Development of Innovative Digital Business Strategy for Alibaba

Running head: DEVELOPMENT OF DIGITAL BUSINESS STRATEGY FOR ALIBABA
Development of Innovative Digital Business Strategy for Alibaba
Name of the Student
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DEVELOPMENT OF INNOVATIVE DIGITAL BUSINESS STRATEGY FOR ALIBABA1
Table of Contents
1. Synopsis.......................................................................................................................................2
2. Individual Report.........................................................................................................................4
2.1 Introduction............................................................................................................................4
2.2 Discussion..............................................................................................................................5
2.2.1 Digital Business Strategy at Alibaba..............................................................................5
2.2.2 Management of Business Performance by Alibaba......................................................11
2.2.3 Evaluation for Big Data Technology established for Alibaba......................................15
2.3 Conclusion...........................................................................................................................19
References......................................................................................................................................22

DEVELOPMENT OF INNOVATIVE DIGITAL BUSINESS STRATEGY FOR ALIBABA2
1. Synopsis
The Alibaba Group is considered as one of the most reputable kind of multinational e-
commerce company that primarily specializes in the sector of retail, internet and e-commerce.
The company was founded during 1999 in the city of Hangzhou of China. The company is
categorised as a B2B website specializes to the rising demands of buyers, suppliers and
promoters. The primary target audience of Alibaba’s website is their employees and globally
distributed customers. From the year of inception till the present times, it has been seen that
Alibaba has experienced tremendous form of growth in their digital business strategies.
Alibaba follows a simple ecosystem within the digital business strategies based on
linking their wide ranging number of seller and buyers of goods and various other services. With
the movement of business functions towards the online platform different functionalities that are
performed are marketing, logistics, advertising, finance and social media strategies. Digital
marketing, as the name suggests, refers to the wide number of processes based on providing
services and products to their dedicated customers with the help of Internet based strategies. The
Internet is used as the primary tool for sending items to customers. Digital marketing and
business strategy also refers to the collection of information, analysis and enriching the use of
information for evaluating the activities of customers.
All form of digital business strategies that would be implemented through the Internet are
considered as the primary means for achieving certain kind of objectives based on marketing.
Digital business forms a major component within the marketing of the business functionalities of
Alibaba. The various functions based on performing digital business includes promotion of their
website in various social media platforms, launch of specialised information, maintaining an

DEVELOPMENT OF INNOVATIVE DIGITAL BUSINESS STRATEGY FOR ALIBABA3
efficient relation with customers, enhancing the channels based on sales and service, online
research and promoting their brand for building a global reach to customers. Alibaba is thus
considered as one of the largest form of experienced companies based on the Internet since their
inception. These different kind of digital business strategies are further been implemented for the
purpose of ensuring the practices of providing their customers with comprehensive form of
marketing services.
Based on enhancing their digital business strategies, Alibaba had also developed their
payment instrument, which was named as Alipay that was firstly implemented in China. The new
kind of instrument based on making digital payments was mainly designed to enhance their
digital business platforms and it had also contributed to a major success factor for the business.
Alibaba also supports a major process of gaining feedbacks from their customers and employees
regarding the type of services that they offer to their online customers. Alibaba, which is in the
constant process of expanding their business market have approached the strategy of offering
freebies to their customers.

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2. Individual Report
2.1 Introduction
Alibaba is presently been considered as the largest and reputed e-commerce platform,
which continuously has been in the process of expanding their business opportunities in all over
the world. Since its inception, the company has been in the process of developing new kind of
online strategies and enhanced form of business growth opportunities that has the capability to
attract the international customers (alibaba.com 2020). The different strategies that are set
forward by the business sets their standards apart from rest of the competitors of the company.
Alibaba Group comprises of seven business groups, which are considered as the growth factors
leading towards the positive outcomes as planned for the business.
The company operates as one of the leading e-commerce business, which expands their
operation over the online mode of mobile marketplace in terms of wholesale and retail trade.
They also perform different other kind of services such as supporting an online platform that
would enable merchants, customers and various participants for conducting business based on
associating within their network. In the present state, Alibaba possess the capability to run both
of their domestic and international marketplace (Jin and Hurd 2018). These marketplaces
primarily put their focus on a globally distributed network that is established for suppliers and
buyers based on the consideration of raw materials, integrated components and wide form of
finished goods. The domestic market supported by Alibaba focuses on buyers and suppliers
situated in China.
The mission and goals that are set by Alibaba is based on building a profitable and strong
kind of business to customer connection. In order to maintain the efficient form of connection

DEVELOPMENT OF INNOVATIVE DIGITAL BUSINESS STRATEGY FOR ALIBABA5
with customers, Alibaba had built an efficient marketing strategy, which would have a massive
impact over the overall strategic plan set for the business (Lin and Mehaffy 2015). Upon defining
the success for the organisation, it can be defined that Alibaba had mostly set these plans by
performing market segmentation based on their target market. Intensive form of marketing
analysis and planning have been taken under consideration for taking a long-term relationship
between their sellers and buyers associated within their platform.
In the following portions of the report, the discussion would be primarily be focused
upon the kind of digital technologies that are used by Alibaba in order to enhance the growth of
their business. The discussion would be further be focused on the application of strategic
analytical tools, which would further help in supporting towards the developmental process of
the digital business strategy (Ter Chian Felix Tan, Tan and Pan 2016). In the next part of the
report, the discussion would be put on appraising the ways in which Alibaba would be able to
manage their business performance. Hence, a list of KPIs are discussed, which would help
Alibaba to understand their performance in the international marketplace. The final portion of the
report helps in the evaluation of the big data technology and the ways in which the technology
would be able to enhancing the performance of the business.
2.2 Discussion
2.2.1 Digital Business Strategy at Alibaba
Digital form of business strategy that supports Alibaba can be considered as one of the
most important support systems for the overall business platform. In this context, different
reports published have shown that Cloud Computing has been considered as the strong backend
technology that supports the e-commerce giant in the international market (Anwar 2017). Cloud