Business In An International Perspective

Strategies that Alibaba needs to take in India to deal with different risk are as follows:

Modes of entry:

Multinational companies can face barriers in the foreign country which is dependent on the way they enter into the foreign country (Ayodele et al. 2019). Alibaba has chosen two important modes of entry that is joint venture and green field strategy. In this context, Alibaba has taken following strategy to deal with the risks associated with its modes of entry:

• Alibaba marketers focus on maintaining strong business relation with their business partners in India, such as Amazon, Flipkart and Shopcules
• It focuses on opening its subsidiaries in urban and metropolitan areas of India
• Alibaba is going to tie up with India government to have legal and political benefits for reducing the entry and tax barriers

Location of subsidiary:

Interior location of subsidiary can raise market risks for company (Barnier and Wright, 2017). In this aspect, Alibaba has taken the following strategies for avoiding these risks:

Take a deeper dive into Strategies and Operations of Alibaba and Amazon with our additional resources.

• Alibaba has chosen metropolitan areas and crowded cities of India for opening its subsidiary
• Alibaba also focuses on opening its subsidiaries in free zones for avoiding the tax burden and economic loads.
• Subsidiaries of Alibaba is going tot be opened near railway stations, malls, supermarket, college, high ways and airport

Type of subsidiary:

A company can face challenges in operating its subsidiaries in foreign countries (Jona and Guxholli, 2018). Alibaba has subsidiaries in India, for which this company has taken following strategies to cut out the market risks.

• Alibaba has developed relevant market strategies for its India based subsidiary Whale Cloud which enhance its competitive advantage by posing strong competition to Vodafone India and Reliance
• Whale Cloud provides 5G data service to its customers in India, with promoting high speed internet service
• Alibaba marketers has maintained string supervision on staff of this subsidiaries for ensuring the quality its product and service
• For dealing with strong competition by Reliance Jio and Vodafone India, Whale Cloud is going to developed 5G speed data connection for its consumer at reasonable price

Type of products:

• Alibaba is going to focus on selling such product that will be relevant to the demand and budget of Indian customers.
• Marketers of Alibaba set price for each item by considering the economic growth, income level and living standard on Indian consumers
• For example, price list of clothes in Alibaba is lower in India than other countries such as the UK, Australia and European countries

Other strategies:

Other strategies that Alibaba is going to follow:

• Improved online promotion process for making direct connection with customer rather than using indirect channels in India, that will save cost as well as effort of staffs (Johannessen and Johannessen, 2018)
• Improved monitoring and review process which will improve the performance management system of Alibaba
• Developed proper risk management framework for dealing with market crisis

Reference list:

• Ayodele, O.J., Innocent, I.O. and Garba, S.J., 2019. Innovation as a mediating of relationship between internal and external environment in agribusiness performance. Маркетинг і менеджмент інновацій, (1), pp.196-207.
• Barnier, B. And Wright, C., 2017. The many facets of risk: internal auditors need to consider the variety of perspectives business functions have for managing risks. Internal Auditor, 74(2), pp.20-22.
• Brunton, M., Eweje, G. And Taskin, N., 2017. Communicating corporate social responsibility to internal stakeholders: Walking the walk or just talking the talk?. Business Strategy and the Environment, 26(1), pp.31-48.
• Johannessen, J.A. and Johannessen, J.A., 2018. Knowledge Management and Internal Training', Knowledge Management as a Strategic Asset.
• John, J.K., Kilumile, J.W. and Tundui, H.P., 2019. Internal Branding: An Engine in Building and Sustaining Brand Equity–A Conceptual Paper. American Journal of Management, 19(5).
• Jona, P.U.C.I. and Guxholli, S., 2018. Business Internal Auditing–An Effective Approach in Developing Sustainable Management Systems. European Journal of Sustainable Development, 7(2), pp.101-101.