Chinese Enterprise Investing Oversees
Australia, like any other country in the world, requires foreign investment. Australia and the Chinese economy are moving in consumption-led growth and services.
Alibaba is a giant multinational which is co-owned by an influential proponent Chinese business magnate Jack Ma. Alibaba is a multinational technology giant that deals with e-commerce retail and the internet. It was established in April 1999. The company provides its sales service through its website. There are three primary sales services:
- Consumer to consumer.
- Business to business.
- Business to consumer.
Organizations are one or more people with a particular purpose who work according to rules.
Institutions are the humanly devised constraints that structure political, economic, and social interaction. They consist of both informal restrictions (sanctions, taboos, customs, traditions, and codes of conduct), and formal rules (constitutions, laws, property rights). Institutions are devised by human beings to create order and reduce uncertainty in exchange. Institutions provide the incentive structure of an economy; as that structure evolves, it shapes the direction of economic change towards growth, stagnation, or decline.
Organizations and institutions are interdependent, one changes, the other changes too.
Alibaba influences the market. Development of local responsiveness strategy, which will, in turn, address the dynamism and complexity. Local customer needs, such as sales and distribution, legal regulations, and market structure, are created. Alibaba has the financial muscle to consolidate and expand in the region. A crucial component of Alibaba’s strategy is cooperation with government and state own entities.
From its humble start, the e-commerce company has grown to a multinational empire. Some of the core factors that led to its success are;
- Unique business model
- A trustworthy reputation among the customer is created to develop credit models.
- Customer satisfaction provides a comfortable purchasing environment and positive feedback.
Core competency brings many advantages to the table. Customer-centered and philosophy that are friendly. Alibaba’s entry into the Chinese market was smooth, and they took advantage by establishing Shop on Taobao. Trust among Chinese people. This is through the creation of Alipay, Alibaba has overcome the insecure online payment system in the Chinese market. Economies of scale. Due to the company’s ability to attract a large number of vendors, it can negotiate for lower prices with the sellers and, in turn, pass these to the consumers. It has a very agile and superior supply chain, which provides cost advantage to the companies allowing lower cost coupled with faster delivery. Alibaba delivers higher customer value and cheap service online, which increases its customer base and leads to sustainable growth in the Chinese market.
The company has a vision that in the future where retailers will have no difference between online and offline shopping. Customer experience and satisfaction will be heightened by augmented reality, facial recognition, and artificial intelligence. Alibaba is pioneering its innovative model of retail and is motivated to go beyond e-commerce. Political factors include government policy and regulation. Tax relief is a good influence government can show to industries.
Changes in the macro-environment factors can have a direct impact on not only the Alibaba Group Holding Limited but also can impact other players in the Specialty Retail, Other. The macro-environment factors can affect the forces that shape strategy and competitive landscape. They can impact Alibaba’s competitive benefit or overall profitability levels of the company.
Many Australian firms, like Tmall Global, entered China through Alibaba’s platforms. Australia is the third-largest overseas market. This prompted the company to invest in the country. The companies ambition is to go beyond signing local brands but creating employment. Alibaba will revolutionalize how people shop. Chinese tourist and diaspora in Australia are also a target.
They use the service to order and import products that are not available in Australia, creating opportunities for retailers and building business for investors.
Conclusion
In a nutshell, Alibaba is one of the most advanced e-commerce platforms, and this is attributed to the fact that it has excellent political mileage with the Chinese government. The government has gone forth and put laws that allow a company to thrive.
References
Alibaba group. (n.d.). https://www.alibabagroup.com/en/about/overview
The review of Alibaba’s online business marketing strategies which navigate them to present success. (n.d.). https://www.academia.edu/9300161/THE_REVIEW_OF_ALIBABAS_ONLINE_BUSINESS_MARKETING_STRATEGIES_WHICH_NAVIGATE_THEM_TO_PRESENT_SUCCESS
Swot analysis of Alipay from Chinese to globalization. (n.d.). Homework Help and Textbook Solutions | Bartleby. https://www.bartleby.com/essay/Swot-Analysis-Of-Alipay-From-Chinese-To-P3KG3J2TZA4FP