THUONG MAI UNIVERSITY

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DISCUSSION ARTICLE

ENGLISH FOR SPECIFIC PURPOSE 2

Topic: Alibaba Group’s history, structure and operations

Group : 2

Class code : 232_ENTI1012_50

Instructor : Vu Thi Thu Trang

Hanoi – 2024
 OUTLINE
I. Introduction
II. Main contents
II.1. Overview of Alibaba Group
- How Alibaba makes money
 Alibaba generates revenue primarily from sales commissions, fulfillment
services, advertising fees, and other service-based fees
 Operating a cloud computing business, Aliyun, and other ecommerce
businesses and websites.
- Leadership
 Chairman: Joe Tsai
 Director and Chief executive officer: Eddie Wu
 Director and President: J. Michael Evans
 Director: Maggie Wu
- Competitors
 Amazon: dominates ecommerce and cloud computing services in most other
growing markets around the world
 Jd.com: one of Alibaba's primary domestic competitors in the ecommerce space
 Other Domestic Competitors
II.2. The history of Alibaba Group
Important milestones of the corporation:
- 1999 - Alibaba Founded: Jack Ma, along with a group of friends, founded
Alibaba in Hangzhou, China, with the goal of creating an online marketplace to
connect Chinese manufacturers with international buyers.
- 2003 - Launch of Taobao: Alibaba launched Taobao, a consumer-to-consumer
online shopping platform, to compete with eBay in the Chinese market.
- 2008 - Tmall Launch: Tmall (formerly Taobao Mall) was launched as a
business-to-consumer online retail platform within the Alibaba ecosystem.
- 2009 - Alibaba Cloud Formation: Alibaba Cloud, the cloud computing arm of
Alibaba Group, was established, offering a range of cloud services to
businesses.
- 2010 - Alibaba.com Goes Private: Alibaba.com, the international business-to-
business online marketplace, went private after a buyout by Alibaba Group.
 - 2018 - Daniel Zhang Becomes Chairman and CEO: Jack Ma stepped down as
Alibaba's Executive Chairman, and Daniel Zhang succeeded him as Chairman
and CEO.
II.3. The organization structure of Alibaba Group
II.3.1. Cloud Intelligence Group
 Leads innovation in cloud computing and data intelligence solutions.
II.3.2. Taobao and Tmall Group
 Revolutionizes online retail
 Connects millions of consumers and merchants through innovative platforms.
II.3.3. Local Services Group
 Encompasses various entities and services.
 Enhances urban living and community engagement.
II.3.4. Alibaba International Digital Commerce Group
 Provides online services and platforms.
 Alipay payment platform and international shipping services.
II.3.5. Cainiao Smart Logistics Network Limited
 Optimize logistics process.
 Using information technology and artificial intelligence to improve shipping.
II.3.6. Digital Media and Entertainment Group
 Interactive digital content hub.
 Global streaming services expansion.
II.3.7. Advantages and disadvantage of the organization structure of Alibaba Group
- Advantages
 Ecosystem Synergy and Cross-Pollination.
 Market Diversification and Risk Mitigation.
- Disadvantages
 Complexity and Coordination Challenges.
 Regulatory Risks Across Industries.
II.4. The operation of Alibaba Group
II.4.1. SWOT analysis of Alibaba Group
a. Strengths
 Diverse business portfolio
 Robust technology and data infrastructure
 Strong brand and customer loyalty
b. Weaknesses
  International presence is limited
 Counterfeit products problem
c. Opportunities
 Growth in cloud computing
 Apply new technology
 E-commerce in rural areas
d. Threats
 Economic depression
 Fierce competition
II.4.2. The achievements of Alibaba Group
- Alibaba Cloud Named First Public Cloud Vendor in the World to Obtain
Trusted Partner Network (TPN) Certification
- Alibaba Cloud Offers E-commerce Solutions and AI Cloud Services to Help
Battle Covid-19 Globally
- Alibaba Named by Gartner as Third Biggest Global Provider for IaaS and First
in Asia Pacific
II.4.3. Things that make Alibaba Group successful
- Use innovative business models – platform-based approach
- Focus on innovation, customer service and long-term vision
- Leveraging technology to create a leading company in online retail, cloud
computing and digital payments
III. Conclusion
 BIÊN BẢN PHÂN CÔNG NHIỆM VỤ THẢO LUẬN

