Ch1 Case Discussion
1. What is the competitive
advantage of the company?
The competitive advantage
of Alibaba is that it is primarily used in an underdeveloped market. There are
few malls and brick and mortar department stores in these areas and they rely
on online shopping to provide them with access to the goods they require. They
have the advantage to stimulate consumption that would not be taking place in China.
What Alibaba is doing is competitive to the point where it is being compared to
Amazon and eBay. They are taking into consideration the issue they have with
fraudulent sellers as well. Once they get that under control and continue to
expand, they may grow exponentially into other countries.
2. How is Alibaba able to
obtain above-average returns?
Online sales account for
90% of marketplace sales in China. The United States’ online sales account for
24%. They are able to obtain above-average returns because they help to promote
small business owners and manufacturers. They allow them to sell their product
and make more of a return than they typically would have. Since online sales
account for 90% of China’s marketplace sales, and since Alibaba is the number
one ecommerce company, they are able to experience a higher volume of sales. As
soon as Alibaba works on reducing the number of fraudulent sellers on their
website, I anticipate a larger increase in returns.
1. Whether Starbucks
achieved strategic flexibility or not?
comes when a company is able to learn. It allows the company to adapt to their
ever-changing environment. A company that refuses to adjust to their current
market, has the potential to fail. It’s no doubt that Starbucks is a giant of a
company. My personal experience with Starbucks is that it is unpleasant to
visit the location itself because there is always a large line and quite
frankly, I don’t have the time to wait. I do think that Starbucks has achieved
strategic flexibility by incorporating their Application and allowing consumers
to order ahead and avoid the wait.
Some factors that helped
Starbucks achieve strategic flexibility are the application, reducing wait
time, offering rewards for mobile payments, offering benefits to part-time
employees and opening Starbucks “lounges.” All of these things make Starbucks
provide a more pleasant experience to not only customers, but employees as
Airlines industry case:
How important is the environment (I/O model) to the performance
of airlines in the airline industry?
2. How important is the
resource-based model to explain how well firms perform in the airline industry?