Marketing Strategies of Ecommerce ALIBABA Company †Free Samples

Question: Discuss about the Introduction to Ecommerce ALIBABA Company. Answer: Introduction The paper demonstrates how ALIBABA is using ecommerce to realize its global growth especially by launching its outlet in Australia. In the paper, some of the benefits the ALIABAB has gained have been highlighted. Further, the marketing strategies of the company have been identified, and the underlying factor of the design of the website and its benefits in terms of security and service delivery has been noted. The emergence of ecommerce has brought about vigorous changes in not only ALIBABA but also to the business industry at large. Apparently, almost all the businesses strive to ensure they have incorporated integrated electronic systems in their business process with the aim of improving efficiency, effectiveness, and accuracy. Ecommerce involves the transfer of information and exchange of goods and services using electronic devices with the aid of a computer network (In Nah, F. F.-H, In Tan, C.-H. 2016).. Businesses like ALIBABA have identified ecommerce as a significant option of generating more revenues for the company by developing online stores like the AliExpress.com because of the increased demand of online customers. Ecommerce accommodates the vertical dynamics that exist in ALIBABA because it has revolutionized how customers and companies interact with one another. You realize most companies have taken most of their services online. Like in the U.S almost 60 percent of customers now enjoy the benefit of ecommerce. The clients make online orders and the goods are delivered at the comfort of their homes. Companies like Amazon, EBay, and PayPal are amongst the many competitor companies that are offering services over the internet. Another comprehensive benefit of ecommerce in ALIBABA business expansion is that, ecommerce has boosted convenience and easiness of making online purchase. By this I mean, ecommerce has been the most preferred means of making online purchases for this company. Therefore, ALIBABA gives the client the freedom of checking on the variety of goods on the online store, then picks or order the most preferred after which he can make payment using electronic money transfer channels to complete the transaction. This has enabled the facilitation and simultaneous way of carrying out activities from the comfort of our homes. Therefore, there is convenience it terms of saving time and cost which could have been used for logistic purposes. Also, there is huge information to both the customers and the host business. Nowadays, almost all the information of the vendor is provided and readily available for all people to see. As such customers find the information they want at a glance maybe when they search for a particular product chain. Besides, the business can use the information provided in the virtual community platform to do analytics and evaluate the effectiveness of customers and sales, even the marketing campaigns, and product mix and more by using software aided programs like customer relationship management and many more. Ecommerce has contributed to the scalability of the ALIBABA whereby it is easy to meet the customer demands and adjust accordingly to access various market segments. Therefore, the business is more likely identify niches and expand their coverage market. As a matter of fact, access each client or seller physically might never happen but the inception of electronic stores has facilitated the same. Thus, customers can search for the products they want over the web and make a purchase from anywhere without any worry. Ecommerce has contributed to decreased overhead cost at the same time creating brand awareness of ALIBABA. By opting for ecommerce, ALIBABA cut down advertisement cost, lowering the number of employees, and eliminating travelling cost. Advertising is important to any company but once the business has opted for ecommerce, some cost effective channels like social media platforms, organic search engines, and pay per click can be alternatives. Reducing staff will happen as a result of automating the business process; inception of inventory and billing systems will lower the cost of salaries. Travel cost is eliminated to both the client and the seller because transactions can happen from anywhere. The ultimate advantage of all this is that, that business will utilize and maximize on profit to expand further by saving the extra coin saved by introducing ecommerce business. Basically, ALIBABA runs on business to business model and business to consumer model, and consumer to consumer model in Australia. Business to business model in the sense that, ALIBABA is involving other companies with the electronic fund transfer systems to facilitate transactions. ALIABABA has incorporated the use of credit cards, and EBay, and PayPal into their system hence facilitating the purchase of products and services from the site (Ho Ng 1994). B to B models involves two or more companies coming together with the aim of doing business together (Magretta, 2002). For instance, Lazada ALIABABA subsidiary is working with Australia Post to expand their storefront to Malaysia, Indonesia, and Singapore. The merger will help Australia based businesses to sell their products on those platforms of foreign market. On the other hand, a business to consumer m model is the most prevalent model that is being embraced by the company not only in Australia but also to the