Chủ đề thảo luận: Alibaba Group’s history, structure and operations

Nhóm: 2

Thời gian họp: 22h – ngày 27/02/2024

Nội dung họp: Phân công nhiệm vụ và giao hạn nộp sản phẩm

DISTRIBUTION OF TASKS

No Name Mission Evaluate

8 Nịnh Văn Minh Đoàn 2.4.2 + 2.4.3 9
9 Ngô Hương Giang Opening + 2.1 10
10 Nguyễn Thị Giang 2.2 9
11 Lê Thị Hằng (Leader) 2.4.1 (a, b) + Word 10
2.3.1 + 2.3.2 + 2.3.3
12 Nguyễn Thị Hằng 10
Các powerpoint chung
13 Hoàng Phúc Minh Hiển 2.3.6 + 2.3.7 + Conclusion 10
14 Hoàng Thúy Huệ 2.3.4 + 2.3.5 10
15 Trần Ngọc Huy 2.4.1 (c, d) 9
 TABLE OF CONTENTS
I. INTRODUCTION..........................................................................................1
II. MAIN CONTENTS....................................................................................2
2.1. Overview of Alibaba Group.................................................................2
2.2. The history of Alibaba Group..............................................................5
2.3. The organization structure of Alibaba Group......................................7
2.3.1. Cloud intelligence............................................................................7
2.3.2. Taobao and Tmall group..................................................................7
2.3.3. Local services group........................................................................8
2.3.4. Alibaba International Digital Commerce Group.............................8
2.3.5. Cainiao Smart Logistics Network Limited......................................9
2.3.6. Digital Medio and Entertainment Group.......................................10
2.3.7. Advantages and Disadvantages of the Organization Structure......10
2.4. The operation of Alibaba Group........................................................11
2.4.1. SWOT analysis of Alibaba Group.................................................11
2.4.2. The achievements of Alibaba Group.............................................15
2.4.3. Things that make Alibaba Group successful.................................16
III. CONCLUSION.........................................................................................18
 I. INTRODUCTION

Alibaba Group (BABA) is a Chinese ecommerce company established in 1999.

The company is headquartered in Zhejiang, China. The service-based ecommerce
model that the company provides allows users to buy and sell goods on its platforms,
much like the eBay (EBAY) business model. Alibaba has three primary businesses: a
business-to-business (B2B) ecommerce platform, Alibaba.com; a business-to-
consumer (B2C) platform, Tmall.com; and a consumer-to-consumer platform, Taobao.

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II. MAIN CONTENTS

II.1. Overview of Alibaba Group

 How Alibaba makes money:

Alibaba makes money through its e-commerce, logistics, cloud, digital media
and other subscription software. It mostly makes money from merchant fees, which it
charges from the sellers to rank their products high on its search platform for
consumers.
Has 5 Operating Segments:
China Retail: Segment revenues are derived from retail e-commerce and
associated marketing services in China.
Digital Media & Innovation Initiatives: Segment revenues are derived from
content subscription, software subscription and merchant advertising offerings.
China Wholesale & Other: Segment revenues are derived from wholesale
commerce and logistics services, primarily driven by Chinese consumption.
International Commerce: Segment revenues are derived from retail and
wholesale operations as well as from advertising services outside China.
Cloud Computing: Segment revenues are derived based on customers' duration
and usage of Alibaba's service.
China Retail segment expected to be the single-biggest revenue driver with
RMB 551 Bil in revenues (64% of Total Revenues) over FY2024.
China Retail segment will also be the fastest-growing segment - growing 11%
over FY2023-25 to add RMB 59 Bil to the top line over this period (53% of RMB 112
Bil in incremental revenues).
It competes to attract, engage and retain consumers based on the variety and
value of products and services listed on its platforms. It also competes on the overall
user experience of its products and services and the effectiveness of its consumer
protection measures. In addition, it also competes to retain brands and retailers on its
platform.
 Leadership

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  Chairman: Joe Tsai
Joe Tsai joined Alibaba in 1999 as a member of the Alibaba founding team and
has served on our board of directors since our inception. He was chief financial officer
until May 2013, our executive vice chairman until September 2023 and is currently our
chairman of the company. Joe is a founding member of Alibaba Partnership. He is also
chairman of Cainiao Smart Logistics, a board member of Taobao and Tmall Group,
and a board member of our affiliate Ant Group.

 Director and Chief executive officer: Eddie Wu

Eddie was technology director of Alibaba at the company's inception in 1999.
He served as chief technology officer of Alipay from December 2004, and became
business director of our monetization platform, Alimama, in November 2005 and was
promoted to its general manager in December 2007. In September 2008, he became
chief technology officer of Taobao, and in October 2011 he took on the role of head of
Alibaba Group's search, advertising and mobile business.
Eddie Yongming WU has served as Chief Executive Officer and director since
September 2023. Eddie is one of our co-founders and a member of the Alibaba
Partnership. He also serves as chairman of Taobao and Tmall Group since May 2023.

