Strategic Facets of Alibaba Group

Its strategic positioning in the commerce and internet world allows it to attract small and medium business. These businesses utilize the platform to access global and international markets. Because of its comprehensive business strategy and drastic growth, the company has established itself as the leading e-commerce company in China. Over the years, Alibaba has established its services widely in China. One of the main triggers of its fast growth is the capability to analyze the business environment in China. This innovative solution introduced free and reliable online services and information that help the SMEs in China (Yazdanifard and Li 2014). Backed by the government, the company incorporated the use of Alipay, termed as the number one payment service in China. Alipay is the largest online payment method in China and has the ability to make transactions as high as 80 million dollars a day (Chandigarh Institute of Internet Marketing - ciim.

in, 2018). By the end of 2007, Alibaba acquired Yahoo China and took over all its transactions and operations (Zhao, Wang and Huang 2010). Undoubtedly, the penetration and usage of internet has played a significant role in the growth and expansion of Alibaba. Currently, most a lot of activity that involves payment in China is done via the internet (Yazdanifard and Li 2014). Over 560 million individuals spend most of their time working online (Chandigarh Institute of Internet Marketing, 2018). Alibaba, an early adopted on e-commerce, targets internet users. Alibaba took advantage of the increasing internet usage in China to drive online purchase of consumer products. In China, over 700 million individuals are web users (Anwar 2017). Alibaba invests heavily in researching and exploring advanced and innovative technology. Integration of innovative technology solution and mechanism such as Alibaba cloud ensure Alibaba keeps in pace with the radical changes in the world of technology.

This approach goes hand in hand in securing online financial transactions; a key security problem associated with the use of the internet (Yazdanifard and Li 2014). This robust and stable technology protects its online customers as well as brand equity in a world where cybersecurity is of key importance. This uniqueness put it ahead of completion thus the strength to position itself in new markets across the world. From the year 2009, the company has introduced its services in other regions like Japan, India, Western Europe and the USA. The main aim of venturing into other markets is to establish its services to new clients and buyers (Anwar 2017). Alibaba established the same marketing strategies that it employed in China in the new markets.

It product services such as offering business to business online services were quite unique, by that time, there was no company that was. In other words, Alibaba’s positive attitude of embracing the concept of making cross-border alliances is critical to penetrate saturated market in Europe and American markets. This strategy can be used successfully in other regions with the aim of exposing its product and reaching a bigger number of individuals who will use their services. It will also act as a form of brand image awareness as the alliances will tend to introduce Alibaba in the new markets. In summary, Alibaba has employed different strategies that have enabled it to thrive well in business in China. Alibaba had successful penetration in some of the most economically stable nations.