Essays on Comparative Analysis of Alibaba Group and Amazon Case Study

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The paper "Comparative Analysis of Alibaba Group and Amazon" is a good example of a business case study.   The essay expresses the comparative analysis of two multinational companies from different countries that compete in the same market. It heightens on the analysis is on the firms’ ownership and control structures, and how their differences influence the priorities of the companies. The paper examines how the difference in contexts have affected the ways in which the firms have internationalized with regard to their location of key assets, the length of time that a company has operated abroad, the nationalities of board members, the structure of the company, and the power of foreign subsidiaries. Alibaba was established in 1999 by a group of 18 people led by Jack Ma in Hangzhou, China, with an aim of levelling the playing ground to enable small enterprises to develop and participate in the domestic and world markets (McGregor, 2014).

Alibaba Group uses mobile and online marketplaces to facilitate trade in both wholesale and retail. They also offer cloud computing and other technologies and opportunities that facilitate buyers and sellers to engage in e-commerce at www. alibaba. com. Amazon offers a similar platform that seeks to provide clientele with a virtual place where sellers can sell and buyers can find/purchase virtually any item that they wish to buy (www. amazon. com).

Amazon’ s offices are located in Seattle, USA. Started by Mr. Jeff Bezos in Seattle, USA, Amazon currently has sites in China, Germany, Italy, France, Japan, Spain, Canada, and United Kingdom and another good number of fulfilment centres all over the globe (Amazon, 2015). Amazon has about 51,300 employees around the world.

Amazon comprises seven departments (Amazon, 2015). Jack Ma was the Chairperson and CEO of Alibaba since its inception to 2012 (Tan, Pan & Huang, 2009). He was able to raise the credit of over $25 million from investors within a year of operation and started realizing profits from the year 2002. In 2003, he launched Taobao. com and Alipay. He led Alibaba into partnership with Yahoo in 2005 and assumed control over China Yahoo. Under his stewardship in 2007, the Hong Kong Stock Exchange featured Alibaba, and in 2008, he launched Tmall. com, a business to consumer online shopping platform focused on well-known brand name goods.

In 2014, Alibaba had its IPO (McGregor, 2014). In structure, Alibaba Group acts as a partnership. It was founded by 18 partners, though the number has now grown to 30. New partners are admitted each year, a measure thought to enhance excellence, innovation and sustainability. The offer to join as a partner is open to individuals who have been working in the company for more than 5 years. New partners are nominated and then elected by existing partners.

  In principle, this process of roping in new partners promotes accountability, and since the partners will have been working in the company for over 5 years, they will already be owning or have been awarded meaningful equity incentives. The partners will thus be expected to handle the business as their own enterprise because they have a stake in it. The partners in Alibaba double up as managers of the firm and other allied companies. Under such a kind of governance structure, the executives, who are part owners, are able to focus on the long-term goals of the firm, collaborate and override bureaucratic hierarchy (McGregor, 2014).

References

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Alibaba Group, 2015. Leadership [Online] (updated 16 April 2015) Available at: http://www.alibabagroup.com/en/about/leadership [Accessed 19 April 2015].

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McGregor, J., 2014. Five things to know about Alibaba’s leadership. Washington Post [Online] (updated 18 Sept 2014) Available at: http://www.washingtonpost.com/blogs/on-leadership/wp/2014/09/18/five-things-to-know-about-alibabas-leadership/ [Accessed 16 April 2015].

Petry, S., 2014. Founder firms and bad corporate governance design? The case of Alibaba. [Online] (updated 24 March 2015). Available at http://papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID2534646_code417492.pdf?abstractid=2530063&mirid=1 [Accessed 22 April, 2015].

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Tan, B., Pan, S. L., Lu, X., & Huang, L., 2009. Leveraging digital business ecosystems for enterprise agility: The tri-logic development strategy of Alibaba. com. ICIS 2009 Proceedings, 171.

Terry-Armstrong, N., 2013. Amazon case study: Part one. Busidate, 21 (1), pp. 2-4.

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