Alibaba Report v4 share
MGMT 614 CORPORATE STRATEGY
SMU MBA (PART-TIME) 2015
Table of Contents
1. EXECUTIVE SUMMARY 2
2. ALIBABA BACKGROUND AND HISTORY 3
2.1. GENERAL OVERVIEW OF ALIBABA 3
2.2 MISSION/VISION 6
3. STRATEGIC ANALYSIS 7
3.1. BUSINESS ANALYSIS 8
3.1.1 Overview 8
3.2.2 Domestic retail market 9
3.2.3 Global wholesale market (Alibaba.com) 16
3.2.4 Domestic wholesale market (1688.com) 17
3.2.5 Global retail market(AliExpress.com) 18
3.2.6 Cloud computing and Internet Infrastructure 19
3.2.7 Others Investment, Acquisition and Strategic Alliance Activities. 19
3.2. MARKET ANALYSIS 20
3.2.1 China’s Market Size 20
3.2.2 Market Trends 21
3.3. COMPETITORS ANALYSIS (KOK LEONG) 23
3.3.1 Jingdong (JD.COM) 23
3.3.2 JD.COM Enters Strategic Partnership With TENCENT 26
3.3.3 Global Competitors 27
4. CHALLENGES 27
4.1 Maintaining sustainability in revenue and growth 28
4.2 Building international trust on Alibaba’s brand 30
4.3 Maintaining Alibaba’s Culture 30
5. SOLUTIONS AND RECOMMENDATIONS 30
APPENDIX 32
1. EXECUTIVE SUMMARY
Alibaba group is a relatively young Chinese e-commerce company that provides sales services through online and mobile platforms in retail and wholesale trade. Since its inception in year 1999, Alibaba achieved the status of being the largest online and mobile commerce company in the world if measured using gross merchandise volume (GMV).
With Alibaba’s commitment to ease the way consumers, merchants and others do business, away from a traditional marketplace, Alibaba aims to be a leader in the industry. Alibaba’s success is attributed to its knowledge in the Chinese market, however with stagnating China’s economy, Alibaba needs to find ways to further grow their company and to remain sustainable in the competitive market environment. The potential market in this industry is enormous, thus attracting a myriad of local competitors such as Jingdong and Tencent and global competitors such as Amazon and ebay. With all these in
SMU MBA (PART-TIME) 2015
Table of Contents
1. EXECUTIVE SUMMARY 2
2. ALIBABA BACKGROUND AND HISTORY 3
2.1. GENERAL OVERVIEW OF ALIBABA 3
2.2 MISSION/VISION 6
3. STRATEGIC ANALYSIS 7
3.1. BUSINESS ANALYSIS 8
3.1.1 Overview 8
3.2.2 Domestic retail market 9
3.2.3 Global wholesale market (Alibaba.com) 16
3.2.4 Domestic wholesale market (1688.com) 17
3.2.5 Global retail market(AliExpress.com) 18
3.2.6 Cloud computing and Internet Infrastructure 19
3.2.7 Others Investment, Acquisition and Strategic Alliance Activities. 19
3.2. MARKET ANALYSIS 20
3.2.1 China’s Market Size 20
3.2.2 Market Trends 21
3.3. COMPETITORS ANALYSIS (KOK LEONG) 23
3.3.1 Jingdong (JD.COM) 23
3.3.2 JD.COM Enters Strategic Partnership With TENCENT 26
3.3.3 Global Competitors 27
4. CHALLENGES 27
4.1 Maintaining sustainability in revenue and growth 28
4.2 Building international trust on Alibaba’s brand 30
4.3 Maintaining Alibaba’s Culture 30
5. SOLUTIONS AND RECOMMENDATIONS 30
APPENDIX 32
1. EXECUTIVE SUMMARY
Alibaba group is a relatively young Chinese e-commerce company that provides sales services through online and mobile platforms in retail and wholesale trade. Since its inception in year 1999, Alibaba achieved the status of being the largest online and mobile commerce company in the world if measured using gross merchandise volume (GMV).
With Alibaba’s commitment to ease the way consumers, merchants and others do business, away from a traditional marketplace, Alibaba aims to be a leader in the industry. Alibaba’s success is attributed to its knowledge in the Chinese market, however with stagnating China’s economy, Alibaba needs to find ways to further grow their company and to remain sustainable in the competitive market environment. The potential market in this industry is enormous, thus attracting a myriad of local competitors such as Jingdong and Tencent and global competitors such as Amazon and ebay. With all these in