MIS 300 (Privacy difference between Alibaba company in the US and Alibaba company in the EU)

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Can you write 6 pages more of this topic (Privacy difference between Alibaba company in the US and Alibaba company in the EU)? One person wrote to me some pages about Alibaba.com and Privacy difference between Alibaba company in the US and Alibaba in the EU. I want you to use APA format and use 6 resoures. Moreover, I want you to put six pages with these five pages you are seeing down.

 

Price difference between US and UE:

Pricing strategies are different in all continents and countries, a topic that has been the subject of much debate. On one side, some ascertain that pricing in European markets is based on minimum wages being higher. The differences in earning capacities in different countries and taxes also have to come to mind given the context. On the other hand, others ascertain that the vendors are just price-gouge. Settling and deciding on one side of the debate requires extensive research that uncovers the reality based on facts and not opinions. A closer analysis of pricing strategies between U.S and Europe reveals that Europeans pay more than Americans for the same commodities. Among the top reasons in the pricing in European countries like Australia is the setting of the prices in USD. For example, games in Australia are sold in terms of USD from where the company changes the currency to Euros. More evidence comes in terms of an analysis of food consumptions between the US and European countries. The analysis reveals that Americans spend a lesser percentage of income on food as compared with European countries. 

Prices: The US versus Europe: 

Pricing in the US is lower than even the most developed European countries. However, pricing is higher in the US than in lesser developed European countries. The availability of products varies from states to states in the US. For example, flowers that cost $93.30 in Houston would cost $141 in Manhattan. Also, the products in US and Europe are different in quality and quantity. As such, establishing price disparities might be hard and challenging. For example, bread and cereal that would cost an American $100 would cost $156 for a Denmark citizen. The same quantity would cost a Portuguese $85 and $40 for a Czech Republic citizen. 

Google announced its new Nexus handsets in late 2015. However, pricing was so high in UK and Europe that users are almost contested. An American user could buy the Nexus at a price 40%

lesser than what Europe and UK citizens paid for the same product. In fact, pricing increases as one moves from the west towards the Europe.     

Reasons Behind the Differences in Pricing: 

A past study on why there is a pricing difference among countries revealed that there are factors that bring the difference in the pricing of commodities between countries. 

Taxes: Most taxes in the US goes to the federal government. The government can then use it for public activities like defense, income security, and healthcare. As such, the government can use the money to bill other states in case of emergencies like natural disasters. On the other hand, taxing in EU is different in that most taxes go to individual countries. Many people argue that tax is the main reason behind the difference in pricing. For example, a 1-liter gallon of gas has a tax of 75% in The Netherlands. Consequently, gas in Netherlands costs as much as 1, 55 Euros. The prices are high in other sectors too such as alcohol, tobacco, and groceries. As the US public groan that they pay almost $4 for a gallon, the French public pays almost $8.67 for the amount of gas. A gallon of diesel costs a UK citizen $11.50 while an American pays $3.90. Apparently, EU public pays more tax than Americans. In fact, state and federal taxes in U.S on the pump price are just 11% while the tax is 70% in France and UK (Bruce, 2008).       

Labor Costs: Labor costs are also a major contributor to the price difference. For example, in Spain, wages has been on the rise since 1999. A rise in Spanish wages ensures Spanish goods are not competitive. In Germany, labor costs is still the same as it was before the adoption of the Euro, which super-changes the nation’s experts. It might be hard for Spain but it must converge with Germany if they are to make the Euro zone workable. 

Income variation: The 20th century has witnessed a dramatic growth in personal income in US. Although New Yorkers earn more than Mississippians, regional differences in income do not count as they are both higher than areas of the same development and influence in EU. 

Growth rates and labor mobility: in US, growth rates among the states happen to be more similar as compared to those in EU countries. In addition, Americans tend to move a lot, which evens out their regional economic differences. The need for fiscal transfers among regions is much reduced when regions closer up distance between them in competitiveness (Derek, 2012).

