Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 1

Q5) What are the current and future benefits of the cooperation with Yahoo.

Taking charge of Yahoo China on 11th August 2005 was a big move for Alibaba.com founder Jack Ma.
This move had an immediate impact on Ma’s company in the short- term, as well as long-term
benefits for both Alibaba, and Yahoo. First, it gave them a competitive edge on Google who had just
started moving into the Chinese market. The search capabilities of Yahoo China has allowed Alibaba
to further its reach in acquiring business against search engine competition such as Google or
China’s leading search engine, Baidu. In addition to providing increased competition against other
search engines in the market, Ma explained that he wanted to make “yahoo search engine more
humane and interactive” for the people of china who aren’t technology orientated
the large move of bringing Yahoo into the Chinese market helped Alibaba to tap the market which
was not aware of such technology and increase the awareness amongst them. This was the major
contribution in order the increase the market share. Also it helped push Ebay out. Since Alibaba’s
business to business venture in a bid to steal market share from Ebay. It gave Alibaba the cash it
needed to buy out the share of venture capital backers benefit was that Alibaba was not forced to go
public and it strengthened its customer-to-customer site, Taobao, to compete with US online
marketplace eBay. So acquiring yahoo helped Alibaba increased it’s capital. If Alibaba and yahoo
plans to continue to work together in the future the combination will create one of the largest
Internet companies in China, and the only Internet company in China with a leading position in the
key growth sectors of business-to-business e-commerce, consumer e-commerce, online payments,
communications and search.it will allow them to deliver an unmatched range of e-commerce
services to businesses and consumers in China. The partnership will allow the companies to respond
quickly to local market needs and develop innovative new products and services for customers in
China's dynamic and rapidly-evolving economy, this will attract more customers as they will fulfil the
customers needs.Also china economy will move towards success. The partnership also leverages one
of the best local management teams, while taking advantage of Yahoo!'s global resources. Yahoo, is
putting its resources behind the right management team, which operates according to similar values,
and shares the same vision for providing the most essential and relevant services to consumers and
businesses will help both companies to flourish in the near future. This partnership will also allow
both companies to leverage Alibaba.com's strong, trusted community of more than 25 million
registered users and 255000 paying members. As a result both companies can benefit from the
increasing customer base.

You might also like