 Director and President: J. Michael Evans

J. Michael EVANS has been our president since August 2015 and our director
since September 2014. In May 2023 he was appointed Chairman of the Alibaba
International Digital Commerce business.
Prior to joining Alibaba Group, Mike spent 30 years in global finance. Mike
served as Vice Chairman of The Goldman Sachs Group, Inc. from February 2008 until
his retirement in December 2013. Mike served as chairman of Asia operations at
Goldman Sachs from 2004 to 2013. Mike joined Goldman Sachs in 1993, became a
partner of the firm in 1994 and held various leadership positions within the firm's
securities business while based in New York and London, including global head of
equity capital markets and global co-head of the equities division, and global co-head
of the securities business.

 Director: Maggie Wu
Maggie Wei WU has been our director since September 2020 and is a founding
member of the Alibaba Partnership.

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 Maggie joined our company in July 2007 as chief financial officer of
Alibaba.com. She served as our chief financial officer from May 2013 to March 2022
and our head of strategic investments from June 2019 to March 2022. She was voted
the best CFO in Finance Asia's annual poll for Asia's Best Managed Companies in
2010. In 2018, she was named as one of the world's 100 most powerful women by
Forbes.
Before joining Alibaba, Maggie was an audit partner at KPMG in Beijing.
Maggie is a member of the Association of Chartered Certified Accountants (ACCA).
She received a bachelor's degree in accounting from Capital University of Economics
and Business.

 Competitors
 Amazon:
While Alibaba dominates ecommerce and cloud computing services in China,
Amazon dominates those industries in most other growing markets around the world.
However, as Alibaba's operations have expanded internationally, the company has
attempted to undercut Amazon's seller fees in order to attract new sellers.
Alibaba's strategy of securing overseas shoppers is likely to continue in the
future, making it more likely that Amazon will emerge as its biggest competitor in
certain countries and geographical regions. The company's goal is to have over one
billion annual active shoppers worldwide by the end of the fiscal year 2024.
In addition, Alibaba's move to allow international merchants outside of China to
sell on its AliExpress platform has put additional pressure on Amazon. Previously,
AliExpress was only open to Chinese merchants who wanted access to the global retail
market.
In addition to Amazon's well-known B2C platform, the company introduced its
B2B platform, Amazon Business, in 2015. With Amazon Business, companies of all
sizes can buy from and sell to each other. Amazon Business provides access to
everything from IT and lab equipment to education and food service supplies with
business-only selection and pricing.
While there are many other B2B marketplaces that use the same model as
Amazon Business, Amazon benefits from brand-name recognition, and its success in
its other commercial ventures has given it a good reputation.
While Amazon's efforts to penetrate Asian markets have been successful, they
have faced some setbacks in the country of China. In 2019, they closed down their

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Amazon China store, despite its 15-year history in the country. However, online
shoppers in China can still purchase items from Amazon's global store.

 JD.com
JD.com is one of Alibaba's primary domestic competitors in the ecommerce
space.
Established in 2004, JD.com is one of Alibaba's primary domestic competitors
in the ecommerce space. Alibaba and JD.com are the two largest ecommerce
companies in China. In May 2021, Alibaba's percentage of total retail ecommerce sales
in China was 47.1% and JD.com's was 16.9%, according to a report by eMarketer.
JD.com is a direct-sales retailer that uses a model similar to Amazon. In
contrast to Alibaba's ecommerce model, JD.com warehouses, markets, and ships
merchandise directly to Chinese consumers through its national shipping network,
which includes a last-mile delivery component throughout much of the nation.
According to financial results for the full year ended on Dec. 31, 2021, JD.com
had a net revenue of $149.3 billion USD.
Alibaba and JD.com have very different business models. With direct control
over its supply chain, JD.com has developed a reputation for authentic products and
reliable, fast shipping. Alibaba, on the other hand, has long battled an association with
counterfeit goods among both domestic and international customers and brand owners.

 Other Domestic Competitors

Beyond JD.com, Alibaba faces smaller national competitors and local upstarts
across the Chinese landscape. According to eMarketers, the Chinese ecommerce site
Pinduoduo had 13.2% of the market share in May 2021. For smaller merchants who
cannot afford the cost of marketing fees on Alibaba, Pinduoduo is a cheaper
alternative. Pinduoduo was started by a former Google engineer in 2015 and has
succeeded in reaching consumers in smaller, more rural Chinese markets.
II.2. The history of Alibaba Group
Important milestones of the corporation:
 1999 - Alibaba Founded:
Jack Ma, along with a group of friends, founded Alibaba in Hangzhou, China.
The establishment of Alibaba marked the beginning of a vision to create an online
marketplace that would facilitate connections between Chinese manufacturers and

