Case Study: Alibaba.com

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FnenF

Business Finance

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5-2 Case Study: Alibaba.com: A Born-Again “Born Global” Firm? Review the attached case study file. Then, research Alibaba’s current business, entrepreneurial history, and the industry it operates in. In your analysis, address the following: 1. 2. 3. 4. 5. Would you consider Alibaba a “born global” firm? How effectively does Alibaba help entrepreneurs overcome “psychic” distance? Which internationalization entry modes has Alibaba favored? Were they all successful? How effectively has Alibaba utilized the five entrepreneurial strategies identified in the module overview? What are the strategic implications for action for Alibaba given your findings? Suggested Resources: a. Alibaba 2011 Annual Report and company website b. Company, industry, and rival analysis (OneSource, Global Data, MarketLine, and Lexis-Nexis Academic: Company Dossier) c. Recent events (Reuters, WSJ, Financial Times, etc.) APA must be followed. 2-3 pages. All questions must be answered.
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Running Head: ALI BABA

1

Ali Baba
Name
Institutional Affiliation
Date

ALI BABA

2

“Born global” firm
A born global firm is a business that from its inception derives competitive advantage
from the use of its resources and selling off its output in many countries. Ali Baba group began
in 1999 as a website that intended to connect Chinese manufacturers with buyers in other nations
(Ali Baba Group, n.d). Right from its onset, Ali Baba was meant to serve consumers on a global
scale and not on a local level. Therefore, owing from the definition given, I would consider Ali
Baba a born global company.
Overcoming Psychic Distance
The psychic distance concept brings about differences between a businesses’ domestic
environment to foreign ones generating uncertainties amongst decision makers which can
discourage diversification. Ali Baba deals with this issue due to its presence in many countries.
Ali Baba overcomes th...


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