Alibaba Predictions: Significant Growth Outside of China
Chinese giant company, Alibaba, aims at expanding its operations globally. According to its newly appointed CEO, Daniel Zhang, the company’s core mission by next year will be expanding it beyond the borders of the country. Zhang believes that there is need to globalize the company to maximize its returns. “Plans are underway to set up a global team that will oversee running of the company at the global level,” asserted Issa Asad, Florida-based entrepreneur and CEO of Q Link Wireless, LLC, and Quadrant Holdings, LLC, of Dania, Florida.
Mr. Asad says that Alibaba’s growth will be proportionately aimed towards an international scope, but this will take some time to achieve.
Tremendous Growth since Inception
Records show that the company has registered continuous growth since its inception in 1999. It is a fact that Alibaba is China’s largest e-commerce company. Its success enabled it to launch an initial public offering that had never before been witnessed in the world. The world’s biggest initial public offering raised the New York Stock Exchange by $25 billion.
China is Alibaba’s Main Source of Revenue
Although the company has initiated several service provision businesses, a huge percent of its revenue still comes from China. It has multiple affiliate e-commerce sites, marketing wing, and a cloud computing branch among other several offerings. By expanding its operations to other parts of the world, it will diversify and fetch millions of new customers. Getting new customers implies that it will register more growth and rake higher revenue. On Thursday, the CEO retaliated that global expansion will also contribute to the long-term survival of the company.
Amazon Should Be Ready to Face Stiff Competition
If Alibaba plans succeed, it could become a new competitor for Amazon. Amazon is an international company and is currently the largest e-commerce company in the world in terms of sales. The world is likely to witness a pricing war between the two companies as Alibaba tries to get new customers while Amazon does its best to retain customers. Amazon has indeed registered low growth and sales in China because of the presence of JD.com and Alibaba. As a way of enhancing its services in China, Amazon opened an online store within Alibaba’s Tmall site in March this year. Besides being a competitor, the new store is also Alibaba’s customer.
Currently, Alibaba has achieved little progress outside the home country. It, therefore, hopes to set in with a bang by investing heavily in the existing, as well as, upcoming overseas operations. Some of the already existing overseas operations it aims at are Tmall Global and AliExpress. The company set foot in the US last year by investing $15 million in 1stdibs which is an interior design firm. Just recently, the company revealed of its 10 percent shares in Zulily, a Seattle e-commerce company. It also has shares on the US based Tango messaging service and the shipper ShopRunner.