Many market opportunities have helped the Alibaba Group thrive in the recent years. The location is the first advantage because China has over 560 million users of internet spending over 20 hours online a week. China is the biggest internet market globally (Bhasin, 2016). This is twice the size of internet users in United States of America. China is gradually shifting the traditional retailing in favor of latest trend of e-tailing. The good relationship with the government of China has enabled it to carry its operations so well in the market. For example, Alibaba Group was among the companies selected by the government of China to join the Internet banking. This is a huge opportunity especially where banks are state owned (Shiying & Avery, 2009). The cost-cutting associated with the huge volume of sales. For example, Tmall and Taobao accounted for over 50 percent of all the Chinese delivered parcels. Tmall’s and Taobao’s combined transaction volume in 2012 was about one trillion yuan. This figure was more than eBay and Amazon transaction volumes combined.
MARKETING 4 Marketing strategies are so essential for the success of any business. To understand this better, I can briefly discuss the Alibaba’s marketing mix. The Alibaba’s main product is Alibaba.com, their E-commerce portal. It is the leading business to business portal in the entire world (Bhasin, 2016). Alibaba focuses on B2B market where it is the leader while most of other E-commerce portals such as Amazon sell business to consumer. Alibaba Group offers smaller buyouts through its Aliexpress.com to small businesses. One of the key benefits of Alibaba.com being an E-commerce portal is that it can allow exports to over 240 nations worldwide. This helps it reach many consumers thereby increasing its revenue turnover. Apart from Alibaba.com, the Alibaba group launched Taobao in China which is the Ebay.com similar to B2C E-commerce store. This is the China’s biggest E-commerce store and the second regarding the frequently visited website in the Republic of China (Clark, 2016). The group has many other products including Alibaba.com which is a global brands E-commerce portal aimed at serving the Chinese consumers, cloud computing, Autonavi, Alipay, Juhuasuan among others. The presence of Alibaba online has increased with its presence in the US as well. Alibaba.com provides services such as listing solutions, authentication, member reputation, safety and trust, instant messaging and online payments (Shiying & Avery, 2009). Price is another important aspect in the Alibaba Group. Alibaba offers very lenient prices. The company’s commissions are reasonably low to help businessmen carry out their businesses. This has allowed the company to grow and expand to such heights quickly (Bhasin, 2016).