Phân tích SWOT:
Analysis of the Organisation’s Strategic Position
Internal Analysis:
SWOT Analysis:
Strength
- Alibaba's first and most obvious strength is its large scale of market operations. Unlike other
B2B businesses, Alibaba creates a link between product suppliers and customers and large
and small businesses. Thanks to that, items from small suppliers are sold at wholesale prices,
depending on the number of buyers or businesses that want to be supplied, bringing
significant profits to suppliers and businesses. (Source: (Nguyễn, 2022) )
- Alibaba's second strength is its strong capabilities in the field of technology, especially AI
and big data. On November 6, Alibaba Group launched Aidge - a suite of e-commerce
programming applications based on artificial intelligence (AI) to serve businesses globally.
( Source: (Thảo, 2023)
Weaknesses
The e-commerce industry is an industry with great competition. Alibaba faces many other
strong competitors such as Amazon and other e-commerce platforms in the international
market, as well as domestic competitors such as Tencent. This competition is not only in
goods but also in services, prices, and user experience. That high level of competition causes
suppliers to turn their backs on the group. It also affects suppliers' income when they have to
continuously reduce product prices to compete with other suppliers. ( Source: (Nguyễn,
2022))
In the early stages, Alibaba's website owned more than 27 industry classifications, 800-900
business categories, and such a large amount of information became the biggest barrier for
them in optimizing the platform your business. All of this information comes from registered
members, which is both an advantage and a disadvantage for Alibaba. Visitors can browse
huge commercial information on the website, while low quality of information will be
detrimental to improvement, even bringing some unnecessary problems on business
reputation. Unfortunately, their competitors have taken this into consideration, Global
Resource Network has promoted message authentication to address low quality information
and Alibaba should take note of that.. (WENHAO, 2014)
Opportunities
In an era where the world is constantly progressing and developing, people's need to use
computers and the Internet is also increasing. More and more people are using technology
regardless of age or class, and people's understanding of the Internet is increasing, causing
people's shopping needs to increase as well. This is a great opportunity for all businesses,
including Alibaba (Nguyễn, 2022).
Large market development potential of the B2B market. Access to a wider, more developed
market in the world market. This helps Alibaba find and establish business relationships with
partners all over the world.Source (https://nextx.vn/thuong-mai-dien-tu-
b2b#Tang_cuong_kha_nang_tiep_can_thi_truong)
Threats
- The e-commerce industry is one of the industries with the most fierce competition. Alibaba
faces competition from major players such as Amazon and strong local rivals such as
Amazon.com. These competitors all have strong resources and clear strategies in dominating
the e-commerce market. The toughest competition with Alibaba is Tencent Holdings - a
social management company with Wechat.
- Threats to user privacy are increasing. Misuse of data or denial of personal rights issues can
lead to loss of trust on the part of users, and stricter government regulations on data
management can also be a factor. worrying problem with Alibaba. (Doai, 2023)
Resource-Based View (RBV):
- Alibaba uses RBV to identify and maximize its special resources such as AI technology, big
data and advanced payment systems. This helps them build and maintain a superior
competitive advantage in the e-commerce industry. (YiHong Yao, 2015)
- Consistent with market trends. RBV allows Alibaba to flexibly adapt to changes and new
trends in the e-commerce market, by updating and developing its resources and capabilities
to meet evolving consumer needs. use. ( (Gerald F. Davis, 2021)
Value Chain Analysis:
- In technology research and development projects, Alibaba invests heavily in research and
development to build technology platforms such as websites, many mobile applications and
e-commerce systems. This includes applying artificial intelligence (AI) and big data to
improve customer experience. (Thảo, Alibaba ra mắt Aidge phục vụ hoạt động thương mại
toàn cầu, 2023)
- Alibaba provides professional customer support services, including phone, email and online
chat support. They ensure that customer questions and problems are resolved quickly and
efficiently. (Roland Schmuck, 2020)
External Analysis:
Porter's Five Forces:
- Threat of new entrants: Threat level: High
- - Reason: Alibaba is facing an open market environment and has lower barriers to entry than
traditional industries. Especially in the field of mobile applications, developing and
deploying an application does not require too much initial investment capital and technical
capabilities compared to other industries.
- 1. Threat of substitute products:
- - Threat level: High
- - Reason: Alibaba operates in an industry that faces fierce competition from other e-
commerce platforms such as Amazon, JD.com and eBay, as well as from powerful e-
commerce platforms in local. These competitors may provide similar products and services
to Alibaba and may have competitive advantages such as extensive distribution systems,
professional customer service or competitive pricing strategies. (Thu, 2021)
- 1. Bargaining power of suppliers:
- - Threat level: Medium
- - Reason: Technology suppliers have a great influence on Alibaba because they provide the
products, solutions and technical services that Alibaba needs to maintain and grow its e-
commerce platform and mines. its technology services.
