As a digital retailer, how does Alibaba provide value to Chinese consumers? What sets of values are unique to the Chinese market?
Alibaba’s business has emerged in China, and the management of the company has provided some key values to consumers in the competitive online retail market. Interestingly, this company has evolved with the passage of the time, which has helped the company management to shape different values, which are to be provided to the customer. For Instance, the company is offering the high-quality products at a low cost to customers. The penetrating pricing strategy is the best approach, used by this company, to grab the immense range of customers. Along with the low prices of the product, the company has placed an immense variety of different products for customers. The availability of different products according to the needs of customers at low price seems worthy for both, the management customers. It seems a prominent value, which has been created, and it is to be sustained for a long run in the competitive retail market. Also, the case also depicts some investment opportunities for people in the company. This organization shows an excellent customer engagement, which created the positive perception in the retail market. Thus, these are some values, which are created. However, these values can be changed due to some new retail trends.
Given that Alibaba does not own or distribute any of the merchandise exchanged on its sites describe what factors had to develop for the company to succeed.
Alibaba does not sell things, as it supports other companies to develop and streamline different products. It is a fact that the company has invested $8 billion in different firms. The purpose is to make them capable of developing different products and using the platform of Alibaba to make the difference. Through investments, this organization connects the buyers and seller, and it is the prominent key success factor for this company. Comparatively, the number of employees (25000) in this company is low, which also helped the firm to reduce the cost of operation. Due to less control on the customer experience, the company sits back and watches the cash pour in. The most important thing is the standardization of the process, which has been streamlined by the company. Beyond the profitability and revenue streams, the customer in the online retail market like to navigate some sites, which are not complicated. Thus, accordingly, the company is quite capable of maintaining the sites and serving an immense range of customers at the same time. It looks the key success factors with the perception of both, customers and the company. It also makes this company different from other companies.
Analyze Alibaba’s business model relative to all the different forms of digital and online marketing covered in this chapter.
In the online retail market, the company’s business model looks direct sales or retailer. However, the business model of the company is a business intermediary, and this company connects buyers and sellers in the online retail market. Alibaba is looking to find different potential companies, which are capable of doing business and contain the long-term sustainability. Alibaba, through this business model, is providing the best platform for small e-retailers to emerge in the market despite having an intense rivalry. In the competitive retail market, different firms are triggered by this company, which also streamlines the business model of this company.
Can Alibaba succeed in countries outside of China? Why or why not?
Well, doing business outside China is a big risk for this company. Alibaba can face a complicated retail environment in different countries due to the difference in the business. Different retail giants such as Wal-Mart, Amazon, and e-bay contain the direct sales of products and services, and it seems tough for this company to emerge with its existing business model. Interestingly, customers outside China are quite loyal to different brands, and it looks tough to convey all these customers. Despite containing the low prices for different products, people are certain of their brand preferences, and it is a big barrier for Alibaba.
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