Assignment o Introduction to strategy.

OB
Introduction to strategy
Students name
9/30/2019

Introduction to strategy 1
Contents
Introduction......................................................................................................................................2
Company Overview.........................................................................................................................2
External environment analysis.........................................................................................................2
Five force model..............................................................................................................................4
Ansoff strategy analysis...................................................................................................................6
Employment framework / VRIO analysis the strength and the resource position examination......6
Analysis of the critical strategic issues............................................................................................7
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction to strategy 2
Introduction
Company Overview
The company which we are highlights in this task is Alibaba, which is one of the well-known
company as it is world largest online company in China. It is further sub divided into the three
major firms named as, Tmall and Alibaba. This particular company mainly comprises of millions
of merchants who carries the transaction forward. Furthermore, it is seen that it is one of the
most popular company for the online shopping for the people of china. This company yearly
generates money of around $ 248 billion, which is the 4 times bigger in an count of the earrings
of amazon and EBay which are the famous e commerce company of United states (Anwar,
2017).
Therefore, this particular report carries information of Alibaba who is thinking of expanding its
market it United States. For this, what all kinds of strategies they need to adopts will be
mentioned under recommendation parts and what all strength and weaknesses will they face
while relocating is fetched through market analysis under Pestle and porters five force model.
Moreover, this report also carries information about the resource and the capabilities through the
VRIO analysis of Alibaba china while getting into US market.
External environment analysis
When we talk about the external analysis, it highlights an information about the other countries
or the industry analysis which mainly carries an Information about the technical, political;, legal,
environmental, social and lastly technological which determines the company capability while
grabbing information about the market. Furthermore, it helps in understanding and helps in
determining the opportunities and the threats in an industry for which the company needs to
work upon to earn or drive profitability, growth, and volatility.
PESTLE Analysis, carries information about the United States, where pollution is around 318
million and it is considered as one of the largest economies in the world. Recent when we talk

Introduction to strategy 3
about the United States progress, it has moved forward in terms of investments, customers’
expenditure, and there is an decrement in unemployment and literacy concern.
Firstly, when we talk about the political aspect of United States, it is a full controlled democratic
country, which follows the set rules and regulation assigned by the government. In term of
Alibaba, it is harder for them to effectively applies its operation in US market as they will feel
difficult to cope up with its massive political and economic effects over the national and
international policies which are set by the US market and hence, It will negatively affects the
operation of Alibaba in US. Other than this, United States also faces certain issues in regarding
to war and terror and in case of china; they paly save in case of business operations (Cadle, Paul,
& Turner, 2014).
In terms of Economic factor, United States carries the Highest GDP its of around $16.760
Trillion due to this, US is considered as one of the largest economies of the world. Therefore, it
highlights that US is one of the finest country with its finest GDP. In this case, Alibaba can go an
make investment in US market as this will further leads to an increment in the success of the
Alibaba at the largest scale. This is all because US GDP is at highest score. In earlier times, US
faced recession but after that, the economy boomed with the growth of 4% in 2014. Thus, such
aspects make the US country the most efficient yet most profitable country in terms of its
operations (Nandonde, 2019).
In technical terms, United Sates is less updated technology as compared to china as china in
this case win over the united states. This is because china is the techno savvy country where
every adoption of technology generates the higher returns. However, in terms of United States,
Less of technology upgradition is there which further generates the higher risk and competition
in the market. Therefore, in this case also China Alibaba can win over US market as they
applies fully equipped technology which further helps in generation of success for them.
Nevertheless, in United States concern, a country majorly lacks technical aspects and faces the
intense competition from the countries like China and India (Kolios, & Read, 2013).
When we consider the legal aspect, generally it highlights about the laws, employment or labor
laws of the country, information about the intellectual property rights. Other than this, when a
companies enter into a newer country it is important to have knowledge about the other countries