CASE EXERCISE: ALIBABA GROUP

The following questions are based on key symptoms $($both favorable and unfavorable$)$ of Alibaba Group and underlying causes that affect key symptoms as they are observed in the case. In addition, there is a general question on solutions that also addresses the causes. Each multiple choice and short answer question number under Key Symptoms corresponds to the same question number under Underlying Causes $($e$.$g$.,$ Question $3$ under Key Symptoms $1$ corresponds to Question $3$ under Underlying Causes $1).$

Before beginning this exercise, you will need to read the Alibaba Group case.

Key Symptoms $1$

Answer the following multiple$-$choice questions.

Increasing revenue and maintaining the tremendous growth trajectory of the company is complicated by two kinds of competitors squeezing the growth opportunities. Who are the competitors?

multiple choice $1$

Amazon in North America; JD$.$com in Europe and Asia

Amazon and eBay in the Chinese domestic market

JD$.$com and Baidu internationally

Amazon and eBay internationally; JD$.$com and Baidu domestically

Alibaba Group$$s revenue is generated through a range of diverse fees. For instance, merchant fees are charged to users based on number of units sold in retail centers. Strategically, the diverse fees

multiple choice $2$

force domestic competitors to invest in diverse and complex businesses to match their reach and scope with consumers.

add complexity and create havoc for established brands growing rapidly in the domestic market.

enable growth in the domestic digital market because of excessive regulation and diverse business help work around regulations.

help Alibaba determine where to commit resources for future growth.

The structure of the company is complex and growing globally with many divergent e$-$commerce trading relationships. The complexity is strategically necessary because

multiple choice $3$

All of the answers are correct.

adaptation to local markets demands ancillary services $($i$.$e$.,$ online to offline relationships$).$

developing a global digital ecosystem demands a company offer a range of related products and services.

matching the market strategy of competitors varies from market to market.

Alibaba has a labyrinth$-$like internal structure that is complex when compared to most business models. The structure allows the company to grow rapidly integrating product offerings while preserving management flexibility. This structure is designed to counter

multiple choice $4$

both domestic competition and international competition.

neither domestic competition nor international competition.

domestic competition.

international competition.

Which statement best describes the Taobao Marketplace?

multiple choice $5$

All of the answers are correct.

They focus on consumer$-$to$-$consumer transactions.

$85\%$ of their revenue comes from advertising

They have $8$ million active storefronts.