5
international buyers. This has revolutionized the way businesses conduct trade,
providing greater access, transparency and results across global supply chains.
 2003 - Launch of Taobao:
Alibaba launched Taobao, a consumer-to-consumer online shopping platform:
This represented a significant step towards diversifying its e-commerce offerings and
capturing a larger share of the Chinese market. By providing a user-friendly platform
that empowered individuals and small businesses to participate in online retail, Taobao
not only expanded Alibaba's reach but also democratized the e-commerce landscape in
China.
 2008 - Tmall Launch:
Tmall (formerly Taobao Mall) was launched as a business-to-consumer online
retail platform within the Alibaba ecosystem.Tmall facilitated trust and credibility
between established brands and their customers, further solidifying Alibaba's position
as a dominant force in the Chinese e-commerce industry. Additionally, Tmall's
emphasis on quality assurance and brand authenticity helped elevate the overall
shopping experience for consumers.
 2009 - Alibaba Cloud Formation:
The formation of Alibaba Cloud marked Alibaba's entry into the cloud
computing industry, providing a wide range of cloud by offering a comprehensive
suite of cloud services, Alibaba Cloud not only bolstered the technological
infrastructure of businesses but also fueled innovation and digital transformation
across various industries. It can be said that this is a formidable competitor compared
to well-known cloud service providers such as Amazon Web Services and Microsoft
Azure.
 2010 - Alibaba.com Goes Private:
Alibaba.com, the international business-to-business online marketplace, went
private after a buyout by Alibaba Group. Taking Alibaba.com private allowed the
company to have greater control over its strategic direction and operations in the
international B2B e-commerce space.Additionally, this shift may have enabled
Alibaba Group to implement changes and adjustments more swiftly in response to
market dynamics and emerging trends, thus enhancing its competitiveness in the
global B2B marketplace.

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  2018 - Daniel Zhang Becomes Chairman and CEO:
Daniel Zhang Becomes Chairman and CEO: Jack Ma stepped down as
Alibaba's Executive Chairman, and Daniel Zhang succeeded him as Chairman and
CEO. This transition marked a significant leadership change within Alibaba. Daniel
Zhang, known for his strategic acumen, took the reins and continued to steer the
company's growth and innovation. Under Zhang's leadership, Alibaba continued to
expand its global footprint, diversify its business offerings, and reinforce its position as
a dominant force in the global e-commerce landscape.
These milestones collectively showcase Alibaba's evolution from its founding
as an online marketplace to its expansion into various sectors, including e-commerce,
cloud computing, and international business. The strategic decisions made at each
stage played a crucial role in shaping Alibaba into a global technology giant.
II.3. The organization structure of Alibaba Group
II.3.1. Cloud Intelligence Group
The cloud intelligence group of Alibaba group plays a pivotal role in
spearheading advancements in cloud computing and data intelligence solutions. As a
leader in the industry, this group is at the forefront of innovation, driving the
development and implementation of cutting-edge technologies. By harnessing the
power of cloud computing, they enable businesses to enhance their efficiency and
agility. Moreover, the focus on data intelligence underscores their commitment to
extracting valuable insights from vast datasets, empowering organizations to make
informed decisions. In essence, the cloud intelligence group stands as a beacon of
progress, continuously shaping the landscape of technology to meet the evolving needs
of the digital era.
II.3.2. Taobao and Tmall group
Taobao and Tmall, both subsidiaries of the Alibaba Group, have revolutionized
the landscape of online retail. These platforms have significantly transformed how
people shop and conduct business in the digital era. Taobao, launched in 2003, has
become one of China's largest online marketplaces, offering a vast array of products
ranging from clothing and electronics to household items. Its user-friendly interface
and diverse range of sellers have empowered millions of individuals and small
businesses to reach customers nationwide. Tmall established in 2008, focuses on
connecting consumers with branded products, providing a trusted platform for
renowned companies to showcase and sell their merchandise. Through Tmall,

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consumers can access authentic goods from both domestic and international brands,
fostering trust and reliability in online transactions. Inclusion, Taobao and Tmall, as
integral parts of the Alibaba Group, have revolutionized online retail through their
user-centric approach, expansive product offerings, and empowerment of small
businesses. As e-commerce continues to evolve, these platforms serve as exemplars of
how technology can reshape the retail landscape, providing opportunities for
businesses and consumers alike to thrive in the digital age.
Through their innovative platforms, they have effectively connected millions of
consumers and merchants, reshaping the way people shop and sell goods. Their
platforms have become instrumental in facilitating transactions between buyers and
sellers, offering a wide array of products and services to consumers worldwide. By
leveraging advanced technology and user-friendly interfaces, Taobao and Tmall have
simplified the online shopping experience for millions of users. Their platforms
provide easy access to a diverse range of products, from electronics to clothing,
groceries, and more, all at competitive prices. Through features like customer reviews
and ratings, they promote transparency and trust, allowing users to make informed
purchasing decisions. Furthermore, Taobao and Tmall's commitment to innovation and
customer satisfaction has propelled them to the forefront of e-commerce globally.
They continuously introduce new features and services to enhance the shopping
experience, ensuring that both merchants and consumers alike benefit from their
platforms.
II.3.3. Local Services Group
The local services offered by the Alibaba Group span across a range of entities
and services, contributing significantly to the community's convenience. Within this
framework, Alibaba provides diverse services such as e-commerce platforms, digital
payment solutions, and cloud computing services. These offerings empower local
businesses and individuals by facilitating online transactions, promoting financial
inclusivity, and supporting technological advancements. In essence, Alibaba's local
services play a crucial role in enhancing accessibility and connectivity, fostering a
digital ecosystem that benefits both businesses and consumers within the community.
Alibaba Group's local services contribute significantly to improving urban
living and fostering community engagement. The diverse range of services, including
e-commerce, food delivery, and digital payment solutions, enhances the convenience
and quality of life for residents. With efficient delivery systems and user-friendly
platforms, Alibaba's local services simplify daily tasks, allowing individuals to access

