Business Enterprise And Techniques Report

RUNNING HEAD: BUSINESS ENTERPRISE
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Business Enterprise

Business Enterprise
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Introduction
Alibaba Group limited is a company based in China and offer services related to e commerce,
internet, retail and technology. The company was founded in 1999 by Jack Ma and provides business
to business, business to consumer and consumer to consumer sales services through web portals;
cloud computing, electronic payment services and shopping search engines. The company was started
with the investment of $80,000 from 80 investors. Alibaba partnership with Yahoo in 2005 and
Yahoo took 40 percent stake in the company. Alibaba operates 22 percent of its business in towns and
village in 2014. Alibaba ranked 9th at the global level for brand valuation and is one of the biggest
investment corporations and venture capitals firms in the world. Alibaba evolved as a digital
company and provide energetic, unique and innovative solutions to satisfy need and demand of
consumers (Clark, 2018).
Alibaba retail e commerce segment covered 58.5% market share in China but increasing competition
from big players make it difficult for the company to survive and grow across the world. The
company returns to growth as in 2019, revenue of the company grew up to 51% to $13.9 billion. The
monthly reach and active users of Alibaba increased significantly in 2018. In near future, the
company will plan to expand in Europe, Asia and Middle East. Inspite of strong position of Alibaba
in the Chinese market the company is facing challenges to operate at the global level because of
competitors like Amazon (Wu and Gereffi,2018).
PEST Analysis
Political Factors: Alibaba is a leading player and operates at the global level due to that facing many
political challenges. But in the China market the company can face issue because of China US trade
war and due to changing policies of Chinese government for encouragement of regional businesses.
The trade relationship between China and America affecting the world trade due to that Alibaba
services and operations may get affected or especially expansion of Alibaba in the European countries
might get affected (Zhong, 2019).
Economic Factors: The Chinese economy is the growing economy but due to various factors the
Chinese economy has been flourished and gained second position in the world economy. Alibaba
main factor of success is growth of China economy and due to that the company is able to succeed at
the global platform also. Any changes in Chinese economy affect the operations of Alibaba. Some of
the other factors that can affect the business of Alibaba are employment rate in China, disposable
income of people, and standard of living in China (Rothaermel,2016). Any changes in these factors
lead to issues for Alibaba at the global platform and in the Chinese market.