Strategies
The Chinese firm Alibaba is a well-known player in the global market, which successfully copes with the competition. To this end, Alibaba is trying to improve its image and reputation, being remembered as a company with the best technology and a high level of social responsibility. This approach has allowed it to attract even more attention to festival shopping than in previous years and raise more money, including charity. The company’s current strategy is primarily to compete on more affordable prices and discounts. In this way, Alibaba attracts the attention of millions of customers worldwide who admire the accessibility of goods. Moreover, an influential factor is the use of international platforms, such as Aliexpress, which helps enter the global business (WSJ PODCASTS, 2021). Alibaba is actively trying to compete with e-commerce to get more market share than competitors managed. To accomplish this, it is actively attracting influencers and constantly developing logistics to ensure its presence in every corner and gain the proper attention of consumers.
Background Information
Alibaba is the world’s largest online shopping platform, which created Singles Day in order to sell quickly and capture new customers. Thus, the company’s impact has expanded not only to China but also to Europe. The corporation’s popularity among other states can be explained by the fact that it provides discounts of up to 50-70 percent during Singles Day (WSJ PODCASTS, 2021). Thus, even buyers from France or Poland look forward to such a significant event.
It was expected that the market reaction to the company’s commerce policy would be positive. Mass discounts have rapidly increased sales, and the organization has been able to achieve success in Europe. Thus, revenue growth is expected to rise by 1.4 trillion by 2025, enabling Alibaba to compete with Amazon (WSJ PODCASTS, 2021). Although considering that there are now 100 product charters sent every week, it could be argued that the firm has established a strong foothold in the market.
It is significant to mention that in the last seven years, Alibaba has achieved its greatest popularity this year. The economic factor can confirm it. This is because $84.5 billion worth of goods were sold, and sales were up 8.5 percent over last year (Zhao et al., 2019). It was due to the fact that the company’s advertising was able to attract consumers and create excitement.
The success of the corporation can also be explained by the fact that the price of goods usually varies in the low range. At the same time, the company often offers discounts on shipment or delivers for free. It is also worth noting that fast worldwide transportation is a key factor that influences the choice of customers (WSJ PODCASTS, 2021). Thus, innovative advertising, low prices and favorable delivery help the corporation to become the market leader.
Reasoning and Recommendations
It is essential to say that drawing customers alone will not be enough for further growth. If Alibaba wants to continue to compete successfully, it must first ensure that it has enough resources to avoid losing its buyers, and bigger boxes can be an issue. The company lacks the infrastructure outside of China to generate sales (WSJ PODCASTS, 2021). Only its development will help it gain a foothold in the global supply market and increase margins. Furthermore, suppliers do not want to make direct sales, and that is a difficulty for Alibaba. The way out could be an online platform that blurs the boundaries between buyers around the world. The company’s activity now covers several countries, but this number can be increased, and Europe is considered especially promising (Cui et al., 2020). Alibaba should buy more equipment to improve the property and reliability of purchases. Contracts with new influencers from the region, developing the site’s quality, and the availability of one-click shopping can be a quality solution.
References
Cui, R., Li, M., & Li, Q. (2020). Value of high-quality logistics: Evidence from a clash between SF Express and Alibaba. Management Science, 66(9), 3879-3902.
Zhao, X., Chen, X., Song, X., Zhang, W., Gao, L., & De Ciel, R. (2019). A look at Alibaba Double 11 Shopping Festival. Journal of Student Research, 8(1).
WSJ PODCASTS. (2021). Alibaba Tries to Go Global With ‘Singles Day,’ China’s Big Shopping Festival. [Video]. WSJ.VIDEO. Web.