1. Presume you need to advice Jack Ma to judge the best strategy matching for Alibaba, select TWO (2) strategies that you would undertake and justify chosen of the strategies. (20 Marks)
Questions is this rection are besed on the follouing article. Alibaba to Splat into Six Croups and Explore lPOs la a Departure From Jack Ma Era. be the worles laroust online semmence concery. I hac three main sites. Faoboo, Tmal and Alpaba.com. The former in actuaby Aitaba's biggest shopping sile. It hoets 7 milian merchants which sel everyting from clothes to deckrstons and of is frea for user. Howewer. sellers can pay lor ads to make a ciltueoce within the crowd. There are hurideds af millora of people uting Albaba os wefl ac milions of trercharta and tutintetos hosind there. With known plape lo visl for online shooging A gome poitt transactions on th online stes mached $248 bilfon which are signtcinby move than those of elay and Amason con combined. In fack according to recenc researdhes, in 20 ts Absba made RMibaso 266 mition in Iransactiant, PMB376, B44 milion in 2019 while in 2000 it reoched fUlasoo. 711 milton. As e retuld Albaha msies up so\% of Crina s online ahopping maket Fast forwarding 22 yeses. Albaba to splt irlo aisgroupe and eaplore IPOs in a deganure trom overspas Crinese ectowmeroe piant Aiboba Croup Hoiding tBd. BAEA 3 ask increase gren up pointivg trancle said z plark to spit tsell into sir independently nn conpanies that could seak separate IPOs. elledtvely dienarfling a buaness engire bukt over hoo decadea by sharismalie entrepiseneur lark Ma knt as the fycoon roappeared in China. The reorganiatien of ent of China's largest privato sector companies. once valued at mere than $800 billon but now worth about a quarter of ithat, oorhes aher Chinese tumbertes signaled in recent manths they were wivding bown s iepeping rophlatsry ciampdown aired at reining in the country's powetur sech sector, Atr. Ma, a co lounder who bull Aicabe irbo one of the wodd a bigobst esommerce comoaniot on China it riting alhumce, ws once known for his outponken viewa. But snce Chine embthed on ls oenoaign to tame interef comparits, the billerare tas largaly kept a low protle and remained atrood. the retumed ts maniand Chira in recent dags for the fest known tiwe in almcet a yoar, vistong a school in the wasere cily of Hanghes where Alboba is basod. Alosbe s plomed recryarizason reveries eltorta is ountralte boersbont. Nbabs's nestrunturing culminatot a yeartlong thin intide the esroary to make in centralzation drive he serbarked upon belore his departure in which ho scught t bring the compery's subvidiares and mthises inds doser alosment part of the socaled Aloata Eovntmy Befing. Compenies much as Ababa tave a grp on data of more than a bilion coes and investrents across a raros of companies in Ching. Bewiog hes in ho past eribciasd the "disorderly exparaion" at the oburtey's tiggest raeret compories. "it you dent change yoursel. you wit te deleated by the fmes." Albeba Chairman and Crier Ersedove Danel Zhang sad in a leter so employoet rovitwed by The Will shoet doume. He adted that Nitaba's vacious burivessel sre tecirg difterent chalienges and market oondions. Undier the restruchring, Mbatars varous butinested will be spat sp into six major aveas: doud compoting. Chrese e-comeneroe. giobul t-cameserte, digeal mappiry and food debrey, lopisice, and moda and ditertaivment, the compaty baid Each trinest grove Would have its own CEO reporting to a boars af drectore and be fuey responsble for the group s performance. Aibceba Cloue is set to beoome a holifg compary overseen by Mr. Zhang. Thore taskess groses wit be alowed to raje eiternal capital and seek intal pubcic meriter of Albaba Pertnershlo. a ntratecyimaking body of serior toecutwee, in the company's labest annual repori published inst Jly. He held lesi thas 5% in Albaba Group at the ime. Mr. thang in february said he sew 2023 an a year of progess for Aibube. In wisootaped romaris pullithed by Chinete butinese puttodoton Vicat on Tuasday, ho nald the regroanilatisn was a big step forward. Ho explaned the main remon to reorgarime is to buairesess woild make each ares more ayde lo beser compece w th mala. Albata has been bite into Albota's market thare. In adteton, thorl-iboo platorms incluging ByteOance Lad's Douyh, the Chintse version of ThTol, gnd Kesksheu Technology increasingly pose a chaleng. Aloubeli revenat grouth in the past two quarles pertormed belice the eueral growes in China's e-oommere aales of phyeical gcods. Mr. Dhang hat ochnowledged eompestion and raid the compeny woild erplore moovative ways to bettar angage with eutfomere, tugh as the strearrixg and triat recormendetons. Alibaba business-segment revenue, in billions of Chinese yuan, nine months ended Dec. 31 . 2022 Note: 1 billion= $0.1452 billion. Cainiao represents revenue from logistics services and supply-chain management. In 2021, the Journal reported that Mr. Zhang had been delegating more power to the heads of Alibaba's various business units, which had the potential to open the way for spinoffs and independent fundraisings. The move echoes previous sweeping reorganizations by Western tech giants such as Google, which created Alphabet Inc. as a hoiding company while separating its growing cast of businesses. Still, the holding-company structure isn't common for Chinese lech giants. In 2021, ByteDance reorganized its operations, formerly divided by functions, into six business units that now focus on different product lines. Alibaba's split comes after Mr. Ma reappeared in China and at a time when Beijing is seeking to revive entrepreneurs' confidence following more than two years of regulatory clampdowns and Covid-19 restrictions. The announcement wasn't related to his return, people inside the company said. The listing status of Alibaba's shares in New York and Hong Kong won't be affected, people familiar with the matter said. Alibaba's American depositary receipts climbed more than 9% in early trading on Tuesday in New York. Beiiing started to crack down on the Chinese tech sector in late 2020, calling off Ant Group Co.'s blockbuster IPOs. The cancellations came after Mr. Ma's speech at a financial forum drew the ire of regulators by criticizing their work as anachronistic. Regulators subsequently launched a probe into Alibaba for alleged anticompetitive behavior on its e-commerce platform and later hit the company with a record $2.8 billion fine. Regulators also slapped hefty fines on other tech giants over issues including antitrust and data-security breaches, erasing more than $1 trillion in market value from China's largest publicly listed tech companies. Hopes that regulatory headwinds may be easing began to build as the country's top brass sounded more conciliatory toward private businesses. But tighter oversight has become the new normal, and in January, Chinese authorities acquired a stake in a subsidiary of Alibaba. The sudden disappearance of star investment banker Fan Bao recently sent shivers through China's business community. Like many large tech companies that are burgeoning conglomerates. Alibaba has expanded its ecosystem by offering consumers and businesses multifaceted services, from shopping and travel to payments and logistics. Since 2020, Alibaba has been establishing subsidiaries based on business functions. Apart from the six companies, other businesses could be regrouped as similar independent entities in the future while teams such as research, data management, finance and human resources will be spread across subsidiaries, Mr. Zhang said in his letter to employees. "This transformation will empower all our businesses to become more agile, enhance decision-making and enable faster responses to market changes, " he said. Mr. Zhang is set to continue to lead the cloud-computing division