Publication Online Marketing Tough Competition

There has been experienced stiff competition in the world. As seen between Lazada and Amazon whereby the latter are dominating the market. Due to the market the Alibaba Group Holding limited decided to pump funds to the Lazada Company and they major in the South East Asia. The globalization of Alibaba has raised concerns widely among experts as it did not jointly storm the business and if the South East Asia was the convenient for the Alibaba. The Alibaba Company that was founded by Ma has grown to be one of the biggest companies in the world in the online marketing.

Alibaba Company is behind the giants Amazon thou it has double the profits of Amazon Company. In china, Alibaba is the dominant player with 57% share of the business to customer share ratio as the business is reducing the market dominancy due to competition from other rising companies in China like JD.com. Due to the downturn of China’s economy the Alibaba has opted to go global in order to raise their revenue collection which they aim to be at 50% of their total collection.

The company faces competition from companies such as amazon who the online marketing. The company has been a threat to Alibaba as they are well established and do business globally. The hub that is set for distribution receives goods from established companies that supply goods to lazada. The business in South East Asia has highly increased as it has been made to suit the customers who reside in the place.

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There are smaller companies that have emerged that pose a threat to replace the Lazada like JD.com. The company should allow for change as the world is dynamic. The chief executive should not concentrate in the South East Asia as they should increase their sales to the world.

The core competencies of the Alibaba should have employees who are well with the online marketing and able to communicate well with the customers. The untapped value should be to include all continents in the business. The region is of great strategy as the population is growing and being into mobile technology which allows them to make orders on the business and learn about the business on social media. The scale of operations of Alibaba is it operates in China which has the highest population and at the same time the global business. Since China has manufactures who produce bulk good that makes it easy for Alibaba to control the market share in China. Ma the leader of Alibaba is very visionary because he has gone as far as partnering with other businesses in order to operate smoothly. Though the Alibaba has got too many sellers who have a online competition. Alibaba may be getting revenues from the ads they do for the online sellers. This increases the operation cost of the sellers making it difficult to give discounts to the customers.

Like many companies, Lazada started selling their products from their own warehouse as a retail store. Lazada ensured the customers were satisfied and they used the feedback from customers to grow themselves. With time they expanded as the number of clients increased. Their main aim was to be the best in customer satisfaction. They started to deliver goods and by so they came up with their own delivering company called Lazada express and partnered with other several delivering companies. They established distribution hubs and fulfilment centers. Out of six nations their sales increased by 167% in one year. They did not make it smooth as they had challenges rising up. They made a loss of $296.5 million in 2015 which was almost double that of 2014.

As much as they experienced completion they still prospered. They looked for alternative ways to sustain themselves by indulging into South East Asia for business. As there are challenges always they had to look for a player who new well the market and that was Lazada. Alibaba acquired the Lazada and purchased shares from other investors as they became the major shareholders. Having purchased Lazada they were able to grow on the global market. By having merged Alibaba and Lazada this saw the companies exchanging diplomats in different fields to enhance their relationship. Since not many people embraced their payment system they came up with hello pay that allowed their customers who were not members to pay online and later they introduced mobile money transfer. They then focused on building their own logistics support and established regional distribution hub in Malaysia. In order for them to control more of the business in the place Alibaba partnered with other businesses like Netflix to help in logistics challenges.