Assignmnet

Q.1. What strategies would Alibaba need to pursue for global expansion towards online
supremacy? Which market entry methods are best suited for an e-commerce firm like Alibaba?

Ans: Alibaba needs to expand his business model, only not limited by B2B and C2C. E-commerce
business requires the logistics, financial (trade financing), data management and marketing
services. Alibaba shall have a subsidiary companies or strategic alliance for these services.

Logistics:-

Presently, Alibaba is in strategic co-operation with china post. For going global, it needs to have
a strong logistics partner . This logistics partner can be a subsidiary company or having strategic
alliance. Logistics Company shall be able to handle the inspection and storage of the component.
Their inspectors will visit the manufacturing and/or port facilities anywhere in China and provide
reports, including photos, to certify that the goods being shipped meet the quality standards
specified in your global contract .Partners must major freight forwarders to provide sea, air & land
shipping solutions from China to global destinations. This will also help for small & medium sized
enterprises.

Financial :-

Presently Alibaba operated under Alipay for the facilitating the any individual and business to
securely, easlily quickly send and receive payment online. Alibaba helps manufacturers and
suppliers sell to other businesses both in China and internationally.
Extending this, companies to borrow credit from banks without having to put up any collateral
based creditworthiness based on sales and other data supplied by Alibaba.com.This financial
partner offering micro-lending services to small e-commerce companies in China which in China
find it nearly impossible to obtain conventional business loans. In turn, Alibaba provides the
foreign companies the alternative of piggybacking on Alibaba’s Licence rather than to acquire
their own.

Data Management (Cloud) & Marketing:-

Marketing is essential for any organization or business as it provides a channel for organizations
to connect with their target audience. Today, businesses can maximize their potential at the right
time and the right place by targeting customers online, which is where consumers spend a significant
amount of time. Expanding existing E-commerce platforms by marketing and selling world brands
to Chinese consumers while simultaneously introducing products made in China to World
consumers.

 Access to China: As the largest public cloud vendor in China, Alibaba offers advantages
for companies wanting to do business in the country.
 Global Coverage: While Alibaba is strongest in China, it should serve international
customers as well.
 Advanced Performance: The Alibaba Cloud / data management website claims the
company has set benchmark records in data sorting, mitigating virus attacks and
processing ecommerce transactions.
 Strong Security and Compliance: Complaince with international regulatory , Alibaba will
be most trusted universally as it complies with international regulations.
  Wide range of services: Alibaba Cloud's list of services should include artificial
intelligence (AI) research and development, and offer advanced big data and analytics
services.
Based on the strength , Alibaba shall have strategic alliances with other partners as well as joint
ventures with other companies , This will have a strong presence in other region.

Alibaba can also explore the wholly owned subsidiaries for the above mentioned services.

Q.2.In the context of the case, share Rostow’s Stages of Economic Development and share in
which stage is China and why?

Ans : Rostow's Stages of Economic Growth provides model that occurs in five basic stages, of
varying length:[1]
1. Traditional society: - In the E-commerce business, china was ranked below average.
There is no legal framework, violation of intellectual property and hence headache to many
companies operating in china. Hence due to poor technical infrastructure and other
barriers to B2B e-commerce. Lack of system to monitor and guarantee buyer and sell
credibility including inefficient delivery system. China government also poses censorship.
2. The Pre Conditions of take-off :- In 2001 , Chinese media hinted for comprehensive
rules governing internet . Based on same State council, issued proposal for accelerating
the development of E-commerce and to examine electronic trading regulations, credit
management , security certification , online payment and taxation of e-commerce . Also
electronic signature having legal validity was country growing online.
3. Take-off :- B2B business a brought revolutionary changes through which company is so
focused on the internet that not only does it offers its services to its client online but also
it does transactions with its providers online too.
This changes the traditional methods of transaction , reduced or eliminated compelx tasks
, improved efficiency , faster decision making , information sharing about buyers and
sellers .
4. Drive to technological maturity : B2B has various formats and there are many ways to
establish a big market place to help small and medium sized companies succeed and
make money .
5. High mass consumption : Till date , the E-commerce business is yet to exploit the full
advantage of meeting the consumers demand as well as suppliers needs . There are other
related services which has its own issues related to security , violation of intellectual
property etc . World is yet to receive the full-fledged supplier to meet high mass
consumption.

Presently china government pushes for internet reforms to spur growth of the entire Chinese B2B
industry. E-commerce industry need to shape and control the direction of increasingly globalized
business environment .Hence china e-commerce industry is leading in driving to technological
maturity.

Q.3.What is the International Planning Process and how will Alibaba align it’s international
planning process in the context of Global Marketing Management?

Ans :
Phase 1 : Preliminary analysis & screening :
Determines which targets to pursue and establishes relative priorities for resource
allocation.
Phase 2 : Defining market segments and adapting marketing mix :
fits the positioning strategy each target market. The objective is to match the "mix
requirements to the needs identified and the positioning concept management
selects.
Phase 3 : Developing marketing plan :
Consists of the preparation of the marketing plan. Included are the situation
assessment, objectives, strategy and tactics, budgets and forecasts, and action
programs.
Phase 4 :- Implementaion & Control
the plan is implemented and managed. Results are evaluated and strategies adjusted
when necessary to improve results.

Alignment of Alibaba of International marketing plan

1. Alibaba shall use internet generating the