Leadership Of Chinese Private Enterprises -Myassignmenthelp.Com

Question: Discuss About The Leadership Of Chinese Private Enterprises? Answer: Introduction Alibaba Group is the Chinese e-commerce company that offers a wide array of online and mobile services. Alibaba was founded by Jack Ma in Hangzhou in 1999 as an online place for business to purchase products from the Chinese producers. There are more than 26,000 employees who are working in the organization and enhanced their services globally. Alibaba is the largest China e-commerce company with many sites having more than one hundred million customers or users. It is evaluated that in 2014 the company conducted more activities through online. The company also released a public offering on the new stock exchange on September 19; 2014.The Company is the leader in business to business e-commerce transactions. Alibaba offers three online B2B marketplaces to connect with the buyers and sellers globally. The business model of Alibaba is simple and also the services are offered 24/7 to suppliers and buyers globally. The company also diversified with the e-commerce sites like Alipay, alisoft, and taobao.com. These services that are offered by the company expanded the business portfolio to involve services like retail websites. The distribution channel of the company is also good that gives direct impact on enhancing the satisfaction level of the employees (Ding et al., 2017). Current Marketing Situation The current marketing situation of the company is that Alibaba has attained a large market share not only in domestic market but also in the international market. Yahoo China was also taken over by Alibaba that has given a positive impact on the development of the company. Alibaba has established itself as one of the largest IPO in the US history. The two main shareholders of the company are Softbank Corporation and yahoo.inc. The company has also opened Taiwan office in Switzerland. With a growth in the economic reforms has given various opportunities to the SME'S so that they can enrich themselves. In 2014 the company sold more goods than Amazon and eBay. Alibaba also offers communication services for the customers like forums, blogs, and groups. The access to communication tools is provided through alitalk, wangwang taobao and also yahoo messenger so that proper communication can be maintained between the customers at the same point of time. The company has focused on free membership so that customers can be attracted towards the company. The company also has two sources of profit; one is Alibaba advertising costs and the second source is from customers with value-added services. The company also takes into consideration competitive price for its products to sustain in the competitive marketing and to attract more customers towards the company. Alibaba has two markets; one is global markets in English that gives a target on the international exporters and importers and second is Chinese market that focuses on suppliers and buyers. The current strategy that is used by the customers to attract customers is offering gifts and encouraging customers to use its platform to purchase the products and services (Tung, 2014). Strong position in the market Alibaba has a good image in the market. The organization is one of the largest e-commerce companies in China. The business portfolio of the company is strong and the marketplace has more than 800 million products listed and 500 million registered users with the company. Alibaba Taobao marketplace is one of the world's largest 20 most visited websites. It is estimated that Taobao Marketplace is famous for conducting consumer to consumer online marketplace in China. Tmall.com is also one of the most visited areas in China. The market share of the company is large with more than 700 million registered accounts. The Alipay of the company is used by the third party payment solution in China. The strong position in the market indicates that the services of the company are enjoyed by the customers (Bai, 2012). Presence across the E-commerce value chain Alibaba is one the leading company in consumer e-commerce, online payment, business to business marketplaces and cloud computing. Alibaba also offers products and has the ability to reach a wide audience. China is the famous country in the world and the largest leading economies to have a stronghold in a market. By this, the company can easily enhance the sales of the company (Lambert et al., 2017). Market share Alibaba has a large market share of 58 percent in China. One of the strengths of the company is that the products are also served in China. China has the large share dominance of the good manufacturers who are capable of manufacturing the products at large level and also supplying the products globally (Bock and George, 2017.). Visionary leader The major strength of the company is the presence of a visionary leader like Jack Ma. It is essential to have a visionary leader who can give proper directions to the employees so that the activities can be conducted smoothly. Jack Ma gives proper direction to the employees and helps to encourage the workers so that the activities can be conducted effectively (Lei et al., 2013). Many Sellers Alibaba does not take into consideration number of sellers who register to establish a partnership with the company. This has given impact on the number of sellers who are giving competition in the online marketplace. The company is not able to attain success just due to the high level of competition and many sellers in the market. When the company came into existence, there were more than 8.5 million sellers and the number is increasing (Hacklin et al., 2017). Very high discounts The company is not able to allow the sellers to sell at fair and profitable prices are one of the weaknesses of the company. The revenue is made by selling advertising spaces for the sellers. The seller does not have the opportunity to sell the products at profitable rates (Tsui et al., 2017). Rising investments and demand of E-commerce portals It is important to maintain trust with the customers so that the sales can be enhanced. There are very fewer commerce portals that attain trust and one of the companies is Alibaba. It is seen that when Alibaba expands to a new country it is important to have trust in the brand. It is important to maintain trust so that the company can expand its operations in a new country. Due to this tough competition is given to the local e-commerce players. Aggregator based model The aggregator based model helps to minimize the costs and keep its activities lean. This also helps to present an opportunity so that model can be replicated to the other markets. Competition level It is evaluated that entities like Tencent and JD.com are the competitors to Alibaba in China while Amazon and eBay are the global threats. Due to the rise in the competition level the company has to face a tough competition to management its operations in various areas (Shen, 2016). Stability of economy To decide the success of the organization it is seen that economy plays a great role. But it is seen that almost all the operations of the business are conducted from China and the global market will have an impact due to the change in the economy (Micklethwait and Dimond, 2017). Profitability With the increase in demand, the level of services from e-commerce portals is also enhanced. It is seen that the overall profits of the companies are also reduced which is one of the major threat to the Alibaba. Also, there are many companies that offer similar services and products so that impact is seen on the profitability. Objectives for the first and second years of market entry To enhance the market share To give proper knowledge of the products and services offered to the customers To enhance the customer base Increase in the revenue To enhance brand image Product strategies The company should focus on introducing the products by analyzing the needs and wants of the customers. If needs and wants of the consumers are analyzed then it can help to grow in the market effectively. To increase the overall demand and to attract customers it is important to make available proper products on the websites so that the customers can easily purchase it (Kim et al., 2016). Pricing strategies The company should introduce the products with the low prices as compared to other websites. By offering low price products the company can easily attract more customers towards the company. If nominal prices are kept of the products then it can easy for the company to enhance the operations. The company should also offer free membership to attract customers. Alibaba should also consider the proper discounts so that the sales can be enhanced and also the customers can be retained (Tan, 2015). Promotion strategies Alibaba should promote the products and services through freebies. It will help to induce customers to use the products and services of the company as an online marketing platform. The company should also promote the products by taking into consideration promotion strategies like public relation and direct marketing at the time of special days like festivals. The products should also be offered by sponsoring of events so that the customers can be aware of the products and services. Distribution Strategies The company should focus on diversification of the products so that customers can feel good and comfortable to purchase the products. Channel of distribution also plays a great role to increase the growth of the company. Distribution channel of the company should also be proper so that the products can be reached to the customers on time. If the products are reached in time to the customers, then it will give positive impact to enhance the satisfaction level of the customers (Liu, 2015). Conclusion So, by analyzing the report it is concluded that Alibaba group is one of the Chinese e-commerce companies that offer a wide array of online and mobile services. To survive in the competitive environment it is essential to focus on the pricing and distribution strategies so that the customer's satisfaction can be enhanced. The buyer's protection level should also be improved to identify unreliable suppliers. 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