Alibaba is a leading internet marketplace, which began in Japan. It has grown rapidly and has developed into a well-known name. The firm has a distinct international business strategy. This strategy will need to be examined to see if it is appropriate in terms of effectiveness and their chosen vision. Entering into a foreign market can be very challenging, but given the proper research can be done.
Background
Alibaba is a large online and mobile marketplace for consumers, suppliers, and investors. The firm’s mission is “to make it easy to do business anywhere” (Alibaba Group, 2016, para.1). This is done by providing technology and services to aid consumers, suppliers, and other participants to conduct trade globally (Alibaba Group, 2016,
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The main reason is to increase its consumer population, by entering into an international level the firm is now exposed to millions of more potential customers. Also, the firm could seek an international market with intentions of dominating the market. For example, if Alibaba’s services are offered in a country in which no other competitors exist, it is almost certain that the firm will succeed as long as demand occurs. Another advantage to been international competitive capabilities is the shared knowledge of the market among other countries. For example, if an item is popular in one location, it might be wise to launch that product in a location with similar population demographics. This is often seen with big technology corporations, a launch of a new cell phone will not occur worldwide it will be available in specific countries first to test the quality and demand before it is released …show more content…
Alibaba seeks to provide the world’s largest online and mobile marketplace, while making it simple (Alibaba Group, 2016, para.1). This can only be done by using the transnational strategy. The firm has to meet both local and global customers, which can is a major characteristic of the transnational strategy. If the firm adopted any other proposed strategy to enter into international markets it would fall short of either the local or global market demands.
Conclusion
Alibaba is a leading online commerce company. It is frequented by both consumers, suppliers, and investors. This firm seeks to capture both the local and global market places. In order to do this the right international business strategy must be set into place. For Alibaba the implementation of the transnational strategy is best suit to meet their desired outcome. Before making any international moves to infiltrate a foreign market the proper research must be done. A strategic development plan has to occur in order to ensure that the appropriate strategy is used before implementation can
Breaking into new markets helps the company grow and brings in new customers, which leads to higher profit margins.
After I received your email asking me to give recommendations about the IBazar Brazilian operation and your next expansion in Latin America, I spent the whole week analyzing the eBay current situation, as well as the Latin America e-commerce market, in order to come up with the appropriate solution that guarantees an immediate success of your company in the region. First, I will start with a systematic analysis of eBay's international market-entry strategies. Second, I will exanimate the Latin America e-commerce market. Finally, I will use the precedents analyses to provide you with a set of recommendations concerning the prospective expansion in Brazil, as well as, your extension in the entire Latin America as a whole.
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Over the last 30 years the world has seen drastic changes in the Chinese way of making business. Nowadays, China has opened its businesses to the rest of the world, especially America and Europe (Teagarden & Cai, 2009). As a result, their economy has increased and the evolution of the companies have changed to be from closed doors to be international and multinational (Teagarden & Cai, 2009). This essay will analyze, first of all, how some Chinese companies have had success abroad, looking at the strategy that they applied to expand and to improve their products. Furthermore, this essay will show examples of successful Chinese firms, such as Lenovo and TCL Group, and how they achieve it.
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Investing or venturing into the international market involves critical analysis of the internal and external environment in which the company operates. Usually, a company will decide to venture internationally due to a saturated market or fierce competition in the current country of operation. The demand for a company’s products may have diminished as a result of an economic crisis thus the company will target a foreign market to sustain its sales. In other words, the firms expand internationally to seek new customers for its products. For example, the current Euro zone crisis led to low demand in Europe and many companies extended their businesses to emerging markets where demand was high. A company may also venture in the international market to enhance the cost-effectiveness of its operations especially for manufacturing companies that will benefit from low costs of production in developing world. Global expansion is a long term project as it involves demanding logistics to be successful. Thorough research must be undertaken to ensure that the expansion will create value for share...
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The Internet and international business is an interesting topic- discussing an area of business that will probably be around for many years and possibly centuries to come. Since its earliest days, the Internet has been a means of communication, an essential tool in almost instant communication.
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