Strategic Management Paper on Alibaba.Com

1384 words 6 pages
TABLE OF CONTENTS
Executive Summary……………………………………… …………. 3
1. Company Background…………………………………………… 5
2. Research Design and Methodology……………………………… 8
2.1. Research Design………………………………………………………... 8
2.2. Scope and Limitation…………………………………………………... 9
3. Vision and mission…………………………………………….…..11
3.1. Vision statement and evaluation………………………...…………......12
3.2. Vision statement and evaluation……………………………….……....12
4. External Analysis…………………………………………….…...15
4.1. General Environment………………………………………….……....15
4.1.1. Economic Performance and Forecast………………………….....15
4.1.2. Social-cultural, Demographic Trends…………………………….19
4.1.3. Political, Governmental and Legal Aspects……………………...22
4.1.4. Technological Aspects………………………………………..…..24
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Product development strategies include providing an optimization and humanization service, providing complete e-commerce logistics and fund flow. Horizontal integration strategy is to acquire B2B competitors and search engine companies.
These strategies project 26%, 27% and 34% incremental increase of revenue from 2011 to 2013 respectively. For net income, the strategies project 26%, 27%, 34% incremental increase of net income from 2011 to 2013 respectively.

1. Company Background
Alibaba.com (HKSE: 1688) (1688.HK) was founded in 1999 in Hangzhou city, China; it is the global leader in B2B e-commerce industry.
B2B (Business-to-Business), a transaction that occurs between two companies, as opposed to a transaction involving a consumer. It also may describe a company that provides goods or service for another company. It’s different from B2C (Business-to-Consumer) or C2C (Consumer-to-Consumer).
The business model of Alibaba.com: This company operates as a third-party, to help enterprises find suppliers and buyers through its website platform. This company earns from the suppliers’ yearly membership fee (Trustpass, Global golden supplier and China golden supplier), online advertising, ad word, and website design for enterprises. Alibaba.com does not earn any commission fee from the transaction amount between suppliers and buyers. Suppliers

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