What Are The Macro Economic Factors Of Alibaba

6. Advance with the customers: Product quality and counterfeit products are the major concern of buyers on Taobao. As a result, buyers were willing to pay a premium for quality assurance and better service, pushing the market towards the B2C end. Alibaba formed good relationship with most of the brand and established a solid consumer base. It soon became aware of the trend and leveraged its strength by launching a B2C platform, TMall. Currently, it’s the largest B2C website in China. Moreover, a long list of fees would be incurred to sellers in the platform. As more business migrate to the new site, Alibaba can enjoy a more steady cash flow.
Destination Country - US:
On 11 June 2014, Alibaba launched US shopping site 11 Main. The 11 Main is
How are the Macro as well Micro economic factors different in the country or origin and the destination country?
Macro-economic factors of China:
1. Political factors: Currently China has become the world’s second largest economy. Xi Jinping focuses on pushing China investment abroad and pulling foreign investment to China. For much of the population, living standards have improved dramatically and the room for personal choice has expanded, yet political controls remain tight.
2. Legal issues: The legal framework for e-commerce is still in its early stage. China has little experience for drafting e-commerce legislation for topics like IPR protection and tax. There aren’t any regulations supporting the privacy, recognition of digital signatures, consumer rights and validation of electronic contracts yet.
3. Economic factors: China’s economic performance over the past four decades has been impressive. China is now the world’s second largest economy in terms of GDP. Over the past five years, China’s economy experienced significant GDP growth rate. Reports suggest that if China continues to excel at this rate, it will surpass US GDP soon. Some factors which might help are: High rate of savings and investments; Abundant and increasing skilled labor; more export business; Potential urban growth; High inflation rate and High property
The extremely rapid growth of e-commerce retail sales has provided a major boost to residential parcel delivery services. The online merchandise purchases involve delivery by a third-party vendor such as FedEx, UPS, or the U.S. Postal Service.
3. E-commerce influences demand patterns: As technology, e-commerce, and globalization become more intertwined, buyers and sellers are increasing their connectivity and the speed with which they conduct sales transactions.
Macro-economic factors of USA:
1. Political factors: USA has a strong democratic setup and effective rule of law. The elections are considered fair and transparent. The country enjoys massive political and economic influence over both national and global policymaking. Cheaper access to internet, a growing number of internet users, faster and better internet, rapid expansion into new markets through acquisitions, all of them represent the political and legal factors that may, or may not influence Alibaba’s organization
2. Economic factors: With a GDP of over $16.760 trillion, the US is the largest economy in the world. However, the increasing budget deficit puts the economic prosperity of the country at grave risk as the deficit currently amounts to a staggering $506 million. After the crisis, ecommerce companies had problems with the shipping costs because of the oil price