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E-business profile Alibaba


E-businessprofile: Alibaba


Alibaba.comInc.’s mission statement has shoved the company to turn out as thegreatest online retailer in the entire globe. The success is creditedto the stringent rules and regulations to see that the missionstatement comes to a realization.The mission statement gives a businessguide and strategic preparation of the organization. Alibaba’smission gives much focus on high quality and efficientservices to their clients and other stakeholders in the firm. Theachievement of these certified statements acceleratesthefurtherimprovement of the e-commerce trade for longstanding and lastingsuccess in the global business (Gregory,2016).

Alibabaadheresto its mission statement by the help of cost-leadership genericmethod, constructed on Porter’s model, along with the penetrationof the market together with market development rigorous developmentstrategy(Gregory,2016).

Theorganization strategic decision, are directdisplay of its mission. Themission statement of the firm is “westrive to give our clients the affordable prices, the best selection,and the maximum convenience.” The statement assures an alluringe-commerce service to meet the needs of the customers.Some of the features together with components that are mostidentifiable in Alibaba mission includesthelowestprice, utmost convenience and finally best selection(Gregory, 2016).

Theonline marketplace is suitable and the prowess to access products onmobile contributes to the success of Alibaba regardingpurchases. Despite being used by several people, we cannot help butwonder regarding the master plan for the long term in the firm. Oneof the long-termgoalsfor the company is eyeballs. It is what Alibaba is seeking tocapture. Not about achievingprofits but capturing attention and eyeballs and another long termgoal is to monetize user base for efficient service delivery to manycustomers. Onthe other hand,short-termgoalincludes:achieving customers trust by implementing affordable pricing policies(Gregory, 2016).


Thereare various forms of competitions. But for the nature of competitionin Alibaba is monopolistic competition. Which isoneof the imperfect competitions(TradeOnline, 2016)?

Animperfect competition comes to existence in the market whereby thereare many sellers of services and goods but the goods sold do notcontain noticeable differences. There are various ways of imperfectcompetition,and monopolistic competition is among them.

Toexplain best for this case, let us use the example ofsportsshoes as the best example. Other companies like Nike, Rebook, Adidasand many other brands, all of them sell shoes used in basketball atalmost the same price. The onlyfeature that various from one to another are not so big (TradeOnline, 2016).

Companiesthat are Monopolistic Competition for instance Alibaba and othersputs more concentration on “non-price variation” to help promotetheir commodities. For exampleapprovalfrom NBA superstars. Los Angels Lakers approveand uses Nike, and on the other hand,Orland Magic acceptsand puts on Adidas (TradeOnline, 2016).

Ina nutshell,this kind of competition (monopolistic competition) takes place at amarket where there exist numerous producers who are selling the samegoods and services to manyconsumers.Also,none of the company has any form of dominance along with control inthe market(Trade Online, 2016).

Withthis regard, Alibaba sells several products to many customers in thewhole world, the same products Alibaba sells, other companies vendsthem as well. The products have almost the same price. BothAlibabaandits competitorsdonot have control over the market since customers’ places the orderonline. Hence, one can conclude thatthe nature of competition for Alibaba is monopolistic competition(Trade Online, 2016).


AlibabaInc. (AMZN) is multinational company and the leading Internet Companyas by 2014, not only inthe US but the whole world.Thecompany offers avarietyof consumer goods. Alibaba. Com functions in three universalsegments: electronic, media along with other merchandise. In allthese segments, the firm has competitors. Thus giving to theirclients the best they can to continue maintaining them(Investopidia, 2014).

Amongthe competitors of Alibaba in electronic together with othermerchandise section are Best Buy, RadoShack, Family Dollar, Staples,Wal-Mart, Sears, Systemic, Delia and Big Lots (Investopidia,2014).

Onthe other hand, their online competitors in general merchandise andelectronics includeAlibaba Group, Overstock. Com, Vipshop Holdings, Light in the Box Co,Wayfair Inc and finally Zulily (Investopidia,2014).

Inanothersegment,Alibaba contest with other worldwide companies like PC Connection,Oracle, salforce.com, CDW, Insight Enterprises, Citrix Systems andfinally Accenture(Investopidia, 2014).



Thefirm is now progressively cashing in onits identifications as an online selling pioneer by selling itsproducts and services to leadingstores in the world. For instance, Marks and Spencer, a Britishretailer pronounced a new partnership together with Alibaba to sellits commodities and services online. Other recent partnerships havebeen with Toys – R – Us, NBA and Target. Alibaba’s new divisionthat knownasLuxembourgpurposes to give customized services to their clients(Greenspan, 2016).

