Research the m-commerce strategies of Alibaba and Tencent, a major competitor. Y

Question

Research the m-commerce strategies of Alibaba and Tencent, a major competitor.

Your contributions may include:

A summary of Alibaba's m-commerce strategy

A summary of Tencent's m-commerce strategy

A brief analysis of the accessibility and transparency of these plans

An identification of information investors look for when making investment decisions

It will also be important to identify any conflicting information you uncover in your search, so we may work through those challenges collectively.

WEB-BASED CASE Alibaba E-Commerce Strategy and Issues In 2013, retail sales made through mobile devices in the United States increased by 188 percent to roughly $65 billion. Mobile-commerce (m-commerce] is expected to climb at an even faster rate in the developing world, as increasingly available mobile phones provide cheaper, more afford able Internet access to those who cannot afford PCs and wired Internet access. In China, for exam- ple, to remain competitive, the e-commerce giants must target m-commerce Given Alibaba's venture into online payment systems and cloud services, Chinese banks have lobbied their government to limit Alibaba's conquest of markets, such as the financial services market, that the banks feel should be their exclusive territory. A decision by the Chinese government to appease the banks will impact Alibaba's operations and profits Because Alibaba operates in China, under a communist regime, both government decisions and the company's actions are not as transparent as they would be in the West. What infor- mation should investors have access to through Alibaba's Web site to increase transparency and reduce investor risk? How should this lack of transparency impact Western investment in the Chinese IT giant? Source: Smith, Cooper, "Mobile Retail Explodes-Phones and Tablets Are Driving One-Fourth of All E-Commerce," Business Insider, March 18, 2014, www.businessinsider.com/e-commerce -insider-the-mobile-retailboom-2014-3

Explanation / Answer

Alibaba’s m-commerce strategy

Alibaba has devised a unique strategy of collective corporatism under which it gives the ownership right of its platform to the partner merchant and vendor collectively. A transparent market under Alibaba banner is created which is transparent and responsive for all the merchants along as customer. It has created cutting edge user friendly mobile app Taobao and TMall.

Tencent’s m-commerce strategy

Tencent is the arch rival of Alibaba which compete with it neck to neck. To compete with Alibaba in m-commerce space, Tencent acquire Jingdong a mobile app which facilitates m-commerce facilities. Tencent is also the maker of Wechat which have strong base of 438 million active users in China. It is the largest mobile chat app in China. Tencent channelize its customer through Wechat into Jingdong and convert them to shopper. It has also aggressive marketing and acquisition strategy.

The claim made by Alibaba and Tencent should be verify by the investor before putting steps. It can be done by conducting due diligence through third party globally established firm like KPMG, Deloitte or PWC. Investor should ask vendor due diligence report from these companies which is trusted due diligence and investor can rely the report due to its authenticity. The vendor test all the parameters which are necessity by the investor before writing report about the company.

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