ALIBABA IN CANADA
Outline
 Introduction
 Micro Issues
 Macro Analysis
 SWOT Analysis
 Conclusion
 Work Cited
Introduction
 Alibaba Group Holding Limited is one of the Chinese e-commerce
companies
 It is a business-to-business portal that at first connected several
Chinese manufacturers with the overseas buyers.
 The e-commerce later grew across the world
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$1.5
Gross Domestic Product (GDP) was
trillion in 2013.
Canada is about 3.8 million square
miles.
GDP per capita:$43,100.
 Micro issues:
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Product description, product track record
Introduction to the company
Use of Import and Trading Companies.
Reason for entering the foreign Canadian market at this time
Cost–benefit analysis of different entry models for this product
(i.e. FDI, licensing, exporting)
 Anticipated cultural and political challenges
Macro issues
 Demographics-immigrants in the country are making up to about onesixth of the Canada’s total population: to expand the workforce, as well
as, domestic markets
 Major industries: industries that are prospering in Canada are;
Agriculture, Energy- Technology, Services, Manufacturing.
 Geography
 Economic system: Canada has been ranked the eleventh (nominal) and
14th-largest (PPP) economy
 Role of government in the economy
 Current political conditions
 Current economic conditions: Unemployment rate, Inflation rate
The graph below illustrates the
inflation rate in Canada in the year
2014
The balance of payment for the year 2013
has been summarized in the graph bellow:
Other: SWOT Analysis
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Strengths
the strong presence of Alibaba Group Holding Limited in international markets.
Weaknesses
strong price war and also the piracy issues.
Threats
The major threat for the firm include economic challenges that are affecting both the home country Chinese
and Canadian consumer spending on e-commerce services
Market segmentation
Canadian internet retail landscape is now becoming more and more fragmented with retailers entering the
space from both domestic and foreign based
Pricing strategy
It is strategy adopted for quick achievement of high volume of sales while ensuring the deep market
penetration for new product in the market.
References
 Alibaba Group Holding Limited. (2014). Market Line, a Data monitor business.
 Audet, K. M., Gagné, R., & Ecole des. (2013). Openness to foreign direct investment
and productivity in Canada.
 Bank of Canada. (2013). Bank of Canada banking and financial statistics: Canada.
Ottawa: Bank of Canada.
 Canada. (2011). Free trade and business persons visiting Canada. Hull, Quebec:
Employment and Immigration Canada.
 Day, J., Lange, R. H., & Banque du Canada. (2014). the structure of interest rates in
Canada: Information content about medium-term inflation. Ottawa: Bank of Canada.
 Hübner, K. (2011). Europe, Canada and the Comprehensive Economic and Trade
Agreement. Hoboken: Taylor & Francis.
 McCollum, J. F., & Canada. (2013). Inflation and interest rates in Canada: A study
prepared for the Prices and Incomes Commission. Ottawa: Prices and Incomes
Commission