Site Title

Student Name: Rachel Idris

Student ID: 20025649

Module: MN4057QA- Digital Business Management

And Emerging Technologies.

Assessment: Individual Digital Report.

Digital Business Strategy Analysis of Alibaba Group

The rapid growth of digital platforms has transformed the global business environment, enabling organisations to connect buyers and sellers across international markets efficiently. One of the most influential companies in the digital commerce ecosystem is Alibaba Group, was founded in 1999. Alibaba has become one of the world’s largest e-commerce and technology companies, providing services in online retail, cloud computing, logistics and digital payments. Through its platform Alibaba.com, the company connect several suppliers and buyers around the world.

This blog will analyse Alibaba’s website and online business strategy by examining its e-business model, competitive and digital strategies, digital marketing approach, website traffic performance, e-CRM systems and cybersecurity practices. The analysis also provides recommendations for improving Alibaba’s digital business performance.

E-Business Model

Alibaba operates a business-to-business (B2B) marketplace platform, connecting manufacturers and wholesalers with global buyers, such as retailers, small businesses and entrepreneurs. Unlike traditional retailers, Alibaba does not typically hold inventory or sell products directly; instead, it provides a digital platform that facilitates transactions between suppliers and buyers (Laudon and Traver, 2022).

Alibaba platform generates revenue through multiple streams. Suppliers can pay subscription fees to become “Gold suppliers”, which increases their visibility and credibility on the platform. Additionally, Alibaba offers advertising services that allow suppliers to bid for higher search within the marketplace. There are other sources from which revenue is generated, including commissions, logistics services and trade assurance programs designed to protect buyers during transactions (Alibaba.com, 2026)

The most important of Alibaba’s e-business model is its platform ecosystem strategy. The company integrates several supporting services   to enhance the overall user experience. For instance, payments are eased through Alipay, logistics operations are supported by Cainiao, and cloud infrastructure is provided by Alibaba cloud. These services create a strong digital ecosystem strengthen the platform efficiency and scalability. The major advantage of Alibaba’s business model is the presence of network effects because more suppliers join the platform, the product variety increases which attracts more buyers. Similarly, more buyers encourage additional suppliers to take part in the platform. This self -reinforcing system strengthens market dominance and increase costs from time to time for users (Porter 2001).

However, Alibaba’s e-business model also has several weaknesses. One of the major challenges is the issue of counterfeit or low-quality products, which can damage customer trust. In addition, the platform faces regulatory challenge in international markets due to data privacy concerns and trade restrictions. It is essential to address this challenge for maintaining long-term competitiveness. To improve its platform, Alibaba need to implement stricter supplier verification processes and build up quality assurance systems, this would increase buyers trust and improve the platform reputation in global markets.

Competitive Strategy and Digital Business Strategy

Alibaba runs a highly competitive digital marketplace and competes with major global companies such as Amazon and eBay. In order to remain competitive, Alibaba adopts a hybrid strategy that combines cost leadership and differentiation (Porter, 1985) Alibaba achieves cost leadership by connecting buyers directly with manufacturers, which reduces distribution costs and allows competitive pricing. Alibaba is able to standout through its integrated digital ecosystem, advanced technology infrastructure and global supplier network. The company must invest in stronger brand awareness campaigns in western markets and improve localisation strategies to remain competitive, and to provide region specific content and support services would attract international users.

Digital Marketing Strategy

Digital marketing plays a crucial role in attracting users to Alibaba’s platform. Alibaba uses several online marketing techniques to promote its service and increase website visibility. One of the strategies is search engine optimisation (SEO). The platform highly searches for wholesale and business to business results. (Chaffey and Ellis-Chadwick, 2019. The platform also uses pay-per-click (PPC) advertising where suppliers can pay to promote their products within the platform’s search results. This advertising model increases product visibility and generates revenue for them. Email is another marketing tool that allows communication with registered users, promote new products and encourage buyers to come back. In addition, social media such as LinkedIn, Facebook and You Tube share content, promote services and build brand awareness.

