Global Business Assignment Sample
Introduction
According to the World Economic Forum, as the breadth and depth of science, technology, and innovation (STI) have increased, the effectiveness of marketing and e-commerce management has improved as a consequence of this growth. Many advantages may be gained by using mobile phone internet and applications, including the possibility to complete transactions quicker, increase transparency, reduce fraud concerns, and communicate with small and medium-sized businesses in a straightforward way. Also probable is that these features lead to increased career opportunities (Shao,2019).
Selection of organization
According to prior research, executives benefit from having a business model since it assists them in constructing their company’s activity system as well as developing a comprehensive strategy for innovation and change inside their organisations (Freškura, 2018).
Because to COVID-19, consumers have reacted by making purchases online and justifying their behaviours by citing the ease and social component of their acts. As a result, there is an influence on the demand for items and services in the e-commerce firm, as well as on the challenges related with the distribution network.
New business introduction by amazon and Alibaba
It is older merchants like Walmart who are dealing with a decline in informal shopping as well as supply chain disruptions, both of which are caused by the decline in informal shopping. When it comes to purchasing essential commodities and food, older merchants like Walmart are dealing with a decline in informal shopping as well as supply chain disruptions, both of which have been caused by the decline in informal shopping (Elrhim & Elsayed, 2020).
According to certain definitions, the term “e-commerce” may apply to any kind of business transaction in which data is sent over the internet when the internet is utilised in combination with commercial activities. e-commerce transaction is defined as one where money is transferred for a product or service via the use of a computer network or the internet (Nakhate & Jain, 2020). Currently, Amazon is the world’s largest online retailer, according to the World Trade Organization, and the time has come for e-commerce to step in and save the global economy with all of its force and passion. Amazon’s founder, Jeff Bezos, used his original ideas and insights to propel the business forward in the early 1990s, laying the stage for the company’s present expansion (Decoret, et al., 2018). In 1994, while still a resident of Seattle, he founded the Amazon Foundation, which was named after the Amazon River in South America and is committed to the preservation of the environment (Everman,2018).
Effective business strategy for E-commerce
In July 1995, after a period of strategic planning and preparation on Bezos’s part, the firm’s website went live following a period of public disclosure. According to Bezos, the objective of his foundation was to bring his vision to fruition so that he could demonstrate to the rest of the world that Amazon was committed to being around for the long haul. Assisting with order processing and physically transferring products, he made a significant contribution to the company’s quick expansion and acquisition of a competitive edge. To achieve first-time success in this endeavour, it just took a little more than a month (Rikap, 2020).
Customer journey
Amazon’s popularity rose in 1997, and the company’s stock price also skyrocketed as a consequence of the increase in demand for the company’s items during that time period. Amazon and Toys-R-Us formed a partnership in 2000 to focus on the toy industry, and they did it via a partnership with AOL (American web portal and internet service provider). According to the terms of the agreement (Rossetti,2021), Toys-R-Us would be the only toy retailer on Amazon.com, and this was due to a combination of factors. Initially, Items R Us sued Amazon for allegedly selling toys from other merchants on its website, but the case was finally settled out of court without the need for a trial to occur (Ibid). When Toys-R-Us purchased the firm from three Wall Street businesses in 1998 (D’Agostino, 2018), the company was faced with crippling debt, which ultimately contributed to the company’s demise (Agostino, 2018). In 2006, the organisation launched an e-commerce website to make the selling of its items more convenient for customers. Although Amazon’s personnel count decreased by 15% as a result of AOL’s investment of $100 million in the firm in 2001, this was due to the investment’s impact on the company’s revenue (Jia,2018).
Activities outside the e-business platform
In 2005, Amazon launched Amazon Prime, which has been in operation to this day, and thus marked the beginning of the company’s highest degree of impact on the retail business. Regardless of where they reside, customers may take advantage of this service’s two-day delivery guarantee, which enables them to begin using their newly acquired items on the same day they make their order. Along with these features, Amazon has also launched a free music streaming service for Prime members, which is now now available to the general public (Wu,2018).
When Amazon entered the food market for the first time in 2006, it was a watershed point in the company’s history. The Amazon Fresh dry-goods delivery service, which was launched this week in the Seattle area, was available for the first time to customers.
As part of its Amazon Video On Demand service, which was introduced in 2008, the company was able to compete directly with Netflix’s on-demand streaming services.
Theoretical models
Business strategy an model
When Amazon introduced the Echo in 2015, it did it as a demonstration of its technical prowess and to show that it was capable of competing with other technology businesses in the marketplace (Ibid). Alexa, an artificial intelligence assistant, is built in the gadget and may be heard speaking over the speaker system.. When Alexa is asked a question, she may respond by providing answers, making Amazon.com purchases, and playing music, all while assisting users with their daily activities (Wadhwa,2018).
