Impact of COVID-19 on the growth of Alibaba Harvard Case Solution & Analysis

Impact of COVID-19 on the growth of Alibaba Case Study Solution

Ethical concerns:

The ethical dilemma posed to all industries across the world is based on determining the effective ways for the allocation of limited resources represented by the healthcare industry, food and beverage industry, transportation industry, consumer electronic industry, and many others. (JARVIE, 2020) Some other challenges faced by all industries across the world include concerns on how to develop new and safe drugs quickly? How prepared the world is to restrict itself from the perception of personal freedom? And what is ahead? (Paul Komesaroff, 2020).

Research Methodology:

This section of the study mainly includes the details about the research methodology describing the methods used for the collection of data and data analysis.

Data Collection:

The data collection process of this study mainly includes the retrieval of data through secondary resources, such as: reviews, press releases, news articles, industry reports and governmental policies against particular issues faced by an organization. The availability of data on such secondary resources will be updated concerning the current date. This would significantly provide all the relevant information regarding the sales and growth, change in business operations, and steps taken by the organization to overcome issues faced all across the world due to the closure of the majority of the stores, production facilities, and raw materials and finished product delivery.

Data Analysis:

The analysis of the study is primarily based on the information represented by the secondary resources. The collected data provides information about ups and downs and strategic initiatives taken by the organization for the survival of the organization. Thus, the analysis of the study is based on the discussion of the data represented. This is primarily based on the notion to discuss the possible changes in the communication, pricing, product innovation, delivery of products and services, service implications, and its relationships with other organizations in the industry.

Discussion:

Considering the information represented, Alibaba has experienced declined market share i.e. about 8 percent. Despite the decline in the market share, Alibaba has managed its relationship with merchants allowing the organization to continue its business operations. Thus, Alibaba is turning out to be one of the leading organizations to survive and grow in such an epidemic situation and economic downturn of all economies around the world. Change in the economic conditions and the quarantined population has led the shift of consumer behavior more towards digital use.

Similarly, many of the organizations including Alibaba has been turning to digital business services for the management of business operations. The growth of online grocery sales as per the requirement of consumers, the grocery segment of Alibaba has been generating increased revenue leading to profitable growth in the grocery segment. Whereas apparel and electronics sales are declining. In contradiction, the maintenance of supplier relationship has been supported by bringing a reduction in the platform fees to assist the merchants in their survival.

Thus, Alibaba has remained competitive among other players in the market such as JD.com, and Tencent Holdings Ltd. All the organizations are now making heavy investments to bring change in the way how business operations are conducted. This is primarily due to the change in the purchasing pattern of the customers. Such change is driven by a lockdown situation that led to the closure of many of the retail stores and people being limited to their homes for all types of activities.

Future Vision:

With the shift of business operations to digital technology, there seems an increased threat of cybersecurity. As the cases of cyber-attacks have been rapidly increasing. Due to the reliance on Alibaba’s operations on the cloud-computing system, the organization is recommended to protect its data and inventory management. Based on the fact that any wrong action can lead to great loss. Thus, for the maintenance of healthy and long-term relationships with the merchants and efficient management of the supply chain, back-up of the data would be generated and the implementation of MFA would allow the organization to monitor its server network.

Conclusion:

Despite the economic slowdown in the home market of Alibaba, the organization is struggling to sustain the growth rates and grappling to deal with the uncertainty of the outbreak.Due to the social disruptions in society, the services are transforming to digital use.With the growth of food delivery services, other areas of shopping, such as: electronics and clothing are facing logistic issues.The reduction in merchandise fees and advertising spending is known to hit the revenues of the organization..................................

 

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