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goods and services effortlessly. Additionally, these services create opportunities for
local businesses, promoting economic growth and community involvement. By
seamlessly integrating technology into everyday life, Alibaba Group enhances urban
living and encourages active participation within communities.
II.3.4. Alibaba International Digital Commerce Group
Alibaba International Digital Commerce Group is a prominent company
renowned for its diverse array of online services and platforms. One of its flagship
offerings is the Alipay payment platform, which plays a pivotal role in facilitating
secure and efficient online transactions. Alipay's user-friendly interface and robust
security measures have made it a preferred choice for millions of users worldwide,
enabling them to conduct transactions with confidence.
Moreover, Alibaba International Digital Commerce Group extends its services
beyond payment processing. It also provides international shipping services, thereby
enhancing the accessibility of global e-commerce for businesses and consumers alike.
By offering seamless cross-border shipping solutions, the company helps bridge
geographical barriers and fosters international trade relationships.
The integration of Alipay and international shipping services significantly
contributes to the ease and convenience of conducting online transactions on a global
scale. Businesses can leverage these services to expand their reach into new markets,
while consumers benefit from greater access to a diverse range of products and
services from around the world.
Overall, Alibaba International Digital Commerce Group's comprehensive suite
of online services, including Alipay and international shipping solutions, plays a
pivotal role in driving the growth of e-commerce and facilitating seamless transactions
in the digital age.
II.3.5. Cainiao Smart Logistics Network Limited
Cainiao Smart Logistics Network Limited is a company that specializes in
revolutionizing the logistics industry by harnessing the power of information
technology and artificial intelligence. With a primary focus on optimizing the logistics
process, Cainiao employs cutting-edge automated systems and advanced algorithms to
streamline and enhance various aspects of shipping operations.
One of the key areas where Cainiao excels is in order processing. By leveraging
sophisticated algorithms, Cainiao can efficiently manage and prioritize orders,
ensuring that they are processed swiftly and accurately. This not only reduces the time

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it takes to fulfill orders but also minimizes the likelihood of errors, leading to
improved customer satisfaction.
Additionally, Cainiao's innovative approach extends to warehousing
management. Through the use of advanced technologies such as robotics and data
analytics, Cainiao optimizes warehouse operations, maximizing space utilization and
inventory management. This allows for faster retrieval of goods and more efficient
order fulfillment, ultimately resulting in reduced costs and improved overall
efficiency.
Furthermore, Cainiao focuses on enhancing transportation logistics by
leveraging artificial intelligence to optimize routing and delivery schedules. By
analyzing vast amounts of data, including traffic patterns and delivery routes, Cainiao
can identify the most efficient paths for shipments, reducing transit times and
enhancing the reliability of deliveries.
Overall, Cainiao's commitment to leveraging information technology and
artificial intelligence to optimize the logistics process has led to significant
improvements in shipping operations. By streamlining order processing, enhancing
warehousing management, and optimizing transportation logistics, Cainiao is able to
deliver faster, more cost-effective shipping solutions while simultaneously improving
customer satisfaction.
II.3.6. Digital Medio and Entertainment Group
Interactive Digital Content Hub:
Alibaba’s Digital Media and Entertainment Group functions as a dynamic hub
for interactive digital content. This encompasses a broad spectrum, including movies,
TV shows, and interactive media experiences. The group plays a crucial role in
shaping the global entertainment landscape by producing, distributing, and promoting
diverse and engaging content that resonates with audiences worldwide.
Global Streaming Services Expansion:
One of the strategic focuses of this segment is the expansion of global
streaming services. Alibaba recognizes the growing trend of digital content
consumption and aims to position itself at the forefront of this industry. By investing
in and delivering high-quality streaming services, the company taps into the increasing
demand for on-demand and interactive entertainment on a global scale.

