Summarising Comparison And Global Ebusiness

Running Head: E-BUSINESS 0
Global E-Business
Student Details:

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Contents
Introduction................................................................................................................................1
Evaluation and Comparison of Amazon and Alibaba................................................................1
Alibaba...................................................................................................................................2
Amazon..................................................................................................................................2
Summarising comparison.......................................................................................................4
Recommendations......................................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

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Introduction
In today’s increasing use of technology, e-commerce is taking pace also called as online
business or e-business where companies processes its conduct on the Internet including
buying and selling of goods and services along with sharing any commercial information or
transaction. It consists of providing services to customers, production control management,
processing payments, collaboration with business partners, to run automated services of
employee, and recruiting as well. There is increasing growth of e-business nowadays where
websites such Amazon and Alibaba are building their position. These websites used models
of customer journey to analyse, investigate and evaluate the process and features of customer
experience and decision phase through these sites (Stenitzer, 2016). Such models include
easy-to-convince model, before-and-after model, circular model, and consistency model.
Amazon created a model for better customer experiences to provide digital services by setting
standards in e-commerce (Jongen, 2018). However, Alibaba used the model of aiming at
online commerce dominance along with making transactions to make better customer
experience seamless. This report will compare and contrast both these websites to know the
effectiveness of e-business within retail sector. The report will also focus on inside and
outside activities by using customer journey models.
Evaluation and Comparison of Amazon and Alibaba
In e-business or e-commerce, B2C is business to commerce where customer buys products
from seller through transacting online within shopping sites such as Amazon and Alibaba.
Across the globe, these online websites are creating investment opportunities and competitive
advantage with expansion of customers based on modern trends. There are different payment
methods available for the customers such as wallets, net banking, debit and credit cards, and
UPI for ensuring better and trustworthy payment processing as per the recent times. Also,
these renowned companies provide satisfied products delivery with proper packaging and
protection for maintaining customers’ attraction towards such sites and increasing market
expansion. Amazon and Alibaba are the two great disruptors within retail sector of traditional
bricks and mortar (Hong, 2015). Both companies focus on new models creation to serve best
to its customers with their rising expectations and making their experience better.

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Alibaba
Alibaba operates globally but mainly in China consisting business of Tmall, AliExpress and
Taobao as a strong competitor on the Internet among rest of the competitors other than
Amazon (Lewis, 2019). The company showed its growth with international presence and
other retail investments in e-commerce. However, Alibaba’s customer journey is not as good
as Amazon in terms of experience due to the company’s infrastructure in relation to making
transaction and navigation. There was also the reason of security and payment environment
for customers in the portal of Alibaba along with lack of customers’ interaction (Belding,
2017). Alibaba decided to remodel their customer journey for providing satisfaction with
execution speed, and implementing and structuring innovation strategy within the retail sector
but did not get the chance to do it (Allison, 2019). Though, Alibaba adapted the easy-to-use
and customer-centric model in business for making customer journey better for future. Also,
they decided to develop value-based model for avoid their further failures in the phase of
customer journey and lead to success with increase in business opportunities through
innovative technology in easy business while performing activities across the globe on the
Internet platform for competing efficiently within the online retail sectors of e-business
(Yazdanifard & Hunn Li , 2014).
In e-commerce, Alibaba’s model focuses on effective operation and development processes
while targeting groups along with providing multiple channels and new technology for
customers in business. Alibaba showed the examples with using success factors and best
practice along with the improvement areas among proper coordination and development
processes for market opportunities in business globally (Volz, 2018). In business, the
company made the adjustments series to “yahoo.com.cn” as a powerful search technology,
IM tools, E-mail, and PPC advertising while determining future through using practice of
Jack Ma theory and formulating business model. Alibaba implemented Alisoft.com for
improving management levels by offering new “SaaS (software as a service)” model to
provide better services with outstanding value and superior shopping experience to customers
(Qing & Xue, 2009). Hence, due to this failure, Alibaba thought of shifting from B2C to B2B
(business to business) for further growth and expansion as an e-business.
Amazon
Amazon is the largest online retail globally but mainly in the United States contributing
innovatively and successfully with the subscription service of unlimited shopping for

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customers and flexible shipping features and processes overall (Levy, 2019). Amazon is the
master of customer journey as per the classical marketing model that is customer-centric and
revenue model used by the company while focusing on business showing a long-term
perspective. For instance, innovation within the model made the company to launch Amazon
Go for “Just Walk Out Shopping experience” for users with the uniqueness of no lines and no
checkout at the time of entering the stores and taking the products as they want (Chaffey,
2018). Amazon provides the best customer experience through this model by treating their
different customers distinctly, excellent experience opportunity of abandonment, and
embracement of improvements in their experiences continuously. Amazon keeps on trying to
make its doing of business easier for customers, anticipating the going of customers and
letting their customers to explain behaviour (Coleman, 2018).
Source: (Corcoran, 2018).
Thus, the customer journey model of Amazon included making everything simpler for
customers with the ideas such as “One-Click shopping”, shared the experience of joy in every
aspect by providing the source of entertainment with considerable purchase and made
experience better, fulfilled the needs of customers before they demands for it by providing
them easy access to the site. Amazon got it right, “Frequently Bought Together”. Also,

