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ISS Cenler for Management Research www.lcmrlndlo.oig Case 5 Alibaba in 2011: Competing in China & Beyond
"Alibaba has a first-mover advantage that makes it very hard for competitors to chip away at their lead in the rnarket."i
-DICK WEI,
Analyst, J.P. Morgan Securities Inc., 1 in 2007.
"For LIS, the goal has been to build a company that lasts 102 years and a company that changes China. We 're only six years old, so while other people may call us a success, we still do not consider ourselves successful yet.
We have a long way to go and the intense competition is what keeps us sharp. The success we 've had so far has not made us lose our edge. "ii
- JACK MA,
Founder and CEO ofAlibaba.com, in 2006.
"If there's a company outside ofAmerica that can intrvduce a new bLtSiness model to the world, it's Alibaba."iii
-MASAvosHI SoN,
Founder and CEO, Softbank Corporation, 2 Japan, ill 2005.
INTRODUCTION
On November 11, 201 1, Bloomberg3 reported that China's leading e-commerce company, A libaba Group (A1ibaba), in association with Softbank Corporation (Softbank), The Blackstone Group4 (Blackstone), and Bain Capita15 (Bain), was considering making a bid for Yahoo! Inc. 6 (Yahoo!). While Jack
Ma (Ma), founder and CEO of Alibaba, expressed an interest in buying back Yahoo!'s 40 percent stake in Alibaba, Softbank wanted to buy Yahoo!'s 35 percent stake in Yahoo ! Japan.
Blackstone and Bain were reported to be participating in the bid to buy Yahoo!'s remaining operations in the US.iv
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This case was written by Hadiya Faheem , under the direction of Debapratim
Purkayastha, IBS Hyderabad. It was compiled from published sources, and is