Alibaba, Research Paper Example

Despite being among the leading e-commerce company in the world, Alibaba faces a number of challenges. The first one is on how to maintain its leading position in the Chinese e-commerce market. Currently, this issue has been given top priority in the company. Having several competitors and new companies coming into this market, there is a greater pressure exert on Alibaba. Companies such as Tencent that has huge user base and active space users that have hit over 500 million are a significant threat to Alibaba. In order to cope up with this pressure, Alibaba should list its premises. Business experts argue that each day sees a new entrant into the market, meaning the competition is getting fiercer.

Ever since, it came into existence, Alibaba has been on the run to growth, being in the e-commerce industry, this company has had to undergo a number of difficulties. One thing that has kept it going so far is understanding the needs of the customers. This company honors the needs and demands of clients. It came into the market to help small to medium sized enterprises get into the global market. The founder of this company, Jack Ma believes that by helping these SMEs get into the international market, he could generate income for his company.

Looking at SWOT Analysis of Alibaba, this company has a number of Strengths. The company operates in three leading countries- Britain, China and Japan. This means that it has a vast customer base and a favorable market. Through this wide territory, the company has access to information on how to expand. Operating in over 240 countries, this company has made its brand visible, leading to a large customer inflow. It also makes use of the internet to reach many clients in the shortest time. When it comes to Weaknesses, its website model is of low quality. This has made it possible for its competitors to come up with a replica of the same. In the process of transformation, the company has increased its membership fees. The result of this is exit of some members who join its competitors.

Alibaba is a company that has many Opportunities it can utilize to make more profits. In China alone, several large credit companies and financial institutions want to venture into the field of e-commerce. If this company can capitalize on them, it will earn good profits. The recent days have seen China role out a plan of enhancing the development of legal provisions in the e-commerce industry. This means that a regulated and safe business environment is in the pipeline. A development will benefit Alibaba most as it is the leading player in the e-commerce marketplace. B2B business website is a hard thing to venture into especially for small and medium enterprises. If online veteran players like Alibaba can help them get a market share, they will reap enormous benefits. With the development and continuous improvement of the internet technology, many companies are joining an online business. This move is a plus for Alibaba as it will give them market share at a cost.

Just like any other business, Alibaba faces a number of Threats in the market. The main profit earner for this company is China. However, the modern days have seen China’s B2B business environment get constrained. There are loopholes in online payment system that is a threat to Alibaba. In addition, with the rapid development of the world, the B2B business model is getting outdated.

Work cited

J, Iflucker. “Alibaba: Competing in China and Beyond.” SlideBoom – upload and share rich PowerPoint presentations online. N.P., 13 Jan. 2000. Web. 28 Mar. 2013. http://www.slideboom.com/presentations/623154/Alibaba%3A-Competing-in-China-and-Beyond