Availability and consumption of commodities: product availability and consumption vary both in EU and US. In the US, the public has a higher consumption rate in some commodities as compared to consumption in Europe. The difference in consumption between regions is partly because of income differences and regional cost differences although it might also be some discernable patterns. High availability of products means low prices as the companies compete for the consumers (Bernhofen, 2001). As seen, differences in these factors such as wage patterns and consumption taxes form the main reasons why process in the US are lower as compared to pricing in EU countries.    

Distribution and other costs:

Distribution channels also play a major part in the pricing of products. Other costs that come with distribution include tariffs and cost structures, variables that vary depending on the country. After producing a product, distribution channels are required to deliver the item. The distance between the producer and consumer plays a major role here. Therefore, proper distribution channels and customer service infrastructure are required to ensure the device reaches the consumer as is in a good working condition. Partners and marketing also play a major part in the pricing. Marketing affects the price in indirect ways in terms of marketing

activities like billboards, newspaper ads, and TV exposure among other factors that vary depending on the country.  

For example, transporting products from the US to Europe involves many costs before the product can reach the consumer. To hit the open market in Europe, an American product price has to have insurance cost, tax cost, and the courier charge. In the end, the products undergo numerous costs before reaching the European markets.        

Some people even blame the currency rate fluctuations within the last year. In the last year, the Euro has lost its value when compared with currencies like GBP and USD. This alone can cause major price hikes in products even in local markets. More blame goes to technology and customer support, customs fees, and the reliability of sellers.  

Pricing Example: Gas prices between US and EU Countries:

Gas prices in the US are almost half of the same amount of gas in Europe. At a pump in Turkey, gasoline costs $9.98. However, almost 40% of Turkey’s workforce does not pay taxes because of below-par jobs. This means that in Turkey, fuel tax proves to be a vital revenue source and cannot be interfered with. Among the top products of Norway is oil. However, the average Norwegian buys a gallon of gas for $9.97, a figure more than twice of the price an average US citizen pays. An American pays an approximately $6-$ten less per gallon as compared to EU citizens. The trend is quite different is oil producing countries like Kuwait and Saudi Arabia in the Middle East. In these countries, a gallon of oil can sell for as low as $0.45 to $0.80.  

 

 

 

Conclusion:

In conclusion, the essay analyzes the differences in pricing strategies between U.S. and Europe. It is clear that U.S. prices are quite lower when compared to those in Europe in most commodities such as electronics and gas. Much of the difference in prices is due to the taxing system in Europe, income variation, distribution channels, and the availability of products among many others. Clearly some variables that cause the differences in pricing can be handled, an act that could see the pricing of products in Europe fall to an affordable status. 

Moreover, the essay analyzed Alibaba group as a heavyweight company in e-commerce. The company’s main presence is in China where it controls most e-commerce services through services and mediums like Tmall, Alimama, Aliwangwang, Alipay. The company dominates rivals in China and is no alien in the international market. However, the company cannot solely rely on its local revenue and market share to maintain its top position. Instead, the company has to keep on innovating to perform and gain more profits and market share worldwide to close the gap between them and major competitors like Apple, who dominate the worldwide market like a talent.   

 

Can you use these resoures, please? Do not forget I want 6 resoures.

 

This is one resoures you can use.

Text: 1) H. Bidgoli, MIS 6 (Management Information Systems), SIXTH EDITION Course

Cengage Learning, Mason, OH, 2016, STUDENT EDITION.

 

ISBN-10: 1305632001

 

ISBN-13: 9781305632004

 

Mozur, P. and Fung, E. (2014). Alibaba To Pay $692 Million for Stake in Int,,,,,ime Retail. Wall Street Journal. Retrieved April 24, 2016      

Prableen,, B. (2015). Alibaba’s Top Competitors. Investopedia. Web. Retrieved April 24, 2016 from http://www.investopedia.com/articles/investing/110714/alibabas-top-competitors.asp   

Willis, W. (2011). The History and Milestones of Alibaba Group. Techinasia. Web. Retrieved April 24, 2016 from https://www.techinasia.com/alibaba-infographic http://content.time.com/time/world/article/0,8599,1809900,00.html 

 

 

 

 

 

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