WiseLancer
  • Home
  • About
  • Marketing
  • Management
  • Business
  • SWOT & PESTLE 
  • Health
  • Travel
  • Romance
  • Cooking & Foods
Tag:

Alibaba

Alibaba
SWOT & PESTLE 

SWOT Analysis of Alibaba | SWOT Analysis

by Shamsul October 21, 2019

 

Alibaba.com is a china based e-commerce website that offers wholesale trade to customers all over the globe. Before working on the SWOT Analysis of Alibaba, let’s have a small introduction to the group. Alibaba is a multinational brand name that deals in retail, technology, and the internet as well. Over the last two decades, Alibaba has transformed the whole online purchasing scenario. The group is a trendsetting enterprise that is currently sharing more than 80% of China’s online business. With more than 103,699 employees in 100 franchises, Alibaba is a company with the largest sales and operational network. The headquarter of Alibaba group is located at the Xixi District of Hangzhou, China. The net worth of the brand is 150 billion US dollars.

 

SWOT Analysis of Alibaba

Strengths

Highest Sales Graph

First of all, Alibaba.com is an online retailer industry with the highest sales indicators. The business model adopted by the brand makes it different from its competitors. Alibaba is an enterprise that offers a wide variety of products under a single online channel. Alibaba is a leading eCommerce business that has established its business in multiple countries including the USA. During the first quarter of 2019, the estimated revenue of the company has increased by up to 51%.  The total revenue generated by the company is approximately 13,932 million USD.

Annual Active Consumers

Alibaba is the biggest online shopping portal. Since 1999, the annual active customers are consistently increasing. Alibaba is providing quality services to all types of customers. With the satisfactory services, first of all, Alibaba has now reached to 654 million consumers all over the globe. Above all, in the year 2018, there is an increase of 18 million customers. Hence, this growth indicates a stronger connection between customers and the brand.

Business Operation Abilities:

Alibaba has a unique operational model. The company has consistently improved its operational abilities in order to provide effective dealing. This particular eCommerce website has a diverse management system that allows customers to enjoy the freedom of online shopping.

Futuristic Approach:

Furthermore, Alibaba has strongly built a loyalty-based relationship with employees. The management style adopted by the company CEO has changed the whole marketing concept. Therefore, a futuristic approach implemented by the company that makes it different. The design and the workflow offered by the brand are simpler. Consequently, Alibaba is a target-oriented company that deals in a persuasive style of marketing and sales. Due to a visionary approach of Jack Ma, Alibaba Group is now leading the eCommerce market.

Flexible Business Approach towards Partners

Alibaba has expanded its business with the help of third-party partners. Partnerships have a huge role in achieving targeted sales. The enterprise believes in collective efforts in order to generate profits. For the same reasons, the brand has flexible offers for third parties. There are scalable platforms available for dealers and consumers. Moreover, for convenience, there is a cloud storage provided to all kinds of partners.

SWOT Analysis of Alibaba

SWOT Analysis of Alibaba

Weaknesses

Competition between the Sellers:

Alibaba always welcomes upcoming companies for registration. There are unlimited numbers of partners that Alibaba has already listed. For the time being, it may seem good for the business, but in the long run, it can create problems. With too many partners, the competition will be ultimately higher. From the partner’s perspective, it can decrease the chances of growth with increased competition and reduced profits.

Decline in Operational Income:

Operational income is a directive indication for any company. Recently, there is a decrease of 5% in the operational income. The decline is due to the fact that Alibaba had to face a lawsuit worth of US 250 million.

Fake Goods and Applications:

Alibaba is criticized a lot about fake goods and items.  There are many complaints registered against the company for allowing fake goods sales and purchases. However, the enterprise has denied all the allegations. The mobile application designed by Alibaba is not impressive at all. Moreover, the online stores offered by Alibaba have unlicensed applications available.

Less Secure:

Online eCommerce website like Alibaba offers a predefined purchasing process. There are a series of steps involved in order to buy an item. Customers have to share the details considering the payment modes. In some cases, there are complaints registered about the scams. Alibaba has a less secure platform for customers.

Profit of Margin for Partners:

Alibaba is known for its budget-friendly offers. There is a number of cheap deals offered to customers. Likewise, there are promotional codes given to online buyers. With such a budget-friendly platform, it is difficult for the partners to generate profitable business. With this approach, the profit of margin shrinks. As a result, the number of sellers can decrease eventually.

Conventional Business Model:

Alibaba is currently following the conventional business model. Right now, the enterprise is not investing wisely in the research and development domain. As a result, Alibaba might not be able to compete with the biggest competitors in the market.

