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China E Commerce Market Analysis

Decent Essays

Alibaba Case
1. Critically analyze the factors that led to Alibaba sustaining its leadership position in the Chinese e-commerce market.
There are many factors that lead Alibaba to sustaining its leadership position in the Chinese e-commerce markets, some of the factors explained in the case are:
• First mover advantage was created when Alibaba enter the e-commerce market with the business to business transactions for small and medium business. This give the advantage for the firm to gain greater market share, obtain specialized sources and human capital, and it gain a great part of customers that are loyal to the company.
• Local knowledge was a really important factor for Alibaba because by knowing what are desires, interest and customs of their customers, Alibaba created an advantage over its competitors.
Marketing tools created a great advantage for Alibaba because by using different sources the company penetrate different markets, and it even help the company to overthrown eBay from the customers to customers business.
• The company created a good environment to succeed because it minimize the political risk by working with the government, and creating a mutual benefit between the country and the firm.
• The leadership that Ma created was exceptional because by starting with his pears without any hope from other people to be successful, he follow what he desire. At the end he has created a great company with exceptional values, which is a great legacy for

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