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Monthly Archives: October 2014

Within the past year the tension between Hong Kong and the government of China has skyrocketed. One of the main issues is the protest against China’s interference with Hong Kong politics. To be precise, many Hong Kong citizens are upset because they fear that they might not being able to elect their leader in a democratic manner. As a result many students and advocates have volunteered to protest. This protest had evolved aggressively since it started; volunteers are camping in major areas of Hong Kong such as Central and Admiralty. Police forces are sent to maintain order, but just like any other protests, some extremists brought the element of violence into the matter and people were hurt.

Let us put all the politics aside and see how this protest have affected the society and the economy of Hong Kong. Since substantial amounts of protesters had settled in public areas of Hong Kong, transportation was slowed down or even paralyzed. As a result, public schools were closed down for a week. As British Columbians who just experienced the B.C teacher strike, we would be able to understand the problem such matter causes. On the other hand, the protest had traumatized the the economy of Hong Kong, especially the retailing businesses. Many business owners have complained about how devastating the protest have contributed to their miserable revenue decreases. The negative impact on economy is also shown in the stock market; the Hang Seng Index has significantly decreased.

BBC News Occupying Central 

Just within the first day since IPO Alibaba has tripled the stock price, reaching a new level of success on its debut in North America. However, Jack Ma, the founder of Alibaba, has no intention to slow his pace. His ambition in competing Amazon in its home ground is not surprising. Both business models follow the basic structure of e-commerce, however, Alibaba has certain advantages that may change up the game in North America. Alibaba offers an open marketplace which not only facilitate channels for branded companies but also small businesses as well. As a facilitator Alibaba does not sell products directly to consumers which allows them to abandon warehouses and the heavy cost that comes with it. As a result Alibaba is greatly more profitable than Amazon, with margins as high as 40%. Furthermore, the vast market in China has widen the gap even more.

It seems like Alibaba is the real deal, but the real question is, is Alibaba capable of sharing a part of the pie in North America? Many obstacles are in the way and Alibaba does not to seem to be able to solve them anytime soon. The major problem is that can Alibaba fight its way into the market share of North America with costly expense? After all it is Amazon’s turf and Alibaba would need loads of cash to fight the battle of market share. On top of that Alibaba’s business model may not adapt the already existing e-commerce system set up by Amazon. With these critical issues it is difficult to judge if Alibaba would recreate its immense success on North America, however, stakeholders strong believe in the chance.

Alibaba vs. Amazon: Who Will Win the Global E-Commerce War?

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