The groups can discuss the basic issues and the

six. The groups can discuss the basic issues and the questions given to facilitate further
discussion. The analysis of the discussion questions can be presented by one of the groups, to be
followed by an interactive session. The moderator can lead the discussions and then conclude
with a summary of the highlights of the case.
PROPOSED SESSION PLAN

Introduction of the case – 10 min

Class discussion to identify the basic issues of the case: 15 min

Class discussion for question 1: 15 min

Class discussion for question 2: 15 min

Class discussion for question 3: 15 min

Discussion on follow-up assignment (optional): 10 min

Summary: 10 min
Total expected session time: 90 min
SUGGESTED QUESTIONS FOR DISCUSSION
1.
Critically analyze the factors that led to Alibaba sustaining its leadership position in the
Chinese e-commerce market.
2.
Discuss the rationale behind Ma establishing Taobao.com. What are the factors that led to
Taobao’s success as compared to eBay in the Chinese online auctions market? With Baidu’s
entry into the e-commerce market, discuss the challenges that Alibaba faces with regard to
sustaining its position in the growing e-commerce market in China.
3.
Critically examine Alibaba’s business model. Do you think it is sustainable? After having
captured the Chinese e-commerce market, what steps should Alibaba take to expand glob-
ally?

1. Critically analyze the factors that led to Alibaba sustaining its leadership position in the
Chinese e-commerce market.
Some of the factors that contributed to the success of Alibaba in the Chinese e-commerce
industry were:
•
First mover advantage: Alibaba started its operations when e-commerce in China was
in its infancy stage. Considering the potential of the budding e-commerce market,
Alibaba started with operations that concentrated on providing B2B services to SMEs
that were aspiring to go global.
•
Smart competitive and marketing strategies: From an early stage, Alibaba had been
focusing on differentiating itself by providing better services to its customer. It put an in-
novative business model in place where customers could try out its services without any
cost. Over time, it was able to generate revenue from alternative streams and increase