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Alibaba Case Study

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Alibaba Case Study Analysis

Alibaba group is a Chinese multinational technology company that specializes in e-commerce, retail, technology as well as internet. The company was founded in the year 1999 in Hangzhou Zhejiang. It owns as well as operates a diverse portfolio of companies all across the world in various sectors of business.

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SWOT analysis of Alibaba


Scale of operation- One of the biggest and the first strength of Alibaba is the sheer operations scale as well as the market in which it operates.

Visionary leader- The Company have some great visionary leaders like Jack Ma. The vision of a leader for the company will never let them down.

Good relation with partners- Alibaba offers a conducive environment to everyone who takes part in scripting its success. is a good website to provide Alibaba case study help.


Too many sellers- Alibaba do not control the number of sellers who register to partner up with the company. This resulted in a big number of sellers in the online marketplace.

Heavy discount- The company fails to allow the sellers to sell at fair or profitable prices.


China experience- Since Alibaba has a good base in the market of china and also a detailed understanding of the business of e-commerce; the company has huge opportunities in terms of exploring other markets.

Aggregator based model- The aggregator based model of Alibaba helps the company to reduce costs as well as keep the operations lean.


Overall rising competition- Other companies like Tencent as well as are local competitors to Alibaba in China while eBay and Amazon are the international threats.

Economic stability- The economy stability of China plays a very important role in determining the success of the business.

Dropping profitability- With increasing demand in service levels from the E-commerce portals, the profitability of the e-commerce companies is dropping which is a matter of concern for the company.

Pestle analysis

Political factors

International trade and other treaties- the nation has an excellent record of adhering to the international treaties the company has done with different global partners.

Role of the non-government organisations, protest groups and civil society- The country has a big community of civil society. Alibaba should build bridges with them and seek out for cooperation areas.

Independence of judiciary- In the matter of commercial as well as business decisions, judiciary of the nation is independent to a huge extent.

Regulatory practices- the regulatory practices are updated with the global norms which have helped the nation in improving the ease of carrying out business.


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Economic factors

Rate of employment- If the rate of employment is high them it will affect the strategies of the company in two ways. It can provide enough customers for Alibaba and secondly it will make it expensive for the company to recruit talented as well as skillful employees.

Workforce productivity- the productivity of the workforce has increased by 20-30% in the last few years. It enables Alibaba to hire skilled workforce at competitive salaries.

Foreign exchange rate- Alibaba should be very careful about the history of forex risk before entering new market.

Social Factor

Power structure in the society- Alibaba should carefully examine the power structure of the society and the way it impacts the demand in the economy.

Birth rate- Birth rate is also an excellent indicator for the demand in future. USA has ignored the European Union Style stagnant economy on the back of higher birth rate and the high level of immigration.

Levels of social concerns and the awareness in the society- Higher level of social concern in the society generally results in higher consumer activism as well as pressure from the non-governmental organisations and the pressure groups.

Technological factor

Technology transfer as well as licensing problem- Laws and culture of licensing of IPR as well as other digital assets should be examined carefully so that the company can avoid shakedowns as well as thefts of IPR.

Research and development investment levels- if there is a huge investment level in the sector of technology development then there are high chances of developing an ecosystem which is self sustaining which drives innovation. Such a situation can be leveraged by the company for hiring the best person in business.

Preparedness for 5G related infrastructure- Nations across the world are trying to prepare themselves for the installation of the 5G infrastructure. Alibaba should examine the level to which the local market is prepared for rolling out the 5G technology.

Property rights and the protection of technology oriented assets- the company should analyse the legal status of different property rights as well as intellectual property rights protections which are common in the country.

Legal factor

Intellectual property rights protection- The Company should examine the protection level that the intellectual property rights get under the legal system of the nation.  

Law of securities- What are the law of securities of the nation and what are the conditions to list the company on national or the regional stock exchange.

Adherence to common law- is the nation following common law that is same for all the parties are it domestic or international. If there is arbitrariness in the process of judiciary then the company cannot be sure of the judgement.

Transparency in the system as well as process of judiciary- transparency is very important for fair as well as consistent decision making. If the procedure is transparent as well as consistent then the company can plan ahead with great conviction.

Environmental factor

Influence of the change in climate- If the chain of supply is not flexible it can result in bottleneck if shipments from one part of the world are delayed due to sudden climate shift.

Corporate social responsibilities culture- are the current corporate social responsibility efforts applicable in the new market or there is a requirement of having new initiative for catering the prospective market.

Recycle policies- what are the policies of recycling in the prospective market and the way Alibaba follow these policies.

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