Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Alibaba Global Strategy

29,754 views

Published on

Team Project.

Published in: Technology

Alibaba Global Strategy

  1. 1. Team 7 Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy1
  2. 2. Vision We aim to be pioneers in the revolution of global trade. We envision that our unique team will build the future infrastructure of commerce, which will serve our clients in parts of three different centuries. Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy2
  3. 3. Mission Alibaba’s Mission is to make it easy to do commerce anywhere: We operate leading online and mobile marketplaces in retail and wholesale trade. We provide technology, logistics, payment platforms and fulfilment to enable consumers and merchants to conduct commerce in the most convenient and reliable way possible. Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy3
  4. 4. Strategy Connect suppliers and buyers globally to become the worlds largest online marketplace in terms of turnover in the next five years. Through an innovative, integrated and reliable platform we will create consumer trust. Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy4
  5. 5. Core Values Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy5
  6. 6. Superior Performance Cycle Core Competencies • Culture • Deliver on Promises Firm Activities • Marketing • Supliers & customers • Technology • R&D Competetive Advantage • Network Size • Econ of Scale • Econ of Scope Superior Firm Performance • International Presence • Largest e-marketplace Resources • Network • Products • Scope/Costs Capabilities • Easy Pay • Easy Delivery • Low Price Rethink, Reinvest, Hone, Upgrade Rethink, Reinvest, Hone, Upgrade
  7. 7. SWOT Analysis STRENGTHS: • Leading position as the largest internet market • Brand popularity & investor trust increasing internationally • Good relations with Chinese Government • Expanding network orchestrator – increases customer traffic and value • Connected with own payment system (ALIPAY) WEAKNESSES: • Easy to imitate business model • Counterfeits • Influenced by Chinese Government • Chinese culture is not innovative enough • Disorderly business platform • Slow delivery time OPPORTUNITIES: • Government Support / Regulations • Growing internet penetration • Increasing delivery efficiency • SMEs moving away from own web shops towards online marketplaces • Strong economic & Industrial background THREATS: • Government Regulations / Nationalization • E-commerce competition • Possible M&A of other players • Global Economic Crisis • Growth of M-commerce • Disruptive new Technology (e.g.: A.I.) • Lawsuits from brand holders Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy7
  8. 8. PESTEL: CN e-Commerce STRATEGIC GROUP INDUSTRY ECONOMIC • Growth Rate • Levels of employment • Interest Rates • Inflation • Currency exchange rate SOCIAL/CULTURAL • Demographics • Education • Immigration • Emigration TECHNOLOGICAL • Online payment • 3D printing • Internet penetration ECOLOGICAL • Low Impact LEGAL • Chinese vs. US government • IP rights protections • IP taxes • Privacy • Consumer rights POLITICAL • Strong Relationship with Government • Pros – access and strength in CN • Cons – Limits to other countries
  9. 9. Porter’s Five Forces Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy9 Rivalry (HIGH) Threat of Substitute (HIGH) Threat of New Entry (LOW) Power of Suppliers (LOW) Power of Buyers (HIGH) - Many small suppliers - Margin matters - Need many customers - Capital Facilities - Government - Scale / Volume - Many buyers - Price matters - Commission from seller - Offline Retail - Disruptive technologies - Social Commerce - M-Commerce - Logistics - Trust - Price
  10. 10. ERRC Strategy Canvas 00 01 02 03 04 05 OfflineInfrastructure(Shops, Warehouses) ProductDescripon/Quality CustomerSupport&OtherServices InnovaveMarkeng/Promoons LoyaltyProgram/RetenonRate Convenience/CheckoutProcess Fast&ReliableDelivery Brandawareness Personalizaon/BigDataAnalycs Price(Lowest–5,Highest–1) Assortment/Quantyof Products&Sellers ProductOfferingEvaluaon(0—5) Compe ng Factors Offline Malls (Raffle City,…) Chinese Online Malls (Tmall, JD…) Interna onal Online Malls (Amazon,…) Alibaba