Throughout the year 2018, the Amazon saw unprecedented levels of wealth come to fruition. President Trump referenced Jeff Bezos’ purchase of the Washington Post as an example of “fake news” during his attack on the firm, according to the president (Bort, 2018). Because of the president’s Twitter outburst, according to Bloomberg, the stock price of the firm plummeted, and the company’s market capitalization was decreased by $53 billion as a consequence.
A website was created in 1998, marking the beginning of Alibaba Group Holdings’ dramatic rise to prominence and success. Small and medium-sized enterprises (SMEs) in China have received free internet access as well as information about the firm as a result of a gift from Jack Ma, the company’s founder. Because of a scarcity of management expertise inside the organisation, it was necessary to bring in outside consultants to assist the company in its internationalisation efforts.
Customer journey model
Alibaba established Trespass in 2002 in order to guarantee that consumers may conduct transactions without worry of being defrauded or deceived by service providers. Trespass is a credit certification method that is regarded as reliable (Zhukov,2019).
Trespass services were adopted by a large number of small and medium-sized firms (SMEs) in the e-commerce sector. This resulted in the establishment of a credit authentication system that has enabled Alibaba to make rising profits. Before a supplier may become a member of the Trespass programme, a third-party credit reporting agency must conduct a review of the provider’s creditworthiness on their behalf. Global consumers have banded together in order to take advantage of the low-cost merchandise now available on the market (van Rijnsoever et al., 2009).
E-commerce global model
Several years before the invention of the Internet, Alibaba launched a global marketing effort with the goal of expanding the reach of electronic commerce worldwide. The movement of a product from one location to another may be accomplished by either foreign direct investment (FDI) or joint ventures that are established inside a nation. The upshot of this development was that Alababa’s business prospects increased, marketing expenditures decreased, and Alibaba profits increased as a result of the development
The Alibaba Group established their own system between 2005 and 2007, which can be accessed via the domain www.yahoocn.cn (China Yahoo) (formerly known as Yahoo China). On the surface, it seemed that the results in terms of growth and development were positive. As a consequence of this breakthrough, firms engaged in electronic trade all around the world now have more possibilities for communicating with one another than they had before. Instead of operating as a marketplace, Amazon’s business strategy is “asset-heavy,” which means that it operates more like a store than a marketplace. Amazon, which aspires to own and sell fast-moving consumer items, leverages its platform to house millions of sellers while also selling its own line of stuff. Another characteristic of Alibaba’s business model is that it is “asset-light,” which indicates that it does not depend on physical assets. As a result, it does not have any substantial financial assets to its credit. Only the transaction facilitator provides support, allowing suppliers and buyers to operate freely while simply linking them.
Analysis
Aside from that, the company is growing into new areas and businesses where it has previously had success. According to Amazon Web Services, the cloud computing industry is likely to develop at a high rate in the foreseeable future. (AWS). AWS, which was acquired by the company as a consequence of its purchase of Amazon Web Services (AWS), has elevated the firm over Microsoft, IBM, Oracle, and SAP to become the world’s fifth-largest producer of commercial software (Novet, 2018).
According to the company’s official website, Alibaba (Wang et al., 2018). Alibaba, which was founded in 1999 by Jack Ma and his associates, has developed into a multibillion-dollar worldwide enterprise. Shanghai-based Alibaba was founded by Chinese entrepreneur Jack Ma with the goal of serving as a business-to-business platform for enterprises seeking to establish a global wholesale trade market. To put it another way, when Alibaba was founded, it was primarily intended to meet the needs of huge global e-commerce firms such as Amazon and eBay. In 2003, Alibaba debuted its business-to-consumer online shopping network, Taobao, which enabled Chinese customers to make purchases online via the company’s business-to-consumer platform.
Justification
According to Forbes, the multinational firm Alibaba employs a diverse spectrum of dialects in its daily operations. A excellent illustration of this feature may be seen in the interaction that exists between corporate headquarters and the company’s sub-directors, which has already been discussed earlier. The researchers () made advantage of the fact that it allows customers to converse in more than ten different languages to come up with eleven viable solutions to the language barrier. This is a lesser number of options than the number of alternatives given by Amazon.com. When it comes to overcoming language obstacles, a variety of techniques have been presented. Among the remedies that have been offered include redundancy in communication channels, modulation of communication style, and code shifting. Consider developing a contingency plan for sharing contact information with your colleagues in the event that anything goes wrong.
Repeating one’s words over and over again is a simple technique to use while trying to overcome a language barrier. Maybe When communicating with someone, it is advised that you ask them to repeat the information many times and that you use a voice recorder that can be translated into any language to ensure that they comprehend what you are saying.
