Bulacan State University

Graduate School
AY 2021-2022, 2nd Trimester

ALIBABA: CHANGING THE WAY BUSINESS IS CONDUCTED IN THE INFORMATION

ECONOMY

I. Discussion Questions

1. What do you think of Jack Ma’s priority list which places shareholders last? Do you
think this approach will work if he seeks capital outside of China? Explain.

 In my opinion, his perception of placing stakeholders last is a good choice. It may

sound absurd to some, but Ma, thinks more of the future than the present. He believes
that customers should be the primary concern of the business since they are the ones
who use and benefits the products. He is giving the stakeholders the chance to invest if
they decide to with his kind of priority list to avoid the risks of stakeholders withdrawing
from the business or company.
 It may work depending on the situation. If the countries outside China would think that
would benefit and succeed from it then they might give it a try since investing in a
business/company always involves risks.

2. What are the unique components of Alibaba’s business model/strategy?

 The unique components of Alibaba’s business model/strategy include the name that is
quite unique and controversial which gave its popularity and depth in the business
industry. Another is its collaboration with the internet company/website Yahoo which
 makes it easy for it to promote, sell and make transactions worldwide and his
perception of putting the stakeholders as his last priority.

3. Many successful companies have controversial or provocative names such as

Caterpillar, Gap, Virgin, and Yahoo. In what way is the name Alibaba controversial?
How does this name advance Alibaba Group’s strategy?

 Its name became controversial in the sense that its origin is the tale of “The Thousand
and One Nights” where it featured a poor wood cutter, lots of gold, and 40 thieves.
However, instead of Ma, representing him as the thief, he is taking the role of a smart,
kind businessperson who helped his village and people.
 Since the name is easy to spell and known by many, it made it possible to gain its
global recognition citing that the company would “open sesame” for small and medium
size enterprises.

4. How would you assess Alibaba Group’s reaction to Google’s conflict with the
Chinese government over its censoring of search engine results?

 In my opinion, I think it is normal for Alibaba to take the side of its own country
especially in this situation where in the victim/suspect was condemned and was not
given the proper justice due to lack of facts in evidence. However, it is not a safe move
to sharply criticized Yahoo since their relationship is strained and put to test.

5. Do you think the future of international business will change as more people become
familiar with the Alibaba business model? Explain.

 Yes. Change is inevitable. And changes are greatly influenced by those who are
dominating the industry. It is up to the consumers and stakeholders to decide if they will
adapt, modify or reject the changes.