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II.3.7. Advantages and disadvantages of the organization structure of Alibaba
Group
 Advantages:
 Ecosystem synergy and cross-pollination:
Alibaba’s organizational structure encourages a symbiotic relationship among
its business units. Cross-pollination of ideas and resources across e-commerce, cloud
computing, and entertainment fosters innovation. For instance, insights gained from
digital media ventures may inform improvements in e-commerce platforms, creating a
synergistic ecosystem.
 Market diversification and risk mitigation:
The diversified nature of Alibaba Group’s businesses, ranging from e-
commerce to cloud services and entertainment, acts as a shield against economic
volatility. This diversification strategy mitigates risks associated with fluctuations in
specific markets or industries, contributing to the company’s overall stability.
 Disadvantages:
 Complexity and coordination challenges:
The conglomerate’s vast and diversified structure introduces complexities in
management and coordination. Ensuring effective communication and coordination
among different business units becomes essential to maintain operational efficiency
and strategic alignment.
 Regulatory risks across industries:
Operating across diverse industries exposes Alibaba to varied regulatory
environments. Compliance with an array of regulations poses a challenge, demanding
continuous adaptation to changing legal frameworks. Navigating these complexities
requires a vigilant approach to avoid legal and regulatory pitfalls.
Alibaba Group’s Digital Media and Entertainment Group serves as a dynamic
content hub with a global vision, while the organizational structure’s advantages lie in
fostering synergy and diversification. However, it grapples with challenges related to
complexity and navigating diverse regulatory landscapes. Balancing these aspects is
crucial for sustaining Alibaba’s success in the ever-evolving tech and entertainment
sectors.

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II.4. The operation of Alibaba Group
II.4.1. SWOT analysis of Alibaba Group
a. Strengths
 Diverse business portfolio
Alibaba's portfolio includes e-commerce, cloud computing, digital media and
entertainment, and other initiatives. This diversification reduces the company's
reliance on core e-commerce services, ensures more stable profits, and allows the
company to benefit more from growth opportunities in different sectors. Diversifying
its business investment portfolio also helps Alibaba improve its long-term
sustainability as well as increase competitiveness. Alibaba has created a diverse
ecosystem to attract more customers to use its services.

 Robust technology and data infrastructure

Alibaba gets huge amounts of data from its e-commerce marketplaces, through
its Alipay mobile wallet and digital entertainment sites as well as social media
properties operating within its ecosystem.
Alibaba has a robust technology infrastructure that allows it to manage large
amounts of data. They leverage customer data and advanced algorithms to deliver
personalized recommendations and promotions and marketing messages tailored to
each customer. Alibaba has leveraged big data analytics and artificial intelligence to
understand customer behavior, enhance user experience, and advance its business
strategy.

 Strong brand and customer loyalty

Alibaba has built a strong brand image, Alibaba's brand image is associated
with reliability, innovation and commitment to customer satisfaction. Strong brand
recognition helps the corporation attract new customers and business partners, creating
conditions for business development. The company's platforms, such as Taobao and
Tmall, are among the most visited e-commerce sites in China.
By creating an ecosystem that provides comprehensive services and platforms,
Alibaba has created a seamless and connected experience for customers. Customers
can find everything they need, from online shopping to financial services. Alibaba also
focuses on building trust and reliability and has effective customer support. By
ensuring a seamless and trustworthy shopping experience, Alibaba instills trust in
customers and strengthens their loyalty to the brand.

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 b. Weaknesses
 International presence is limited
Alibaba is present in many countries around the world, however they are not
really a popular choice in countries outside their territory. Their market share and
revenue mainly comes from China. This dependence makes the company vulnerable to
domestic economic and regulatory changes.
Alibaba has difficulty attracting international customers, especially in Europe.
The difference in shopping culture is one of the obstacles that businesses encounter in
this market. Another reason is Alibaba's international platform - AliExpress, which is
largely considered a marketplace for low-end goods. It cannot affect Amazon's market
position along with other long-standing competitors. Markets outside China account
for less than a tenth of Alibaba's e-commerce sales and the majority come from its
Lazada unit in Southeast Asia.
China is Alibaba's largest market but the population is aging, which is why
Alibaba needs to develop more in the international market. The company is still
working to expand its international business and maintain its position in the global e-
commerce market.

