Question

With regard to Alibaba Group’s partnership structure: a. What are the possible reasons that Alibaba Group’s management insisted on its partnership structure? b. From an outside shareholder’s perspective, what are the potential benefits and risks regarding Alibaba Group’s partnership structure?

Answer 1

Here I explained with regards to Alibaba Group's management.

a. The possible reason for partnership which the Alibaba group's management insisted for are explain below.

• The main reason which the group wants to expand the market. While dealing the partnership the main target is to cover their business in other markets.it will allow company to invest the money for creating consumer preferable goods. Very recently the Alibaba and Mattel entered into the partnership ,which gives the positive effect for the business. They plan to monetize for consumer pattern where they can run e-commerce plat form.
• Here is another crucial point is that the product of foreign going to meet Chinese consumer preference. In order to meet Chinese consumer wants the all company want their product should get perfect to the particular region.
• Here after the partnership, the Alibaba allowed all foreigners to sell their products in China. It looks to grow faster by meeting consumer needs.

b. Here we explained the strategy from outsider prospective.

• As we know to be elected as a partner we need to work for the partnership which you will make sure to develop the particular groups.You should have the eye on partnership misson, vision and value. The group are very sure about short term which they can manage .The partnership going forword earning by facing more competition .
• Alibaba group doesn't belong to one person or one group ,it's an eco-system based enterprise. So it's worked like the perfect innovation governance system .It's always look for long-term developement.