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Running head: ECONOMICS 1

ECONOMICS 4

Proposal for Alibaba Company

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The most interesting thing about Alibaba Company is that it has command over more than half of the e-commerce market share. At its early stages, Alibaba was able to attract many vendors, which resulted in the more buyers; due to large array of buyers, it created. Consequently, this practice is what has contributed to the e-commerce giant it is known today. The customers benefit from platforms such as Taobao, which is leading e-commerce industry. In addition, the customers can take advantage of Pinduoduo, which is an interactive E-commerce platform under Alibaba (Hitt et al., 2016). These platforms attracts the customers since they are embedded with their own logistic network.

Alibaba started in 1999 and it has tremendously grown ever since then. However, its major breakthrough began in 2007 after its strategic meeting at Ningbo, Zhejiang province. The resolution to start the development of an open and coordinated e-commerce ecosystem is what set Alibaba into a competitive path (“Everything Alibaba Does Differently — and Better,” 2018). The Alibaba ecosystem was made such that it linked buyers to the sellers of goods. This step was further supported by many businesses moving online. Hence, it resulted in Alibaba expanding its ecosystem to support these major innovations. Consequently, new types of business gained an assistance and as a result, reinvented Alibaba reinvented the China’s retail sector. Currently, Alibaba is more than an online commerce company; this is because it takes up all the functions associated with retail and coordinates them.

Alibaba is known to have a serious issue of counterfeit that has been challenging for it to solve. The reason is that more than forty-percent of the goods sold online in china are assessed to be fake (Deng & Lv, 2016). This has created serious issues with trade agreements and raised an economic problem associated with intellectual property. According to my own opinion, l suggest that this issue can best be handled by supporting a natural point in economic development. The purpose of this point is to allow people to protect their IP more effectively. The people will fulfil this measure since it serves their own interest to do so. Therefore, the most appropriate policy is to get IP protections written in trade treaties.

References

Deng, Y., & Lv, H. (2016). The analysis of the causes of alibaba’s “double eleven shopping festival” sales growth rate slowing under the new normal. On Logistics, Informatics and Service Sciences …. https://ieeexplore.ieee.org/abstract/document/7854593/?casa_token=y61FMSuwnt0AAAAA:RvENCVAZm9aF30h_RkI4FUYcUdhQGHU72-p-7llzoGio-d0y207sMoFR867w9tZP6RurhKtU0j9hCz8

Everything Alibaba Does Differently — and Better. (2018, September 1). Harvard Business Review. https://hbr.org/2018/09/alibaba-and-the-future-of-business

Hitt, M. A., Duane Ireland, R., & Hoskisson, R. E. (2016). Strategic Management: Concepts and Cases: Competitiveness and Globalization. Cengage Learning.