Question

In: Economics

Can Alibaba succeed in countries outside of China? Why or why not?

Can Alibaba succeed in countries outside of China? Why or why not?

Solutions

Expert Solution

Alibaba has got a really fascinating plan for expansion. They 're definitely aiming for huge markets as well, they 're more than willing to fight Amazon Alibaba has a brilliant strategy, while the U.S. market competition is brutal, they 're still conquering the Asian market.

They are making some investments in startups for Indians, which is really large if we look at the scale of the Indian population. They also continue to be one of Russia's most visited sites (10th place) which is a significant market for Alibaba group. Additionally, they make some investment in infrastructure in Brazil, building DCs to increase the delivery time of the products. With a quick delivery period, one of the obstacles faced by Brazilian buyers will be absolutely over, a very important move for Alibaba considering Brazilian market buying power.

Alibaba is positioning itself to dominate the market, initially concentrating on Malaysia , Indonesia and Singapore. Last year Alibaba acquired Lazada Group, which was until the acquisition the largest e-commerce marketplace in Southeast Asia. Alibaba and Lazada, having gained market leadership by acquisition, have been busy since merging their logistics operations and growing investment in infrastructure across the country, all while embarking on more sellers and buyers.

In US markets, Alibaba 's key approach is to exploit what they are best at, namely helping international brands meet Chinese consumers online. Together with its logistics company Cainiao, Alibaba is able to give foreign brands access to the traffic of countless millions of Chinese customers who want to purchase premium foreign brands on Alibaba markets such as Tmall Global, along with offering end-to - end cross-border fulfillment solutions to foreign brands.


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