Furthermore, because Alibaba has already been a diversify corporate, so there are four main corporate strategy option after diversification. in this 4 main strategy, the most suit strategy for alibaba’s futures is by Broaden the diversification Base. By the time and the development of technology, it is possible for Alibaba to Acquires more businesses and build positions in new related or unrelated industries. And add business that will complement and strengthen the market position and competitive capabilities of business in industries where the company already has a stake. Beside that strategy, I think, Alibaba also have to start focus on Stick closely with the existing business lineup, which it is make sense when the current business lineup of Alibaba offers attractive growth opportunities and can generate added economic value for shareholders. International Strategy With nowadays situation where investment barriers are decreasing, telecommunications capabilities are increasing and the transportations cost which decreasing, those issues make globalization become more attractive for company to expand their business globally. Globalization is a process of closer integration and exchange between different countries and peoples worldwide. Globalization become one of Alibaba’s main of goal and of course Alibaba has a great potential to expand
their business globally. In conducting globalization, Alibaba has to consider many of aspects such as the economy and political situation, because those aspect have a great affect to the international market business.The economic and political issues can create both risk and opportunity for a business. By globalize the business, alibaba can gain access to new customers and achievelower cost through the economies of scale, experience and increased purchasing power. And also, to gain acess to resources and capabilities located & further exploit its core competencies. Altough, there are various type of International strategy approach for international market strategy, The best strategy for Alibaba to expand its business internationally is by establish a subsidiary in a foreign market via acquisition. Like we all know, as the biggest china’s company, it is not easy for Alibaba to enter the business in foreign country, so what is best for Alibaba to enter the international market is by acquisitioning the local start up/ technology company. Like what already did by Alibaba, to enter the South-East Asia market, Alibaba have to acquisitioning Lazada Company by investing aroun $4 billion to Lazada. And to enter Indonesia’s virtual payment, Alibaba have to acqusitioning Dana virtual payment company and Tokopedia Company. So, this is a good way that have to be continued by Alibaba to enter the global market, so it will make Alibaba easier to get trust from consument from each country and growth their market.
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- Fall '19
- Marketing, Alibaba Group