Alibaba and Chinese market

 Doing business in Chinese requires different a different approach than in US given that the two markets exist in different cultures. The consumer behavior in the Chinese market is such that a company must serve them different so as to fit in the culture of this market. As such, Alibaba’s strategies for serving the customers are different the strategies used the major U.S technology firms such as the Amazon Inc.   The Chinese market is comprised of mosaic of cultures with no one consumer profile and hence a company has to remain flexible and innovative to fit in (Kermeliotis, 2011).  The market is also highly advanced in technology such as use of non-cash payment even though access to basic amenities is quite limited. The culture shock and limited amenities may present a big challenge for U.S firm’s working with Alibaba.

Alibaba has a great growth history which has seen it surpass other technology giants including Amazon and Google. In fact, the firm has emerged to be among the largest e-commerce company locally and among the most valuable globally.  With ever increasing revenue, the firm has been having a sustained growth and expansion plan buoyed by the past performance. The expansion efforts also include a focus to have its presence in the global market even though it may face some challenges in European and US markets.  In fact, the current online business model that has succeeded in China may fail in other markets if the firm does not diversify enough (DiCristopher, 2015). 

With the e-commerce business having been successful in the Chinese markets, the same can be achieved in other major markets. The increased market growth means over the years makes an investment in the company’s stock a good buy since such growth can be expected in other markets and in future.  When provided with favorable business environment in other markets the firm is bound to continue being a leader in e-commerce.

Reference