five Forces 8

5.0 Strategy Recommendations for Alibaba 11

5.1 International Expansion 11

5.2 Opening Up its Platform Model to Other Sectors 11

5.3 Bringing the Delivery System into the Next Level 12

5.4 Regulating Retail Piracy 12

5.5 Protecting the Environment 12

6.0 Conclusion 13

References 1.0 Introduction

This report is going to examine the success behind Alibaba Group Holding Ltd. It will show how the company’s vision, culture, values and operational strategies help propel Alibaba to become the biggest and most famous company in China. Moreover, through the analysis of PESTEL and the Five Forces models, it will show how the external environment impacts the growth of Alibaba in China and how the competitive environment stimulates the development of this company.

2.0 Background of Alibaba Group

Alibaba is an electronic business company founded by Ma Yun in 1999 and headquartered in Hangzhou, China. After going through some ups and downs, it listed in America in 2014 with about US$231 billion marketing value. Alibaba’s total revenue was 76.2 billion RMB in the last financial statement.

Following the mission to make it easy to do business anywhere, Alibaba provides three business models for e-commerce. First are the online retail marketplaces such as www.taobao.com, www.tmall.com and international retail website www.AliExpress.com. Second is the business to business (B2B) platform for wholesale marketplaces like the Chinese website www.1688.com and global wholesale trade www.alibaba.com. Third are cloud-based computing such as electronic payment, search engine and other network services. Besides the online marketplaces, Alibaba invests in international expansion and other potential e-businesses which keep them ahead of the pack. (Alibaba Group Website)

In essence, Alibaba's business model is based on providing electronic service platforms through the internet for all range of businesses from