Electronic Commerce Strategies : Alibaba Company

Running head: ELECTRONIC COMMERCE STRATEGIES 1
Electronic Commerce Strategies
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ELECTRONIC COMMERCE STRATEGIES 2
Abstract
The report addresses the analysis of the Alibaba Company in connection to its E-
Commerce strategies. The report is based on the questions addressing various parameters within
the Alibaba Company in China. The report analyzes major services provided by the company,
the importance of the company in China.
Introduction
Alibaba Company is one of the major companies in China. It is referred to as the king of
E-commerce in China. This is an undisputed B2C and B2B E-commerce company in China. It
was founded in the year 1999 by Jack Ma. In the first place, the company began as a B2B
exchange. It enabled the Chinese Manufacturers to sell their products such as circuit breakers as
well as hydraulic cylinders to retailers and traders internationally (Agarwal and Wu p.197). From
the next decade, the company branched out and it became first a C2C sector and the second B2C
sector. The two sectors were proved lucrative. Today, the company has been one of the major
developed tech companies becoming a major competitor company in the Tech sector (Blumer,
2016 p. 49).
Question 1
Advertisement services
This is one of the major services offered by Alibaba Company. The company does not
advertise direct but it offers the platform in which sellers can upload their products. Alibaba
allows the business to upload their requirements (Agarwal and Wu p.198). It the platform
provide the advertisement services by allowing the sellers, suppliers, and business to advertise
their products via the platform. Alibaba Company platform being an international one, many
customers can reach the goods and services advertised through the platform. The alibaba major
competitor in china is Amazon.com. Although Alibaba have high number of the sales annually, it
is followed closely by the Amazon.com. Alibaba need to perform better in future because
Amazon.com could take the first position if Alibaba under performs.
The export services
The company has a website known as OneTouch. This website helps the customers’ book
for their export space in the ships from China to other parts of the world. Through the website,

ELECTRONIC COMMERCE STRATEGIES 3
the customers can click on requirements regarding what they need to be exported. The website
has a customer website that guides customers on how to place an export cart for their goods.
Customers’ clearance services
The company has a website that helps in clearing the customers, especially who is willing
to sell their goods and service to other countries (Spina, 2013 p.1142). The website provides the
customers interphase where the customer can place an order of the goods. Through the websites,
the goods and services for the customer are cleared and allowed to proceed with the business.
Question 2
Alibaba Company took advantage of the fast and easy entry into the Chinese market. It
established fast the shops than its competitors. The company emphasized transparency and a
close relationship with its customers. Through close relationships with customers, buyers trusted
the company than any other competitor company. It is one of the most trusted companies in
China because it has been able to deal with online purchase problems. The company has secure
and easy payment channels and therefore it is the most trusted company in China (Zheng, 2013
p.688). Unlike other competitor companies in China, Alibaba Company has designed a robust
search that eases its use. In addition, this strategy ensures consumer-friendliness. The company
has taken advantage of building customers' closeness in China. The Alibaba Company has
established the economic of scale in China hence being a competitive advantage. The Company
is able to attract a large number of customers and vendors as compared to its competitors.
Comparing Alibaba Company and other competitor ones, Alibaba have gained a lot of trust not
only IN China but also in other parts of the world (Caudle, 2014 p.417). It has a wide range of
customers having a bigger economic scale. It has been able to sell so many commodities in many
parts of the world simply because it is recognized as the most trusted company. Through the
economic scale, the company has been able to offer large scale products in low prices possible.
This is one of the factors that have made the Company more unique than its competitors.
Question 3
Alibaba has made its website so easy to be used by the customers. Most of the business
and customers require a website that provides all the goods and services demanded on the main
page. This is one of the unique features of the Alibaba company website that make it more