- - Depending on the technology and services of these suppliers, Alibaba has limited
bargaining power, especially for suppliers with a strong position in the industry.
- 2. Bargaining ability of buyers:
- - High level
- - Reason: On Alibaba's e-commerce platform, there are millions of products from many
different suppliers around the world. Customers can easily find products from many different
industries such as fashion, electronics, household appliances, and food.
- - In addition to products, Alibaba also provides services related to e-commerce such as
delivery services, online payments, advertising services and technical support. Customers
can choose from a variety of services to meet their business needs, from small businesses to
large enterprises.
- 3. Competition in the industry: Tense, there are many competitors in the market:
- - Level: Stress
- - Reason: The international e-commerce market has the participation of many large and small
players, from large technology companies to new startups. These competitors come not only
from China but also from many other countries around the world, providing diverse
products, services and business models.. Source ( https://brademar.com/cac-doi-thu-canh-
tranh-cua-alibaba/ )
Competition on price and quality is fierce. Competitors often try to improve the quality of
their products and services while lowering prices to attract and retain customers. This creates
a challenging environment that forces Alibaba to continuously innovate and improve quality
to maintain or enhance its position in the market.
PESTLE analysis:
understanding customer needs, desires, capabilities and competitors, we need to understand
the regional or national macro environment. PESTLE analyzes the different macro
environment strategies (political, economic, social, technological, environmental, and legal)
that cloud service providers consider when developing marketing strategies. On the other
hand, macro environmental factors act as delaying barriers or worse, stopping points.
Political
AI and digitalization are supported by the Chinese Government
Hong Kong is on the list of easing US political pressure
US-China tensions affect Alibaba's international expansion plans
Social
The population is growing strongly in the target market
Impact of strong CSR activities on aging Population in the country of origin – China
Legal
Work hard to fight counterfeit goods and monitor products in lawsuits
Technological
Use large amounts of data and experience many AI-driven services. Technical advances
are growing in core activities - logistics are faster, more developed.
Economical
Change factors such as economic growth, inflation rate, exchange rate.
Environmental
Recent emphasis over water conservation
Refer to the table from the source (Pareek, 2022)
References
Doai, Q. (2023, july 2). Phân tích SWOT của Alibaba Sức mạnh và thách thức. Retrieved from
https://quangdoai.com/phan-tich-swot-cua-alibaba-suc-manh-va-thach-thuc/
Gerald F. Davis, T. D. (2021, january 4). Organization Theory and the Resource-Based View of the
Firm: The Great Divide. Retrieved from
https://journals.sagepub.com/doi/10.1177/0149206320982650
Nguyễn, H. (2022, 5 31). Phân tích SWOT và chiến lược kinh doanh của Alibaba. Retrieved from
https://amis.misa.vn/51232/chien-luoc-kinh-doanh-cua-alibaba/
Pareek, H. (2022, march 19). “Strategic Marketing Analysis of Alibaba Group”. Retrieved from
http://www.penacclaims.com/wp-content/uploads/2022/03/Harshvardhan-Pareek.pdf
Roland Schmuck, M. B. (2020). An overview of innovation strategies and the case of Alibaba.
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from https://vietnamnet.vn/tap-doan-alibaba-lan-dau-ra-mat-cong-cu-ai-phuc-vu-hoat-dong-
thuong-mai-toan-cau-2211594.html
Thảo, H. (2023, 11 7). Alibaba ra mắt Aidge phục vụ hoạt động thương mại toàn cầu. Retrieved
from https://vietnamnet.vn/tap-doan-alibaba-lan-dau-ra-mat-cong-cu-ai-phuc-vu-hoat-dong-
thuong-mai-toan-cau-2211594.html
Thảo, H. (2023, 11 7). Alibaba ra mắt Aidge phục vụ hoạt động thương mại toàn cầu. Retrieved
from https://vietnamnet.vn/tap-doan-alibaba-lan-dau-ra-mat-cong-cu-ai-phuc-vu-hoat-dong-
thuong-mai-toan-cau-2211594.html
Thu, H. (2021, 10 18). "Vô địch" về thương mại điện tử suốt 15 năm, Alibaba đang đối mặt mối đe
dọa mới. Retrieved from https://vneconomy.vn/vo-dich-ve-thuong-mai-dien-tu-suot-15-nam-
alibaba-dang-doi-mat-moi-de-doa-moi.htm
WENHAO, C. (2014, 5 25). DEVELOPMENT CONDITIONS AND PROBLEMS OF ALIBABA IN
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https://www.theseus.fi/bitstream/handle/10024/78443/Chen_Wenhao.pdf?
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