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17-22 Compare and contrast a marketing website and a branded community CHAPTER 17 Direct, Online, Social Media and Mobile Marketing 539 ange sell parties cam- els? and 3801 seen how Alibaba will attack global markets, one analyst recently predicted a future marriage down the road of Alibaba and eBay At the same time, U.S. companies such as Netfix and Amazon are exploring ways to expand their small presence in China. However, although the massive markets on both sides of the pond represent opportunities too tempting to pass up, only time will tell whether any of these U.S. companies can export the models they have applied so successfully in their home markets. As U.S. competitors try to counter Albalba, they will face one more big hurdle. The Chinese love Jack Ma. For their own part, U.S. tech founders such as Bezos, Zuckerberg, Brin and Page, and the late Steve Jobs are considered visionaries who have shaped the world's digital ecosystem. But the Chinese revere Mr. Ma, the man who turned a local underdog into a dominant giant with revenues bigger than Amazon, Facebook, Google, and Apple combined. Those kinds of patriotic emotions will be tough to crack conglomerate the has cant. got It's "In Broe TBO-"aims to be tus, sure Thike its Westem counterparts, Alibaba developed and Verant online sites and established major divisions. For Taobao.com is a site that helps small businesses and merchandise to customers. But unlike eBay's in structure, Taobao sellers pay only for the advertised mon. From a shopping standpoint, Alibaba's Tmall.com is of similar to Amazon, pairing customers with big corporations, mong many global corporations such as Nike, P&G, Apple, devan retailers like Costco. Bul Albaba s development has taken it down numerous other As as well. And although it may seem that the surging Chinese e is simply playing copycat, Ma's vision plays out cre- ay n every case. For example, Alipay is similar to PayPal. But ned for investment opportunities in an environment dominated by state-run Danks, Alipay customers have access to financial goutts that pay attractive returns, in the first year of making such qotions available, Alipay customers tucked away $82 bilion. in another example of Toll -be-launched Imal box Officer come the equivalent of Netflix in the US including plans to original content produced Burnth model. Alibaba is a true pioneer. And that pio- environment neering effort extends to a crowdsourced film investment fund, a by along regular folks to become producers with less risk. thes so far chosen to focus on the massive potential of its home market. That will change. "We plan to invest more in the U.S. and UK markets to get more traffic and...build brand awareness, as Joe Yan, director of international B2C at Alibaba's export Dision. "Our biggest advantage is abundance with 100 million woducts, we have more options for customers who can buy our Droducts cheaper and at high quality." And while it remains to be Go to mymktlab.com for the following Assisted-graded writing questions: 17-22 What public policy issues are related to direct and digital marketing? of Netle d by Alibaba's own Alibaba Pictures. where TV viewers TV viewers aren't accustomed to were mar- to upend traditional film film financing in China to cion Albaba has spent billions investing in start-up firms. Today, the only Ababa Group spreads out over a constellation of services and ent homologies, including music, gaming, blogs, social networks, avent ticket sales, shipping, ridesharing, wearables, and smart- con phones On well-known U.S. interests, Alibaba has invested $200 million in Snapchat and $1 billion in Lyft, and it recently bought eir eir 106.6 percent of languishing Groupon. Apparently, Mr. Ma sees an 10 S g in the daily deals market that others don't to As Alibaba's list of businesses grows, Ma's vision and innova- 10 so tion seem unbounded. After all, how many U.S. internet veterans 50 m- can say they started their own holiday? Just seven years ago, et Ma enthusiastically launched Singles Day on November 11. hy he Whet started as a sort of anti-Valentine's Day for single people is le 5 now one of the biggest blockbuster sales holidays in the world, th Last year, it resulted in $14.3 billion in sales in 24-hour period, almost five times what fanatical U.S. residents spent on Cyber on Monday across all ecommerce companies combined. with a goal of doubling its current revenues by 2020, one tontier looms large for Alibaba - global expansion. Although Іy s biggest dot.com success certainly has global ambitions, ay re e ne day-to-watch model that threatens to Questions for Discussion 17-18 As a digital retailer, how does Alibaba provide value to Chinese consumers? What sets of values are unique to the Chinese market? 17-19 Given that Alibaba does not own or distribute any of the merchandise exchanged on its sites, describe what fac- tors had to develop for the company to succeed. 17-20 Analyze Alibaba's business model relative to all the dif- ferent forms of digital and online marketing covered in this chapter 17-21 Can Alibaba succeed in countries outside of China? Why or why not? something in Sources: Melanie Lee, "Alibaba Breaks 3 Trilion RMB Milestone." Forbes, March 21, 2016, www.forbes.com/sites/melanieleest/2016/03/21/ alibaba-groups-3-trilion-mb-breakthrough/#78cf4ba22a43: Jason Um, "Alibaba Group FY2016 Revenue Jumps 33%," Forbes, May 5, 2016, www.forbes.com/sites/jiim/2016/05/05/aibaba-fy2016-revenue-jumps- 33-ebitda-up-28/#25890ce1a9; Kathy Chu and Sarah Nassauer, "Alibaba Acknowledges Looming Challenges, Wall Street Journal, March 21, 2016, www.wsj.com/articles/alibaba-to-announce-transaction-volume- milestone-3-trilion-yuan-1458539799; Aaron Back, "Albaba Dreams of E-commerce Globaly but Acts Locally." Wall Street Journal (Eastem Edition). June 24, 2015, p. C12: Jillian D'Onfro, "How Jack Ma Went from Being a Poor School Teacher to Turning Albaba into a $160 Bilion Behemoth," Business Insider, September 14, 2014, www.businessinsider com/the-story-of-jack-ma-founder-of-alibaba-2014-9#ixzz3dqFm4M9B; Charles Riley, Alibaba Is Not the Amazon of China." CNNMoney. September 16, 2014, http://money.cnn.com/2014/09/15/investing alibaba-amazon-chinal: Mohanbir Sawhney and Sanjay Khosla, "Albaba vs. Amazon: Who We Win the Global E-Commerce War?" Forbes, September 22, 2014, www.forbes.com/sites/Torbesleadershipforum /2014/09/22/alibaba-vs-amazon-who-will-win-the-global-e-commerce China's war/; and Paul Carsten, "Alibaba's Singles' Day Sales Surge 60 Percent to $14.3 billion," Reuters, November 11, 2015, www.reuters contartide us-alibaba-singles-day-idUSKCNOSZ34/20151112 $ 2 MyLab Marketing
As a digital retailer,how does alibaba provide value to Chinese consumers ? whit sets of values are unique to the chinese market?