Otherchances are high for Alibaba to come up with associations with thegeneral public. For instance, the company (Alibaba) stated a dealwith Library of British. The advantages arethat buyers can look for antique books. The catalogfor the library containing printed works is currently onAlibabawebsite.Henceit providesinformation of over 2.5 million accounts on the site (Greenspan,2016)

Notso long ago, Alibaba went to the Chinese market, by purchasingChina’s largest online store, Joyo.com. The deal is estimated to beover $ 75 million. Joyo.com contains several similarities to its newproprietor, in a manner that it retails movies, books, toys, alongwith music at affordable prices (Greenspan,2016)

Otheropportunities include:there arethe capability and prowess of the firm to develop more other similarsites hence promotingtheir business and lastly, the companycanreach broadmarket since thewebsitehas no boundaries.


Foreigncontestants may sometimes intrude in Alibaba as it increases. Localrivals, who have failed to contend with Alibaba in United StatesAmerica, establish in other countries and compete Alibaba oninternationalfronts. Joint undertakings, strategic associations alongside, mergersmay affect Alibaba hence losing its top rank (Greenspan,2016)

Thecommodities that Alibaba sell aremostly gifts,during Christmas. Thereis an aspect of peak variation to the industry. Nonetheless, byoperating overseas markets in different seasonality may not belasting (Greenspan,2016).

Threatsare numerous. More of them include: first, the online approach usedcan easily be copied by other competitors second, the businessexperiences great threats from day to day changingtechnology.Also,there is low market entry cost as a result of fewpeople access internet lastly, advertisers may not be willing toattempt new websites.


ClientsRelationship Management along with Information Technology backs upAlibaba’s commercial policies. The firm carefully recordsinformation regarding customer’s way of living. As a result, thisenables them to give to people particular items, onpreferences or previous purchases experience(Greenspan, 2016)

Otherstrengths for Alibaba. Inc includes the following. One, their site isuser-friendlyin amannerthat users cannavigate t other web pages within and without the website. Two, theirunique approach of using online mean to sell their products isrecommendable. Three, users canpersonalize the sitefortheir convenient. Fourth, the siteencourages user customer base growing. Fifth, through the site,Alibaba have a high-valuemarket strategy. And lastly, using e-commerce is arobustsocial policy(Greenspan,2016)


Acoin has two sides. Weakness includes: first, the website is designedpoorly as a result of lack of qualified expertise second, the firmhas publicity challenges as a result of poor media coverage. On thecontrary, the business encounters finical constraints hencedifficulty running of its activities due to cheap capital andlastly, the form has disadvantaged computer background hence weakoperations in the company (Greenspan, 2016).



Theorganization has websitebearingthe company’s domain name. The sitecanrunon both Mobile and Tablet platforms. The siteprovides serves like, displayfor electronic goods, signing in theportfoliofor the sitesvisitor, Alibabaassistant customers, andlastly search for holiday gift cards(Gregory, 2016).


Alibabauses several social media for instance Twitter, Pinterest,and Facebook. The social media helps the firm to be in a position torespond to the growing demand instantly by conversing with clients.Also, customersgetadvice fromthe support on how to use specific products purchased (Gregory,2016).


Theorganization uses E-mailpoweredby Yahoo. The platform uses privatelist. The firm uses email when sending newsletters to theirsubscribers(Gregory, 2016).


Thefirm has television station called Alibaba Fire TV(Gregory,2016).


GREENSPAN,R. (2016, July 8). Alibaba.comInc. SWOT Analysis &amp Recommendations.Retrieved from Padmore http://panmore.com/Alibaba-com-inc-swot-analysis-recommendations

Gregory,L. (2016, July 21). Alibaba.comInc.’s Vision Statement &amp Mission Statement (An Analysis).Retrieved from Padmore http://panmore.com/Alibaba-com-inc-vision-statement-mission-statement-analysis

Investopidia. (2014, December 3). Whoare Alibaba`s (AMZN) main competitors?Retrieved from Investopedia:http://www.investopedia.com/ask/answers/120314/who-are-Alibabas-amzn-main-competitors.asp

MarketingTeacher. (2016, June 14). AlibabaSWOT.Marketing Teacher: http://www.marketingteacher.com/Alibaba-swot/

TradeOnline. (2016, January 13). MonopolisticCompetition.Retrieved from Market Networks:http://education.howthemarketworks.com/glossary/monopolistic-competition/