Running head: COURSE PROJECT1Course Project Report on Alibaba..DeVry University – Keller Institute of Management
COURSE PROJECT2Alibaba – Week 6 Course project reportSection 1Which of the four basic strategies contained in figure 13.7 on page 383 did this MNC adopt? How has that strategy evolved over time? (Chapter 13)Alibaba has experienced great growth on its e-commerce platform as the firms currently have hundreds of millions of users, and host millions of merchants and business globally. In 2018, transactions on the firm’s online sites are $248 billion, which is more than those of Amazon and eBay online sites combined (The Wall Street Journal, 2018.) Alibaba corporation approaches international strategy when competing globally. Unlike the usual business-to-consumer approach, the corporation focuses more on trade between businesses. Particularly, Alibaba acts as a middleman between buyers and sellers online and facilitates the sale of goods between the two parties through its extensive network of websites
COURSE PROJECT3(Pahwa, 2019.) Therefore, it is not confronted pressures on cost reduction as well as local responsiveness. Also, Alibaba focused on the dominant wholesale trading market is a platform for suppliers to sell products in bulk at wholesale prices to small or medium-sized businesses worldwide, who then resell them for a profit in their domestic markets. Products that are sold on Alibaba online most likely serve universal needs with only minimal local customization. Alibaba’s major revenue earning is not coming from selling its own products but from providing services for its users including a commission as a percentage of the price of goods sold, membership fees, and marketing services fees, etc. Alibaba focuses on business to business trade, but it also supports other trade through e-commerce web portals. By doing that, it serves the backbone of its international expansion. According to Evans, Alibaba’s vision is that “New Retail is the global future of retail” which is the company’s strategy to “digitize the entire retail value chain.” Small- and medium-sized businesses, physical stores and local and international sellers all have access to the same data and digital infrastructure that Alibaba uses to operate its e-commerce marketplace (Milnes, 2019)Section IICharacterize the Organizational Architecture including the structure, integrating mechanisms, control systems, processes, and resultant culture of the MNC. (Chapter 14)
COURSE PROJECT4Spanning e-commerce, payments, messaging, business software, entertainment, and more, Alibaba looks a lot like a conglomerate. And it sets strategy like one, according to a Harvard Business School case study by professor Julie Wulf.With its success, Alibaba and its founder Jack Ma are making the case for a strategic approach that has fallen out of favor in the U.S.