Case Study Of Alibaba Group Free Samples †MyAssignmenthelp.com

Question: Discuss about the Case Study Of Alibaba Group. Answer: Alibaba Alibaba Group is a Chinese e-commerce company which pioneered in the e-commerce business in the country. Allibaba was founded by Jack Ma in the year 1999 with the novel motive of connecting manufacturers of China with international buyers. The company operates on customer-to-customer, business- to -customer and business- to business model. Alibaba revolutionized the e-commerce business in People Republic of China and have achieved business excellence. The reason behind choosing the company is to study how Alibaba had a humble beginning in the year 1999 and surpassed companies like Walmart and Amazon to be the largest retailer of the world in the year 2016(Alibaba , 2017) How Alibaba Has Achieved Its Current Position In Market The company operates in more than 200 countries .In the year 2017, the market cap of was about USD$305. Alibaba followed different business strategies to achieve its current top position in e-commerce market. From the year 1998 to 2001, the motive of the company was to serve the needs of all the small and medium size enterprises of China by providing them online services and connecting them with customers. In the year 2000, Porter Erisman was hired by the company who guided the company in globalizing its operations. In the year 2002, a certification of credit which was extremely reliable called TrustPass was invented by Alibaba which made transactions safe for customers. The demand for products at reasonable price grew worldwide, thus Alibaba had the opportunity to excel in the export business by gaining more global customers. In the year 2014, Alibaba received the largest IPO in the history of the United States. The major stakeholders of the company are Softbank Corp and Yahoo Inc. Thus Alibaba applied the concept of strategies by figuring out who their customers were, how the company could serve them and how it would generate revenue (Hill, Jones Schilling, 2014). Business Model Of Alibaba Alibaba centered its core-business on e-commerce and the business model of the company is a combination of many famous technological companies of the United States, but the company has not imitated the business model of any particular company. The company does not hold any inventory, neither has warehouses. The prime feature of Alibabas business model is its innovative software platform. Alibaba has created companies like Alipay, an online payment platform, Aliyun for cloud computing and China Smart Logistics. Alibaba has made major investments in a number of start-up companies in the United States like Snapchat. The company has also invested in many other Chinese companies. Cage Framework Alibaba operates in 200 countries by analyzing their Cultural, Administrative, Geographic and Economic factors. The company connects the global customers with the small and medium size Enterprises of China by offering them products at reasonable rate. The company operated on Just-In-Time Technology with no inventory and warehouses. Orders of global customers are processed on real time and payment is safe for these customers. Alibabas innovative online platform and digital marketing tool enables the company to connect with global customers in more than 200 countries (Madsen Walker, 2015). Virgin Group The Virgin Group is a British company and was founded by Richard Branson. The group invests in five core sectors like Financial Services, Travel and Leisure, Telecoms and Media, Music and Entertainment and Health and Wellness. The group is a venture capital conglomerate and has achieved excellence in business since its inception in the year 1989. The group is headquartered in City of Westminster. The group also has family owned ventures like Virgin Car and accomplished several successful business like Virgin Airlines, Virgin Cruises, Virgin Records and Virgin media. The company is chosen to study its unique business model of diversification (VIRGIN GROUP, 2017). In the year 2014, the net worth of Virgin Group was estimated to be around 5 billion British pounds. The company has achieved this outstanding position in the market with its innovative business model .The founder Richard Branson founded Student Magazine and Virgin Records which gained huge popularity. After 10 years of success, the company ventured into airline business with the foundation of Virgin Airlines. The Virgin group has 200-300 brands. How Virgin Group Has Achieved Its Current Position In The Market The founder of the company -Richard Bransons agile business style is the main reason behind the success of the group. He has high risk tolerance, and iterates ideas rapidly and is extremely graceful in shutting down a failure. He protects his business from downsides before venturing into a new business (Dhliwayo, 2014). Business-Model Of Virgin Airlines The business model of the company is a generic conglomerate and keiretsu. At times the company simply licenses its brand, like Virgin Records. The company has diversified into different sectors and runs under one brand name The Virgin. The single brand name enables the company to retain its brand image and customer perceived value. The company is extremely customer-centric (Block et al., 2015). This enables the founder to survive in the industry since more than 50 years. The feedbacks from customers are taken and necessary changes are incorporated in the service sectors business of the company, like Virgin Atlantic airlines. The company has diversified into more than 300 brands but all these brands are centered across its five core sectors- like Financial Services, Travel and Leisure, Telecoms and Media, Music and Entertainment and Health and Wellness (Eden Ackermann, 2013). The company has strong network of investors. The company is an investor in technology-focused ventures and has invested in more than 35 technology ventures. The company gains long term capital appreciation by its innovative investment schemes (Gamble Thompson, 2014). Cage Framework Virgin group is a global company and before venturing into global market the company analyzes the Culture, Administrative, Geographic and Economic factors of a particular country. For instance, the British company has its popular airline in Australia Virgin Australia. The company has studied the Australian market well, has analyzed all macro business environment factors and applied the CAGE framework before beginning its airline operation in the country (Bereznoi, 2015). The successful implementation of CAGE framework makes the business model innovative for the company and helps the company to implement the environmental changes of a particular country in its model while operating in that country. Reference Lists Alibaba. (2017).alibabagroup.com/en/global/home. Retrieved 8 September 2017, from https://www.alibabagroup.com/en/global/home Bereznoi, A. (2015). Business model innovation in corporate competitive strategy.Problems of economic transition,57(8), 14-33. Block, J. H., Kohn, K., Miller, D., Ullrich, K. (2015). Necessity entrepreneurship and competitive strategy.Small Business Economics,44(1), 37-54. Dhliwayo, S. (2014). Entrepreneurship and competitive strategy: An integrative approach.The Journal of Entrepreneurship,23(1), 115-135. Eden, C., Ackermann, F. (2013).Making strategy: The journey of strategic management. Sage. Gamble, J. E., Thompson Jr, A. A. (2014).Essentials of strategic management. Irwin Mcgraw-Hill. Gamble, J. E., Thompson Jr, A. A. (2014).Essentials of strategic management. Irwin Mcgraw-Hill. Hill, C. W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Madsen, T. L., Walker, G. (2015).Modern competitive strategy. McGraw Hill. VIRGIN GROUP. (2017).virgin.com/. Retrieved 8 September 2017, from https://www.virgin.com