MACRO ENVIRONMENT ANALYSIS OF

COMPETITOR (ALIBABA)
Alibaba Group Holding Limited PESTEL analysis is a strategic tool to analyze the macro environment of the organization.
They can impact individual firm’s competitive advantage or overall profitability levels of the Services industry. PESTLE
Analysis of Alibaba analyses the brand on its business tactics. Alibaba PESTLE Analysis examines the various external
factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental
factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.

PESTLE analysis is a framework which is imperative for companies such as Alibaba, as it helps to understand market
dynamics & improve its business continuously.
 Political Factors
● Chinese government push for
AI and digitalisation
● Hong kong listing to ease
political pressure
● China being an authoritarian
nation, its Government can
seize power anytime and take
control of the company
Economic factors Social Factors
● Impact of macro environment ● Growing population in
factors on business target markets
● China is currently going ● Effective CSR activities
through an economic ● Aging Chinese
slowdown . The E-Commerce Population
sector has also shown poor
results.
● Although its revenues have
increased but the company is
witnessing the slowest growth
rate since 2016.
● The company should focus on
the rural or tier 3 cities
 Technological Factors
● AI and Big data driven user
experience
● Technical advancements in
core operations
● The company invested huge
money in a Logistics platform,
Cainiao, for the handling of
products and live tracking
● AI Chatbot launched by the
company helps buyers and
sellers to communicate with
each other by translating the
other party’s text in their own
language.
Legal Factors
● Lawsuit against counterfeits
like fake Gucci wardrobes
● Proper protection platform
for any infringement
● Strict reforms to protect
intellectual property
● Change of Import and export
Regulations
Environmental Factors
● Water conservation
● Supporting CSR programs
like job creation, rural
development and
environmental conversation
● Alibaba provided more than 8
Lakhs health Insurances
● Encouraging employees to
serve 3-4 hours in community
service