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Evaluate the Pros & Cons of the Service
Culture of Alibaba Group
Student’s Name
Institutional Affiliation
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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