Report Analysis on Alibaba

Make report on

1. The analysis of Alibaba’s innovation strategies to address market gaps, marketing opportunities, and the assessment of financial implications of these strategies on company’s competitive advantage. (Strategy Analysis and Evaluation)
2. The analysis and evaluation of market-based and marketing trends and identify a real******ic (feasible), unexploited business opportunity for Alibaba. You should present your findings on Infographic poster (Opportunity Analysis and Evaluation).
3. The analysis of market-based solutions that address gaps and the consideration of financial implications of these solutions, including mitigation strategies. You should present your findings on your Infographic poster. (Opportunity Analysis and Evaluation of Financial Risks).

Please cover these three aspect for

Alibaba’s unexploited business opportunities.

Proposed market-based solution of Alibaba.

& Gap Identification in the market for Alibaba.

Report Analysis on Alibaba

Strategy Analysis and Evaluation

 Innovative strategies are essential for companies to gain competitive advantages in the market. Companies can develop quality products and internal processes using complex innovation methods. Alibaba has implemented an innovation strategy, enabling the firm to compete more in the market. First, the company uses open innovation strategy for growth and survival in the market. Open innovation promotes the company’s industry technology and knowledge capabilities since consumer demands are growing with high competition (Schmuck and Benke, 2020, 1259). Since customers need a wide range of products, real-time services, and refreshing marketing techniques, Alibaba saw the need for open innovation to increase partnerships with foreign and domestic brands to establish an avenue for content generation and continuous improvement of clients’ service efforts (Yun et al., 2020. 4379).  Another innovative strategy is advanced technology such as IOP, which enhances the practical consumer experience.

Analysis and evaluation of market-based and market trends

Alibaba is an e-commerce company that sells, markets, and operates various enterprises globally. The firm supports brands, merchants, and other enterprises through its technology which aids in leveraging their activities via the Internet, attracting more users. Alibaba provides an online shopping avenue through Taobao and Tmall.com, cloud-based wholesale on Alibaba.com, online payments through Alipay, digital media and entertainment, and partnerships with anti-financial providers (Zhang et al., 2019, 5142). Alibaba was launched to help Chinese manufacturers, entrepreneurs, and exporters to sell their products globally. In the current market, Alibaba has been listed on the New York Stock Exchange, and in early 2020 it had almost 116000 full-time workforces.

Mega Trends

These are transformative, powerful forces that might change society, an economy or ban enterprise. The crucial megatrends at Alibaba that help the mat help the company explore potential opportunities include

  • Market diversification: A strategy that Alibaba may use to explore new opportunities in other markets they had not targeted
  • New channels: Even though user acquisition cost via online acquisition has been higher, new channels such as offline malls in lower market tires provide a more competitive acquisition cost.
  • Technological advancement: New technology has presented new ways of operations that Alibaba can explore to compete in the market. To be the best cloud computing company, the company will explore other potential opportunities in the market.

Potential for unexploited business opportunities.

Although Alibaba has performed tremendously in the global market, the firm can still explore other unexploited opportunities. These opportunities have been discussed below.

  • International Expansion: The firm has an excellent opportunity to expand its markets overseas at a quick pace to enhance revenue growth because of large Asian, Middle East, and European markets with significant opportunities for Alibaba in the cloud business and e-commerce (Tan, Tan, and Pan, 2016, 36). It will enable the company to reduce over-dependence in the Chinese market.
  • Manufacture of personal products: Despite being a successful online retail website, the company has not considered producing and selling its products. The firm only offers a platform for companies to showcase and sell off their products (Yun et al., 2020, 4379). Due to advanced technology, the company can sell the company products to gain more revenue.
  • Development of a physical store in other markets: The company only operates online without a physical store in the international markets. The firm should exploit opportunities to establish physical stores in other markets to enhance brand awareness and quick delivery of products and services.

Market gaps and solutions to address those gaps its financial implications

Alibaba has been among the top e-commerce platforms in the world; it still faces various market gaps. A market gap is the difference between demand and supply (Jacobi, Freund, and Araujo, 2015, 38). It is where the company can sell what is not available in the market yet needed by consumers. The following are some of the market gaps for Alibaba. First, the production of genuine and not counterfeit products in the market. It has been noticed that some of Alibaba’s products are not genuine enough since they tend to sell counterfeit products and not original products. Next, implementing physical stores for efficiency will enable the company to create physical visibility in various markets since consumers feel satisfied through face-to-face interactions. Alibaba establishing its stores in other countries will help the firm to reduce transportation and logistics costs of shipping goods to different destinations.

The following solutions have been proposed for Alibaba to address market issues effectively. First, Due to the high number of counterfeits in the market (Chen, 2016), the company should develop unique products and services to produce original products through the current technology. It will enable the firm to reduce the dangers of being exposed to lawsuits, denied market access, and loss of trust from customers. Second, Reduction of delivery time from the producer to customers. Setting up physical stores in other markets apart from the Chinese can be achieved by setting up physical stores to facilitate quick delivery.

Financial Implication

  • Resource Scarcity: Investment in essential resources will generate higher returns on investments. Even though international expansion will be a better opportunity for Alibaba, the firm will probably have to invest much capital, which may not be enough for the whole project.
  • Enterprise Dynamic: Implementation of advanced technology will highly affect the financial industry. For example, advanced technology will allow users to convert their money into various currencies at a closer rate to the market spot (Tse, 2021). However, this will contrast with the traditional alternative methods offered by banks, which entail filling out forms and acceptances of unfavorable exchange rates with additional commissions.
  • Volatility scale and complexity: Traditional financial theories and capital asset pricing methods will change tremendously since each company will want to offer the best financial services as per the level of the economy. For example, the kind of financial services required, new payment methods, and firms withstanding such issues will conquer the future.

References

Chen, K., 2016. Counterfeit as a Challenge to Chinese E-Commerce Platform—the case of Alibaba.

Jacobi, E.S., Freund, J. and Araujo, L., 2015. ‘Is there a gap in the market, and is there a market in the gap?’How advertising planning performs markets. Journal of Marketing Management31(1-2), pp.37-61.

Schmuck, R. and Benke, M., 2020. An overview of innovation strategies and the case of Alibaba. Procedia Manufacturing51, pp.1259-1266.

Tan, F.T.C., Tan, B. and Pan, S.L., 2016. Developing a leading digital multi-sided platform: examining IT affordances and competitive actions in Alibaba. com. Communications of the Association for Information Systems38(1), p.36.

Tse, T., 2021. How megatrends shape the financial industry – Duke Corporate Education. [online] Duke Corporate Education. Available at: <https://www.dukece.com/insights/how-megatrends-shape-financial-industry/> [Accessed 29 April 2021].

Yun, J.J., Zhao, X., Park, K., and Shi, L., 2020. Sustainability condition of open innovation: Dynamic growth of Alibaba from SME to large enterprise. Sustainability12(11), p.4379.

Yun, J.J., Zhao, X., Park, K., and Shi, L., 2020. Sustainability condition of open innovation: Dynamic growth of Alibaba from SME to large enterprise. Sustainability12(11), p.4379.

Zhang, D.J., Dai, H., Dong, L., Wu, Q., Guo, L. and Liu, X., 2019. The value of pop-up stores on retailing platforms: Evidence from a field experiment with Alibaba. Management Science65(11), pp.5142-5151.