Alibaba: Competing in China & Beyond
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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Abstract:
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 the Chinese language and culture. However, some
experts have also raised doubts over the sustainability of Alibaba's business
model.
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The case highlights how Ma successfully
competed with foreign e-commerce companies like eBay Inc. (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.
Issues:
» Understand the issues and challenges faced by a Chinese
Internet/e-commerce company in growing its business.
» Study Alibaba's business model and see whether it is sustainable.
» Study how Alibaba achieved a balance in catering to global customers while
customizing its practices to suit the needs of its Chinese customers.
» Understand how e-commerce companies operate in emerging markets
» Examine the challenges faced by Alibaba in expanding its business globally
Contents:
Keywords:
Competition, Strategy, Business model, Innovation,
Entrepreneur, Market leader, Global expansion, e-commerce, Small and Medium
Enterprises, B2B, B2C, C2C, Web search market, Initial Public Offering , Alibaba,
Taobao, eBay, Baidu, Google, China
Alibaba: Competing in China &Beyond
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