Groupon And Alibaba - Statistics Project Example

To achieve this, it looks at IT startups and other e-commerce ventures as opportunities for growth and business merges, to form a global conglomente, providing B2B, and B2C business channels. In contrary, Groupon business strategy is based on economies of networking and economies of scale, encouraging consumers to sign up as a group and enjoy Groupon offer. This strengthens consumer bargaining power, which may be attributable to its poor performance in comparison to Alibaba free market design, where consumers and business are provided with a platform to deal with each other directly.

Alibaba major products include free upload of item for sale, payments processing capabilities, item categorization and point-of-sale solutions. Groupon major products are not much different from that of Alibaba, only that item categorization is applied depending on clients preferences. E-commerce industry is fast paced with new inventions and innovations every day. The degree of competition is high, with new entrants at local levels anticipating to go international in future. Substitute’s product for e-commerce business is social networking sites, where businesses and consumers are engaging in business with one another.

In e-commerce, the industry has power over consumers to an extent, because it may lead to a rise in prices when it raises its charges on traffic their offer. However, consumers are not tied to a single supplier, because the platform offers a platform for multiple suppliers to meet and trade with clients. Mobile e-commerce is one of the key emerging issues within the industry. Regulations are not very effective, with cases of fraud reported. Alibabas’ growth strategy might provide for long-term market leadership, dependent on the risks of cooperation and merging with other businesses.

It employs product differentiation leadership in its business. Alibaba faces no liquidity problems in future, observed in it management of working capital to