The case analysis will determine whether Alibaba is a born global company. This analysis will effectively determine how the company utilizes the five entrepreneurial strategies and how to overcome psychic distance. A further examination of the company’s successful internationalization entry mode and the strategic implications for the company are analyzed.
Born global The born global concept focuses on an internationalization mindset from the beginning of forming the business. The business immediately focuses on international ventures such as Alibaba has done. I would consider Alibaba a born global firm based on the way they conduct business. The company connects Chinese exporters with companies around the world (Wright, 2014). Alibaba is
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The company brings U.S. SMEs to the Chinese forefront, in which the company has achieved success by targeting their audience (Baack, Harris & Baack, 2013). Alibaba also owns Alipay which has a direct entry mode that challenges the Chinese banks. Alipay is changing the financial sector within China bringing a better-yielding money-market (Berman, 2014). These strategic modes of entry have become a success for the company.
Five strategies To begin, the five entrepreneurial strategies are: (1) growth, (2) innovation, (3) network, (4) financing/governance, and (5) harvest/exit (Peng, 2006). Alibaba has efficiently and effectively utilized these five strategies:
• Growth: the company is successful with the knowledge of understanding their buyers and sellers better than the competition. Every company wants to penetrate the Chinese market, but none of them have accomplished the task except for Alibaba, as Jack Ma understands his clients. Alibaba also created Taobao (C2C) and Tmall (B2C) with facilitated payments through Alipay, while leveraging their existing strategy incorporate their B2C, logistic, finance, and cloud services (Sun,
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The company will offer awareness for future consumers, while offering an optimal user experience by bringing quality products to market.
• Finance/governance: Alibaba had the largest IPO, raising USD $21.8 billion for the company. The company’s governance concentrates the voting power in the hands of management, leaving the checks and balance system weak (Wilson, 2015).
• Harvest/exit: One man’s IPO is another man’s exit strategy. Alibaba’s exit strategy was to take the company public to raise capital, however, according to the governance top management have all the voting rights as opposed to shareholders.
Strategic implications
Alibaba being the largest company of e-commerce in the world compared to both Amazon and E*Bay combined. Alibaba’s most strategic implication is their execution of seizing opportunities. All plans of action are real time, the company does not utilize a forecasting scheme. SMEs from the U.S. want to penetrate the Chinese market and can do so by utilizing either B2B or B2C through
Besides marketing its customer service, the company markets different programs according to its three major types of customers. Some of them being,
We aim to provide products, services, benefits and rewards that deliver more value than any competitor.
his company, John Lin, the CEO and founder of Shang-Wa, approaches Bernard Lester, CEO of Lester Electronics with a serious proposal to form and partnership and expand the business in to a neighboring Asian country. Lester Electronics however, has to decide whether a partnership is the best way to go, or if acquiring Shang-Wa outright would be more beneficial. This paper will go over any issues and opportunities associated with this scenario.
On December 14, 2006, Cisco invested $50 million in China communications services, one of the biggest overseas strategic investors of China communications services. After becoming a shareholder of China communications services, Cisco and China communications services managed telecommunications services and new network solutions for China enterprises including IP infrastructure, digital video, 3G platform and its application. In November 2006, Cisco (China) Financing Lease Co. Ltd was established in Beijing and became the first network equipment company of China to provide long-term financing lease finance solutions for customers (Liang, R. 2013).
Currently majority revenue is generated by store sales but online sales from the stores’ websites are increasing. With US dollar getting weaker, international sales from these US based websites are increasing too. This creates significant positive outlook for the large incumbent players but also acts as a significant barrier of entry for new players.
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
A further reason why should focus on second and third tier cities of south-east part China is the rapid growth and penetration of Internet which would bring a booming development to the e-commerce implication in these market. Since TESCO has been successfully implement the on-line shop system in UK, it got technology advanced in this part.
Initial Public Offerings (IPOs) are common ways for small companies to grow and expand by increasing their availability of capital. The Initial Public Offering started seeing a strong increase in popularity in the late 1990's. As a result of the growing popularity resulting in the dot com explosion, the term "IPO" became a household name. In order to understand how IPOs work, its best to first know how IPOs are created.
The topic of IPO spinning is one that has not received much attention in the recent past. Amidst the recent financial crisis we have experienced the IPO market became relatively quiet. However, there is a large consensus that the IPO market may become much more active in the near future and it seems like an appropriate time to look at an issue that may again surface. We examined the article “A New Look at an Old Trick: IPO Spinning” from The Wall Street Journal. This article gives a brief outline of what IPO spinning is, a look at one of the more high profile cases of Frank Quattrone, and provides some evidence of the effects it has from a study by Xiaoding Liu and Jay Ritter.
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
One of the largest technology company in the world, Lenovo had a humble beginning as a small Chinese firm founded in 1984. The company showed modest growth throughout the rest of the 20th century. It wasn’t until the company’s acquisition of IBM’s personal computer business in 2005 (Martin, 2014) that the company began to gain prominence in the technology industry. Lenovo’s innovation and strategic decision making has allowed the company to evolve on a global platform and enabled it to become one of the leading technology companies in the market today.
products they want. The goal is to not only provide consumers with what they know they
That reminded me from the case study the director how to plays round of the company to succeed this Colombian Memorial Hospital. External control view of leadership, situations in which external forces where the leader has limited influence determine the organization 's success. Strategy, the ideas, decisions, and actions that enable a firm to succeed. competitive advantage firm 's resources and capabilities that enable it to overcome the competitive forces in its industries. Operational effectiveness, Performing similar activities better than rivals. Intend strategy, strategy in which organizational decisions are determined only by analysis. Realize strategy, strategy in which organizational decisions are determined by both analysis and unforeseen environmental developments, unanticipated resource limitations, and changes from managerial preferences. Strategy analysis studies of firms ' external and internal environments, and there with organizational vision and goals. Strategy formulation, decisions made by firms regarding investments, commitments, and other aspects of operations that create and sustain competitive advantage.
Position: Google wants to acquire “.cn” as soon as possible before firms from other countries step in.
This report will attempt to critically analyse and assess the internal and external factors which effected the strategic decisions made by eBay. These strategic decisions consisted of the acquisitions with Skype and PayPal coupled together with an analysis on why eBay failed may have failed in expanding their online presence in eastern parts on the globe such as China.