Alibaba In 2011: Competing In China & Beyond – Case Study Example
ALIBABA IN COMPETING IN CHINA & BEYOND Alibaba.com Corporation is one of the most successful e-commerce companies in China. The company tailored it’s strategies in such a way that it could meet the needs of the customers. One of the unique aspects of the company was that, it understood the language and culture of the Chinese people. Thus, they ensured that all the activities that they performed aimed at meeting with the needs of the individuals in the country. As a result, they stood out among all the online Chinese businesses.
Although, Alibaba.com was ginning dominance in China, it had to include some aspects so as to combat the competition from some of the upcoming online companies such as Baidu. That is why in October 2011, it launched an online site eTao which was of great help to the company because it resulted in its growth and increase in marketing strategies. ETaoAlibaba’s search engine provided seamless online shopping experience for the internet users (Jones, 2012). The search engine was of great use to the users because it displayed real time discounted products. As a result, the company attracted over 500 million people hence combating its competition with Baidu.
With time, the company acquired Yahoo! China’s stake of 40%. Acquiring the 40% stake helped the company gain some momentum in Chinese web search market. Observers and experts brought out that the initiative helped the Chinese to gain a stronger foothold in China internet penetration (Jones, 2012). As a result, e-commerce rapidly grew in China. Additionally, the 40 percent stake was part of its efforts to expand the e-commerce platform, and they would acquire different streams of revenue. Alibaba has also reported an increase in sales since the acquisition of 40 percent Yahoo! Stake in Yahoo.
Jones, S. (2012). BRICS and beyond : executive lessons on emerging markets. Hoboken: Wiley.