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Understanding the Value Creation Strategy - Case Study Example

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This case study "Understanding the Value Creation Strategy" discusses and analyzes the value creation strategy of Alibaba.com in order to understand how the company has evolved towards excellence over the decades through exercising value creation strategies. …
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Understanding the Value Creation Strategy
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Download file to see previous pages In this paper, the value creation strategy of Alibaba.com will be discussed in order to understand how the company has evolved towards excellence over the decades through exercising value creation strategies. The parent company this Chinese eCommerce conglomerate is Alibaba Group of Holding Limited. The company tends to provide superior sales services to its business-to-business clients through its well-established web portal (Alibaba.com, 2014). For the purpose of evaluating the value creation strategy of Alibaba.com, the potential market of the company, level of customer services, external environmental impact on it and the key challenges faced by the company would also be analyzed.
Alibaba.com Limited is the fundamental company of Alibaba Group of Holding Limited which is the largest trading platform for B2B customers and small businesses in the world. The service operations of Alibaba.com can be categorized into three distinct segments, which the company operates through three different portals. The English portal enhances online sales between importers and exporters for more than 240 companies. The Chinese portal, named 1688.com, ensures domestic B2B sales exclusively for China and the third is a transaction-based retail web portal, Allexpress.com that develops merchandising among small buyers, buying small quantity goods at a wholesale price (Alibaba.com, 2014). In this way, Alibaba.com integrates the whole world and converts into the company’s client through efficient utilization of eCommerce and extensive management of customer services. In spite of having a well established supply chain and strong customer base, recently the company is experiencing significant challenges. First, the fame of Alibaba.com is not that far reached outside of China. With the advancement of technology and upgrading eCommerce systems, Alibaba.com is experiencing tough competition from large number of global companies such as Amazon.com. ...Download file to see next pages Read More
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