Can Alibaba Achieve Large-Scale Sustainable Success in the American E-Commerce Market? (PDF)

Case Study from the year 2019 in the subject Business economics - Operations Research, grade: 1,8, Reutlingen University, language: English, abstract: This paper is a case study about Alibaba entering the US e-comerce market. Can Alibaba make large-scale sustainable success in the American e-commerce market? Or is the industry not attractive and the market saturated? Alibaba provides technology, infrastructure and marketing to help merchants, brands and businesses to leverage the power of new technology to engage with their customers. The Alibaba Group was founded in 1999 by Jack Ma and 17 other people.

Alibaba was originally founded as a B2B e-commerce portal to connect Chinese manufacturers with overseas buyers. Nowadays, Alibaba ranks in the Top Ten companies in terms of market value. Most of the credit goes to Ma himself, because he utilized the first-mover advantage and successfully planned entrepreneurial growth and corporate initiatives.

Looking back, Ma has traveled more than 800 hours to dozens of countries to meet business leaders and state representatives to convince them of Alibabäs aim: to let small and medium businesses (SMEs) from all parts of the world trade freely and securely on Alibabäs platforms. The company¿s vision is to achieve $1 trillion in gross merchandise by 2020 and to serve two billion customers by 2036. To achieve this, global operations are key and experts propose: "globalization is better done now than later". Alibaba is currently experiencing high competitive pressure in China and will need to conquer new territories to continue on current trajectory. Needless to say, entry into the US market will not only be difficult, but also require premium strategic decisions with little to no room for errors.