Managing The Global Market Place

Question: Discuss about theManaging the Global Market Place. Answer: Global Market place has a huge impact on the various facets of an organization like revenue, relationship, development and growth of the profile of the organization (Myers Smith, 1999). Alibaba has tapped this opportunity to introduce a lucrative online shopping holiday- Singles day. Such a day Alibaba is able to make great profit returns that surpass other days like Black Friday and Cyber Monday. Global market place enables the company to sell internationally without requiring remote purchase. This is a long term plan to position Alibaba at a competitive edge. There is need for retailers to expand to global market because the world is really becoming flat. In this case, Alibaba is not an exception. One of the factors that create the urge to engage in global market is that, the global revenue for global market is impressive and the company is likely to make profit. Research depicts that 85% of business in China is driven by the market place (HICKS, 2000). Therefore, Alibaba is positioned in a manner that favors it in the global market so as to realize the profit share. It is a universal requirement that for company to meet good returns it must be active with market places. Nonetheless, Alibaba`s intention of going global has opportunities and risks. Actually, some of the services that Alibaba can offer in the local market might not suit the global market thus posing a challenge of penetration to the global market but the company has to re-adjust to the business dynamics. Take for example, Alipay, this payment services may offer little advantage to the complex global market that utilizes credit and banking services. As well, Alibaba is positioned as a virtual market therefore more often the company operates without tangible warehouse hence the company cannot find it conducive to operate in the global market (COLLINS,2006). However, China`s change to consumption to a great extent is boosting e-commerce. There is probable room for growth because china`s penetration to the internet. The trends in the Chinese e-commerce demonstrate how the consumers are shifting gears to a consumption culture that the government of china is supporting because it contributes to economic growth. Despite slow response to economic growth, china`s e-commerce sales are growing tremendously. Alibaba is utilizing social media as the core tool to create awareness and attract more customers on their platform (Browning, Sparks, 2013, p.29). Alibaba strives and will continue to be innovative to lay down the right technological infrastructure to keep on attracting more customers. Alibaba is focused on enhancing its online platform to ensure it is appealing and the product design in their system is clear and there is easy navigation through the site. In the past, the attractiveness of Toaboa and Tmall create a good picture for the customers hence they tend to purchase on the website because the system is user friendly. On the other hand, the availability of diverse products in the online market adds extra credit to Alibaba. It is rare for a customer to miss the product of his demand in the Alibaba Website. The assurance has been a main stream of retaining customers and attracting more new customers. Alibaba is trying to understand the customers` culture to ensure they offer and change according to the consumers change in taste and preference. As noted, Alibaba is willing to take practical business needs to ensure their clients are satisfied. In this case, Alibaba has tailored their digital strategy to ensure they meet the consumer`s preference. Alibaba believes in the adage that, change china change the world undoubtedly, Alibaba seems to take heed to the culture of their customers diligently. Usually, The Chief Executive Officer spends a lot of resources in training the staff the key values like integrity and teamwork. The habit of studying the culture breaks the boundaries far beyond improving people`s lives hence promoting mutual relationship among them company personnel and the customers (The Development of Chinese Commerce. (2015). A company at all times stands for the truth. For instance, when corruption was realized in the company a few years ago, the victims were retrenched immediately because of the bad practice. This is probably an indicator for the better performance of the firm even in future. As always Alibaba has been a transformative firm-a company that has done a lot to china`s economy more than those state owned companies. Research of social media has appositive influence on the growth of the business (Zhong, n.d.). Since social media is a profound tool used by most people in China, it is a promising channel that is facilitating growth and communication among the clients. Social media research facilitates data collection improvement (DEKKER ENGBERSEN, 2013). The companies are influenced to use integrated system software or big data analytic software that provide a simplified criteria of collecting and analyzing market data. The approach improves efficacy and the rate of feedback is enhanced. In return, the company is able to make informed decisions and identify gaps in their market coverage. Alibaba has embraced new techniques of remitting goods to clients using the Tmall platform. The strategy helps continue to make voluminous sales which even surpass their competitors like eBay and Amazon. It is evident social media is the driving force of Alibaba company. Alibaba can be best defined as a company that operates under network orchestrator business model. These categories of companies create a network for peers where people can interact to create value for one another. They sell products, survey the market, or create a relationship that is binding. The big data that comes from online and offline provide the researchers with a large pool of information to enable the company to formulate strategies with ease and accuracy. However, there is need to go through the data gathered to eliminate irrelevant information hence the research feels secure conducting the research. The social media platforms has helped researcher to conduct netnography and sentiment analysis. Netnography is a qualitative research method that studies the behavior of online community and provide the consumer insight in regard to the product or service (What is netnography?, 2011). According to Reiman (2012), netnography is a research carried out in the web. The research has to follow the conversations on social media platforms (face-book, twitter etc) concerning the product. On the other hand, opinion mining and sentiment analysis is a research that analyses the opinion of people, attitude, sentiments, and emotions written in language (Liu, 2012). In conclusion, the ultimate purpose of doing social media research is to understand the customers better. Apart from that, it enables the business to identify weaknesses and strengths and at the same time realizing the trends that exist in the market. It is technology that is making the information accessible in a simplified manner. In general, social media research has an impact on business growth in the global market in that, it catalyses and provides solid information for the firms to design and develop products based on the taste of the consumer`s opinion rather than guessing on the consumer`s needs. References Browning, V. So, K. Sparks, B. A. (2013). 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Social media growth and global change.Public Interest and Private Rights in Social Media, 1-23. doi:10.1016/b978-1-84334-693-7.50001-5 The Development of Chinese Commerce. (2015).Made in China, 55-86. doi:10.1002/9781119199694.ch5 What is netnography?, 2011, video recording, SAGE Publications, Inc., Thousand Oaks, CA. Viewed 10 May 2016, doi:https://dx.doi.org.ezproxy.lib.swin.edu.au/null. Zhong,B. (n.d.). Research on Social Media Use.Impact of Social Media on Communication and Business, 329-1160. doi:10.4018/978-1-4666-9518-4.les1