Alibaba 20th Birthday

SWOT Analysis of Alibaba

Opportunities

Newer Product Categories:

While doing the SWOT Analysis Alibaba is a stable online market place with impressive cash flow. Once there is huge cash flow, it allows enterprises to invest in products. There are multiple opportunities available for Alibaba in new product segments. With this approach, the brand can create a new opportunity for business expansion.

Economic Growth and Purchasing Power:

Due to economic growth, the purchasing power of the customer gradually increases. With the economy getting stronger, Alibaba can take advantage of introducing new services for the clients. There is always a margin for improvement in any business. Alibaba can capture new customers with innovative marketing techniques.

Accessibility outside China:

First of all, Alibaba has primarily focused on Chinese markets. Therefore, they have millions of customers that use Alibaba as a shopping platform. As a world-known selling enterprise, Alibaba.com can concentrate on the potential market outside China. These markets are already dominated by the world’s best sellers.

Value-Oriented Proposals:

Alibaba is a company that is well aware of pricing strategies. These strategies are defined by the experts in order to maintain connectivity between customers and the company. Alibaba can add value-oriented proposals to consumers. In this way, more buyers can be attracted to the business.

 

SWOT Analysis of Alibaba

SWOT Analysis of Alibaba

Threats

International Competitors:

Alibaba is a company that is dealing with local competitors. Globally, there are multinational organizations offering the same sort of services like Alibaba. As an online retailer, Alibaba must have to deal with competitors internationally.

Value of Money and its Fluctuation:

Alibaba has an established business in most of the countries. But the political and economic stability may not always be the same. Both of these factors can cause significant fluctuation in sales and company operational activities.

Negative Imaging of Online Portals:

Competitors are creating a negative image in the market. This particular image can create lots of problems for industries like Alibaba. Customer trends and behaviors are also one of the factors that can decline sales. Alibaba must have to keep on branding a good image with interactive marketing strategies.

Decline in Profit Percentage:

Online purchasing trend is increasing day by day. In order to meet the requirements, there are multiple online sellers available in the market. The eCommerce portals like Alibaba rely upon the number of customers. The margin of profit can decrease in order to stay in competition with economical pricing.

 

October 21, 2019 7 comments
0 FacebookTwitterPinterestEmail

About

About

About Wiselancer

Our resources are tailored according to the needs and demands of today. Wiselancer offers an extensive treasure of knowledge-based contents and articles that shed light on a variety of different subjects and topics.

Recent Posts

  • Want to Know the Top Anti-Inflammatory Food To Stay Healthy

    January 29, 2023
  • 10 Foods Make You Live Longer

    January 28, 2023
  • What is the Solution To Better Manage Remote Working?

    January 26, 2023
  • Best Tips for Mixing Sales & Marketing a Brand | Opposites Attract

    January 26, 2023
  • What is Ethical Marketing | Its Importance, Role with Examples

    January 25, 2023
  • How to do Remote Management Or Work From Home

    January 19, 2023
  • Better Tips
  • Biography
  • Business
  • Celebrities
  • Cooking & Foods
  • Coronavirus
  • Fashion
  • Gig Economy
  • Health
  • Management
  • Marketing
  • Personal Growth
  • Romance
  • Scholarly
  • Skincare and Beauty
  • SWOT & PESTLE 
  • Top 10
  • Travel
  • Trending
  • World's Climate
  • Writing

Archives

  • January 2023 (27)
  • December 2022 (40)
  • November 2022 (55)
  • October 2022 (32)
  • September 2022 (24)
  • August 2022 (28)
  • July 2022 (24)
  • June 2022 (24)
  • May 2022 (32)
  • April 2022 (47)
  • March 2022 (62)
  • February 2022 (68)
  • January 2022 (21)
  • December 2021 (41)
  • November 2021 (34)
  • October 2021 (21)
  • September 2021 (6)
  • August 2021 (5)
  • July 2021 (14)
  • June 2021 (11)
  • May 2021 (9)
  • April 2021 (14)
  • March 2021 (12)
  • February 2021 (18)
  • January 2021 (21)
  • December 2020 (7)
  • November 2020 (9)
  • October 2020 (5)
  • September 2020 (7)
  • August 2020 (1)
  • July 2020 (5)
  • June 2020 (10)
  • May 2020 (7)
  • April 2020 (12)
  • March 2020 (15)
  • February 2020 (5)
  • January 2020 (24)
  • December 2019 (13)
  • November 2019 (10)
  • October 2019 (22)
  • September 2019 (18)
  • January 2016 (9)

@2021 - All Right Reserved.


Back To Top
WiseLancer
  • Home
  • About
  • Marketing
  • Management
  • Business
  • SWOT & PESTLE 
  • Health
  • Travel
  • Romance
  • Cooking & Foods