96%(26)25 out of 26 people found this document helpful
This preview shows page 11 - 14 out of 31 pages.
illegal action has been done by the organization in term of charging in interest rate and themethod use to collect back the loan. [nst17]Opportunity (O)Experience in ChinaIn e-commerce in China, Alibaba has its own customer based and scale of operation. Theposition of Alibaba in the e-commerce of China is stable. So, it leverage the chance of Alibaba toenter the new market. More business opportunities are grabbed to increase the wealth of theshareholder. For instance, in 2016, convenience store become the new trend of Chinese market.11
Alibaba has the advantages to grab this opportunity and increase the company revenue. At thesame time, there is always competitor in any field, for convenience store, JD.com.[see17] Government support China government is practicing the new policy ' Cross-border e-commerce'. They set uppilot program in different areas to test the feasibility of the new policy. All activities of e-commerce and online trading will be supervised under China government. Additionally, Chinagovernment gives preferential treatment to the e-commerce and online trading as well. Government provides political support to build safe and controlled e-commerce andonline trading environment. Hence, the growth of the e-commerce and online trading is rising upin China. Strong economic China's economic can be considered strong because China's GDP is high. China isenlarging the quantity of production that is arising in the economy. The individuals are pleased tospend more as they have greater income.The growth of the e-commerce and online trading in China causes some of the banks andfinance companies who are willing to join completely in the area of e-commerce and onlinetrading. Thus, those opportunities of business are given by the power of e-commerce.Growth in internet penetration In the advance development of the internet recently, the widespread of mobile andcomputers will increase the growth of internet penetration in China which brings opportunities toe-commerce or online trading business in Alibaba Group. Due to the increase in the mobile users,the online buyers in China will therefore increase, hence it will increase the number of customersto purchase goods in Alibaba in the future. Threat (T)Counterfeit issueDue to imperfect market competition, some of the seller might use other’s intellectualproperty to make “fake” products and publish it into Alibaba’s website. Intellectual property act12
is implemented by China government. Counterfeit problems will continue to arise even though isprohibited by law as to survive the business in the high competition market. Risk of data securityE-commerce provided by Alibaba requires the some information on the seller and buyerif they are using the services. As the business is getting bigger, a good database managementmust be practiced in order to secure the customer information. There are a risk of datamanipulation of unauthorized people and duplication of data if weak database management isimplemented.