  11. 11. Strategy Map C2C B2C B2B Aliexpress Alibaba Ebay Amazon Taobao DomesticInternational Made in CN 1688 Groupon
  12. 12. VRIO MODEL YES YES YES NO Resource: Database of Sellers & Buyers • Ownership • Counterfeits • Doesn’t control affiliated businesses TEMPORARY COMPETITIVE ADVANTAGE • Unique Database • Well recognized platform • Brand • Relationships • Data • Scope of business
  13. 13. AFI Model: 3D Printers ANALYSIS FORMULATION IMPLEMENTATION Future Scenario: Emerging of 3D printer at home • Install innovative system • Increase Marketing (online, newsletter) • Grow finance services Strategic Plan: • System to trade IP • Build a Bank New Vision: • Become Global leader in 3D/IP trading Strategic Option: • Highlight 3D printed products • Analyze non-3D market • Create new AFI • Push Finance Services Feedback loop: Monitoring Performance Activate New Plan If necessaryDiscard Dominant Plan If necessary Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy13
  14. 14. AFI Model: M&A Amazon & JD.com ANALYSIS FORMULATION IMPLEMENTATION Future Scenario: Amazon & JD.com M&A • Strategic international partnerships • Open foreign headquarters and sales offices abroad - International supplier relationships - Sustain relationships in China - Compete on cost level - Improve delivery system Strategic Option: • M&A with eBay • Create new AFI • Push Finance Services • Vertical Integration Feedback loop: Monitoring Performance Activate New Plan If necessaryDiscard Dominant Plan If necessary Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy14
  15. 15. Recommendations • Strategic alliances for consumer trust • Highlight Vision, Mission, and Strategy • Based on strategy map – clear positioning • Take control over ecosystem • Improve delivery speed • Overall Alibaba is doing well and only minor adjustments needed Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy15
  16. 16. Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy16 Q&A Alexander Kudasov akudasov2015@student.hult.edu Chesterphil Tangga-An ctangga-an2015@student.hult.edu Jon Grecu jgrecu2015@student.hult.edu Kate Embley kembley2015@student.hult.edu Lina Olea lolea2015@student.hult.edu
  17. 17. Alibaba Group: Zoom Out Date: May 5, 2015 Slide # Team7: Alibaba.com Marketplace Strategy17
  18. 18. Core Competence Market Matrix Existing Market New Market NewCompetencies • Delivery Speed • International Delivery Reliance • Alliances/Creating Related Diversification • Disruptive Technology • Forward Integration into Smartphones OldCompetencies • Ease and Speed of Payments • Lower Prices • Scale/Product Offerings • Entering International Markets • Trading Physical Commodities ALIBABA.com
  19. 19. Organizing Economic Activity: Firm vs. Market Firm «Make» Markets «Buy» Advantages • Command and Control o Flat o Hierarchical Lines of Authoroty • Coordination • Community of Knowledge • High-Powered Incentives • Flexibility Disadvantages • Low-powered Incentives • Principal-agent problem • Administrative Costs • Search Costs • Opportunism: Hold-Up • Incomplete contracting o Specifying and Measuring Performance o Information Assymetrics • Enforcement of contracts ALIBABA Marketplace • High Market Orientation • Vendors can design sales as they want • Buyers can look for sellers how they want • Through Internet and optimization Alibaba tackles Search Costs • Not Involved in Buyer/Seller Contract • Merely a «Middleman»
  20. 20. Alibaba Group: Zoom Out Alibaba Group Core - Alibaba.com (Global Wholesale – B2B) - 1688 (China Wholesale) - Aliexpress (Global Wholesale – [CN]B2C[World] Related Diversification - China Smart Logistics -Alimama (Marketing Services) - Juhuasuan (Group Markeplace) - TMALL (High End Brand Marketplace) Forward Vertical Integration - Aliyun (Cloud Computing)Unrelated Diversification - Weibo (CN Twitter) Backward Vertical Integration - Alipay (Payment System) Ant Financial Services Group

×