The comparative and critical analysis of strategies of Alibaba in different

countries/continents that support opportunity-spotting, risk-management,

and creative thinking for business development.
In September 2014, Alibaba made headlines with the largest IPO in history. The company has
grown into all of the main markets in the globe, has a market cap that is among the top 10
globally and has exceeded Walmart in global sales (Anwar 2017). The name of the founder,
Jack Ma, is now well-known. Alibaba's e-commerce platform has seen significant growth
since its launch in 1999 (Bin et al. 2014).

We came to see that Alibaba had a unique invention in that we were creating an ecosystem,
which is a group of creatures (companies and customers of various types) coordinate with
each other and the outside environment (the online platform and the larger offline physical
elements) (C 2019). Our strategic objective was to ensure that the platform supported the
ecosystem's expansion by providing all the resources or access to all the resources that an
online firm would require to succeed (Berning 2021).

They manage ecosystems that are much more customer-focused and economically efficient
than traditional industries. These businesses adhere to what I refer to as the smart business
philosophy, which I think will be the predominant business reasoning in the future (Bhowmik
2012).

When all parties involved in reaching a shared business objective, like ride-sharing or retail,
collaborate in a digital network and apply machine learning to effectively exploit data in real-
time, that is when smart business is born (Bryan 2015). Organizations may adjust
dynamically and quickly to shifting market conditions and client preferences thanks to this
tech-enabled approach, which gives them a significant competitive advantage over more
established companies (Chen 2021).

Machine learning requires large amounts of computational power and digital data, of course.
The algorithmic engine's output improves with more data and over more iterations. For
certain activities, data scientists develop probabilistic prediction models, and then the
algorithm iteratively processes massive amounts of data to provide improved decisions in
real-time (Dey & Francis 2021). The majority of business choices are based on these
prediction models (Mannherz 2018). As a result, machine learning is just a technological
advancement; it will fundamentally alter how business is conducted as algorithmic output
gradually replaces human decision-making (Milnes 2019).

Alibaba by the Numbers

In September 2014, After going public in the United States, the Alibaba Group developed
quickly, with a market worth of more than $500 billion today. The number of active users on
the group's e-commerce platforms has risen to over 550 million every year (Glowik 2017).
Ant Financial, which releases financial data separately, is not included in these figures.
Alibaba Group announced profits of $15 billion on over $40 billion in revenue for the fiscal
year that ended in March 2017 (Jourdan 2015). With an estimated value of over $100 billion,
Ant recorded profits of $814 million on $8.9 billion in revenue. Ant pays $332 million in
royalties to Alibaba in 2017 (Rahman 2021).

Human customer service agents will always be needed to address sensitive or sophisticated
issues, but having a chatbot available to answer common questions is incredibly helpful,
especially on busy days or during special promotions (Zeng 2018). Before now, the majority
of big vendors on the platform would use temporary staff to answer customer questions
during significant events. no longer. Over 95% of client questions were answered by the
chatbot on Alibaba's busiest sales day in 2017, which involved 3.5 million users (Yazdanifard
et al. 2014).

The Leader’s Role

Alibaba created the payment system Alipay in China, which played a role in some of the
company's success. Before the advent of Alipay, sellers felt uneasy shipping goods to the
buyer until the buyer had cleared the payment for a variety of reasons (Wu & Gereffi 2019).
However, since Alipay was implemented on Alibaba, the credit system has significantly
reduced the risk associated with online transactions and eased buyers' and sellers' concerns
regarding delivery failure or the delivery of false or damaged goods (Rahman 2021).

In addition to introducing Alipay, Alibaba has placed a strong emphasis on a sound

evaluation system that allows buyers and sellers to provide feedback and comments on
business interactions that will be visible on each other's websites, providing better and more
illuminating references for their upcoming business partners (Junsheng, 2014)

Without a passion for business model experimentation from the very beginning, Alibaba
would not have been able to amass a portfolio of businesses that covered almost the whole
digital spectrum (Solervicens & Petersburg 2018). However, the choice to build Taobao,
which went beyond the company's primary B2B e-commerce site, sparked intense internal
debate because it required competing directly with an ostensibly powerful eBay (Singapore
2016). Taobao was established as a different firm, with a separate office (or, in this case,
apartment), and individual funding for a joint venture between SoftBank and Alibaba), to
reduce distraction in the developing B2B business.

Conclusion
Although internet giants like Alibaba are the forerunners of the self-tuning enterprise, a wide
range of businesses, in both digital and more traditional industries, can benefit from the
developing lessons (Mannherz 2018). In the face of relentless technological development,
digital pioneers will need to reinvent themselves, but more traditional businesses will also
encounter complicated dynamic situations (Nathan & Scobell 2013). The use of such
environments is being facilitated by technologies like two-sided markets, which are extending
far outside the digital industry. Organizations can find a way to stay up with volatile markets
and perhaps go ahead of the curve by adopting the experimenters' approach.
References
Anwar, ST 2017, ‘Alibaba: Entrepreneurial growth and global expansion in B2B/B2C
markets’, Journal of International Entrepreneurship, vol. 15, no. 4, pp. 366–389.

