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SCM523 - Competitive Strategy of Alibaba Report

   

Added on  2020-03-04

6 Pages1331 Words104 Views
Competitive Strategy

Table of ContentsINTRODUCTION.....................................................................................................................................3Company 1: Alibaba...................................................................................................................................3Company 2: Dominos Pizza.......................................................................................................................4CONCLUSION..........................................................................................................................................5REFERENCES...........................................................................................................................................6

INTRODUCTIONCompetitive strategy consists of plans and strategies to gain competitive edge in the market.The present report provides brief description of Alibaba and Dominos Pizza. It also includes the theoryof business model innovation of both the companies and how they have used it to create a distinctimage in the industry. Company 1: AlibabaAlibaba Company was a B2B enterprise in its initial years but they increased their portfolio tomake sure that they grow at a rapid pace in the market. Chinese market has been experiencing a gradualshift in the technology and expectations of the consumers. Alibaba adopted innovation, organisationalflexibility, information system and replanning process for continuous development (Business ModelAlibaba, 2014). Alibaba has been selected for the analysis because it is the largest retailer in the world.They have been able to capture 80% of the market in China. The company has been benefitted fromtheir cost leadership strategy which has been excellent. They have been proactive in their approach dueto their replanning process. Alibaba has been able to generate profits even at lower profit margins due to their effective costleadership strategy. Their business model is based on continuous development which allows them tomake changes in their processes and strategies as per the business environment. They have been usingRevenue model innovation theories in the organisation (Günzel and Holm, 2013). It provides adirection to the organisation because the revenue framework takes into account the target audience,pricing strategy, marketing, value chain and growth. They have developed a well structure revenuebusiness model which helps them to accomplish the main objectives of the firm. They have beenchanging their plans and approaches to allow innovation and development. They have ensured that theyprovide re-configuration in their products, services and value mix. They use advertisement, promotions,commission, transaction and revenue subscription model (Matzler, Bailom and Kohler, 2013). Theyhave been able to strive in the e-commerce industry. Apart from this, they have competitive advantagein the industry due to their proactive approach and first mover advantage. The Revenue modelinnovation of Alibaba focuses on sharing revenues. It makes it easy for people to connect and sell theirproducts through its platform. Furthermore, they have ensured that they take into consideration thecompetitive environment in the market. Their flexible business model has been beneficial for thembecause they can make changes before other companies. This has allowed them to create products andservices as per the demands of the consumers. They also allow their customers to give their feedbackabout the products and services (Business Model Alibaba, 2014). Even though the competitive rivalry

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