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Alibaba Holding Group Limited Company History
Alibaba Holding Group Limited, better known as Alibaba.com, is a Chinese multinational technology business founded by Jack Ma. Since its inception in 1999, the firm has specialized in e-commerce, retail, the internet, and technology (Zhao, 2022). The companys headquarters are in Hangzhou, Zhejiang, and it offers business-to-consumer (B2C), consumer-to-consumer (C2C), and, more recently, business-to-business (B2B) sales through websites and portals. The corporation has implemented electronic payment systems, allowing different wholesalers worldwide to purchase Alibaba items. Zhao (2022) identifies shopping search engines and cloud computing as other significant services that Alibaba.com offers to its affiliates worldwide. In this sense, the company owns and controls a diverse selection of various companies globally in different business segments. Peoples cultural attitudes and fluctuating currency exchange rates are significant roadblocks to Alibabas global B2B operations. The corporation deals in a wide range of goods and services to conquer international markets, including consumer electronics, fashion, cars, and accessories.
Mission
The primary goal of Alibaba Holding Group Limited as a firm is to become a corporate legend. The company assists businesses in transforming and changing the way they promote, sell, and do everything they can to increase the operating efficiency of its affiliate stakeholders. The company delivers technical infrastructure and marketing tactics that assist merchants, retailers, brands, and other businesses use advanced technologies to reach consumers and users worldwide ( Alibaba.com, 2022). The companys activities include China, international, and local consumer commerce, among other services. Furthermore, the firm has implemented digital payment, enabling global online transactions. This has increased and is expanding Alibaba.coms worldwide market share. Many businesses and merchants from many nations may acquire Alibaba items wherever they are without traveling to their headquarters ( Alibaba.com, 2022). As a result, Alibaba.com is rapidly expanding in terms of e-commerce, and the corporation will expand its operations to many nations worldwide in the near future.
The Brand
Today, Alibaba.com is regarded as one of the largest and most influential B2B e-commerce corporations in China, if not Asia. According to Dey and Francis (2021), the firm began as an e-Market and has evolved into a global e-Marketplace servicing millions of consumers worldwide. The firm is working hard to be a one-of-a-kind marketplace by building a solid brand and giving its users and consumers exceptional value and a superior online shopping experience. The corporation diverse range of items include cars and accessories, clothes, electronics, and other items desired by people worldwide are among the things that the firm stocks. According to Dey and Francis (2021), Alibaba.com is unique because it is Chinas sole e-Marketplace that offers B2B, C2C, and B2C marketing. As a result, it aims to uncover key success characteristics in its business strategy to assist businesses worldwide in thriving and profiting while also boosting the Alibaba e-marketplace.
Products and Services
Alibaba.com sells and promotes a wide range of brands on its websites and clothing is one of the most popular goods. The firm sells a wide range of clothing, including infant, mens and womens clothing, childrens clothing, and athletics. In addition, the firm sells clothing as well as processing accessories like braids, buttons, badges, and cords. The firm also sells consumer electronics such as cameras, cameras, and accessories; chargers, batteries, and power supplies; computer hardware and software; earphones and headphones, and regularly used accessories ( Alibaba.com, 2022). In addition, the firm distributes heavy machinery, home and garden equipment, cosmetics, personal care goods, automobiles, and accessories ( Alibaba.com, 2022). Because the globe is fashion and technology savvy, Alibaba.com has created an e-marketplace where millions worldwide can receive the most recent designs of products that fit their current needs. Clothes and contemporary technology with specific functionality are ideal examples.
