Tag Archives: China

What is Alibaba?

Alibaba

 

The Chinese e-commerce company Alibaba Group has been in the U.S. news quite a bit lately; the company has filed paperwork to sell its stock to the public for the first time in an initial public offering (IPO). But for many Americans, the questions are what exactly is Alibaba and why is this company so important?

Started in 1995, Alibaba is the fastest growing Internet company in the world and is located in one of the largest economies in the world – China. The company’s IPO filing stated it intends to raise nearly $1 billion, but experts put the value at closer to $15-$20 billion, which would make it the largest IPO since Facebook in 2012. The company has been described as the Chinese equivalent of a combined Amazon, eBay, and PayPal. Consider this: online shopping in China is growing at an annual rate of 27%, and last year, the value of products sold on Alibaba were more than $248 billion – this is greater than the volume sold on eBay and Amazon combined. And perhaps more importantly, roughly 20% of purchases on Alibaba were made using mobile phones.

So, what is Alibaba? In short, it is arguably the world’s fastest growing, highest revenue, Internet company and is based in the world’s largest economy. Watch out, world.

Group Activities and Discussion Questions:

  1. Show the New York Times video about the company: http://nyti.ms/SxPHEm.
  2. Discuss various market strategies used by companies. What strategy is Alibaba following?
  3. What are the implications of Alibaba for U.S.-based Internet companies?
  4. How can U.S. companies partner with Alibaba?
  5. A movie is available that discusses the founding and growth of Alibaba – “Crocodile in the Yangtze”: http://www.crocodileintheyangtze.com

Source: New York Times, Wall Street Journal, other news sources

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The Voices of Chinese Workers

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A global workforce presents both opportunities and challenges to companies and countries alike. Around the world, millions of people work in factories producing high-end goods consumed in the West and Europe. As Leslie Chang begins her talk for TedTalks, she mentions that in the U.S., as beneficiaries of globalization, we often feel we exploit these workers as victims who have been treated unjustly. We assume that Chinese factories are oppressive and that is our fault as Western consumers who desire cheap goods.

Chang contends that these thoughts are both inaccurate as well as disrespectful; what is the ego involved to imagine that we have the power to drive millions of people on the other side of the world to suffer in their work? Her thesis points out that Chinese workers choose to leave their homes in order to earn money, learn new skills, and see the world. Her talk gives a voice to the workers themselves and we learn from them what they value and dream of in their own lives.

In this moving and timely talk, Chang examines the lives of workers in China, interviewing them and taking a new look at what globalization offers to workers in emerging countries. As we might assume, there is both great good, as well as some harm, that has come from the outsourcing of manufacturing to China. Listen to Chan’s talk and decide on the issue for yourself.

Group Activities and Discussion Questions:

  1. Begin with a discussion about globalization.
  2. Before showing the video, ask students what their thoughts are about the emerging countries’ manufacturing operations?
  3. What are the factors that have led to manufacturing in China?
  4. What are the implications of this? Positive aspects? Negative aspects?
  5. Show the TedTalks video: http://www.ted.com/talks/lang/en/leslie_t_chang_the_voices_of_china_s_workers.html
  6. What are the responsibilities of corporations when outsourcing work to emerging countries such as China?
  7. Discuss aspects of Apple’s and Nike’s oversees manufacturing.
  8. After viewing the video, what are students’ thoughts now about emerging countries’ manufacturing?

Source:  TedTalks.com

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North Face – Never Stop Exploring

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North Face’s motto is “never stop exploring.” This seems to be true for the company not just in its sponsorship of adventurers, but also in its use of integrated marketing. To help position the company as a pioneering, outdoor brand in China, it developed a unique integrated campaign to bring outdoor adventure to the consumers’ doorstep.

By taking the image of an explorer planting a flag on a mountain-top, North Face took a more urban approach using mobile phones. Consumers used their mobile phones to “plant a flag” on any location they wanted to claim as their own. Each location could be claimed only once, and the person who claimed it got the right to name it. Scoring was tracked in real-time, and posted on a large electronic display board.

The campaign used traditional marketing in addition to mobile, and store promotions, field marketing, and live events in major cities. In only 18 days there were 651,000 flags planted all across China. The net result was an increase of 106% in dealer sales.

Group Activities and Discussion Questions:

 

  1. Play the North Face video: http://youtu.be/krxVxt4tt1o
  2. What were the various elements that made this an effective campaign?
  3. Could this campaign be replicated in other locations?
  4. What are the benefits? What are the risks?
  5. Divide students into teams. Have each team select a company and a new geography for the company to penetrate.
  6. Have teams design an integrated campaign that could be deployed in the new geography?

 

 

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