Weaknesses of AliBaba

One of the major weakness of AliBaba is that it has many merchants onboard, the consequence of which
led to good brands calling off due to high competition , sellers not beingable to make good profits and
counterfeit products from local sellers flooding the markets. For instance, AliBaba cloud bagged the 2018
MySQL award for the second time. In 2015, it became the firstAsian company to be cited as the
WebScaleSQL contributor. This accounts for huge opportunity for AliBaba to become a market leader in
the cloud computing space. While , global players like Amazon, eBay are ,major threat to AliBaba e-
commerce segment, it also faces stiff competition from Asian players like, shoppee , lazada, JD.com and
Tencent. Other key threats to AliBaba are cyber security , economic reccision and weak demand in the
international market.

Rivalvary among the existing competitors

Competitive rivalry is very strong force that can push a company to change its strategy and remake
its decisions. AliBaba faces servere competition from its rivals. They include a variety of online sites within
and outsid China. For example , amazon.com, eBay, noth are its competitors. Even witihin many nations,
it faces competitions such as Daraz.pk, yayoo.com in Pakistan.The success of these other alternate markets
has led to the loss profits for AliBaba over the years. However, a variety of products offered and connecting
buyers directly with manufacturers give AliBaba a competitive advantage as no other platform provides
this facility. Also the rates offered by AliBaba are less than the competitiors. A drawback is the lack of trust
many customers have on Chinese products that put AliBaba in a tough spot. Therefore , the competitive
rivalryis high AliBaba.

Besides that, the number of competitors in the industry in which Alibaba operates are very few.
Most of these are also large in size. This means that firms in the industry will not make moves without
being unnoticed. This makes the rivalry among existing firms a weaker force within the industry. Next, the
fixed costs are high within the industry in which Alibaba operates. This makes the companies within the
industry to push to full capacity. This also means these companies to reduce their prices when demand
slackens. This makes the rivalry among existing firms a stronger force within the industry.