Situational Analysis
The PESTEL analysis approach may be used to explain the forces that influence Alibaba.coms operations. The dynamics impact the macro environment of the Alibaba.com product purchasing group (MBA Team, 2022). The first external barrier to Alibaba.coms activity is political concerns. Alibaba.com, for example, just reported its market share in Hong Kong. On the other hand, the Chinese government possesses considerable authority and may change its mind and seize control of the firm. The uncertainty surrounding the companys first public offering makes it difficult for Alibaba.com to expand in many countries. Research has shown that many consumers globally prefer Amazons stock exchange over Alibaba.com stock (MBA Team, 2022). The economic downturn in China and other nations is a big issue that is harming Alibaba.com. According to MBA Team (2022), the present China GDP growth rate will decline by 6% in 2022, which is a major concern for Alibaba operations. Despite solid revenue collection, Alibaba.com has seen the weakest growth rate since 2016. (MBA Team, 2022). The meaning of these data is that customers are losing faith in Alibaba.com, and as a result, the corporation is spending much money to make its brand name known worldwide.
Socially, Alibaba.com has created initiatives that lure people worldwide to buy their items. The Alibaba.com mobile application provides users with a user interface that allows them to browse the companys products and select what best suits their needs. Taobao is one such application, according to MBA Team (2022). Another element influencing the companys operations is the ever-changing global technology. According to recent surveys, Alibaba.coms success is solely due to its enormous investment in advanced technology. The organization has used artificial intelligence, cloud computing, and machine learning to track and check products throughout shipment (MBA Team, 2022). Another key aspect affecting Alibaba.com is legal issues. This firm is notorious for providing counterfeit goods to its customers. For example, several allegations of imitation GUCCI wardrobes are being offered on commercial websites (MBA Team, 2022). This compelled the corporation to improve its intellectual property protection platform to dissuade con artists from stealing the companys brand. Concerns about the environment also have an impact on Alibaba.coms well-being. According to its website, the corporation claims to be socially responsible by supporting initiatives that promote job creation, rural development, poverty relief, and environmental sustainability.
Market
Being a multinational company, market research for Alibabas B2B business demands determining potential markets and the buying forces. The current Alibaba.com market statistics show that the company is doing impressive as e-commerce and retail shops are concerned. According to Liu (2022), Alibaba.com registered approximately 150 million buyers in 2020. The information implies that the companys singled days merchandise volume stood at $ 74.1 billion in the same year. The study reports that AliExpress Spain alone contributed $31.73 billion in 2020. The same year, Alibaba.com was purported to account for 53.3 percent of Chinas e-commerce retail market (Liu, 2022). By 2030, the company has projected to enlarge its clientele territories to 30 million, which has been set by 528 million new customers who visited the site in early 2021. These figures have been fueled by Alibaba.coms product diversification that intends to solve clients needs. To achieve more market success, the organization must prioritize several aims when engaging in marketing. With a diverse range of products aimed at various audiences, the corporation must segment its market to understand the needs and desires of its numerous markets fully.
Competition
Amazon.com, Walmart, Jingdong, Shopify, and eBay are fierce competitors for Alibaba.com. These firms, like Alibaba.com, are international, which means they operate in several nations worldwide. According to Chen and Feng (2022), Amazon and Walmart are Alibaba.coms leading e-commerce and retailing competitors. Amazon.com is the most popular e-commerce platform, and it began as an online bookshop before expanding into an inconceivable e-marketplace. According to reports, Amazon.com sales will climb by 34% in 2020, totaling over $380 billion (Chen & Feng, 2022). Jingdong, the largest online store in China, is another potential competitor of Alibaba.com. Like Alibaba.com, the portal sells electronics, books, shoes, and home appliances. According to later reports on Jingdong, the corporation made $114.3 billion in sales in 2020. (Chen & Feng, 2022). Other Alibaba.com rivals include Shopify, a Canadian e-commerce platform with 1 million shops, and eBay, a platform recognized mostly for consumer-to-consumer selling with operations in over 30 countries.
Customers
Alibaba.com has several brands integrated on its websites, serves a wide range of customers, merchants, and wholesalers all over the world. Using clothing as an example, the corporation serves children, men, and women all around the world by offering the most recent styles that meet their demands. Furthermore, the firm provides clothes accessories to tailors, wholesalers, and retailers, connecting customers to Alibaba.com items. According to Ali et al. (2022), marketing brokers such as retailers and wholesalers play a vital role in establishing markets and clients for Alibaba.com. As a result, retailers and wholesalers play crucial roles in supply chain management.
