Mission & Vision The company’s mission is to make it easy to do business anywhere. As the leading online and mobile marketplaces in retail and wholesale trade, Alibaba provides technology and services to enable consumers, merchants, and other participants to conduct commerce in our ecosystem. The company’s vision is aiming to build the future infrastructure of commerce. They believe that their customers will meet, work and live at Alibaba, and that they will be a company that lasts at least 102 years, which across two centuries. On September 18, 2014, Alibaba Group Holding Limited announced its initial public offering of over 3 billion shares. Stock price of Alibaba jumped 193% in the first day of trading and this IPO raised 25 billion U.S. dollars for Alibaba. It is considered the largest global IPO to date. This IPO also made Alibaba the fourth biggest technology firm in the world after Apple, Google and Microsoft. External Analysis PEEST We used the PEEST framework to do the environmental scanning for Alibaba. The PEEST analysis includes five components: political, economic, ecologic, social 4
culture, and technological. We remove the ecologic factor when analyzing Alibaba group because Alibaba is an ecommerce platform; therefore, we believe that the ecologic factor does not hold a significant impact to Alibaba. Political: Although China is one of the biggest emerging markets around the world, foreign companies are still facing strict regulations from Chinese government. The indigenous innovative policy instructs provincial and regional governments to choose Chinese companies over foreign companies when signing contracts. Therefore, Alibaba’s business-to-customer and customer-to-customer competitors, such as Amazon, eBay are not able to achieve presence in Chinese market. On the contrary, Alibaba, which has good relations with Chinese government, acquired exceptional advantage from the government. After entering the WTO in 2000, Chinese government started encouraging small and medium sized businesses to use the third party online platform to conduct business, which creates many opportunities for Alibaba. In addition, the government in Hangzhou, where Alibaba was founded, strongly support Jack Ma’s plan to build Hangzhou into biggest e-commerce city in China. Economic: China’s fast-growing GDP growth rate illustrates the demand and purchasing power for multiple products and services also increase fast in these years. Furthermore, due to the good political and economic environment, more and more small and medium sized domestic business is showing up. However, on the one hand, small and medium sized businesses need market but do not have enough resources and capability for marketing. One the other hand, they also lack the capital to run physical stores. 5
Therefore, the information asymmetry is formed between small and medium business entities and customers. Alibaba finds the solution, developing its business-to-business, business-to-customer, and customers-to-customer platforms.
You've reached the end of your free preview.
Want to read all 21 pages?
- Summer '19
- Alibaba, Alibaba Group, Alibaba.com, Jack Ma