Introduction to strategy.

Management
Introduction to strategy
Student’s name
9/28/2019

Introduction to strategy 1
Executive summary
This particular report mainly throws light on the strategic issues, which are mainly faced by the
company that thinks of relocating themselves in the newer market, newer environment, and the
new country. Furthermore, this report will highlight the challenges, which Alibaba faced while
entering into the newer market and the newer country, United States. It will also reflect on the
competitiveness of the United States and the external environment in which the e-commerce
companies operate. Alibaba while entering into the US faced issues related to the cultural aspect,
political aspect as every country has its own rules, regulation and cultural ways for doing
business. Moreover, certain recommendations are made such as Alibaba while entering the need
to grasp full knowledge of the entire culture of the US, their companies who deal in the e-
commerce business, their strategies to win over their competitors. This company can easily enter
into the new market and easily generate success in the long term.

Introduction to strategy 2
Contents
Introduction......................................................................................................................................3
Company overview..........................................................................................................................3
External analysis..............................................................................................................................4
Pestle analysis..............................................................................................................................4
Porter five-force model................................................................................................................5
SWOT analysis............................................................................................................................8
Internal Analysis..............................................................................................................................9
VRIO/ Dynamic capabilities........................................................................................................9
Recommendations-........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12
Appendix........................................................................................................................................14

Introduction to strategy 3
Introduction
In general terms, strategic issues are considered as the heart of the strategic planning process, as
recalling the strategic issue is one of the fundamental yet challenging aspects which majorly
affect the organization mandates, mission, vision, values, product, services, cost, financing and
the entire organization at large (Perrott, 2011). Hence the strategic issues which an organization
faces is all due to the uncertain future, regulation and the future compliance, changing
technology and lastly, finances are the main reason due to which the issue arises and thus,
majorly affects the workings and the entire performance of the firm at large (Sommerfeldt, &
Yang, 2017).
Company overview
Alibaba is one of the well-known company which is considered as the world largest or biggest
online commerce company. This company mainly works in three main sites named as, Taobao,
Tmall and Alibaba. These particular users are in millions and host millions of merchants and
businesses. Moreover, Alibaba handles more than three industries than any other E-commerce
company does (Barczyk, Falk, Feldman, & Rarick, 2011). Hence, it is considered the most well-
known destination for online spending, which is the world's largest and fastest-spreading e-
commerce market. Dealings on its operational websites mainly are of around $248 billion in last
year, when we compare it with other e-commerce business such as Amazon or eBay it is 4 times
of them (Jung, Ugboma, & Liow, 2015).
However, when we talk about its further expansion of Alibaba in the United States, the
organization must be facing major strategic issues before and after successful relocation in the
new market (Anwar, 2017). For that, this particular report will discuss the market analysis of the
United States through considering external analysis, by using pestle analysis, porters five-force
model, SWOT analyses which helps Alibaba to know more about the US market more openly.
Other than this, this report also carries information about the internal analysis, by understanding
the particular framework named VRIO, which mainly highlights the strength and the resource
position of Alibaba so that in another country they can mount a successful competitive fight in
order to establish the fine position.