Corporate Strategy Report on the Online Retail Industry (Amazon and Alibaba)

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Corporate strategy report on the online retail Industry (AMAZON AND ALIBABA)

Introduction

This report will first analyse the global online retail industry by showing its evolution, characteristics and future outlook. It will also analyse the competitiveness and strategies used by Amazon Inc. and Alibaba Group to dominate the market as well as give an insight of their future challenges and some concrete strategic suggestions for how these firms might deal with them.

The industry lifecycle stages is a famous model explored by Michael Porter. According to him, the industry is one of the most important factor of a firm’s environment (Porter, 1980). The global online retail is still at the beginning of its growth cycle. It is also one of the most promising and therefore attractive industry. It has experienced a compound annual growth rate (CAGR) of 22.6% between 2010 and 2014. The sector grew by 19.1% in 2014 to reach a total value of $974.5 billion and is expected to grow by 114.5% by 2019 compared to 2014 to reach a value of $2,090.2 billion (MarketLine, 2015).
The industry lifecycle stages is a famous model explored by Michael Porter. According to him, the industry is one of the most important factor of a firm’s environment (Porter, 1980). The global online retail is still at the beginning of its growth cycle. It is also one of the most promising and therefore attractive industry. It has experienced a compound annual growth rate (CAGR) of 22.6% between 2010 and 2014. The sector grew by 19.1% in 2014 to reach a total value of $974.5 billion and is expected to grow by 114.5% by 2019 compared to 2014 to reach a value of $2,090.2 billion (MarketLine, 2015).
Figure 1: Industry Lifecycle Stages
Figure 1: Industry Lifecycle Stages
Industry Analysis

The growth is experienced in all part of the world, thus United States and Asia-Pacific grew with a CAGR of…...

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