rest of the stores. The stores like TOABOA are meant to offers a variety of commodities on the platform. The platform has barely almost every product you may want. The model entails customers engaging to purchase the products from the platform of ALIBABA. The consumers have the freedom to obtain household items like home dcor, electronics, fashions, and utensils from the site. Another prominent business model exhibited by the company is consumer to consumer model (Teece, 2010). Since the launch of ALIBABA in Australia, the aim was to expand their market share at the same time maximizing profits. Tmall offers a platform where consumers meet other consumers and can exchange goods and services as long as the need of the two parties is met. This models is popular because a consumer can acquire a product on the same site and immediately pose as a willing seller for the same product. Undoubtedly, the product will get the buyer regardless of the time taken to resell it. Thus, ALIBABA generates revenue from the fixed user fees and sales commissions according to the company`s terms of trade. The website design and the general outlook is another contributing factor that encourages clients to use the platform. First, ALIBABA has been ranked top among the search engines in Google, therefore, customers are able to find the site immediately they search it on the web. The site is simple and easy to navigate. Products are arranged according to their chain and customers are able to get a variety of products because products of a particular chain are grouped hence easy to find substitutes. In general, the site is appealing to many and customers cannot get bored by visiting the site regularly. Speculations have been there about the strategies that ALIBABA is trying to deploy to penetrate further unto the Australian market but the strategies are not different from those used to penetrate other markets. The launching of ALIABA in Australia is something that the management has figured out and made a penetration plan. The penetration to Australia was part of the globalization strategy of ALIBABA (Glowik, 2017). ALIBABA has decided to achieve globalization in the marketplace by encouraging more companies to join their line of business, involving and developing a rapport with various governments, and supporting the existing merchants to get the nest out of the business. ALIBABA is doing the same in Australia by tapping in more Australia sellers to the platform which will expand its market share in Australia, at the same time increasing user base which will increase foreign inventory. Apart from this, ALIABA plans to introduce its cloud services and its Alipay; a payment system in the region. This strategy will help the company to realize its objective of operating internationally in the marketplace consequently meeting its global growth. Since ecommerce involves sophisticated and complex information ALIBABA has deployed a customer relationship management system. The CRM helps businesses to analyze the sales information, the customer effectiveness, and market mix by using the information offered on the site (Ngai, 2005). The information and data collected helped the ALIABABA to make quick decisions regarding the market dynamics by coming up with a strategic plan to counter issues affecting the business. Also, ALIBABA is using this system to identify and target new customers and how to manage marketing campaigns. Also, the system helps the management to check and respond to customer needs in time to ensure they listen to what the client requires. Besides, the data provide market feedback hence ALIABABA is in a position to determine the criterion to use in advertising, communication, and the technology to input. In conclusion, ALIBABA is among the many companies that for a long time have utilized the inception of electronic business and as a result they have tremendous climbed up the ladder towards achieving global growth. Ecommerce is the core contributor to the expansion of ALIBABA and its recognition in the marketplace. Effectiveness and efficiency in the business process has been achieved by the use of CRM as well us increasing the customer base in almost all parts of the world. ALIABAB taking its business online buy introducing online stores Tmall and TOABOA is the hallmark of the success of ALABABA. I would like to recommend to ALABABA to introduce a live chat system where the support team can instantly engage with the potential visitors on the website to ensure 24/7 support system hence transparency and convenience would be dealt with. References Glowik,M. 2017.Global Strategy in the Service Industries: Dynamics, Analysis, Growth. Milton: Taylor and Francis. Ho, S. S., Ng, V. T. 1994. Customers' risk perceptions of electronic payment systems.International Journal of Bank Marketing,12(8), 26-38. In Nah, F. F.-H, In Tan, C.-H. (2016).HCI in Business, Government, and Organizations: eCommerce and Innovation: Third International Conference, HCIBGO 2016, Held as Part of HCI International 2016, Toronto, Canada, July 17-22, 2016, Proceedings, Part I. Magretta, J., 2002. Why business models matter. Ngai, E.W., 2005. Customer relationship management research (1992-2002) An academic literature review and classification.Marketing intelligence planning,23(6), pp.582-605. Sixtus, T. (1999).U.S. Patent No. 5,903,721. Washington, DC: U.S. Patent and Trademark Office. Teece, D.J., 2010. Business models, business strategy and innovation.Long range planning,43(2), pp.172-194.