Growth on a global scale is required in order to overcome the constraints imposed by native institutions and markets while also taking advantage of the possibilities given by other countries and regions. The expansion of Amazon’s e-commerce operations into 14 new nations has already made the company the world’s largest and best business-to-business e-commerce retailer, in addition to being the world’s largest and best consumer-to-consumer e-commerce retailer. As a starting point, it should be noted that Kate’s level of success in each overseas market differs significantly. Established in the United Kingdom in 2005, the company has grown to become one of the most popular online retailers in Western Europe’s developed markets, with a market share of more than half a million users as of 2015. As a result, the growing markets of Asia and Latin America, notably China, which has the world’s largest e-commerce industry, are seeing their economic development stagnate or come to a grinding halt. The firm had a market share of less than one percent, according to industry figures, in 2016. When compared to the company’s performance in the United States, where it has a massive 44 percent market share, its success in other countries has been less striking. Foreigners in the United States face a variety of challenges, including financial volatility, lower economic returns than Amazon’s worldwide expansion, insufficient infrastructure and internet access, unstructured work environments, a lack of understanding of local customs, and fluctuating foreign exchange rates. Furthermore, Amazon’s business approach is at least largely to blame for the company’s dismal financial performance in recent years. When it comes to communicating with customers about its local successes, Amazon’s emphasis on logistics makes it much too difficult. The fact that many Southeast Asian countries lack a reliable last-mile delivery infrastructure means that Amazon will have to depend on its well-known experience with LG to serve as a model for other businesses in the region
Conclusion
Amazon Prime Now was introduced in Singapore as the company’s first foray into the Southeast Asian market, marking the company’s first foray into the region. There are already about 600 million people living in the region, and analysts believe that this is merely the beginning of a significant population boom. Also in the Asia Pacific area, Amazon and Alibaba are facing up against one another for the first first time. Deliveries may be made in as little as two hours, and they can be finished in as little as 15 minutes. The service is accessible for thousands of products around Singapore, including groceries and gadgets, and it can be completed in as little as 15 minutes. As a consequence, Redmart, which is owned by Lazada and is also controlled by Alibaba, will be the company’s most significant competitor going forward
References
Chow, D.C., 2019. Alibaba, Amazon, and Counterfeiting in the Age of the Internet. Nw. J. Int’l L. & Bus., 40, p.157.
Decoret, P.M., 2018. Amazon et Alibaba passent à table… et bientôt dans les champs?. Pour, (2), pp.125-133.
Everman, B., Rajendran, N., Li, X. and Zong, Z., 2021. Improving the cost efficiency of large-scale cloud systems running hybrid workloads-A case study of Alibaba cluster traces. Sustainable Computing: Informatics and Systems, 30, p.100528.
Fang, X., 2020. Exploring the impact of e-commerce on cities and villages: The case of Amazon and Alibaba (Doctoral dissertation, Tufts University).
Freškura, M., 2021. INOVATIVNOST I KONKURENTNOST NA PRIMJERU PODUZEĆA” AMAZON” I” ALIBABA GRUPACIJE” (Doctoral dissertation, Karlovac University of Applied Sciences. Business Department. Professional Study of Hospitality-Full-time study).
Huaranca Tito, K.X., 2020. Análisis esquemático del modelo de negocio basado en E-Commerce: Amazon y Alibaba.
Jelassi, T. and Martínez-López, F.J., 2020. The strategic approach of the world’s biggest e-Tailing companies: Amazon and Alibaba. In Strategies for e-Business (pp. 467-500). Springer, Cham.
Jia, K., Kenney, M., Mattila, J. and Seppala, T., 2018. The application of artificial intelligence at Chinese digital platform giants: Baidu, Alibaba and Tencent. ETLA reports, (81).
Mantilla Barrera, K.M., 2022. Factores de Éxito en S-commerce de Amazon y Alibaba.
PLATANIA, C., 2021. Pre-Emptive Acquisitions and Market Power: An Analysis of Amazon and Alibaba Cases.
Rossetti, A., 2021. E-commerce innovation at the center of an economic and geopolitical challenge: Amazon vs. Alibaba.
Shao, Y., 2019. Discuss the similarities and differences of Amazon and Alibaba with respect to cross-border e-commerce. Science Journal of Business and Management, 7(6), pp.159-163.
Wadhwa, B., Vashisht, A. and Phutela, N., 2020. Business model of amazon India-A case study. South Asian Journal of Marketing & Management Research, 10(1), pp.32-40.
Wang, T., 2021. Discussion on business models of Alibaba and Amazon in three operating directions. Frontiers, 2(4).
Wu, X. and Gereffi, G., 2018. Amazon and Alibaba: Internet governance, business models, and internationalization strategies. In International business in the information and digital age. Emerald Publishing Limited.
Zhukov, P.E., 2019. The Impact of Electronic Commerce on Economic Development-Assessment of Contribution to the Chinese Economic Growth from Alibaba Group, 5th International Conference on Innovative Development of E-commerce and Logistics ICIDEL.
………………………………………………………………………………………………………………………..
Know more about UniqueSubmission’s other writing services:
