Would the Investors Optimism About the Alibaba.com be Slipping Case Study

Would the Investors Optimism About the Alibaba.com be Slipping - Case Study Example From this paper it is clear that China is already in synergy with the Global Source’s media that serves China’s export and import sector. Global source occupies second largest share of online market in China that is equal to 21.2%. Global source is actively working on new products and has launched 11 new online market products in 2007. Moreover, Global source is actively penetrating the Chinese market via different strategies that include exhibitions, magazines and research articles. Its exhibitions are making the products of suppliers accessible to hard-to-reach customers. With the increasing trend (around 3% per year) in online market use by Chinese people and due to marvelous market penetration strategies of global source, it’s likely to be a great brand for potential customers of online market. This greatly shows the buyer’s inclination to global source in the future. This paper stresses that on the other hand Alibaba.com also caters its existing customers effectively specially Small Medium enterprises by providing them trust rating of suppliers that effectively enables them to choose right trading partners. However global source’s revenues are increasing and it is also working quite hard on the product development for growth. Global source is likely to introduce such service for SMEs to compete with Alibaba.com. Alibaba.com’s spending on advertising and promotion relative to revenue are decreasing as per it financial report given in the case. Promotional expenditures in 2004 were 54.2% of revenue and they are only 32% of revenue in 2007. Alibaba.com’s spending on product development has also decreased from 2004 to 2007. Marketing and product development are key to business success. Curtailing such important expenditures does not seem to be a healthy sign for Alibaba.com.