Evaluate the Pros & Cons of the Service Culture of Alibaba Group

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Evaluate the Pros & Cons of the Service Culture of Alibaba Group

                                                       Introduction

 Alibaba Group is the world’s largest e-commerce firm and it is situated in China with its major sites being Tmall, Taobao, and Alibaba.com. Alibaba Company is distinguished from other firms that were founded at the same time in China by its service culture which entails; giving customers first priority, entrepreneurship, and innovation. Alibaba service culture resulted in advantages such as economies of scope and economies of scale, while high competition and copying of Alibaba model are some its disadvantages.

Pros of Service Culture of Alibaba

To begin with, Alibaba enjoys networking benefits which arise from an expanded network user of a service or product. Products become more valuable to the user with enlargement of a network (Peng, Cai & Gao, 2016). The entrepreneurial culture of Alibaba provides incentives to merchants to join the network each coming with new consumers of Alibaba’s products.

Secondly, there is a good relationship between Alibaba group and the Chinese government. Government is the controller of the economy and determinant of who to enter the market and gave Alibaba among other companies in China permission to enter internet banking.

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