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Alibaba: Competing in China and Beyond

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Alibaba: Competing in China and Beyond
Alibaba: Competing in China and Beyond
Individual Report

Intercultural Management
Professor: Dr. Jacobo Ramirez

Aalto University
School of Economics
Bachelor´s Degree Program in International Business
Mikkeli Campus

September 3, 2012
Matti Uusivirta

Introduction

In this report I will examine the case “Alibaba: Competing in China and Beyond.” Alibaba under the leadership of Jack Ma, its founder has transformed into one of the most successful e-commerce companies in China. In the 2000s 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.

In my report I will critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market. I will Discuss the rationale behind Ma establishing Taobao.com. I will examine the factors that led to Taoboa 's success in the Chinese online auctions market. Furthermore, with Baidu 's entry into the e-commerce market, I will discuss the challenges that Alibaba faces with regard to sustaining its position in the growing e-commerce market in China. Finally I will critically examine Alibaba 's business model, possibilities of global expansion and the overall sustainability of the company.

Questions 1.

One of the most significant factors that lead Alibaba Group sustaining its leadership positioning in the Chinese e-commerce market was its ability to understand the Chinese market itself. Jack Ma, Alibaba Groups founder understood that Chinese consumers and their preferences distinguished them selves from those in other countries. Other companies such as eBay did not appreciate the local market circumstances in China; instead, they were using the strategies that were working in the United States. I believe

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