Although, Alibaba has a strong digital marketing presence, there are opportunities for improvement. It is possible to expand its content marketing strategy by publishing educational resources, such as webinars, industry reports and case studies targeting both small and medium enterprises (SMEs). These resources would build trust and position Alibaba as a leader in the marketplace.

United States	19%
India	10%
Turkey	8%
Pakistan	5%
France	3%

Top keywords United States	Position	Volume
alibaba	1	770K
ali baba	1	37K
阿里巴巴	1	16K
alibaba.com	1	14K
alibab	1	13K

Top pages United States	Traffic
	746.6K	47%
	20.2K	1%
	15.2K	1%

Website Traffic Analysis

Website traffic data offers valuable insights into how users interact within Alibaba platform. According to traffic analytics data from SimilarWeb, Alibab.com receives  large number of visits worldwide.

Traffic diagram. Source is similarweb, 2026.

The data shows that majority of the visit comes from direct visit, that suggest strong brand recognition among global users. Additionally, real search traffic contributes a large share of visits, reflecting the platform’s strong engine visibility search. The traffic

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data also shows that many countries, such as, United States, India and United Kingdom. This highlights the platform strong global presence and its critical role in facilitating international commercial interactions. Therefore, there is an opportunity for improvement. Improving mobile users experience and website fast loading could reduce bounce rates and increase user participation. Furthermore, website to be adapted to suit specific regions could improve rates conversion for international users.

E-CRM and Social Network Channels

Electronic customer relationship management is essential for maintaining long term relationships with users in digital marketplaces. Alibaba provides many CRM tools that support both buyers and suppliers. The platform offers user dashboards, order tracking that allows buyers and manufacturers to interact directly. In addition, Alibaba’s trade assurance program protects buyers by ensuring that suppliers align with high quality and delivery standards, automated messaging system and chatbots are used to provide support to improve users’ experience. Alibaba also integrated social media platforms into their digital strategy, such as YouTube, LinkedIn and Facebook where updates are shares through marketing content and educational resources.

Despite these efforts, Alibaba could improve its CRM strategy by introducing loyalty cards for customers for continue patronage and create online communities for buyers to share their experiences. These initiatives would strengthen customer relationships and encourage long-term platform engagement.

Cybersecurity and E-Business Ethics.

Cybersecurity is a critical issue for digital platforms that process large volumes of financial transactions and personal data. Alibaba has implemented several security measures to protect users and ensure safe online transactions. The platforms uses HTTPS encryption, two-factor authentication and secure payment systems to protect sensitive data. Transactions are also supported by the secure escrow payment system provided by Alipay, that holds payments until buyers confirm that orders have been delivered successfully (Alibaba, Group, 2024).

In addition to technical security measures, Alibaba also focuses on ethical practices such as buyer protection programs and fraud detection systems. Nevertheless, there are concerns regarding counterfeit products and cross-border data privacy issues.

Conclusion 

Alibaba has developed one of the most powerful digital commerce ecosystems in the world. The e-business based model enables global buyers and sellers to connect efficiently, while its integrated ecosystem of payment, logistics and cloud services provides significant competitive advantages. The company use of data, artificial intelligence and digital marketing strategies has contributed to the rapid growth and strong global presence. However, challenges related to product authenticity, regulatory compliance and international competition remain significant. Lastly, strengthening supplier verification processes, improving global branding strategies and allowing cybersecurity transparency, Alibaba could further reinforce its position as a leading global digital marketplace.

Reference List

Alibaba Group (2024) Alibaba Group Holding Limited Annual Report 2024, available @ https://www.alibabagroup.com. (Accessed: 5Th  of March 2026)

Alibaba.com (2026) About Alibaba.com. Available @ https:www.alibaba.com

Chaffey, D. and Ellis-Chadwick, F. (2019) Digital Marketing: Strategy, Implementation and Practice. 7th edition. Harlow: Pearson.

Laudon, K.C. and Traver, C.G. (2022) E-commerce 2022: Business, Technology and Society. 17th edition. Harlow: Pearson.

Porter, M.E. (2001) ‘Strategy and the Internet’, Harvard Business Review, 79(3), page. 62 – 78.

Similarweb (2026) Alibaba.com Traffic Analytics. https://www.similarweb.com. (accessed: 5th March 2026)