 Counterfeit products problem

Alibaba has problems with fake or counterfeit items of famous brands on its
platform. Some sellers often offer lower prices to stimulate consumers. However, they
provide non-genuine products and often have poorer quality, affecting the customer's
consumption experience. Alibaba's platforms have been criticized for featuring fake
and low-quality products. When customers encounter many poor quality products
when shopping at Alibaba, they will lose trust in the business and choose to use
another platform to shop.
In 2022, the US government added Alibaba's marketplace AliExpress to its list
of "notorious markets for counterfeiting and piracy”. This website is believed to have
facilitated significant trademark counterfeiting. This greatly affects customer trust in
Alibaba as well as Alibaba's position in the US market.
c. Opportunities
 Growth in cloud computing
Realizing the great potential of the cloud computing market in the field of e-
commerce and the growing demand of businesses for cloud computing services,

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Alibaba launched cloud computing Alibaba Cloud in 2009 and launched it in the
international market in 2014.
Currently, Alibaba Cloud has become the largest cloud computing service
provider in China and the third largest cloud computing service provider in the world
with revenue of more than 6 billion USD in 2022.
Alibaba Cloud provides more than 200 cloud computing services to more than 3
million customers globally and is used by many large enterprises such as Alibaba,
Tencent, China Mobile, Huawei, etc.

 Apply new technology platform

Alibaba has invested heavily in AI over the years and has achieved many great
achievements. Alibaba uses AI in many areas of its business, including: E-commerce-
AI is used to recommend products, personalize the shopping experience, and fight
fraud; Mobile Payments-AI is used to verify user identity and prevent payment fraud;
Cloud Computing-AI is used to optimize the performance of cloud computing
services; Customer service-AI is used to provide automated customer service and
chatbots.
Some specific examples of Alibaba's AI applications: Taobao-AI is used to
recommend products to users based on their shopping history and browsing behavior.
Alipay-AI is used to verify user identity by facial and voice recognition, …
In addition, Alibaba is one of the leading corporations in applying blockchain to
business activities. Blockchain is used to track product origin, fight counterfeiting and
improve supply chain efficiency; Used for cross-border payments, fight financial fraud
and develop decentralized financial services (DeFi) and Blockchain are used to verify
user identities, protect user data, and prevent fraud on e-commerce platforms.

 E-commerce in rural areas

Alibaba has many opportunities to develop e-commerce in rural areas. Potential
market, online shopping demand in rural China is growing rapidly. People in rural
areas have increasingly higher incomes and have diverse needs for products. Internet
infrastructure in rural areas is also improving.
Powerful platform, Alibaba has the largest e-commerce platform in China with
more than 1 billion active users. Alibaba has an extensive and effective logistics
system and Alibaba has extensive experience in developing e-commerce in rural areas.
In particular, many policies to support business development from the Chinese
Government encourage e-commerce development in rural areas.
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 Innovative business models, Alibaba is developing innovative business models
to exploit the e-commerce market in rural areas, such as: Working with cooperatives,
Alibaba supports cooperatives in rural areas in selling their products online. Develop
mobile applications, Alibaba develops mobile applications specifically for people in
rural areas. Organizing e-commerce fairs, Alibaba organizes e-commerce fairs in rural
areas to introduce Alibaba's products and services.
Alibaba is collaborating with strategic partners to develop e-commerce in rural
areas, such as: Government, Alibaba cooperates with the Chinese government to
develop e-commerce infrastructure in rural areas. Enterprise, Alibaba partners with
local businesses to develop products and services tailored to the needs of people in
rural areas.
d. Threats
 Economic recession
When the economy declines, consumers tend to tighten spending, leading to
reduced demand for Alibaba's products and services. This could affect Alibaba's
revenue and profits. Economic downturns can lead to declines in stock prices on the
stock market, affect Alibaba's market value and make raising capital more difficult.
The economic downturn could lead to increased bad debt for small and
medium-sized enterprises (SMEs) that are Alibaba customers. This could affect
Alibaba's ability to collect debt and lead to financial losses. An economic downturn
could reduce investor confidence in Chinese companies, including Alibaba. This could
lead to a sell-off of Alibaba shares and make raising capital more difficult.

 Fierce competition countryside

Alibaba faces stiff competition from domestic rivals such as JD.com,
Pinduoduo and Meituan, as well as international rivals such as Amazon. These
competitors are investing heavily in areas such as e-commerce, mobile payments,
cloud computing and artificial intelligence. Alibaba needs to continuously innovate
and improve its services to maintain its competitive position.
In addition, Alibaba also faces competition from startups and large technology
companies in other fields such as: Mobile payment, Tencent's WeChat Pay is a direct
competitor of Alipay; Cloud computing, Alibaba Cloud competes with Amazon Web
Services and Microsoft Azure; In artificial intelligence, Alibaba Research competes
with Baidu AI and Tencent AI Lab. Competition is an inevitable part of the business

