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IS 320 - Competitive Strategy Assignment | Alibaba and Tesco

   

Added on  2020-03-07

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Business DevelopmentMarketingLanguages and Culture
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Running head: Competitive Strategy 0Competitive StrategyAssignmentAlibaba and Tesco
IS 320 - Competitive Strategy Assignment | Alibaba and Tesco_1

Competitive Strategy1Alibaba GroupAlibaba Group is a Chinese company established in 1999 in China. The company’s headquarters are located in Hangzhou, Zhejiang, China. The company was founded by Jack Ma. The company is an e-commerce website that provides customer to customer, business to customer and business to business services to its customers. It has operations across 200 countries. In 2016 the company defeated world’s largest retailer Wallmart and secured the topmost position. The company began as a website that was designed to help small Chinese manufacturers and retailers to sell their products in global markets. Now the company is a world leader in online and mobile e-commerce. Today the company has expanded its portfolio to digital media, cloud computing and entertainment (Alibaba group 2017).Today Alibaba is more successful than eBay and Amazon together. The credit for Alibaba’s success could be credited to unique business model and sustaining the competitive advantage through innovation and development. The company had a unique business model that was designed only for small enterprises. This model provided value to small enterprises that were not possible individually (Pavie 2016).Alibaba’s business model is different from that of competitors rather than normal e-commerce company, Alibaba makes efforts to provide best service quality to sellers and buyers. The company works on the principle of collectivism andtrust. People look up to Alibaba as a platform where they can build up trade connections withpeople internationally. It is easy to gain competitive advantage but difficult to sustain it. Every company needs to do something innovative in order to remain in the competition. The company sustained its competitive advantage through time to time innovations. The major successful innovations that helped the company secure current market standing are discussed below (Success story 2017):In 2003 Alibaba founded Taobao. Taobao is a customer to customer retail sales website of Alibaba group.In 2004 the company offered Alipay. It is an app which holds payment and releases it to the seller only when the product is received.In 2005 the company entered into a partnership with Yahoo and acquired Yahoo China.In 2008 the company launched a web portal known as Tmall.In 2010 company introduced a search engine for shopping named eTao.
IS 320 - Competitive Strategy Assignment | Alibaba and Tesco_2

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