Alibaba Group - Improvising the magic formulae

Today’s Brew is for Alibaba Group
Brew date: 28th July
Type: Served Hot, to be Consumed a.s.a.p.

To understand the business model of Alibaba Group, check out the following links:

Alibaba Group Holding Limited, a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. 

Infact, The Brew applauds Alibaba’s understanding of what they stand for along with a sense of purpose and their high contribution to impact ratio, which helps the group to focus its efforts and energies, in present and going forward. Being said that, The Brew as well feels the need to broaden the Alibaba’s vision along with enhancing their impact to ecosystem and contribution to business and society.

Alibaba Group’s Mission is to make it easy to do business anywhere, and their Vision is to build the future infrastructure of commerce.

Given the above purpose statements for Alibaba, The Brew would like to share some improvisations and enhancements with regards to both, the purpose and the actions, entrusting Alibaba with larger roles to play, as the flat world moves towards higher degree of globalization and consumerism. Infact, Globalization, which is largely enabled going to be enabled by, Institutional & Government’s realizations to integrate with global communities, & economic partnerships being setup across borders to growth hack development etc, will all contribute to foster with higher degree of globalization. And along with it, there will as well be high impetus to Consumerism to establish the differentiations, capture better yield on economic surplus and on consumer traits & behaviors etc. The Brew wants Alibaba to be prepared for its next big opportunity, as well ready to serve to its fullest capacities.

Moreover, Alibaba will have to understand the Chinese chapter had majorly driven its growth trajectory till now, no doubt it lead to unlocking of economic benefits across the globe, however to gain global acceptability, it will be play a different game, predominantly of scale, consolidation encompassing entire value chain of commerce enabled by technology. This Brew will as well throw light on the possible trajectories to take in context to Chinese and Rest of World.

The Brew as well recommends Alibaba Group to explore The Brew Framework for Enterprises, with respect to its macro – capabilities of Innovation, Value Creation, Value Enhancement and Purpose to chart out its next growth story.

The Brew will analyze Alibaba Group on the following parameters:
a)    Business Analysis

1)    An End to End Ecosystem - Platform Model:
Alibaba Group currently operates the platform model in all the dimensions of its offerings, B2B, B2C, and C2C, thereby enabling all the stakeholders with the all-pervasive ecommerce existence. However, it’s exposure is limited and in specific parts (predominantly in Sourcing, Selling) of the overall value chain. The Brew would like to urge the group extend its presence in other critical business dimensions to cover the entire ecosystem encapsulating other critical components of value chain as well, with its existing philosophy of Platform model.
Precisely, The Brew urges Alibaba to develop its Technological offerings to being a full services player of the value chain along with extending the platform model for the stakeholders to avail the services encompassing the industry macrocosm to Alibaba ecosystem.

2)    Extending the Ecosystem & Platform model to Drivers and Enablers of Commerce.
The Group should as make inroads to the core enablers of the businesses, namely, Funds raising, Insurance, Legal etc, cos of the criticality of these dimensions in the businesses. By getting these functional drivers in folds, Alibaba can create a 2 fold impact, the direct being driving a more organized and consolidated approach to entire value chain, along with facilitating them with a better technology on a platform model to drive optimization and efficiencies.

3)    Technology Enabler to Offline & Online world
The Brew believes that Alibaba’s Core purpose should not be limited to the Internet wave alone, its benefits of technology should as well be extended to the offline presence of commerce and business, driving and syncing the offline and online worlds to each other to drive higher consumerism and higher ease and efficiency of doing businesses. Infact, designing the next level consumer experience enabled by tech, both online and offline will be a key challenge and a major growth driver for the commerce value chain.

With its purpose to enable easeness of business, folks at Alibaba should as well be looking at improvising the offline value chain not just in terms of technology but as well in enhancing the consumer experience with NFC’s, RFID’s along with providing efficient business solutions of merchandising, inventory and point of sales solutions.

4)    Competence of Technology and Scale
Alibaba’s core competences are technology and scale, technology will enable higher consumerism and scale will drive higher globalization. And hence, the group should keep these parameters as their prime drivers and keep enabling and facilitating them to the ecosystem.

It’s apt as well to have a business model, which encapsulates all the modes, channels and stakeholders (B2B, B2C, and C2C) of the ecosystem to further entrench the drivers of globalization and consumerism. Along with Technology and Scale, Alibaba should as build capabilities in data, and analytics to improvise on efficiency and effectiveness solutions, which can be harnessed organically, for its stakeholders and by the Ecosystem as a whole to drive better commerce.
5)    From Service to Solution Model:
The Brew as well urges Alibaba to drive a solution’s oriented approach to the commerce value chain along with its tech offerings to enhance the business efficiencies and consolidating it with its Scale advantage. Having a Solutions approach will transform Alibaba to a driver of business efficiencies rather than being an enabler of it, however with the caveat of not losing sight of its competence and its spread across all the modes that enables Alibaba to harness the scale paradigm to its Consumer’s advantage.

6)    Purpose of Efficient, Easy Consumer Solutions – Data, Analytics & Technology:
In the folklore, if ‘Open Sesame’ were the magic words by which the then Alibaba opened his way to treasure, in the contemporary scenario, it will be will be ‘Enable Data, Analytics & Technology’ which will lead the modern day Alibaba clan to the path of fulfillment.

The Group’s ultimate aim should be to enable businesses with efficiency and effectiveness solutions by building thriving framework solutions on data, analytics and technology. These solutions will not only pivot its organic businesses but will as well provide enhanced monetization to its consumers, stakeholders and ecosystem. Effecting this will be the final frontier of Alibaba’s vision to enable to the ease of doing business.

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