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Alibaba Case Study Essay

725 Words3 Pages

The founder and chairman of Alibaba is Jack Ma, he established and launched the business in early 1999 from his small apartment in Hangzhou. Alibaba is online platform that allowed small and medium sized Chinese manufacturers interact with international buyers. Basically, Alibaba made it much easier to find and communicate with the manufacturers of a ventures product. Chinese and foreign companies knew very little about the Chinese suppliers making them reluctant to risk funds transacting with strangers. Alibaba bridged this gap; this substantially increased the amount of trust between firms and manufacturers, therefore increasing the profit found on both sides.

The first paragraph of this case study entails their issues with Hong Kong Stock …show more content…

The partners of Alibaba also owned other ventures; this could result in the bankruptcy of Alibaba if the partners don 't manage their time properly. What if the investors sacrifice Alibaba for the greater good of their other companies, they would much rather see their other companies in which they own all if not close to all of the company skyrocket. This means that they would get close to all the profits, while Alibaba has a multitude of shareholders therefore splitting more of the …show more content…

Although Alibaba has a long term plan in mind, if the investors are not making enough money in the short term, they may feel forced to change their business structure to produce the results the investors want. Furthermore, if a company is not performing as well as they thought they would, they may make some questionable decisions. For example, they may start to manufacture their product with fewer expenses, either by using cheaper materials or by using cheaper procedures just to improve their financial

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