STRATEGIC ANALYSIS 1

  • Category:
    Business
  • Document type:
    Case Study
  • Level:
    Undergraduate
  • Page:
    2
  • Words:
    1112

STRATEGIC ANALYSIS OF ALIBABA

College:

Table of Contents

31.0 STRATEGIC ANALYSIS

31.1 External Environment Analysis

31.1.1 General Environment

31.1.2 Specific Environment

41.1.3 Conclusions on external environment threats and opportunities

41.2 Internal or Competitive Analysis

41.2.1 Core Competencies

41.2.2 SCA (strategic competitive advantage)

41.2.3 Internal Weaknesses

41.2.4 Conclusions

41.3 Conclusions about Organization’s Competitive Position in its Market

52.0 STRATEGIC DIRECTIONS AND STRATEGIC OBJECTIVES

52.1 Vision

52.2 Mission

52.3 Strategic Objectives

52.3.1 Ethics Position

62.3.2 Stakeholder Analysis and Table

72.4 Conclusions on Organization’s Strategic Direction and Strategic Objectives

1.0 STRATEGIC ANALYSIS

Alibaba is one of the largest company offering e-commerce services to China and the world. It aims to level the playing field for the large and small enterprises using technology in domestic and international economies.

1.1 External Environment Analysis

1.1.1 General Environment

Social and Cultural Analysis

Online socialising is popular in China and among those enjoying this trend is Alibaba, who have created a platform for online shoppers to interact. The term Taobaoer, from one of its companies, is famous with customers who spend most of their monthly earnings on online shopping at Taobao. The social culture of online shopping continues to create more opportunities for the organisation. Inadequate monitoring of the e-commerce business can lead to fraud or cyber-crimes Technological Analysis

Its success has its roots in the technological advancement which includes different purchasing and distribution mechanism and newly developed technical products. China faces technical problems in online payment which is not yet secure or stable but strengthened by a high preference of consumers for Uncertainty Avoidance Index (UAI). Alibaba incorporated ALIPAY to tackle this problem.

1.1.2 Specific Environment

Alibaba has created a platform which brings together millions of users for the commercial and social purpose. These users are consumers, merchants, and businesses who interact on a daily basis, exchanging ideas and goods and services. It creates opportunities for new markets locally and internationally. It also ensures that the operation costs are at a minimum creating opportunities to copy the model in other markets. The open platform for all seller discourages big brands from entering the e-market because profits are small, competition is high, and prices even lower.

1.1.3 Conclusions on external environment threats and opportunities

To continue growing globally, Alibaba needs to compete with e-commerce giants such as Amazon who are famous globally. It also needs to address the issue of profitability in electronic commerce market which continues to be an open platform for individuals and firms without the aid of organisations.

1.2 Internal or Competitive Analysis

1.2.1 Core Competencies

Alibaba’s relation with its partners is rare, valuable and hard to emulate because their platform has e-market information, cloud storage, and payment schemes available for customers, third parties, and merchants. The capital required to set up its platform is huge and needs time in the market to emulate or substitute.

1.2.2 SCA (strategic competitive advantage)

The large pool of funds from the high number of users puts it at the top of China’s e-commerce market.

1.2.3 Internal Weaknesses

It has not succeeded to sufficiently address the issue of bribery, the sale of counterfeits and other illegal activities in their e-commerce market.

1.2.4 Conclusions

It can become global in the e-commerce market, but it is only possible if it addresses the illegal activities and fraud within its organisation.

1.3 Conclusions about Organization’s Competitive Position in its Market

Alibaba is in a position to compete on a global level in the e-commerce market with the likes of eBay and Walmart because the infrastructure is already well established and the capital is available.

2.0 STRATEGIC DIRECTIONS AND STRATEGIC OBJECTIVES

2.1 Vision

It aims to build a global e-commerce infrastructure that will last for 102 years in partnership with business people globally. It has so far created an infrastructure that addresses the needs of e-commerce for its users

2.2 Mission

To be able to carry out business in any part of the world with the customers’ needs at the forefront. Its achievement is made possible by the commitment of the employees who are team players and passionate about service to others.

2.3 Strategic Objectives

The strategic aims of the organisation include the building of customer base which involves better communication with the customers regarding response to current issues affecting customers. It also entails the provision of information on the available market, goods and services and the creation of a social platform where users can exchange ideas, news or trends. It also aims at creating a larger workforce which will aid in the daily running of the already built infrastructure which grows by the day. The establishment of the brand name to be a household name is among the strategic objectives that the company has. It is achievable by continued advertising and the provision of standard services that attracts new customers and retains the already available users.

2.3.1 Ethics Position

It conducts all its operations within the organisation to the highest standards in the business community and also the provision of close relation to the users and the conductors of the group. All the activities that take place within the organisation are legal and follow the above code of conduct to provide the necessary policies and principles required to run it.

2.3.2 Stakeholder Analysis and Table

Stakeholders Address

Salience

Stakeholder demand/ needs that must be satisfied

Strategic objective(s) to stakeholders demand.

Shareholder

Definitive

  • Organization Sustainability

  • Profit growth

  • Transparent business transactions

  • Diverse goods and services

  • Improved profits by the year

Customer

Dominant

  • Online services

  • Discounted goods and services

  • Quality products and services

  • Legal and authentic Goods

  • Online Shopping

  • Online access to e-market information

  • Discounted Goods and Services

  • Quick feedback

  • Quality goods

  • Only legal goods are in the market

  • Authentic business firms

Employees

Dominant

  • Job security

  • Personal Growth

  • Work Place Safety

  • Job security

  • Improved skills a

  • Safe workplace

Financier

Dominant

  • Financial stability

  • Increased profits

  • Give back to Society

  • Financial Stability

  • Growth in profit

  • Market information

Government

Dominant

  • Tax Payment

  • Industrial growth

  • Tax Payment

  • Global recognition from brand

Community

Discretionary

  • Improved skills and knowledge in e-commerce

  • Employment opportunities

  • Market information

  • E-commerce information

  • Employment

  • Market information

2.4 Conclusions on Organization’s Strategic Direction and Strategic Objectives

Alibaba through its different strategies which include better customer relations and the provision of market information is a good baseline for the creation of a lasting e-commerce infrastructure. The large numbers of users provide the capital required to expand the business to a global level. The various services and goods provided are attractive to the online social community whose preference is online shopping. Technological innovations and advancement such as secure online payment ensure security for the user.

Reference

Clark, D., & Recorded Books, Inc. (2016). Alibaba: The house that Jack Ma built. New York: Ecco Press.