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SWOT Analysis and Strategic Choice of Alibaba Group’s Acquisition of Lazada

In: Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022)

Author

Listed:
  • Joey Zhu

    (Syracuse University, Whitman School of Management)

Abstract

Globalization has fueled the development of the Internet, thus enabling the rapid development of e-commerce industry. As an emerging industry, its development has greatly changed the way people consume and brought convenience to trade. At the beginning of the 21st century, transnational mergers and acquisitions set off a new wave. The injection of foreign capital and technology, so that the development of domestic e-commerce industry on a higher level. Under the background of “One Belt and One Road”, the “going out” strategy implemented by the state has encouraged domestic enterprises to look to the international market, and domestic e-commerce enterprises have gradually begun to enter the international arena. From the initial export to the acquisition of foreign enterprises, to avoid trade barriers and control the international market, in this boom of e-commerce mergers and acquisitions, Alibaba Group’s acquisition of Lazada is a very successful example. The research topic of this paper is to study the advantages and opportunities Alibaba has before the merger, as well as the disadvantages and threats it faces, so as to think that Alibaba should adopt specific strategies after the merger of Lazada. This paper will utilize the research method SWOT. SWOT analysis mainly includes internal and external environmental factors, S (Strengths) and W (weaknesses) are internal factors, O (opportunities) and T (threats) are external factors. The article specifically analyzes the advantages, disadvantages, opportunities and threats of Alibaba before the acquisition of Lazada, which will help Alibaba to recognize its strengths and weaknesses, and lay a foundation for Alibaba to successfully open the Southeast Asian market. The final research conclusion and result is that the advantages and opportunities of Alibaba’s acquisition of Lazada are obviously greater than the disadvantages and threats. Therefore, Alibaba’s acquisition of Lazada is a wise choice.

Suggested Citation

  • Joey Zhu, 2022. "SWOT Analysis and Strategic Choice of Alibaba Group’s Acquisition of Lazada," Advances in Economics, Business and Management Research, in: Faruk Balli & Au Yong Hui Nee & Sikandar Ali Qalati (ed.), Proceedings of the 2022 International Conference on Economics, Smart Finance and Contemporary Trade (ESFCT 2022), pages 1491-1500, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-052-7_165
    DOI: 10.2991/978-94-6463-052-7_165
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