Since the beginning of the year, Alibaba Group Holding Ltd (NYSE:BABA) has placed a lot of focus on its presence in the international market as well as overtaking the competition. The company has equally matched its performance in its local market.
The e-commerce reminded the world that it still regards the potential of its local market through the announcement of two new deals. The company will trade in its U.S. unit known as 11 Main. The unit will be handed over to online marker, OpenSky and Alibaba will take over a minority shareholding as part of the sale agreement.
11 main sells a wide variety of products, but the unit has not managed to gain enough traction in the United States. This is despite expansion claims by the company executives though it has never proven any competitive advantage against the American players. A close watch over Alibaba reveals that the firm has been on a mission to bring products to the Chinese market.
During CEO Jack Ma’s recent visit to the U.S., he focused on encouraging American businesses to capitalize on the growing Chinese demand for foreign products through Alibaba. An extension of the thriving American businesses into China is expected to generate more welfare in terms of revenue and Jobs in the home market.
Alibaba Group Holding Ltd (NYSE:BABA) is also focused on capturing more o the local market through another partnership with a local payment firm. The venture will pump in roughly $1 billion into the venture, which will initially focus on China’s service market. Additionally it will link food beverage providers to consumers.
The services will focus on a wide range of products such as home deliveries, booking restaurants, and much more. The venture will put Alibaba on a new competitive market with rival firms, Tencent, and Baidu. It is the company’s next strategy in the Chinese e-commerce industry. The three firms each have their own competitive advantages. Tencent owns WeChat, the most common chat application in the country while Baidu has the most popular search engine and map applications in the region.
