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Key Terminology and Evolution of e-Business Read chapter Read first chapter

2020 | OriginalPaper | Chapter

16. The Strategic Approach of the World’s Biggest e-Tailing Companies: Amazon and Alibaba

Authors : Tawfik Jelassi, Francisco J. Martínez-López

Published in: Strategies for e-Business

Publisher: Springer International Publishing

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Abstract

This chapter provided a synthesized understanding of Amazon and Alibaba from various dimensions. The two companies offer similar e-business services, such as e-commerce, cloud computing, artificial intelligence, and omni-channel businesses. Yet their business models and strategies are quite different. Amazon and Alibaba, as two e-business exemplars, provide many practical lessons on e-business. In this chapter, we firstly describe the lessons that businesses can learn from Amazon and Alibaba. Secondly, we separately analyze their e-business practices. The last section concludes by highlighting the practical implications of the strategic moves made by Amazon and Alibaba.

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previous chapter Unifying Channels to Reach Customers: Omni-Channel Strategies
next chapter Strategic Trends for e-Business
Footnotes
1
See Z. Kanter, 2017 “Why Amazon is eating the world,” Techcrunch, 15 May 2017.
 
2
Section 16.2.1, 16.2.4, and 16.2.5 are adapted from: J.Batistich, “Understanding 7 Amazon.​com,” 15 May 2017. Available at: 7 https://​www.​ami.​org.​au/​imis15/​librarymanager/​understandingama​zon-170515004436.​pdf.
 
3
This section is adapted from: Investopedia, “The Difference between Amazon and Alibaba’s Business Models,” 7 Investopedia.com, 2 August 2016.
 
4
This section is adapted from: T. Brown, “Why is Amazon so successful? Learn these 6 keys to Amazon’s success,” Hookagency, 6 January 2018.
 
5
See A. Balakrishnan, “Jack Ma explains the difference between Alibaba and Amazon: ‘Amazon is more like an empire,’” 7 CNBC.com, 18 January 2017.
 
6
This section is adapted from: Alibaba, Annual and Transition Report (foreign private issuer), 2017.
 
7
Investopedia, op. cit., 2016
 
8
This section is adapted from: X.Pavie, “Seven reasons for Alibaba’s ground-breaking success,” BBN Times, 10 May, 2018.
 
9
As described in Sect. 11.4. See also M. Krasinski “The Long Tail Effect theory in practice explained” 7 MilosKrasinski.com, n.d. Available at: 7 https://​miloszkrasinski.​com/​the-long-tail-effect-theory-in-practise-explained/​.
 
10
For details on Transaction Cost Economics, see M. Ketokivi and J.T. Mahoney, “Transaction Cost Economics as a Theory of the Firm, Management, and Governance” Oxford Research Encyclopedias, Business and Management, October 2017. Available at: 7 http://​oxfordre.​com/​business/​view/​10.​1093/​acrefore/​9780190224851.​001.​0001/​acrefore-9780190224851-e-6.
 
11
See M.E. Porter “Creating Shared Value,” Harvard Business Review, January–February 2011.
 
12
This section is adapted from: R. Yazdanifard and M.T.H. Li, “The Review of Alibaba’s Online Business Marketing Strategies which Navigate Them to Present Success,” Global Journal of Management and Business Research, 2014, vol. 14, no. 7, pp. 33–37.
 
13
This section is adapted from: A.L. Deutsch, “What’s Next For Alibaba?”, Investopedia, 25 March, 2015.
 
14
For more details, see C. Luo, “One Platform to Rule Them All: The Brains Behind Cainiao Network (PI)” e-Commerce IQ, 7 December, 2016. Available at: 7 https://​ecommerceiq.​asia/​cainiao-logistics-southeast-asia/​.
 
15
At the same time, Amazon tried to enter the China market and failed. In 2018 Amazon diverted its focus to the India market (see P. Fuhrman, “Alibaba Grabs The IPO Money But The Future Belongs To Jeff Bezos And Amazon China,” Seeking Alpha, 10 September 2014, and Bloomberg, “After losing China, Jeff Bezos really wants to win in India,” India Times, 6 March, 2018).
 
16
In A.M. Do, “Jack vs. Jeff: The two biggest e-commerce billionaires in the world are total opposites,” TechinAsia, 24 October 2014
 
17
Both quotes are from A.M. Do, op. cit.
 
18
Alibaba’s creation of the Cainiao network business unit suggests Alibaba may begin to offer logistics services to vendors.
 
19
A.M. Do, op. cit
 
20
A.M. Do, op.cit
 
21
Source: C. Riley, “Alibaba is not the Amazon of China,” CNN Business, 16 September, 2014
 
Literature
Bhandari, B. (2018). ‘Taobao launches bargain app to rival Pinduoduo’, sixth tone.
Bonnington, C. (2018). ‘Why Amazon is opening more of its futuristic, cashier-free convenience stores’, Slate.​com.
Drucker, P. F. (1986). Management: Tasks, responsibilities, practices (p. 14). New York: Truman Talley Books.
Hahn, L. (2016). ‘Amazon (AMZN) stock boasts 3 powerful growth engines’, InvestorPlace.
Hirsch, L. & Castillo, M. (2018). ‘Amazon has big plans for Alexa ads in 2018; it’s discussing options with P&G, Clorox and others’, CNBC.​com.
Mac, R. (2016). ‘After Jeff Bezos hands out promotions, Amazon now has three CEOs’, Forbes.
Page, V. (2015). ‘How Amazon fresh works’, Investopedia.
Wang, Y. (2017). ‘Can Alibaba realize its global ambitions?’, Forbes.
Pavie, X., ‘Seven reasons for Alibaba’s ground-breaking success’, BBN Times 2018.
Yazdanifard, R., & Li, M. T. H. (2014). The review of Alibaba’s online business marketing strategies which navigate them to present success. Global Journal of Management and Business Research, 14(7), 33–37.
Metadata
Title
The Strategic Approach of the World’s Biggest e-Tailing Companies: Amazon and Alibaba
Authors
Tawfik Jelassi
Francisco J. Martínez-López
Copyright Year
2020
Publisher
Springer International Publishing
Book
Strategies for e-Business

Print ISBN: 978-3-030-48949-6

Electronic ISBN: 978-3-030-48950-2

Copyright Year: 2020

DOI
https://doi.org/10.1007/978-3-030-48950-2_16