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Amazon kept its bar of innovation as per the needs of the customers and the company is truly
obsessed by its customer (Martins, 2014).
Summarising comparison
Alibaba is growing but cannot compete with Amazon in any way even with common features
consisting revenues and digital services as well (Hunersen, 2020). Alibaba does not have
warehouses like Amazon and not involved in direct sales as well. Amazon provides better
customer experience compared with Alibaba in relation to their business models for customer
journey. Alibaba has to face multiple challenges while adapting new economies and finding
new customers whereas Amazon invest largely in their sales increment and focusing on
prominent regions. These both companies compete with each other to be global leader where
Alibaba dominates the consumer retail industry in China and Amazon is considered as re-
seller owning supply chain and inventory while selling directly through customers. Amazon
has the market capitalization of USD 800 billon and Alibaba is twice smaller of Amazon
(Coinvesting, 2019). However, both businesses are leaders in their respective markets that is
the US and China with tremendous opportunities and growth. Both the company’s models
aims at providing easy transactions and connections within and outside among merchants and
consumers. They have distinct unique methods at the time of strategy execution within
different operational environments (Achim, 2019).
Recommendations
In order to improve their customer service experience, it is important that both Amazon and
Alibaba focuses on implementing business strategies that are targeted towards removing gaps
from their current practices and implementing new channels that allows them to interact with
their customers. One of the key areas in which Amazon succeed is delivery of customer
service, based on which Alibaba has to make sure that it also improves its customers service
divisions in order to provide competition to Amazon in the global marketplace (Newman,
2018). Both the organisations should use technological advancements in order to achieve this
goal. Just like Amazon, Alibaba should also use customer service bots in order to increase
efficiency of customer interaction and removing spam calls. The company should also focus
on increasing the investment in its customer service division to hire low-salaried employees
in developing nations in order to provide better engagement with its customers to resolve
their queries while also maintaining its operating costs. Amazon and Alibaba should also
invest in implementing Artificial Intelligence technology in their operations that will reduce

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the requirement of human assistance in customer service and it will improve the overall
experience of their customers (Watt, 2019).
Conclusion
Based on the above observations, it is concluded that Amazon and Alibaba are two of the
leading B2C organisations that offers their services globally; both of these companies focuses
on delivering effective customer services to maintain their brand reputation and competitive
advantage in the online market. Amazon and Alibaba are using many technologies to improve
their B2C operations with innovation and technology for making the journeys phase of
customers better through using models for providing better experiences and ease of
transactions while buying the products and services. E-commerce is a huge platform for such
companies and increasing the competition globally within the online retail sector. Amazon is
already growing and enhancing their business in and outside the US more than Alibaba but
still needs some advancements and improvisation whereas Alibaba needs to push its
expansion not only in China but globally as well. Lastly, based on the competition, the
recommendations sum up the need of faster network while using technology and providing
guidance to individuals for better future opportunities.

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References
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Available at: https://jingdaily.com/amazon-vs-alibaba-everything-you-need-to-know-
about-the-two-biggest-e-tailers/
[Accessed 26 March 2020].
Allison, 2019. New retail in China: Redesigning the consumer journey | Daxue
Consulting. [Online]
Available at: https://daxueconsulting.com/new-retail-in-china-daxue-consulting/
[Accessed 26 March 2020].
Belding, S., 2017. Alibaba Customer Experience: A Study In How NOT To Do It.
[Online]
Available at: http://customerthink.com/alibaba-customer-experience-a-study-in-how-not-
to-do-it/
[Accessed 26 March 2020].
Chaffey, D., 2018. Amazon's business strategy, revenue model and culture of metrics: a
history. [Online]
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revenue-models/amazon-case-study/
[Accessed 26 March 2020].
Coinvesting, 2019. Alibaba vs Amazon — How does their business models differ?.
[Online]
Available at: https://medium.com/@a.ruzainirashid/alibaba-vs-amazon-how-does-their-
business-models-differ-f0aa66364c60
[Accessed 26 March 2020].
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[Online]
Available at: https://www.destinationcrm.com/Articles/Web-Exclusives/Viewpoints/3-
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[Accessed 26 March 2020].

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Corcoran, D., 2018. Three Customer Experience Lessons From Amazon. [Online]
Available at: https://thefinancialbrand.com/70509/banking-customer-experience-cx-
lessons-amazon/
[Accessed 26 March 2020].
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[Accessed 26 March 2020].
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[Accessed 26 March 2020].
Newman, D., 2018. Alibaba vs. Amazon: The Battle Of Disruptive Innovation Beyond
Traditional E-Commerce. [Online]

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