VRIO FRAMEWORK

Having technological infrastructure as one of the most valuable resources and capabilities gives
Alibaba lead time against comeptitors (Everything Alibaba Does Differently — and Better,
2018). Giving a feeling of trust and safety, Alibaba has achieved by introducing AliPay through
their Ant Groups (AntGroup, 2024). Having this intangible capability which is built through
time, effort and persistence is rare and inimitable. With such infrastructure, Alibaba is surely
able to get fast data and information about customers behavior, preferences, transaction habits
and use it to enhance their user experience and further develop their businesses such as cloud
computing- building their infrastructure (Staff, 2016). It's not just about technological
advancement and innovation, as much as it is about creating and building the ecosystem
(Everything Alibaba Does Differently — and Better, 2018). Alibaba created an ecosystem which
is used, for better or worse, in all their business models no matter the location nor the time
(AliPay+, 2021). Using information and ecosystem as a tool to gain market share, credibility and
establish themselves as the leaders bears a huge responsibility and holds both strength and
power. If they would outsource their infrastructure it would lose its value and would become a
commodity which would have a negative effect on Alibaba's performance and give opportunities
to followers to become leaders. To outsource it, they would need to be ready for adjustments and
adaptation to different regulations in different countries which would be timely and costly from
both funding and legal perspective. By keeping it as an in-house activity it has a huge potential
for further development, it gives sense of purpose and enhances their operations. This
information and data is available only to Alibaba's network, making it a competitive advantage
and later a base to build on future innovations and expand their businesses. Additionally, giving
customers the option to negotiate with suppliers and sort of have a sense of control over
shopping activity is a tactic to foster long term relationships and build trust by providing safety
to their partners (Trade Assurance, 2018). It is an abundant and an effective ecosystem which is
created to give purpose and it secures their place on market. They set standards by having
knowledge, expertise and capital (both human and financial) which is in their organization
embedded to sustain not just create which separates them from the rest. This and many other
resources and capabilities give them the opportunity to become what they are, a Chinese tech
giant.
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Everything Alibaba Does Differently — and Better. (2018, September). Harvard Business

Review. https://hbr.org/2018/09/alibaba-and-the-future-of-business

Company Profile. (n.d.). Ant Group. (2024). AntGroup.com

https://www.antgroup.com/en/home

Alipay About us. (n.d.). (2021). Alipayplus.com.

https://www.alipayplus.com/about-us

Staff, A. (2016, October 17). Five Reasons Why Alibaba is a Data (Not E-commerce)

Company. Alizila. https://www.alizila.com/five-reasons-why-alibaba-is-a-data-

company/

Science X. (n.d.). (2018, January 5). China’s Alibaba under fire over use of customer

data. Phys.org; Phys.org. https://phys.org/news/2018-01-china-alibaba-

customer.html

Trade Assurance. (n.d). (2018). Alibaba.com.

https://activity.alibaba.com/helpcenter/Trade_Assurance_Guide.html