Case study Alibaba Group wants to develop markets in USA Def

Case study: Alibaba Group wants to develop markets in USA, Define the Alibaba international strategy, and explain the importance of Alibaba’s efforts in foreign markets.

Solution

Alibaba is looking to enter the bigger markets of the world starting with the US. It can ensure success in this new international market by tying up with some of the start-ups that are currently operating in US. Alibaba follows a marketplace model, so its necessary that it has tie-ups with companies who can serve the customer at a much faster pace and more efficiency than the traditional e-commerce giants like Amazon. SO it needs to collaborate or start partnerships with the new start-ups who can provide the necessary services at a much lower cost and with much greater efficiency than its other market place contemporaries. Also Alibaba can enter into partnerships with high technology start-up firms in the US where they can bring goods from the US small and medium size to consumers in Asia where there is demand for unique and high-quality products.
They can pursue various shopping and marketing promotions in collaboration with the start-ups in US. The goal is to assist U.S. businesses in becoming e-commerce companies like Amazon.com Inc. using Alibaba services, including its logistics, payments operation and cloud computing.
These new-age companies along with their cheaper and efficient services will be one of the main backbones of the Alibaba business in US. Also collaboration with some of the major wholesalers is a must since this will enable Alibaba to have access to a huge item and seller base thereby leveraging on its marketplace model in US. The idea should not be to compete in US with the likes of Amazon, but to enable each of the prospective start-ups to act and behave like Amazon with its own inherent advantages.