Alibaba SWOT Analysis

Bibliography

Conclusion

Overall Alibaba has been operating for many years and produces millions of dollars in sales. Their mission plan is to make it easy to do business anywhere. Their vision is to build the future infrastructure of commerce. It is known as one of the biggest, if not the biggest, IPO ever. IPO is an Initial Public Offering, it is the first sale of stock issued by a company to the public. Alibaba operates on three basic sites. Taobao, China's biggest shopping site; Tmall, which specialises in online sales of branded goods and focuses on China's fast-growing middle class; and Alibaba.com, which connects Chinese exporters with companies elsewhere in the world. It is predicted to have $712 Billion in sales by 2017. Hundreds of millions of users have used it and continue to use it. The company predicts to grow for ages.

Threats

1. Alibaba has a domestic competition and an international competition. For example, Amazon is the strongest competitor.

Amazon has larger operation country than Alibaba right now.

2. The internet security is a huge problem

3. Economic crisis

4. There is amount of slack in macro-environment

5. Low demand for foreign market

6. b2b is a new mode of selling website in recent years.

7. Microsoft has purchased Yahoo. In the short time, they won’t have a competitive relationship.

However, from the long term development strategy of alibaba, they will have an internet market competition.

Alibaba will be affected by appreciation of RMB. Alibaba relies on the foreign-trade of China. It means that alibaba can help manufacturer in China and find export chance.

Opportunities

Experience in China : Due to the strengths that Alibaba has, the opportunities has are countless. Because they have an in-depth understanding of how the e-commerce business works and they have a solid standing in the Chinese market they are able to connect with other markets.

- Flexible market

- E-Commerce

- Government support

Weaknesses

Strength

-Alibaba has way too many sellers → the large amount of sellers are both good and bad for the buyers. The large amount of sellers increases the competition deterring many brands causing them to pull out of alibaba system.

-Very high discounts→

- Not being able to allow sellers to sell at fair and profitable prices.

- Alibaba makes most of its revenues by selling advertising spaces for the sellers.

-Tarnish Reputation

-Customer Service

-Counterfeit Products

-Safety

The sellers are being suppressed now and do not have the freedom or opportunity to sell at profitable rates.

• The founder of Alibaba, Jack Ma serves as the leader of the company. Like most other top companies in the market, Jack Ma’s vision and presence drives the companies success. This also leads to a consumer’s trust in the company.
• Alibaba provides many services to all that work with Alibaba. Examples of these services include cloud storage, scalable platforms, and financial schemes. Alibaba also has a strong relationship with the Chinese government which is a large portion of Alibaba’s consumers.
• Alibaba is able to scale their operations effectively in the large market of China. Because they are able to do this, it will sure put them on good trajectory path.
• -Because alibaba has a lot of backing from solid manufacturers who are capable of manufacturing at mass levels and shipping worldwide, it has a large market share dominance. In 2015, Alibaba had a market share of 58%

Introduction

The group was founded in 1999 by 18 people led by Jack Ma, it is a business-to- business portal that connects Chinese manufacturers with overseas buyers. Other countries support the company but it primarily operates in The People's Republic of China. As of 2016 it was the world's largest and most valuable retailer, surpassing Walmart, the country operates in over 200 countries. Its online sales profit passed on US retailers.

Alibaba SWOT Analysis

Nadiya Melnyk, Yuxiang Chen, Jeefry De La Cruz, Justin Lee, Zen Zheng, Mary Pochron, Jason Wu, Jayson Hines, Garry Huang, Jingyi Xu