Alibaba is a leading internet marketplace, which began in Japan. It has grown rapidly and has developed into a well-known name. The firm has a distinct international business strategy. This strategy will need to be examined to see if it is appropriate in terms of effectiveness and their chosen vision. Entering into a foreign market can be very challenging, but given the proper research can be done.
Background
Alibaba is a large online and mobile marketplace for consumers, suppliers, and investors. The firm’s mission is “to make it easy to do business anywhere” (Alibaba Group, 2016, para.1). This is done by providing technology and services to aid consumers, suppliers, and other participants to conduct trade globally (Alibaba Group, 2016,
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The main reason is to increase its consumer population, by entering into an international level the firm is now exposed to millions of more potential customers. Also, the firm could seek an international market with intentions of dominating the market. For example, if Alibaba’s services are offered in a country in which no other competitors exist, it is almost certain that the firm will succeed as long as demand occurs. Another advantage to been international competitive capabilities is the shared knowledge of the market among other countries. For example, if an item is popular in one location, it might be wise to launch that product in a location with similar population demographics. This is often seen with big technology corporations, a launch of a new cell phone will not occur worldwide it will be available in specific countries first to test the quality and demand before it is released …show more content…
Alibaba seeks to provide the world’s largest online and mobile marketplace, while making it simple (Alibaba Group, 2016, para.1). This can only be done by using the transnational strategy. The firm has to meet both local and global customers, which can is a major characteristic of the transnational strategy. If the firm adopted any other proposed strategy to enter into international markets it would fall short of either the local or global market demands.
Conclusion
Alibaba is a leading online commerce company. It is frequented by both consumers, suppliers, and investors. This firm seeks to capture both the local and global market places. In order to do this the right international business strategy must be set into place. For Alibaba the implementation of the transnational strategy is best suit to meet their desired outcome. Before making any international moves to infiltrate a foreign market the proper research must be done. A strategic development plan has to occur in order to ensure that the appropriate strategy is used before implementation can
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