Alibaba Group: Fostering An E-Commerce Ecosystem Harvard Case Solution & Analysis

Alibaba Group: Fostering An E-Commerce Ecosystem Case Study Solution

Challenges in changing platform to B 2 C:

Although, the introduction of B 2 Csellers on Taobao expected for mitigation of the consumer issues due to the reason that sellers either included big sellers or manufacturers who had the will to spend sufficient amount in their online presence development. The embedding of B 2 C model in the consumer platform resulted in elimination of equal opportunity for both consumer and business sellers. Therefore, Taobao required finding differentiated mechanisms for both the sellers particularly regarding its plan to monetize. Additionally, the investors of venture capital had pressured for generation of stronger revenues in the year 2008.

Managerial Issues:

With the presence at global level, the issues faced by the organization had increased its operations and exposure to public. Alibaba had been accused of selling imitated products of famous brand tending to be public nightmare for the organization. Successful representation of external ecosystem disrupted the traditional structure of pyramid and each policy of management. One of the biggest issue involved synergy between the seven existing units of business which were considered difficult to realize. On the other hand, a total of twenty five corporations had threatened to increase it exponentially.

Management and maintenance of coordination:

The management and maintenance of coordination between the internal environment and external environment was through some factors that were considered important involved listening to their employees and management in improving the operational services. Similarly, the improvement in the fulfilment and service of product delivery with the logistics of third-party and delivery companies. The organization successfully differentiated and retained service providers of third party with the capability of providing quality services with continuous adaptation of the changes in market demands.(Islands, 2016)

Maintenance of flexibility:

Due to the fact, small organization tend to show greater flexibility and responsiveness in much faster way in comparison to trends in the market. The flexibility maintenance in the organization was known to be primarily in association with differentiated segments of the market tend to be more flexible. Therefore, there had been development of a number of sub-units for providing services to their consumer base. The management style of Jack Ma that mainly relies on constant changes and evolution in accordance with demands of the market and the corporation can be credited serves a reason of successful growth of Alibaba. (Yazdanifard, 2015)

Role of corporate management:

The role of management has influenced the decisions in many aspects initiating with the realization of Taobao management of development of open platform for greater taobao strategy. Similarly, belief of the Alibaba’s management in selection of digital media strategy by considering Youku Todou to complement the business of e-commerce. On the other hand, during its exhausted operations at global level, the management of Alibaba came up with evaluation of business model on the basis of online transactions tend to be too ambitious. Due to the fact that there was unavailability of the mature credit card system and network of nationwide logistics which was later on resolved through Ali Pay.

Reason for frequent organization restructuring:

The restructuring of the flagship unit of Alibaba was prominently to focus on separate segments of the market and making them more flexible in providing their services in different customer bases. The primary reason that served as the base in organization restructuring was due to the prevalence of incidents like October Siege and other varied grudges that were voiced by many of the stakeholders causing the organization to reflect its role, existence and mission. Therefore, the organization claimed that it had plans for restructuring and making its entire business operations public.

Characterization of strategy in mobile Internet sector:

In 2012, with the growing age of mobile internet in China, Alibaba had initiated its investment in a large number of applications based on mobile internet. The advantage of mobile internet involved time for socializing and use of enjoyable applications were diverting interest of people from online shopping. Due to the strong e-commerce momentum, competitive strategy of Alibaba in mobile space was primarily mergers and acquisitions and hiring of more staff members. Therefore, Alibaba was positioned at the third place in generation of revenue on the basis of mobile in 2015.

Challenges in future growth:

Although, the overall growth of Alibaba’s revenues had increased from 3.1 percent to 8.9 percent in 2015. As the limitation of application investment implication to financial results in synergy development were not significant. On the other hand, instead of the substantial growth of the organization, personal effectiveness of the operational services were inefficient. The future challenge thus relates to the mechanism of transaction between different sub-divisions to undermine the concept of one-company and minimizing the chance in realization of a uniform vision.

Conclusion:

The core business of Alibaba is primarily to act as middleman among online buyers and sellers and facilitating the goods sale among two parties by the medium of an extensive network websites in the emerging industry of e-commerce in China. The role of management has influenced the decisions in many aspects initiating with the realization of Taobao management of development of open platform for greater taobao strategy. The Taobao platform as a trading marketplace integration and solution of payment of Ali pay played a key role in contribution of Alibaba’s success.

Exhibits

Exhibit A – Characterization of Growth Strategy:

Exhibit B –Core Values:

Exhibit C –Marketing Strategy:

Exhibit D – E-commerce:

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