Alibaba, Chinese e-commerce giant, has decided to intensify his presence globallypointing particularly on United States and Europe. This move comes after Xi Jinping’s “forgiveness”, which rehabilitated Jack but, the founder of Alibaba, and allowed him to resume control of the group’s international operations.
A move, this, which marks a turning point for several reasons.
A new start for Alibaba, challenges the e-commerce giants like Amazon
If in the past Alibaba focused on vertical integration and on business models more related to China (such as the sale of consumer goods and the strengthening of its position in Asia), now things have changed. In fact, the company is going with greater determination towards a penetration into global markets, for compete with giants like Amazoninvesting in technology, cloud computing and artificial intelligence
Until a few years ago, Alibaba concentrated mainly on the Chinese market and, to a lesser extent, on Asia, because it considered western markets a more difficult ground to conquer. Furthermore, the company’s expansion plans had had to deal in 2020 with the pressure of the Chinese government (Jack but, the founder of Alibaba, was put under pressure after some public statements against banking policies) and a series of regulations that limited its expansion.
During 2021, Jack but disappears for a long time from the public scene, fueling speculations on the company’s leadership. However, starting from 2023, Xi Jinping decides to loosen the restrictions on the technological sector and rehabilitates the image of Jack but, which returns to public after a long period of silence.
From what moment on the company returns to concentrate with greater determination on international marketsintensifying his presence in Europe (therefore also in Italy) and in the United States.
The expansion strategy
To enter western markets, Alibaba is looking for contact small and medium -sized enterprises. The goal is to directly challenge the e-commerce giants like Amazon, offering the opportunity to access a platform that allows you to expand your business a competitive costs and with large possibilities of international growth.
This gave the green light to a series of strategic investments, including those in the field of artificial intelligence, intended to further strengthen Alibaba’s position in the global panorama. But not only.
The company has implemented an investment plan to support technological and digital evolution, with particular attention to cloud computingwhere she is willing to compete with the big names in the sector as Google.
If the Chinese company manages to exploit its global logistics network, low costs and support policies for small and medium -sized enterprises, it could be able to acquire significant markets. The first moves of Alibaba are already underway, but the company seems well positioned to continue growing.
However, Alibaba will face not only the competition, but also the diffidence of consumers European and American, who could be reluctant to shop by a dealer based in China, for security reasons, privacy and sustainability policies.
Even if his strategy aims to win a segment of consumers more sensitive to costs and flexibility. It remains to be seen how quickly these markets will be able to penetrate and how much it will be able to contrast Amazon’s dominance.
