The following questions are based on key symptoms (both favorable and unfavorable) of Alibaba Group and underlying causes that affect key symptoms as they are observed in the case. In addition, there is a general question on solutions that also addresses the causes. Each multiple choice and short answer question number under Key Symptoms corresponds to the same question number under Underlying Causes (e.g., Question 3 under Key Symptoms 1 corresponds to Question 3 under Underlying Causes 1).
Before beginning this exercise, you will need to read the Alibaba Group case.
This activity is important because, as a manager concerned with making strategic choices, you have to be able to properly assess the internal and external environment impacting the business. The first step is to identify the underlying causes that are driving business results, and then identify the major symptoms that should be considered. The ultimate objective is to make an actionable and reasoned recommendation that the company should pursue to meet their established business objectives.
The goal of this exercise is to determine that you have adequately analyzed the case and determined the underlying causes critical to making a reasoned recommendation about future action.
Read and analyze the case and answer the following questions related to Alibaba Group
Key Symptoms 1
1. Increasing revenue and maintaining the tremendous growth trajectory of the company is complicated by two kinds of competitors squeezing the growth opportunities. Who are the competitors?
internationally, Amazon and eBay, and domestically, JD.com and Baidu
Amazon and eBay in the Chinese domestic market
JD.com and Baidu in the International market
Amazon in North America and JD.com in Europe and Asia
2. Alibaba Groupâs revenue is generated through a range of diverse fees. For instance, merchant fees are charged to users based on number of units sold in retail centers. Strategically, the diverse fees
enable growth in the domestic digital market because of excessive regulation and diverse business help work around regulations.
force domestic competitors to invest in diverse and complex businesses to match their reach and scope with consumers.
help Alibaba determine where to commit resources for future growth.
add complexity and create havoc for established brands growing rapidly in the domestic market.
3. The structure of the company is complex and growing globally with many divergent e-commerce trading relationships. The complexity is strategically necessary because
adaptation to local markets demands ancillary services (i.e., online to offline relationships).
matching the market strategy of competitors varies from market to market.
developing a global digital ecosystem demands a company offer a range of related products and services.
All of the answers are correct.
4. Alibaba has a labyrinth-like internal structure that is complex when compared to most business models. The structure allows the company to grow rapidly integrating product offerings while preserving management flexibility. This structure is designed to counter
both domestic competition and international competition.
domestic competition.
international competition.
None of the answers are correct.
5. To dominate the global e-commerce market, Alibaba must be trustworthy because competition is fierce domestically and internationally. Alibaba should be centrally concerned with their reputation because
Alibaba does not have the free cashflow to fight the Chinese government in international courts.
Alibaba drives Chinese e-commerce so significantly that setbacks could lead to setbacks of the Chinese economy.
Alibaba does not have the free cashflow to fight the Chinese government in domestic courts.
Chinaâs State Administration for Industry and Commerce (SAIC) would provide greater access to the domestic market to international competitors deemed more trustworthy.