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Product cover image for Alibaba: Launching a Direct Online Retail Model

Alibaba: Launching a Direct Online Retail Model

Wei Li, Jing Chen, Hubert Pun, Junfeng Tian

Product #:W28625_P
Supplier:Ivey
Discipline:General Management, Marketing
Setting:China, 2021
Details:Case (PDF) • 14 pages • 2022-09-28

Subjects:

Marketing strategySales and marketingMarketingManagement

Industries:

Information technology and telecom sector

Geography:

AsiaChina
Your Price:$9.71

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In May 2021, Alibaba Group Holding Limited (Alibaba), China’s biggest e-commerce company, faced a number of challenges. Alibaba, which operated under a platform business model, was confronted with weakened consumer spending due to the coronavirus pandemic as well as increased competition from JD.com Inc. (JD.com) and other e-commerce entrants. To boost business growth and strengthen Alibaba’s leading position in China’s e-commerce market, Daniel Zhang, the company’s chief executive officer, would need to evaluate the possibility of adding a direct online retail model to complement the operations of its flagship platforms Taobao and Tmall. What challenges could Alibaba potentially face in its e-commerce business expansion?

Learning Objectives

This case is suitable for undergraduate- and graduate-level courses in operations management, marketing, e-commerce, supply chain management, and strategy management, particularly in a section that discusses operational and marketing strategies for e-commerce. This case will also be helpful for classes that discuss brand management and channel strategies. This case asks whether a leading e-commerce company should add a direct online retail business to manage challenges and boost business growth. By working through the case and assignment questions, students will have the opportunity to do the following:
  • Understand the development status and characteristics of the Chinese e-commerce industry.
  • Understand the pros and cons of the platform business model and the direct online retail business model.
  • Explain the factors driving a leading e-commerce company to add a direct online retail business.
  • Identify the opportunities and challenges faced by an e-commerce company in retaining user traffic and expanding its business.
  • Consider and discuss how an e-commerce company should implement a direct online retail strategy.
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Case Study: Alibaba: Launching a Direct Online Retail Model | Ivey Publishing