Alibaba Case Essay

2694 WordsOct 7, 201411 Pages
ALIBABA CASE Introduction This case discusses the success of Alibaba.com Corporation (Alibaba) in China under the leadership of Jack Ma (Ma), its founder. It talks about the transformation of Alibaba into one of the most successful e-commerce companies in China and also analyzes its business portfolio. 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. Alibaba had emerged as the largest e-commerce company in China. The company tailored its strategies to meet the needs of the customers and made a mark because of its understanding of theChinese language and culture. However, some experts have also raised doubts over the Sustainabilit of Alibaba’s business model. The case highlights how Ma successfully competed with foreign e-commerce companies like eBayInc. (eBay) by establishing a rival website, Taobao.com, in the online auctions market. However, Alibaba lagged behind in the Chinese web search market despite acquiring Yahoo! China‟s operations in 2005. Moreover, with Baidu.com (Baidu), China‟s leading search engine announcing its plans to foray into the rapidly growing e-commerce market in 2008, the competition was expected to intensify for Alibaba. 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. INDUSTRY ANALYSIS The Chinese e-commerce Market Broadband penetration in China picked up from 2004 after it surpassed South Korea and Japan in2003. As of 2008, China, with 210 million users, stood second in terms of Internet users after the US with 216 million users. The broadband penetration in China in 2008 stood at 75 percent. With the growth of high-speed broadband, the e-commerce market in China also grew. The concept of

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