Berning, SC 2021, Alibaba’s International Digital Marketing Practices and Strategies,

Advanced Digital Marketing Strategies in a Data-Driven Era.

Bhowmik, R 2012, Analysis on the Business Model, papers.ssrn.com, Rochester, NY, viewed
7 September 2022,
<https://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID3488271_code3308403.pdf?
abstractid=3488271>.

Bin, Sheth, U, Yang, J, Karinda & Janssen 2014, How did Alibaba.com become and still
remains a dominant platform in the ecommerce market?

Bryan, B 2015, Alibaba just proved it’s more than just some Chinese company, Business
Insider, viewed 7 September 2022, <https://www.businessinsider.com/alibaba-international-
expansion-2015-11>.

C, Y 2019, Reflection on Alibaba’s Global Expansion footprints and strategy,

www.linkedin.com, viewed 3 February 2022, <https://www.linkedin.com/pulse/reflection-
alibabas-global-expansion-footprints-strategy-yanan-chen>.

Chen, Z 2021, ‘Globalization and global governance’, China International Strategy Review.

Dey, V & Francis, G 2021, ‘Influence of Globalization on Online Business: A conceptual

study with reference to Amazon and Alibaba e-commerce site’, Ushus Journal of Business
Management, vol. 20, no. 2, pp. 25–33, viewed 7 January 2022,
<https://journals.christuniversity.in/index.php/ushus/article/view/2990>.

Glowik, M 2017, ‘Case study: Alibaba group’, pp. 96–105.

Havinga, M, Hoving, M & Swagemakers, V 2016, ‘Alibaba: A Case Study on Building an

International Imperium on Information and ECommerce’, in Multinational Management: A
Casebook on Asia’s Global Market Leaders, pp. 13–32.
Jourdan, A 2015, ‘Alibaba agrees to $266 million acquisition deal with South China Morning
Post’, Reuters, 14 December, viewed 7 September 2022,
<https://www.reuters.com/article/us-scmp-group-alibaba-idUSKBN0TX01S20151214>.

Mannherz, T 2018, Internationalization Strategies of ‘Born Globals’ and the Alibaba Group,
www.grin.com, viewed 23 November 2021, <https://www.grin.com/document/416396>.

Milnes, H 2019, Breaking down Alibaba’s global ambitions - Digiday, Digiday, Digiday,
viewed 7 December 2019, <https://digiday.com/retail/breaking-alibabas-global-ambitions/>.

Nathan, AJ & Scobell, A 2013, ‘Globalization as a Security Strategy: Power and

Vulnerability in the “China Model”’, Political Science Quarterly, vol. 128, no. 3, pp. 427–
454.

Rahman, M 2021, ‘Ecommerce & Alibaba’s Business Strategy’, vol. 1, p. 20.

Singapore, AA in B and NP in 2016, ‘Alibaba to Invest $1 Billion in E-Commerce Startup

Lazada’, Wall Street Journal, 12 April, viewed 7 September 2022,
<https://www.wsj.com/articles/alibaba-to-invest-1-billion-in-e-commerce-startup-lazada-
1460445117>.

Solervicens, J & Petersburg, S 2018, INTERNATIONALIZATION STRATEGY OF CHINESE

E-COMMERCE FIRMS.THE CASE OF ALIBABA GROUP.

Wu, X & Gereffi, G 2019, ‘Amazon and Alibaba: Internet governance, business models, and
internationalization strategies’, pp. 327–356.

Yazdanifard, R, Tan, M, Li, H, Merveen & Tan Hunn Li 2014, ‘The Review of Alibaba’s
Online Business Marketing Strategies Which Navigate them to Present Success’, Double
Blind Peer Reviewed International Research Journal Publisher: Global Journals Inc, vol. 14,
no. 7.

Zeng, M 2018, Everything Alibaba Does Differently and Better, Harvard Business Review.

Alibaba 2018, ‘Tegostab products from Evonik available in the flagship store on Alibaba
1688.com’, Focus on Surfactants, vol. 2018, no. 11, pp. 5–6.
― 2022, MaxCompute One of World’s Leading Cloud-Based Data Warehouse, Alibaba
Cloud Community, viewed 17 September 2022,
<https://www.alibabacloud.com/blog/maxcompute-one-of-worlds-leading-cloud-based-data-
warehouse_579989>.

CB Insight 2018, Amazon Vs. Alibaba: How The E-Commerce Giants Stack Up In The Fight
To Go Global, CB Insights Research.

Howie Mann 2021, How Much is Alibaba Worth? US$900 billion in 2021, mannhowie.com.
Appendix

Ali Baba Market Share in Asia (Alibaba 2018)

How Much is Alibaba Worth? (Howie Mann 2021)

 Alibaba Vs. Amazon: How The E-Commerce Giants Stack Up In The Fight To Go
Global (CB Insight 2018)

MaxCompute One of World's Leading Cloud-Based Data Warehouse (Alibaba 2022)