Management Of Technology100 – Coursework Example
John Doe, Marketing executive Jane Doe, head of market research department November 19th Competition from Global Sources
The market research shows that Alibaba.com has been doing greatly but it still faces a lot of competition from both local and international company. It is important to understand these companies’ strengths and weaknesses in order to use the information to know the best way to beat the competition.
One of the key competitors is Global Sources which gets is strength from offering a wide range of B2B online services. Through the use of its online services, the company has made it possible for companies to reach previously unreachable customers in over 230 countries. Its current client base is estimated to be about 160, 000 suppliers and 647, 000 buyers. It is an immediate threat to alibaba.com as its source of revenue is now shifting to online with online sales accounting for about 40% by the year 2006 and has increased further. Global Sources growth could be attributed to its use of four strategies; domestic expansion, market penetration, acquisition and alliances and development of new products.
Alibaba.com also faces stiff competition from specialized e-commerce firms such as HC360.com. Besides that, the company also faces other constraints faced by offline firms such as financing and shipping problems.
As a result of these problems, alibaba.com revenues have dropped. Alibaba.com can overcome these problems by developing strategies that makes it stand above its key competitors. It could adopt better online advertising that give them leverage in line with the specialized firms. It could also adopt the strategies used by global Source to expand. The key focus should be on providing product differentiation to cater for diverse consumer needs and continued introduction of new innovations to satisfy the customer’s changing needs.