Case Study: Alibaba.com

Alibaba.com

If you are hired by Alibaba.com as an E-commerce consultant, could you help them find more revenues?

Alibaba is already one of the leading e-commerce company in the world. As a consultant, my first recommendation to Alibaba would be to not forget that their competitors are already progressing in the e-commerce business and may start to take over some of Alibaba business because the business model of Alibaba is already understood by its competitors. For example, JD.com, which is also a Chinese company and in the same niche recorder sales of $17.b billion in 2017 which is its al times high. For Alibaba, the future issue to generate revenue may be to further increase their sales because once you have reached the highest number of customers, the decline may start.

Another way to increase revenue for Alibaba would be to increase the number of sales on its website by understanding the behavior of individual customers and advertising to them the products they would be interested in. This can happen with the help of big data mining which will not only help understand the purchasing behavior of individual customers but also the customers with similar demographics.

Amazon is a similar company. They pose a real threat to Alibaba. What Alibaba would need to do is apply differentiation strategies to ensure their customers that they are different and better from Amazon.