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market. Alibaba needs a suitable strategy to compete effectively and maintain its
leading position in the market.
II.4.2. The achievements of Alibaba Group
Alibaba Group has been making waves with its recent accomplishments,
showcasing its prowess and reliability in the technology and cloud computing realms.
One significant milestone is Alibaba Cloud's distinction as the inaugural public cloud
vendor worldwide to secure the Trusted Partner Network (TPN) Certification. The
TPN Certification is a rigorous validation process established by the Motion Picture
Association (MPA) and the Content Delivery & Security Association (CDSA), aimed
at ensuring that vendors meet stringent security standards for handling content
production and post-production workflows. This esteemed recognition underscores
Alibaba Cloud's commitment to maintaining the highest standards of security and
trustworthiness, positioning it as a premier choice for businesses seeking secure cloud
solutions for their content-related needs.
Moreover, Alibaba Cloud has been actively contributing to the global fight
against the Covid-19 pandemic by leveraging its expertise in e-commerce and artificial
intelligence (AI) technologies. Through the provision of innovative e-commerce
solutions and AI cloud services, Alibaba is aiding various stakeholders worldwide in
navigating the challenges posed by the pandemic. By facilitating online transactions
and deploying AI-driven tools for pandemic monitoring and management, Alibaba is
playing a crucial role in the collective efforts to combat Covid-19 on a global scale.
Additionally, Alibaba's prominence in the cloud computing landscape has been
further underscored by its recognition by Gartner as the third-largest global provider
for Infrastructure as a Service (IaaS). Notably, Alibaba has clinched the top spot in the
Asia Pacific region, solidifying its dominance in this rapidly growing market. This
accolade is a testament to Alibaba's commitment to innovation and excellence, as well
as its ability to meet the evolving needs of businesses and organizations across diverse
regions. Overall, Alibaba Group's achievements highlight its unparalleled impact and
influence in shaping the future of technology and cloud computing on a global scale.
II.4.3. Things that make Alibaba Group successful
Alibaba Group's remarkable success can be attributed to a combination of
strategic approaches and core principles that have guided its journey to becoming a
global powerhouse. One of the standout features of Alibaba's success story is its
innovative business models, particularly its platform-based approach. Instead of just

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selling products directly, Alibaba has created robust online platforms that serve as
marketplaces, connecting buyers with sellers in a seamless and efficient manner. This
platform-based approach has not only transformed the way commerce is conducted but
has also facilitated unprecedented levels of trade and collaboration on a global scale. A
prime illustration of this is Alibaba's flagship platform, Taobao, which acts as a
bustling marketplace connecting millions of sellers with potential customers across
China. By nurturing such vibrant online ecosystems, Alibaba has solidified its position
as an industry trailblazer.
Furthermore, Alibaba Group places a strong emphasis on innovation, customer
service, and maintaining a long-term vision. Innovation is at the heart of everything
Alibaba does, driving the company to constantly explore new ideas, technologies, and
business models. By staying ahead of the curve and anticipating future trends, Alibaba
ensures that it remains at the forefront of the industry, continuously evolving and
adapting to meet the changing needs of its customers. In addition to innovation,
Alibaba is deeply committed to providing exceptional customer service. From user-
friendly interfaces to reliable logistics and timely support, Alibaba goes above and
beyond to ensure that its customers have a positive and satisfying experience. This
dedication to customer satisfaction has earned Alibaba a loyal following and has
helped cement its reputation as a trusted and reliable brand in the market.
Moreover, Alibaba has leveraged technology to create a leading company in
online retail, cloud computing, and digital payments. In the realm of online retail,
Alibaba's platforms, such as Taobao and Tmall, have revolutionized the way people
shop, offering a wide range of products and services at competitive prices. Meanwhile,
Alibaba Cloud has emerged as a dominant force in the world of cloud computing,
providing cutting-edge solutions and services to businesses of all sizes. Additionally,
Alibaba's digital payment platform, Alipay, has become one of the most widely used
and trusted payment systems in China and beyond, facilitating seamless transactions
and empowering millions of users to manage their finances with ease.
Overall, Alibaba Group's success can be attributed to its innovative business
models, unwavering commitment to customer satisfaction, and strategic leveraging of
technology to create value across various sectors. By staying true to its core principles
and embracing change, Alibaba has solidified its position as a global leader in e-
commerce, cloud computing, and digital innovation.

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III. CONCLUSION

In summary, Alibaba's evolution from its founding in 1999 to its current status
as a global leader in e-commerce, cloud computing, and digital entertainment reflects a
strategic and dynamic trajectory. Under the leadership of figures like Chairman Joe
Tsai and CEO Daniel Zhang, Alibaba's journey encompasses milestones like the
launch of Taobao and Tmall, the establishment of Alibaba Cloud, and the development
of a diversified organizational structure.
This structure encapsulates both strengths and challenges. While Alibaba
benefits from ecosystem synergy and market diversification, complexities and
regulatory considerations require adept navigation.
Throughout its history and in its current operational state, Alibaba's
commitment to innovation, customer service, and a long-term vision has propelled its
success. The company's ability to adapt and thrive in the ever-changing digital
landscape positions it as a key player in shaping the future of global commerce and
technology.

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