Essay 2. ALIBABA
- What are the keys of the development of Alibaba as an organization?
- Visionary, strong and hard-working leader: The leader must to have a strong personality, he have to lead the group and be prepared for failure.
- Common goals: In a big group is difficult to have the same goals but you have to work together to achieve the same objetives
- Seizing opportunities: The leader have to be prepared to find new opportunities every day, He have to know what are the most interesting projects and how their employes have to work to achieve this objectives.
- Good working environment: It is important to keep the employe´s moral as high as you can because they are the workforce of the company.
Additionally of this characteristics which can define Alibaba´s leader, Jack Ma, also they have the traditional knowledge to adapt their company to the Chinese market, this is maybe the best advantage over Ebay and other competitors.
- Describe the reasons as to why Ebay did not manage to set foot to the Chinese market?
There are so many reasons to explain Ebay´s problems in the Chinese market. First of all, Ebay is a website to sell your old goods and this kind of market was not common in China, other reason is that Ebay´s staff did not speak Chinese so this was another problem that they should solved because the Chinese people still seeing Ebay as a foreigner company. Besides, Ebay arrived to the Chinese market with his global website design, the result was that for the Chinese people was difficult to understand also Ebay has a commission(8%) and Tao Bao didn't has any comission. One of the most important problems was that their employes were demotivated and start to leave the company.
Ebay didn't understand the traditional Chinese market and they try to impose their own way, but in the other hand Tao Bao has enough experience and they respect the traditional business way, which was more attractive to the Chinese people. apart of these reasons Ebay was working with US servers blocking certain pages because the Great Firewall. Besides, Ebay tried to implement their own payment systems, making it inconvenient for the Chinese consumer.
- To what extent social aspects and culture has affected the successes of failures of Alibaba up until thus day?
Alibaba was affected by the internet modernization in China, because nowadays more and more people have internet access and thanks to the new model of Alibaba´s websites the people prefer to buy all the goods on the internet because they are develop an easy way to have access to a really huge fan of goods such as first necessity goods like food, clothes and entertainment but also other products like cars or travel packages in other countries.
Jack ma knows perfectly what was the needs, the trends and preferences of Chinese people and he was capable to create a easy system for their consumers who want to order their products on internet instead of going to the traditional markets.
Besides, Alibaba was lucky to find the development in this increasing economic stage in China, millions of people were able to have a computer and money to buy their wants instead of just expend the money in their needs.
- What are the fundamental differences you see from an organizational viewpoint between Alibaba and other competitors in the world such as Amazon for instance?
The Amazon´s business model is based in low margins, offering a huge fan of products in to the easiest way for their consumers and giving so many spacial services to their clients for example with the Premium service, discounts for loyal customers, furthermore, Amazon has one of the fastest delivery services and a real guarantee for their clients.
Alibaba haven't got margins, they obtain his profit from advertising and his Premium Service. Amanzon has a very close relationship with their customers but Alibaba don't work like this, they have their benefit from the publicity, they earn money with the people who wants to advertise their products depending how many people are going to see the advertise instead of earn the money depending the people who click in the product. Besides Alibaba has some fiscal advantages over Amazon because in China the taxes are lower than other countries and also the tax benefit.
- Do you see Alibaba setting foot outside of China? Whatever your choices explain arguments.
Nowadays, the e-commerce market is growing year by year and Alibaba is one of the huge companies in this field, so definitely they are going to have a successfully future outside of China because it would increase the demanding of jobs in other sub-develop countries and it would help to their economy since it is the current tool to make business nowadays.
Alibaba is going to have a really good accept in many countries but it might suffer changes in their in his structure and also the way they used to work in China due to the cultural differences between eastern countries and western countries.
Bibliograpgy:
Ed Sander, ChinaTalk. 2016. “ Alibaba & e-commerce in China” consulted on 22 septembre 2016.
https://leren.saxion.nl/bbcswebdav/pid-1428416-dt-content-rid-10491225_4/institution/HBS/HBS-breed/CHIN/20160913%20Saxion%201%20-%20Alibaba%20%26%20eCom.pdf
2014. IDaccion Business news. “Claves para emular el éxito de Jack Ma”. consulted on 22 septembre 2016
Juan Pablo Vazquez Sampere. 2014. “The first Real Test for Amazon´s Business Model”. consulted 23 September 2016.
Enrique Fanjul. 2015. “Hacia un nuevo modelo de crecimiento Chino”. consulted on 23 September 2016.
http://www.politicaexterior.com/articulos/economia-exterior/hacia-un-nuevo-modelo-de-crecimiento-chino/
Xavier Fontdeglória. 2014. “Alibaba un gigante con mucho más que comercio electrónico” consulted on 23 september 2016.
Miguel Llamazares Pra
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