“In September 19th, 2014, Alibaba’s stock had just started trading, and it immediately jumped in value. It ended the day up 38 percent, at $93.89, giving the company a market value of $231 billion. The company set the record for the largest initial public offering in history ” (dealbook.nytimes.com) .  As another large e-commerce company,  Alibaba enlarge their markets to the North America, which is a huge threat to Amazon.  However, why Alibaba can be  such successful?  In this blog I want to do a brief SWOT analysis.

Strength  1. Comprehensive services: Alibaba’s vast e-commerce empire includes services such as wholesale, retail, group buying, and payments.                                                                       2.Low cost: Alibaba does not sell anything directly to the consumers and has no storehouse,which means the company can save investment spending on infrastructure.                                     3.deeply rooted among people: Alibaba operates an “open marketplace” that connects buyers with sellers. And it become an extremely successful model that makes the company win a large percentage of market.

Weakness  1. Imperfection of Management: “insiders have a permanent lock on control of the company but hold only a small minority of the equity capital.”(nytimes.com).  This faultiness might lead to the hesitation of investor.                                                                                                          2 .Experience logistic and supply chain management  is insufficient.

Opportunity 1.Flush with IPO cash and a lucrative stock as currency. (Forbes.com)                         2. E-commerce develop consistently in the time period.                                               

Threat 1.Amazon is still the e-commerce leader in North America. So, “Alibaba will find it very difficult to compete with Amazon’s strong brand and well-honed supply chain and logistics skills in Western markets.” (Mohanbir)

Reference

BEBCHUK, LUCIAN. “Alibaba’s Governance Leaves Investors at a Disadvantage.” Nytimes.com. 18 Sept. 2014. Web. 4 Oct. 2014.

George, Bill. “Jack Ma on Alibaba, Entrepreneurs and the Role of Handstands.” DealBook. 22 Sept. 2014. Web. 4 Oct. 2014.

Sawhney, Mohanbir. “Alibaba vs. Amazon: Who Will Win the Global E-Commerce War?” Forbes. Forbes Magazine, 22 Sept. 2014. Web. 4 Oct. 2014.