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After Alibaba's IPO, Key Questions About Its International Expansion


After Alibaba s IPO Key Questions About Its International Expansion

In the future, Alibaba will need to increasingly focus on international marketsfor two reasons: 1) to diversify its operations and become less dependent on the Chinese market 2) to acquire new capabilities such as advanced technology, managerial expertise and brands, to increase its competitiveness in the Chinese market and in markets worldwide. A combination of commercial motivations and government policy have already lead Chinese firms including Lenovo, Huawei, and Haier to expand around the globe.

Will Alibaba be ready?

When Alibaba ultimately decides to expand more aggressively into international markets, will it be ready?  Unlike traditional industries, where Western businesses may have had decades — if not centuries — more business operating experience than their Chinese counterparts, firms operating in new sectors like the internet and biotechnology are on more equal footing with their global peers.

Source: http://www.forbes.com/sites/joelbackaler...

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Additionally, international experience at the senior leadership level is critical for Chinese businesses expanding overseas. It may come as a surprise to some that Ma began his career not as an entrepreneur, but as an English teacher in Hangzhou, China. His language skills enabled him to interact with international travelers visiting Hangzhou, ultimately leading to his first trip to the U.S. in 1995. After returning to China, Ma founded multiple internet startups, all with an eye towards business models from the West. Ma’s understanding of the global internet industry allowed him to repeatedly take successful overseas models and adapt them for a Chinese audience, such as Taobao (eBay) and Alipay (PayPal).

So Alibaba wants to expand into the US? Or the rest of the world? Or both?

All I know is it's a question of when, not if.

Amazon has been warned. It's on like Donkey Kong!

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