Alibaba Controls Delivery Business In U.S. Probe; Essay.

Alibaba's Acquisition of Delivery Business

Write about the Case Notes Analysis of Taobao for Alibaba Group.

In the article “Alibaba Group's Taobao: From Intermediary to Ecosystem Enabler”, it is evident the decision maker is the Alibaba Group’s senior executive team, led by Jack Ma who is the Executive This team is tasked with analyzing the progress of Taobao and Tmall.com, by looking at past and present experiences, as well as generating new systems to make the ecosystem more efficient.

The main issue of concern is the progress of Taobao and Tmall.com, especially with its new role as an ecosystem enabler, which is significant in establishing a development and growth plan.

As Taobao had changed its role and approach to business from intermediary to ecosystem enabler, it was important to review the progress of the company. The executive team is responsible for developing a growth plan given their vast expertise and knowledge of the situation.

The senior executive committee needs to urgently develop a progress report analyzing the revenue generated as well as customer feedback, since the implementation of the new business model. With this, it will be possible to develop a growth plan and strategize on how to beat competitors.

Due to the rapidly evolving nature of e-commerce, the executive team needs to regularly assess the progress and effectiveness of the models in place and develop strategies to ensure they remain the highest market shareholders. Even with significant growth and presence in the Chinese market, there is also competition from other companies such as com (McDonald, 2014). Given this, Taobao cannot be complacent and needs to constantly review its progress and effectiveness and adopt new strategies as required.

Taobao and Tmall.com were launched as Alibaba’s Consumer-to-Consumer and Business-to-Business sectors in 2003 and 2008 respectively. These sectors offer a platform for buyers and sellers to meet in real time and transact. Alipay is a payment method offered by Alibaba, where the payment is held onto, until confirmation of delivery of services or goods to the buyer. There have also been partnerships with other service providers to ensure the system of buying, selling, paying, and advertising is efficient and convenient (Chen, 2017)

The main area of interest is garnering more revenue by ensuring the systems in place are efficient and that Taobao effectively plays the role of ecosystem enabler.

It is of vital importance that the senior executive team urgently decides on the effectiveness of the new approach model, as well as how to remain the top player given stiff competition from other e-business sites. This is however to an extent guided by the dynamic ecosystem which Alibaba has limited control over.

The executive committee has options to explore such as introducing more services on Taobao and Tmall.com, partnering with complimentary service providers as well as providing a channel for customer feedback.

The case clearly outlines the background of Taobao and Tmall.com, how they have grown, the strategies and models that catalyzed that growth. In addition, the challenges and threats to the business and areas of opportunity have been discussed.

References 

Chen, L. (2017). Alibaba Takes Control of Delivery Business at Center of U.S. Probe.

McDonald, J. (2014). Here's The Story of Alibaba's Rise. Business Insider.