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 …show more content…

However, now Taoboa is facing competition from a company that knows the Chinese market very well. Taoboa’s main competitor Baidu, is the largest search engine market share holder in China. Baidu has a large, loyal customer base to work with and has ability to advertise and link its own ecommerce website. Taoboa will have many challenges facing the competition from Baidu. Never the less Alibaba Groups strong and evident presence in the Chinese e-comercial market signifies the company’s ability overtake its competitors by combining all services and maintaining the user-friendliness of its services in B2B, C2C and B2C markets.

Question 3.

Absolutely it is sustainable. As Alibaba Group now further develops and expands its various web services, it must also additionally develop the various products within each website. Alibaba Group should have one department focusing one website development aspect and another department focusing on product development aspect. The company can still capitalize on his legacy sites that have millions of monthly subscribers. The intention for the company should be to find a way to raise the monthly run rate on each customer on a yearly basis, this would allow Alibaba Group to use these profits to fund the company’s efforts to expand.

In my opinion Alibaba Group should focus on moving