Market Segmentation
Many firms and corporations worldwide use market assessment and segmentation to get to know their customers. According to Schlager and Christen (2022), market segmentation allows businesses to understand the requirements and desires of each targeted market and build products that meet those demands. Alibaba.coms diverse brand portfolio demonstrates that it has segmented its clients depending on their tastes and interests. Choosing apparel as a brand, Alibaba.com produces and sells childrens, mens, and womens clothing, allowing the firm to generate as much income as possible from its apparel.
Relationship
Company-consumer relationship management is now critical for business affiliates. As a result, the corporation should make every effort to keep customers satisfied. According to Dewi et al. (2022), Alibaba.com employs many techniques to entice customers to stay under their cover rather than look at rivals products. The corporation offers its goods at a discount to its clients, has a return policy, and is launching extensive marketing efforts to reach more people worldwide.
Buyer Behavior
Various factors influence Alibaba.com customers purchasing habits, including respective government policies on imports, taxes, and tariffs. Because Alibaba manufactures apparel and other wear, culture is another factor influencing the sales of these products. For example, in Indian culture, only one type of clothing is permitted. High tariffs on Alibaba.com products in many countries make imports very expensive, influencing how customers order these products (Krishnaraj et al., 2022). As a result, many forces influence Alibaba.com customers purchasing behavior.
Conclusion
As stated in this paper, Alibaba.com is a transnational corporation with operations in several countries throughout the world. The corporation relies on the business and brokers to assist them locate clients and consumers. In this regard, merchants and wholesalers play an important role in increasing Alibaba.coms activities. The firm sells a wide range of goods, including clothing, household appliances, machinery, automobiles, and other widely used items. The firm targets and serves millions of people worldwide, including youngsters of all genders. It sells clothing for toddlers, men, and women. Alibaba.coms primary competitive advantage in the worldwide market is product variety.
References
Alibaba.com. (2022). Find quality Manufacturers, Suppliers, Exporters, Importers, Buyers, Wholesalers, Products and Trade Leads from our award-winning International Trade Site. Import & Export on alibaba.com. Alibaba.
Ali, R., Leifu, G., YasirRafiq, M., & Hassan, M. (2022). Role of Perceived Value, Customer Expectation, Corporate Image and Perceived Service Quality On the Customer Satisfaction. Journal of Applied Business Research (JABR), 31(4), 1425.
Chen, H., & Feng, Y. (2022). Analysis of the Business Model of e-commerce Companies under COVID-19: Taking Alibaba as an Example. In 2022 7th International Conference on Financial Innovation and Economic Development (ICFIED 2022) (pp. 2685-2692). Atlantis Press.
Dewi, F., Sulivyo, L., & Listiawati. (2022). Influence of consumer behavior and marketing mix on product purchasing decisions. APTISI Transactions on Management (ATM), 6(2), 151-157.
Dey, V., & Francis, G. (2021). Influence of globalization on online business: A conceptual study with reference to Amazon and Alibaba e-commerce site. Journal of Business Management, 20(2), 25-33.
Krishnaraj, G., Elangovan, N., & Prakash, C. (2022). Factors influencing consumer purchasing behaviour towards purchase of palm leaf craft. Journal of Natural Fibers, 1-11.
Liu, H. Y. (2022). When nobody listens, go online : The 807 labor movement against workplace sexism in Chinas tech industry. Gender, Work & Organization.
MBA Team. (2022). Alibaba PESTLE Analysis | MBA Skool. MBA Skool.
Schlager, T., & Christen, M. (2022). Market Segmentation. In Handbook of Market Research (pp. 939-967). Springer, Cham.
Zhao, C. (2022). Variable Interest Entity, Offshore Domesticated Foreign Finance, and the Political Economy of Chinas Internet Firms: The Case of Alibaba. Social Sciences, 11(3), 99.
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