The Alibaba Group and Online to Offline (O2O) Sales Harvard Case Solution & Analysis

The Alibaba Group and Online to Offline (O2O) Sales  Case Solution  

Introduction

Among the most growing and diverse companies of China, Alibaba is one of them. Alibaba is operating in E-Commerce industry of the china as well as in logistic industry. It is expected that, in the E-Commerce industry of the china the Alibaba company is a largest wholesaler and retailer company. It provides platform to the retailers for their business, as well as it provides large palate from for the customer for online shopping at international level. Along with this, the company operates in logistic industry by using Online to Offline Business Model to improve their performance of the distribution channels as well as to open the warehouse which would enhance the business activities of the company. Due to the nature of the company, Alibaba uses all three models: Business to Business (B2B) Model, Business to Customer (B2C) Model, and Customer to Customer (C2C) Model for dealing the customer. In this way, the company operates according to Alibaba’s mission statement which is “making it easy to do business for everyone, anywhere”.

 online to offline (O2O) business

It is expected that for achieving the mission of the company,the management of the company needs to get success in its Online to Offline Business model. Due to this reason, the management of the company should bring creativity, develop the ecosystem, and increase employees’ efficiency. In addition of this, the management should improve and update the mobile platform, expand the business of the company as well as sign contracts with other business. Moreover, the factors in which the management of the company should work are as follows:

Expansion:

First of all, the management of the company needs to expand itself online to offline business. as it is clear that China’s retail market is growing and that it is a large market as compared to the US retailer market, then as per this the financial analytical statistic stated that in the coming years till 2020 China's online retail industry would grow as its annual growth rate is 30% as well as the consumers’ spending will be rise to 60% as a percentage of the gross domestic product from 3% in 2013. Moreover, the services sector is expected to grow by online business, therefore there is a huge opportunity for Alibaba to expand its business.

The company can introduce new businesses such as Alibaba can provide a medical platform for clients and doctors by using the customer to customer business model where the medical platform would be a purely online to online business for Alibaba. In medical platform, in one side the customer will do research by using company’s search engine and will be able to fix the appointment with the doctor and pay fee of the doctor online and after that the client will meet with the customer.

On the other hand, Alibaba provides client to the doctors by keeping doctor’s profile and hospital’s database in Alibaba’s database.

In this way, the company can earn commission as revenue. In addition of this, the company can facilitate tourist industry of China through ticket booking, hotel booking, promoting and updating visit and trips packages on the company’s website.Along with this, the company can do marketing of the tourist industry at national as well as at international level. In this way, the management of the company could increase the company’s market size, customers and profit by tapping the untapped markets of the services sectors....................

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