Case 5
Alibaba in 2011: Competing in China & Beyond
1.
Critically analyze the factors that led to Alibaba sustaining its leadership position in the
Chinese e-commerce market.
Alibaba focused on differentiating itself from its competitors from a very early stage by providing better
services to its customer. Offering their services free of charge to its customers, they were able to generate
revenue from alternative streams and their users became willing to pay for their services overtime. The
free business model and their knowledge of the local market was crucial for the company’s success; they
were able to collaborate with the local banks and provide a payment system where their customers felt
comfortable transacting. Alibaba’s approach to the market competition was effective and with an
important sense of leadership in a market that needed innovation.
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- Fall '12
- KHOJA
- Management, Auction, Alibaba, Online auction business model
