With the most e-commerce market share in China, Alibaba would risk to take a step further by planning to buy 15-20% percent stake in China’s biggest online social network, the Sina Weibo. With the power of Sina Weibo, which is similar to Twitter, Alibaba will have a better chance advertising itself through the social network and even create many more opportunities by reaching out to millions of Sina Weibo users.
If Alibaba succeeds in this trade, it will have a superior dominance over China’s e-commerce market by owning the biggest online shop, Taobao, and the biggest online social network, Weibo. When a company owns this much of a market share, competitors will have a extremely high barrier to entry. Since Alibaba has high supplier power, they revenue is most likely to increase in the near future.