The Impact of Covid-19 on the Alibaba Platform
DOI:
https://doi.org/10.54820/entrenova-2022-0019Keywords:
Alibaba, COVID-19, digital platform, E-commerce platform, platform economyAbstract
Purpose – this paper aims to analyse the business efficiency of the Alibaba platform at the beginning and during the COVID-19 crisis. Methodology/Design - The research is based on the official financial reports of the platform as well as on the reports of other specialized agencies that monitor the platform industry. The study focuses on an analysis of the financial indicators of the business. It compares the financial indicators with an analysis of the data on the trend of the user community on the platform. The results - the study's findings did not find a major impact of the COVID-19 pandemic on the overall business results of the Alibaba platform. The survey results confirmed changes in operating profit and net profit trends as a result of changes in the structure of operating revenues. Conclusion - Total revenues are growing at a slower pace as a result of the changes in business policy and changes in revenue structures than as a result of the impact of the COVID-19 pandemic.
References
Alibaba (2021), “Annual Report”, available at https://www.alibabagroup.com/en/ir/reports (21 Dec 2021)
Bukht, R., Heeks, R. (2017), “Defining, conceptualizing, and measuring the digital economy”. Working Paper No. 68, Centre for Development Informatics, University of Manchester, Manchester.
Casanova, L., Miroux, A., Finchelstein, D. (2021), „Digital Companies Driving Business Model Innovation in Emerging Markets: The Cases of Alibaba, Flipkart, Jumia, and Mercaado Libre”. Innovation from Emerging Markets, pp. 122-149.
Chen, H., Dai, B., Li, Y.; Zhang, Y., Wang, X., Deng, Y. (2020), „Stock allocation in a two-echelon distribution system controlled by (s, S) policies “, International Journal of Production Research, pp. 894 – 911.
Curry, D. (2021), „Mobile Payments App Revenue and Usage Statistics“, Available at: https://www.businessofapps.com/data/mobile-payments-app-market/ / (12 Dec 2021)
Ding, D., Chong. G., Chuen, D.L.K., Cheng, T.L. (2018), „From Ant Financial to Alibaba’s Rural Taobao Strategy – How Fintech Is Transforming Social Inclusion“. Handbook of Blockchain, Digital Finance, and Inclusion, Vol. 1, pp. 19-35.
Falcone, E., Kent, J., Fugate, B. (2020), „Supply chain technologies, interorganizational network and firm performance: A case study of Alibaba Group and Cainiao”. International Journal of Physical Distribution & Logistics Management, Vol. 50 No. 3, pp. 333-354.
Falk, S., Riemensperger F. (2019), „Three Lessons From Germany's Platform Economy“, available at https://sloanreview.mit.edu/article/three-lessons-from-germanys-platform-economy/ (12 Dec 2021)
Fan, J., Tang, L., Zhu, W. & Z. B. (2015), „The Alibaba effect: Spatial consumption inequality and the welfare gains from e-commerce“, Journal of International Economics, Vol. 114, pp. 203-220.
Gao, H., Shunyi, M., Huang, W., Yang, X. (2018), „Applying Probabilistic Model Checking to Financial Production Risk Evaluation and Control: A Case Study of Alibaba’s Yu’e Bao“, IEEE transactions on computational social systems, Vol. 5 No. 3, pp. 785-795.
Granovetter, M. (2005), “The impact of social structure on economic outcomes”. Journal of Economic Perspectives, Vol. 19 No. 1, pp. 33-50.
M., Smedlund, A., Mitronen, L. (2017), „Digitalization in retailing: multi-sided platforms as drivers of industry transformation“, Baltic Journal of Management, Vol. 13 No. 2, pp. 152-168.
Jia, K., Kenney, M. (2016), „Mobile internet business models in China: Vertical hierarchies, horizontal conglomerates, or business groups“, BRIE Working Paper 2016, University of California, Berkley.
Jia, K.; Kenney, M., Zysman, J. (2019), „Global Competitors? Mapping the Internationalization Strategies of Chines Digital Platform Firms“, International Business in the Information and Digital Age Progress in International Business Research, Vol. 13, pp. 187–215.
