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Essay On Alibaba

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The strategic management process is consisting of five sequential steps: Environmental analysis, Establishment of an organizational direction, Strategy Formulation, Strategy Implementation, and Strategic control. Following the steps in figure 7.1, here is how Alibaba form 3 strategic planning to compete with Amazon in U.S. Overall Environmental Analysis: External Environment: To compete with Amazon in the U.S. market, Alibaba has to understand the environmental factors that can impact their short and long term plan. On the economic scale, U.S. market is still in the process of recovering from the financial crisis. The consumer and business still reluctant to spend. Additionally, the U.S. Stock market has been sluggish; the investor is constantly on a watch. Computer and retails industry reported a slow growth and dropped in their revenue. Job market reported slightly improve this year. However, the employment income level remains constant. Although the U.S. economy may not be in the best shape, it is still more promising compared to the slowdown of China’s economy. With more Chinese investor buying U.S. companies, it benefits Alibaba as the company can expand its network in U.S. Cultural difference can be quite a challenge. However, U.S. are known for diversity, mixture of all cultures. In fact, “Asians have emerged as the fastest growing of the three major ethnic and minority populations in the United States.”(Cox, 2015) For the long term, this rising geographic

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