Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Alibaba - Building a Social Sustainability Ecosystem for E-commerce Description

The case narrates the evolution of the Alibaba Group, starting with Alibaba.com in 1999, in four different phases, with the last phase beginning after its IPO in 2014. The evolution is described from a social sustainability perspective, highlighting Alibaba's initial efforts to help small businesses in China access the world markets and later, its focus on facilitating e-commerce led entrepreneurship in rural parts of China. Not surprisingly, Alibaba Group's evolution coincided with China's economic growth, as the e-commerce platforms have significantly contributed to the growth of businesses and consumerism in China. Specifically, the development of e-commerce ecosystem by Alibaba Group, created a platform where not only retail businesses, but also allied third party service providers could emerge and grow. After its IPO in 2014, Jack Ma, Alibaba Group's chairman, explicitly defined "E-commerce in rural areas" as one of the three strategic directions going forward. The case discusses in detail the two rural initiatives "Taobao Villages" and "Rural Taobao" that the Alibaba group pursued as part of its rural strategy. It is estimated that the e-commerce of Taobao villages created more than 840,000 direct job opportunities and rural Taobao reached 202 counties in 22 provinces and established 9,278 village-level service stations by August 2016. The case also provides a brief overview of the ecommerce industry in India and ends with the questions: if there is a way for e-commerce players to provide socially sustainable business opportunities for the Indian rural population and how Alibaba should plan its entry and growth in the Indian market.

Case Description Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Strategic Managment Tools Used in Case Study Analysis of Alibaba - Building a Social Sustainability Ecosystem for E-commerce

STEP 1. Problem Identification in Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

STEP 6. Recommendations Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

STEP 7. Basis of Recommendations for Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study

Case Analysis of Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Alibaba - Building a Social Sustainability Ecosystem for E-commerce is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Alibaba - Building a Social Sustainability Ecosystem for E-commerce is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Alibaba - Building a Social Sustainability Ecosystem for E-commerce will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Alibaba - Building a Social Sustainability Ecosystem for E-commerce, is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Step 1 – Problem Identification of Alibaba - Building a Social Sustainability Ecosystem for E-commerce - Harvard Business School Case Study

The first step to solve HBR Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Alibaba Taobao is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Alibaba Taobao, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Alibaba - Building a Social Sustainability Ecosystem for E-commerce.

The external environment analysis of Alibaba - Building a Social Sustainability Ecosystem for E-commerce will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study. PESTEL analysis of " Alibaba - Building a Social Sustainability Ecosystem for E-commerce" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Alibaba - Building a Social Sustainability Ecosystem for E-commerce macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Alibaba - Building a Social Sustainability Ecosystem for E-commerce

To do comprehensive PESTEL analysis of case study – Alibaba - Building a Social Sustainability Ecosystem for E-commerce , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Government policies have significant impact on the business environment of any country. The firm in “ Alibaba - Building a Social Sustainability Ecosystem for E-commerce ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Alibaba Taobao is operating, firms are required to store customer data within the premises of the country. Alibaba Taobao needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Alibaba - Building a Social Sustainability Ecosystem for E-commerce has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Alibaba Taobao in case study Alibaba - Building a Social Sustainability Ecosystem for E-commerce" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Alibaba Taobao in case study “ Alibaba - Building a Social Sustainability Ecosystem for E-commerce ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Alibaba Taobao in case study “ Alibaba - Building a Social Sustainability Ecosystem for E-commerce ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Alibaba - Building a Social Sustainability Ecosystem for E-commerce ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Alibaba Taobao can compete against other competitors.

Government Scheme & Subsidies Impact on Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Alibaba Taobao needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Social Factors that Impact Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Technological Factors that Impact Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Environmental Factors that Impact Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Legal Factors that Impact Alibaba - Building a Social Sustainability Ecosystem for E-commerce

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study. PESTEL analysis of " Alibaba - Building a Social Sustainability Ecosystem for E-commerce" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Alibaba - Building a Social Sustainability Ecosystem for E-commerce case study solution