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C.ImplementationToday, Alibaba Group is operating businesses in a wide spectrum of industries and has grown into a global leader in online and mobile commerce. Alibaba Group has experienced rapid growth in market expansion and Diversification. Alibaba Group has become the most valuable public company in China and one of the most popular technology companies in the world after its U.S. IPO in September 2014. To sustain its competitive advantage in the globalmarket, Alibaba Group's Subsidiaries should cooperate with each other. Cooperation is power, collaboration is better than competing with each other.Subsidiaries CollaborationBased on the case and the analysis of Porter’s five forces, I think that Alibaba Group canextend their business successfully by considering subsidiaries collaborating. First step, Alibaba Group can increase or manage the quality of sellers’ products, subjoin the brand recognition and build the complete and integration logistical systemsof subsidiaries so that consumers develop the habits of consuming the Alibaba’s platform.Second, Alibaba Group will continue building its brand and capture market opportunitiesthrough establishing strategic alliances with subsidiaries. For example, with more transactions occurring on the internet than ever, Taobao or the B2B businesses could truly benefit by having all transactions go through Alipay and Alipay would have a much larger stream of customers than it would normally have received on its own.Final, this is not to suggest that subsidiaries competing with one another should be forced to collaborate. However, Alibaba Group should focus on ensuring that a close connection remained between the subsidiaries. If they become over diversified, they may overexert their resources and lose their competitive advantage in markets. They must ensure that their business segments are able to adapt quickly to a dynamic marketplace. You do not 5
want to expand too quickly and be spread too thin. Ultimately, if possible, each of the subsidiaries should eventually attempt to expand into the United States or new markets. With the technological developments in smartphones, online shopping apps further enhance the overall shopping experience of the customers. However, as recent surveys show, this market is a huge opportunity for companies because 86% of US consumers are more willing to use e-wallet to cash or credit. Alibaba will be able to achieve significant growth by expanding into new markets and internationally.6