"IF YOU'VE NEVER TRIED, HOW

WILL YOU EVER KNOW IF THERE'S

ANY CHANCE?" ~
Jack Ma
Table of Contents

1.0. Background................................................................................................................................3
2.0. Stakeholder Analysis..................................................................................................................4
2.1. Analysis................................................................................................................................6
3.0. PESTEL Analysis..........................................................................................................................7
3.1. Analysis................................................................................................................................8
4.0. SWOT Analysis...........................................................................................................................9
4.1 Analysis.....................................................................................................................................9
 1.0. Background

In 1999, 18 people from various backgrounds, led by Jack Ma, a former English teacher from
Hangzhou, China, created their first online global wholesale marketplace, named "Alibaba
Online". With the passion and desire to support small businesses, the founders strongly
believed the Internet would be the key driving force to level the playing field for all, by
empowering small businesses with technology and innovation, so they can grow and
compete more effectively in domestic and international markets. Businesses may
revolutionize the way they sell, market, and run with Alibaba Group's services. In 2000,
Alibaba Group raised US$20 million from an investor group led by Softbank which proves to
be a success. Alibaba offer the necessary technological foundation and marketing reach to
assist retailers, brands, and other companies in utilizing the potential of the internet to
interact with their consumers and clients. It launched its first website helping small Chinese
exporters, manufacturers and entrepreneurs to sell internationally, which benefits millions of
buyers and suppliers engaged in online business all over the world. In December 2001,
Alibaba.com achieved 1 million registered users. It took over Chinese market by launching
Alipay as a third party online payment platform and became a strategic partnership with
Yahoo and took over the operation of china Yahoo. In 2007, the Alibaba Group had their
initial public offering (IPO) at the Hong Kong Stock exchange. Their second IPO at the New
York Stock Exchange in 2014 with a value of $21.8 billion is the biggest IPO until today. With
the capital of these IPO's and the profit of Alibaba, it could generate enough money to
expand in many different business segments and build a nationwide service provider.
 2.0. Stakeholder Analysis

Internal Market Interest: Power to What do we do with Comments

Stakeholder Stakeholder  High Influence: them? (if any)
Stakeholders (IS) (MS)  Medium  High  obligations
of your chosen or or or  Medium  responsibilities
company External Nonmarket  Low or  duties
Stakeholder Stakeholder  Low  etc.
(ES) (NM)

1. Authorities Internal Market High as they High  The company will be

of Alibaba Stakeholder Stakeholder consist of Giving them a very
founders and high authority of
CEOs of the decision making
company.  They are provided
Their interest with High return on
on company their work
will  They have very high
eventually be Power and position in
high as they the company.
are top level
management
.
2. Shareholder Internal Market High as their High  The shareholder has
of Alibaba Stakeholder Stakeholder return will very high profit
depend upon sharing ratio
the  They are eligible of
performance limited liability which
of the indicate that the
company. liability of shareholder
is limited up to the
face value of the
shares they hold.
 They have voting right
during the annual
general meeting
3. Customers External Nonmarket Low as they High  Provide a better
of Alibaba Stakeholder stakeholder are not quality of goods at a
directly reasonable price.
related to the  Provides corporate
company. social responsibility.
(Rödel, 2018)
4. Employees Internal Market Medium as Low  Insurance, health and
Stakeholder Stakeholder some wellness.
employee  Financial and
priorities retirement benefit.
might be to  Vacation and time off
increase their  Discount and perks
pay and  Bonus and
ladder up in remuneration.
the company
but some
employee be
taking time
off work and
devoting their
time and
energy to
their families.
This can
decree their
interest in
company.
5. Chinese External Nonmarket Medium as High  Timely payment of
government Stakeholder Stakeholder the economic ta and with no tax
growth of the evasion
country is  Increase the living
based on the standard of the
success of people
Alibaba.  Promote economic
growth.

6. Creditors of External Nonmarket High as they medium  Timely repayment

Alibaba stakeholders stakeholder have to see of for the goods
whether  Being loyal to the
Alibaba can creditors
be able to
pay back the
money at the
given time.
7. Media External Nonmarket Medium as low  Provide accurate
Stakeholder Stakeholder they will only and appropriate
take interest information.
when there is
something
interesting
but not at all
time.
8. Supplier External Nonmarket Medium as High  Ensure regular
stakeholder stakeholder they will payment
supply only  Adopt fair dealings
when the  Maintaining
company trusting
order the relationships
goods
 according to
the
preference/
order made
by the
company.

2.1. Analysis

A stakeholder can be an individual, group, or organization whose interests are affected by the
success or failure of a project or business venture. Stakeholders can be inside or outside the
company financing the project, and they all have a financial stake in the project's success. Internal
and external stakeholders are the two categories into which stakeholders can be divided. Internal
stakeholders are people who work for the company. They are immediately impacted by the project
because they work for and are employed by the company overseeing it. Whereas external
stakeholders are those who are involved in the project but are not part of the organization. Although
not being employees of the organization, they are impacted by its work. Authorities, shareholders
and employees of Alibaba are internal stakeholders as they are from within a company whose
interest stems from direct employment, ownership or investment. Chinese government, media,
suppliers, customers and creditors of Alibaba are external stakeholders as they are those who have
an indirect interest in the company.
3.0. PESTEL Analysis
 3.1. Analysis

4.0. SWOT Analysis

 4.1 Analysis
SWOT (strength, weakness, opportunities and threats) is strategic planning used by
institution to find the strength, weakness, opportunity and threat related to business
competition. It is also known as situational analysis citation. SWOT analysis helps an
organization to identify the favorable (strength and opportunity) and unfavorable (threats and
weakness) factors which hinder the achieving of goals and objectives of the organization.
The organization can take advantage of all the favorable outcomes and they can work
towards converting the threats and weakness to strength and opportunities. Alibaba has a
weakness like decreasing EBIDTA margin affecting core competency, over dependence on
Chinese economy and limited international present but poses more of strength such as well
segmented product portfolio.