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Critical Analysis Of Alibaba

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INTRODUCTION

Every organisation has their own business model which defines as a plan for their operation of business to generate revenue, identify customer base, products, and control financial. These components are necessary to ensure a company’s successfulness operation (Osterwalder and Pigneur, 2010). According to Ferraro (1998), e-commerce is a business model that enables an organisation or individual to perform business over an electronic network or internet. Alibaba as per case study subject for this essay is China’s biggest and leading e-commerce company, operating the world’s largest online marketplaces for both international and domestic China trade (Wright, 2014). Alibaba was founded on 1999 by Jack Ma and located in Hangzhou, China (Alibaba, 2014).

The aim of this essay is to explain the stability in Alibaba’s online business model and the growth in local China market with possibility and recommendation steps of going global. This essay begins with critical analysis of online business model adapted by Alibaba and followed by the growth analysis in terms of sustainability for short term and long term. Then the author will talk about Alibaba’s successfulness by capturing Chinese e-commerce market before ends this essay with recommendations, strategies and steps to expand globally.

ALIBABA BUSINESS MODEL

Alibaba has a unique business model since it has various combination of e-commerce such as Business-to-Business (B2B), Business-to-Consumer (B2C), and

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