Service

Strategy
of
Introduction

Founded
in 1999
by
Yun Ma
19.8 million
registered
users

Headquarter Worlds top

ed in twenty
Hangzhou, most visited
China websites
Strategic Service Vission
Target Market Service Concept

Based on Geography
Make it easy to business anywhere

Based on Size

Business

Small &
Individual
Medium private
Businessmen
enterprise
Strategic Service Vission
Operational Strategy Delivery System

Customized
Websites
Augment tools
and features

Free membership
Enter new
Customer first-
markets-Trading
Buyers & Sellers
to CRM

Strengthening & Aliplay

securing supply
chain

Economies of Scope
Value Chain Model
Value Chain Model
PESTEL Analysis
Political- legal
Combining the invisible hand with governmental
policies to regulate the market and ensure the
development of company is what Chinese government
usually do, in most cases .
Regularly visited by officials from the government
embodies the aspiration and concern for the enterprise
in its development .
Governmental policy has a pretty significant influence
on corporation supervision, consumption capacity and
other company related activities .
Economic
The timing for the emergence of Alibaba has perfectly
coincided with the rapid growth in several important
economic factors.
Chinas Internet penetration rate had risen from 3.6%
to 12.3.
Department of Commerce are trying to further improve
and standardize the e-commerce application policy of
transactions, shipping and logistics and online auction.
PESTEL Analysis
Social
In Chinese tradition, merchants from this area
always have the characteristics of Speed, Good
at innovating and have the special wealth made
model.
Under the influence of local business culture, the
development of Alibaba has gained a rapid
progress.
In China, it has become a popular phenomenon to
start the business online
Technological
The emergence of new technologies and emerging
industries increased social demand for the given
industry's products and services, then make the
company have more opportunities to enlarge their
business operation scale and market.
E-commerce has gradually gotten the rid of
traditional internet selling model, and realized the
deeper level communication with their users by an
interactive way.

Information asymmetry is one of the reason block

the market expand successfully, and this
phenomenon will continue, so Alibaba just capture
this precious business opportunity to realize the
self- promotion.
Competitive Service Strategy
Cost
Differentiation
Leadership

Fee-free Huge and loyal

marketplace consumer base

Reduce the Located in the

personal largest
element in manufacturing
service delivery base

Reduce Free
network cost membership
forces
Threat Of
New
Entrants:
Medium -
High

Bargainin
Threat of
g Power Competitive
Substitute
of Buyers: Rivalry: High
s: Low
High

Bargainin
g Power
of
Suppliers:
High
Strategic Analysis: Strength
Domestic Stengths Global Stengths

1. Strong 1. Leading
2. International
economic and 2. Fast mover of position as
popularity &
industrial new policies largest online
background Investor Trust
market

3. Focus on
4. Skilful 3. Strong local 4. Expanding
value added
workforce relations orchestrator
product

5. Leading 6. Good
6. Connected to
position as the relations with
own payment 5. Alipay
largest internet Chinese
system (ALIPAY)
market Government
Strategic Analysis: Weakness
Weakness

1. Lack of integrated industry supply chain

2. Less attention to trade service platform

3. Weak marketing campaign

4. Insufficient capital support for R&D

5. Imitable business model

6. Strong influence of the chinese government

7. Disorderly online business platform

Opportunities and Threats
Opportunities Threats

1. Government
2. E-commerce
1. Government support/ 2. Growing internet support/
Regulations penetration competition
Nationalization

4. SMEs moving away from 3. Possible M&A of 4. Global Economic

3. Increasing delivery
efficiency
own web shops towards other players Crisis
online marketplaces

5. Growth of M- 6. Disruptive new

5. Strong economic & commerce technology
industrial background

7. Lawsuits from
brand holders
Service Winners
Convenience:
Availability: variety of Dependability: Personalization:
suppliers, different
variety of products price range, buyers can filter contacting the
through its online suppliers at supplier on the
language options
portal Alibaba.com website
for different
countries

Speed:
Quality: Reputation & provides fast
Price: service in terms of
keep a track on Safety:
uses a competitive payment,
the products being provides on-site
pricing strategy customer support
sold inspection
as well as solving
of its claim
Role of Information

Alimama Big Data Taobao Ke

Alimama Big Data Taobao Ke

Combination of
Combination of Ali micro China Smart
video & mobile Ali micro China Smart
video & mobile finance Network (CSN)
terminal finance Network (CSN)
terminal
 Size of the Business

Small & Medium Individual

sized- private businessmen
enterprise