especially with foreign firms.

Alibaba also provides insurance online and contains a large

amount of data about credit worthiness of China’s middle class and all the firms that do
business with it. Alibaba was known to have counterfeit items being sold on its websites
but has worked hard to remove them. What is unusual about Alibaba is that it is a
privately owned firm and has grown to such a large size considering the Chinese
government’s tolerance of e-commerce.

2. Alibaba gas become globally famous by focusing on its domestic market. The company’s
rise and success can be linked to its local knowledge. It understands the local buyers and
sellers better than its competitors such as eBay and Amazon. It has a stablished and
efficient credit system, buyers can rate sellers which can be seen by all, credibility is
gained making it difficult to leave and start a new by migrating to another platform, and
they have gained a large amount of trust with their customers. They have done this
enforcing the search and removal of all counterfeit products from their website and
follows trends to ensure customer satisfaction.

Alibaba is shaping itself to be what the people of China need in e-commerce. eBay had a
presence, but the people of China were wary of it. Jack Ma listened to the public and has
been developing Alibaba into more and more of a Chinese-user friendly business.
Eventually, eBay was forced out of China and Alibaba was welcomed by the Chinese public
with open arms. Ma could have made his own plan and stuck with it - but instead, he took
a route that required more work, more attentiveness, and more time.

3.Sometimes the IPO of widely successful firms flops—Facebook’s disappointing IPO

comes to mind. Does Alibaba deserve to be one of the world’s most valuable
companies?

a. Alibaba’s IPO was the world’s largest at the time, raising $25 billion. In order to
continue to be one of the world’s most valuable companies, Ma needs to continue
to listen to the specific needs of the consumer. Alibaba certainly deserves its past
success, but it will need to grow, change, and shape itself as time goes on
depending on what society is looking to use.

IPO is the initial public offering which is the first sale of stock by a company to the public.
A company can raise money by issuing either debt or equity and if a company has never
issued equity to the public it is known as an IPO. I believe that Alibaba does deserve to be
one of the world’s most valuable companies because of how well the company has
strategized and focused on customer satisfaction. Alibaba’s IPO is the largest IPO in the
history of the New York Stock exchange and will open the door on the world’s largest e-
commerce market which is China. Alibaba’s Jack Ma is considered to be a suitable
replacement for Steve Jobs because he is the most spirited and visionary entrepreneur. Its
largest rival for most valuable company is Apple who is very successful in China. Market
experts believe that the great companies will be the ones who successfully build global
presence in both China and the West and Alibaba has a large chance of doing so.

Recap
First of all, we analysed from a VRIO perspective how Alibaba enables itself to be in a
competitive advantage, and sustain it, versus competitors, by analysing the valuable
unique resources and capabilities. The we can assess the strengths and weaknesses
We also analyse the specific context of why firms become famous globally. We find ourself
in a position with Alibaba where the firm is a global leader by staying home. This is
because of the Chinese market features: Size, demographic, work opportunities…
Growth...
Initial public Offering is not a guaranteed success, but it is a necessary step firms make to
generate financial resources. It is also a way to show to the world how transparent they
are. To secure their reputation, and a potential collaboration with developed markets.