The Alibaba Group is a large Chinese corporation that is often mistaken as the Amazon of China. The company is one to watch because of its substantial growth, its customer-centricity, and its focus on the Internet, e-commerce, and related technologies such as the blockchain, autonomous drones, and artificial intelligence.
Alibaba is a conglomerate that one must contend with as it improves and expands its operations. It might be an exciting stock to purchase to benefit from the growth of the blockchain and cryptocurrencies. Adjacent fast-growing businesses like its Alibaba cloud divisions are also additional reasons to like the company.
Let’s also take a look at how it is increasing its value in other areas to become a formidable company.
Alibaba Group and the NetEase Kaola Acquisition To Fulfill Demand for Import Goods
Alibaba recently acquired NetEase Kaola for more than $1.9 billion. The acquisition is expected to be a principal value add for the company as it incorporates the Kaola into its TaoBao online retail Mall. NetEase representatives stated, “Kaola will continue to provide Chinese consumers with high-quality import products and services.”
While an Alibaba associate commented, “Alibaba is confident about the future of China’s import e-commerce market, which we believe remains in its infancy with great growth potential. With Kaola, we will further elevate import service and experience for Chinese consumers through synergies across the Alibaba ecosystem.”
The acquisition shows that Alibaba still works with a growth mentality and optimizes for substantial opportunities across the e-commerce spectrum. This acquisition makes Alibaba a significant player within the cross-border e-commerce platform arena. Consumers in China have a strong desire for imported goods, and Alibaba will cement their position as the go-to provider in this sector.
Alibaba and International Expansion
The Chinese conglomerate sees different opportunities for growth outside of China.
Russia and Hong Kong
The company is in talks with a Russian corporation to invest and grow operations in the Russian region. Further, it aims to move forward with an IPO on the Hong Kong public markets.
Alibaba also has UCWeb, a subsidiary, that is in the process of opening up e-commerce operations in the growing economy of India shortly. This specific platform will focus content and will have a reach of more than 300 million user base across the world. The parent company also owns more than 20% of the popular payments and e-commerce company Paytm.
The Chinese conglomerate hasn’t shied away from the growing African region either. It is in talks with Rwanda to invest and develop human capital. Its efounders initiative attracts and develops talent in several African countries, encouraging growth and progress in African e-commerce.
Jack Ma, the Chairman and Founder of Alibaba is stepping down but his critical management team, led by Daniel Zhang, will continue to run the company and will likely keep the company in growth mode. Alibaba’s is technology forward with its cloud business growth, its forays into blockchain technology, and broad expansion of services and countries.
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