Jin, H., Hurd, F. (2018), „Exploring the Impact of Digital Platforms on SME Internationalization: New Zealand SMEs Use of the Alibaba Platform for Chinese Market Entry“, Journal of Asia-Pacific Business, Vol 19 No.2, pp. 72-95.
Jung, J.C., Ugboma, M.A., Liow, A.K. (2015), “Does Alibaba’s magic work outside China?”, Thunderbird International Business Review, Vol. 57 No. 6, pp. 505-518.
Kim, D.Y. (2014), “Understanding supplier structural embeddedness: a social network perspective”, Journal of Operations Management, Vol. 32 No. 5, pp. 219-231.
Kwak, J., Zhang, Y., Yu, J. (2019), “Legitimacy building and e-commerce platform development in China: The experience of Alibaba”, Technol Forecast Soc Change, Vol. 139, pp.115-124.
Leavy, B. (2019), „Alibaba strategist Ming Zeng: “Smart business” in the era of business ecosystems“, Strategy and ledership. Emerald Publishing Limited, Vol. 47 No. 2, pp. 11-18.
Lozić, J. (2019a), „Zero marginal cost in magazine industry: Changing of cost paradigm in “new” magazine industry.” 44th International Scientific Conference on Economic and Social Development, ESD Conference Split, pp. 125-136.
Lozić, J. (2019b), “Core concept of business transformation: From business digitalization to business digital transformation.” 48th International Scientific Conference on Economic and Social Development, Managerial Issues in Modern Business, Warsaw, pp. 159.-167.
Lozić, J., Milković, M., Lozić. I. (2019), „Entrepreneurship development in the context of postmodern: future of entrepreneurship or adaptation to development of postmodern society”, 49th International Scientific Conference on Economic and Social Development, Building Resilient Society, Zagreb, pp. 578-590.
Lyu, Z., Lin, P., Guo, D., Huang, G.Q. (2020), „Towars Zero-Warehousing Smart Manufacturing from Zero-Inventory Just-In-Time Production“, Robotics and Computer-Integrated Manufacturing, Vol. 64, pp. 101932.
Moazed, A., Johnson, N.L. (2016), Modern Monopolies – What it takes to Dominate the 21st Century Economy, New York, Applico, LLC.
Parker, G.G., Van Alstyne, M.W., Choudary, S.P. (2016), Platform Revolution: How Networked Markets are Transforming the Economy and How to Make Them Work for You, New York, W.W. Norton & Company Ltd.
Rifkin, J. (2015), The zero marginal cost society: The Internet of things, the collaborative commons, and the eclipse of capitalism, London, Palgrave Macmillan, St.
Schmuck, R., Benke, M. (2020), “An overview of innovation strategies and the case of Alibaba”, Procedia Manufacturing, Vol. 51, pp. 1259–1266.
Seoane, M.F.V. (2020), „Alibaba’s discourse for the digital Silk Road: the electronic World Trade Platform and inclusive globalization“, Chinese Journal of Communication, Vol.13 No.1, pp. 68-83.
Wu, X., Gereffi, G. (2019), „Amazon and Alibaba: Internet governance, business models and internationalization strategies“, International Business in the Information and Digital Age Progress in International Business Research, Volume 13, pp. 327–356.
Yip, A.C.Y., Huang, M., Chow, P. (2016), “Benefiting from Business Model Innovation: The Case of Alibaba’s Alitrip”, Journal of Economics, Business and Management, Vol. 4 No. 10, pp. 584-588.
Yun, J.J., Zhao, X., Park, K., Shi, L. (2020), “Sustainability Condition of Open Innovation: Dynamic Growth of Alibaba from SME to Large Enterprise”. Sustainability, Vol. 12 No.11, pp. 1 -25.
Zeng, M. (2018), „Alibaba and the Future of Business“. Harvard Business Review. September – October, pp. 88-96.
Zhang. G., Ravishankar, M.N. (2018), „Exploring vendor capabilities in the cloud environment: A case study of Alibaba Cloud Computing“, Information and Management, Vol. 56 No. 3, pp. 345 – 355.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2022 ENTRENOVA - ENTerprise REsearch InNOVAtion
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
