Alibaba Group: Fostering an E-commerce Ecosystem

  • Reference: IVEY-9B16M217-E

  • Year: 2015

  • Number of pages: 21

  • Geographic Setting: China

  • Publication Date: Dec 19, 2016

  • Fecha de edición: Dec 19, 2016

  • Source: Ivey Business School (Canada)

  • Type of Document: Case

  • Industry Setting: Information, Media & Telecommunications;

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Description

In 2014, Alibaba Group (Alibaba), the largest e-commerce platform operator in China, boasted in its New York Stock Exchange prospectus about its e-commerce ecosystem, which was being built over time. Alibaba’s chairman and chief executive officer declared that the company’s mission was to “make it easy to do business anywhere.” However, the ecosystem, which was well suited for people’s Internet habits of the past, would not likely be up-to-date in the mobile age, when browsing for information no longer posed a problem and people became fascinated by mobile apps that provided practical and entertaining services. Internet traffic, representing people’s attention, started to take on a new pattern. Having thrived on pooling Internet traffic by displaying a huge variety of merchandise on its platform, Alibaba could not afford to now lose Internet traffic to countless customized small apps.

Learning Objective

This case is appropriate for MBA and EMBA core or elective classes on strategic management or managing corporate growth. It can also be used in elective courses or executive training programs on firm growth or platform strategies in Internet-related sectors. After completion of this case, students will be able to ·understand Alibaba’s growth strategy in terms of its core businesses and vertical and horizontal diversification over time; ·understand the source of corporate competitive advantage from the perspective of continuous business expansion; ·understand the managerial and strategic challenges in managing corporate growth; and ·understand the competitive dynamics in mobile Internet operation and Alibaba’s strategy to transform its traditional advantage in this new competitive landscape.

Keywords

E-Commerce Growth strategy online retail platform