Given that alibaba does not own or distribute any of the merchandise exchanged on its sites, describes what factors had to develop for the company to succeed.

Analyze Alibaba's business model relative to all the different forms of digital and online marketing covered in this chapter.

Can alibaba succeed in countries outside of China? Why or why not?

Answer 1

Answer:

17 - 18:

From huge enterprises to little retailers, organization Alibaba is connected to everybody in the market. In addition, an online stage that gives venture avenues and services is a special reward. The market of China presented another idea of web-based shopping and another kind of web entrances that played an enormous and powerful job in organization A. Not having any of the appropriately located distribution centers on the map makes Alibaba hold their costs down. One-stop search for the venture and money-related services alongside amusement arrangements set values that limits up to a market of China.

17 - 19:

One of the fundamental factors that would decide the achievement of the organization is the guarantee that the items executed are of acceptable quality. Even one disappointed client can bring a negative angle for the notoriety of the organization. And furthermore, concerning the gateway of financial services, the security of the cash is of top need alongside the necessity of consistency of guidelines. One other fundamental factor, for organizations like Alibaba, is to continue setting up its essence in the market. With numerous retailers working on the web, it gets pivotal to set up a solid hang available and continue reminding their quality in the market.

17 - 20:

Alibaba doesn't specialize in any of the items sold on its gateway and along these lines needn't bother with worry over the enormous distribution channels. It goes about as a middle person for the finishing of the exchange. Be that as it may, the contribution of extra accommodation based offices, ticket deals, amusement, gaming, delivery, and others makes it an extraordinary arrangement like no other. It fills in as a single stop online shop for all exercises of virtual shopping.

17 - 21:

In the developed economies, Alibaba would require an extraordinary exertion to contend with acclaimed competitors, which had already picked up the client's trust and faithfulness there. Further, there are numerous guidelines that should be agreed upon by different countries. In many developed economies, the issue can be related to the security of money or the trustworthiness of the retailer that may prompt the purchasers to escape from the online mode.

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