Alibaba. The china-based business that recently took Wall Street by storm with its initial public offering. The company, as predicted from the majority of the world, maintained a high share price for the first day of stocks going almost all the way to 100 bucks! The CEO, Jack Ma, who is always exceedingly enthusiastic about his company, as he should be, was very pleased with the outcome so far and could see his company soaring past similar Silicon Valley creations like Amazon and Ebay.
Photo courtesy to: http://abcnews.go.com/Technology/wireStory/alibaba-prices-ipo-68-share-25606621
Now the question is: will Alibaba be able to grow as a global company and establish its place in the world?
From my perspective, and from what I have learned in COMM 101 class, there is a very high probability that Alibaba will succeed in the global markets. This company is a combination of Amazon, Ebay and Paypal yet, still offers something new and unique. Not to forget, that it is targeted towards a broad market and “there are now 302 million online shoppers [just] in China” and it is expected to climb. From an accountants point, Alibaba is very efficient and a low-cost company. They have no inventory and everything they offer is done online. I can see Alibaba gaining a tremendous amount of success around the world because they represent a genuinely helpful “product” and have entered the market with something that no one has every heard of.
Works Cited:
http://www.bloomberg.com/news/2014-07-15/yahoo-to-keep-more-of-alibaba-stake-return-half-to-shareholders.html