Strategic Analysis of Alibaba Group Holding Limited

Running Head: ALIBABA E-COMMERCE COMPANY
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Alibaba e-Commerce Company
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Table of Contents
1.0 Introduction
1.1 Purpose of Study
1.2 An Overview of Alibaba Group Holding Limited
2.0 Alibaba’s Statements
2.1 Alibaba’s Vision
2.2 Alibaba’s Cultures and Values
2.3 Alibaba’s Vision Statement Analysis
2.4 Focus Clear and Motivational
3.0 Environmental Analysis
3.1 PESTEL Analysis
3.2 Porter’s 5 Forces
4.0 Capability Analysis
4.1 Value Chain
4.2 Resource Audit

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4.3 VRIO
4.4 KPI Benchmarking (Alibaba Vs JD.COM)
5.0 Proposed Strategy
5.1 SWOT
5.2 TOWS
5.3 Ansoff Matrix Proposed Strategies
6.0 Evaluation of Proposed Strategy – SAFe (suitability, Acceptability Feasibility)
7.0 References
8.0 Appendix
1.0 Introduction
Strategic management is the comprehensive collection of ongoing practices and procedures that
an organization uses to efficiently facilitate and align the resources & actions with their mission
& vision all through., Jagero(2014).
There are alternate views that says Strategic management is a tool made available and accessible
for organizations to establish the organizational management systems., Gerry (2014).
Some of the elements Strategic management covers aremonitoring, analyzing, assessing and
continuous planning of all that is necessary for an organization to meet its goals & objectives. It

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encourages one to survey their organization's current situations, chalk out strategies, deploy them
and examine the viability of the implemented strategies.
1.1 Purpose of Study
This report will examine& analyze the Strategic Plan of Alibaba Group Holding Limited,
Report Analysis will consist of
 Evaluating and determining both Vision and Mission statement matches the company
focus.
 Evaluating the external Macro environment of E-Commerce industry in China.
 Evaluating the internal capabilities of Alibaba Group Holding Limited.
 Conducting a 3-year Key Performance Indicator (KPI) analysis between Alibaba
Group Holding Limited and JD.COM
 Proposing Relevant Strategies to address issues identified in Alibaba Group Holding
Limited
 Evaluating the Proposed Strategy
1.2. An Overview of Alibaba Group Holding Limited
Alibaba Group Holding Limited, founded in April 1999 by Jack Ma whom was an ex
teacher in Hangzhou, China. He led 18 people together and started this company to
champion small businesses with the confidence that the internet even the oddsby
empoweringsmall enterprises to use technology and innovation to develop and
competeall the more viably in the local and worldwide economies.

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Alibaba Group Holding Limited,most commonly known as Alibaba is a Chinese
multinational online business, retail, Internet, AI and Innovationcombination that gives
customer to-shopper, business-to-purchaser and business-to-business sales services by
means of web-based interfaces, and in addition electronic installment administrations,
shopping web crawlers and distributed computing administrationsas well as electronic
purchasing services, shopping web crawlers and cloud computing services.
Alibaba is a Public Listed company on New York Stock Exchange (NYSE :
XNYS:BABA), owns & works a various exhibit of organizations around the globe in
various divisions, and is named as one of the world's most respected organizations by
Fortune.,(Tung 2018).Alibaba is one of the top 10 most valuable and biggest companies
in the world., (Rebecca2017)and it is also the second Asian organization to break the
US$500 billion valuation stamp and as of 2018, Alibaba has the ninth highest global
brand value.
Alibaba Group Annual Revenue Report from 2010 to 2018 (in yuan millions)

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Figure 1: Alibaba Group Annual Revenue Report from 2010 to 2018 (in yuan millions)
2.0 Alibaba’sStatements
2.1 Alibaba’s Vision
 To solve challenges of small business in procurement, sales & marketing,
management & financing through information technology
We aim to build the future infrastructure of commerce. We envision that our customers will meet,
work and live at Alibaba, and that we will be a company that lasts at least 102 years.
 Meet at Alibaba

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 We enable hundreds of millions of commercial and social interactions among
our users, between consumers and merchants, and among businesses every
day.
 Work at Alibaba
 We empower our customers with the fundamental infrastructure for commerce
and data technology, so that they can build businesses and create value that
can be shared among our ecosystem participants.
 Live at Alibaba
 We strive to expand our products and services to become central to the
everyday lives of our customers.
 102 Years
 For a company that was founded in 1999, lasting at least 102 years means we
will have spanned three centuries, an achievement that few companies can
claim. Our culture, business models and systems are built to last, so that we
can achieve sustainability in the long run.
2.2 Alibaba’s Cultures & Values
Cultures: To operate an ecosystem where all merchants, participants, third-party service
providers, consumers and others have an opportunity to prosper.
Success and rapid growth is built on the spirit of innovation, entrepreneurship,
and an unwavering focus on meeting the needs of the customers.

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Believing that a strong sense of shared values enables them to maintain a common
company culture and community, no matter how large they grow.
Values: Alibaba's values are fundamental to the way they work and how they enrol, assess
and compensate their people.
Alibaba group has 6 values and they are:
Figure 2: Alibaba group 6 values