Summary
This article reports that the revenue in the Chinese interne giant Alibaba has grown at its slowest pace in the three years, with the company losing over $UK 71 billion market capitalization. The article states that the founder Jack Ma would not sell shares of Alibaba. The company has indicated that they will authorize a $US 4 billion share buyback program over two years.
Application of concepts
The international trading conditions, such as foreign exchange rates, connect this article with the economic environment. The value of RMB has dropped approximately 6% against the Australian dollar during the last 6 months (XE exchange 2015). Although Alibaba operates predominantly in China, it facilitates international e-commerce by offering …show more content…
Gross domestic product (GDP) is still a reliable index to compare economic performance between countries (Hartley and Palmer 2009). Based on GDP, China is the world’s second large economy, and has consistently maintained its growth and development (Marketline 2015b, p5). This figure indicates that strong national income will be able to provide a catalyst that builds increasing disposable income due to GDP growth will increase Chinese consumer demand for superior foreign goods, therefore increasing the revenue stream for Alibaba. Moreover, Alibaba still has huge demand make in the domestic China, as the world’s largest population, and this number will continually increase in the future (Passport 2005).Recent slow down of the Chinese GDP on the other hand may convince Chinese consumers to switch to cheaper domestic products. This effect may be increased due to the recent devaluation of the Chinese RMB, making foreign goods more expensive (The Economic Times 2015, …show more content…
The company operates leading online and mobile e-commerce in both a retail and wholesale context, as well as cloud computing and other services to fit the mission (MarketLine 2015a, p.17). Taobao and Tmall are two leading online shopping destinations which not only operates in the domestic market, but also in global markets such as US and Australia (WF 2015), enforcing the relationship between their service and mission statement. However, Alibaba’s corporate social responsibility (CSR) initiative has low proactivity, thus hampering the whole CSR performance of the company. For example, Alibaba has not made any contributions to the recent Tianjin explosions. While there is no news reports any e-commerce company’s responses to this disaster, making the whole industry’s sustainability claims hard to assess, include Alibaba. Nevertheless, Alibaba’s CSR initiative, although lacking, seems to be on the same level as its competitors in the e-commerce industry. One example is Amazon, which also dose not provides much detail about their sustainability to the public. Moreover, Alibaba makes contributions to help the toxic milk powder in China as well by using its e-commerce power (BBC 2007). Alibaba helped to alleviate consumer suspicions in Chinese milk powder by proving a large supply of foreign milk powder, such as A2 form Australian
This article reports that the revenue in the Chinese interne giant Alibaba has grown at its slowest pace in the three years, with the company losing over $UK 71 billion market capitalization. The article states that the founder Jack Ma would not sell shares of Alibaba. The company has indicated that they will authorize a $US 4 billion share buyback program over two years.
Application of concepts
The international trading conditions, such as foreign exchange rates, connect this article with the economic environment. The value of RMB has dropped approximately 6% against the Australian dollar during the last 6 months (XE exchange 2015). Although Alibaba operates predominantly in China, it facilitates international e-commerce by offering …show more content…
Gross domestic product (GDP) is still a reliable index to compare economic performance between countries (Hartley and Palmer 2009). Based on GDP, China is the world’s second large economy, and has consistently maintained its growth and development (Marketline 2015b, p5). This figure indicates that strong national income will be able to provide a catalyst that builds increasing disposable income due to GDP growth will increase Chinese consumer demand for superior foreign goods, therefore increasing the revenue stream for Alibaba. Moreover, Alibaba still has huge demand make in the domestic China, as the world’s largest population, and this number will continually increase in the future (Passport 2005).Recent slow down of the Chinese GDP on the other hand may convince Chinese consumers to switch to cheaper domestic products. This effect may be increased due to the recent devaluation of the Chinese RMB, making foreign goods more expensive (The Economic Times 2015, …show more content…
The company operates leading online and mobile e-commerce in both a retail and wholesale context, as well as cloud computing and other services to fit the mission (MarketLine 2015a, p.17). Taobao and Tmall are two leading online shopping destinations which not only operates in the domestic market, but also in global markets such as US and Australia (WF 2015), enforcing the relationship between their service and mission statement. However, Alibaba’s corporate social responsibility (CSR) initiative has low proactivity, thus hampering the whole CSR performance of the company. For example, Alibaba has not made any contributions to the recent Tianjin explosions. While there is no news reports any e-commerce company’s responses to this disaster, making the whole industry’s sustainability claims hard to assess, include Alibaba. Nevertheless, Alibaba’s CSR initiative, although lacking, seems to be on the same level as its competitors in the e-commerce industry. One example is Amazon, which also dose not provides much detail about their sustainability to the public. Moreover, Alibaba makes contributions to help the toxic milk powder in China as well by using its e-commerce power (BBC 2007). Alibaba helped to alleviate consumer suspicions in Chinese milk powder by proving a large supply of foreign milk powder, such as A2 form Australian