Answered You can buy a ready-made answer or pick a professional tutor to order an original one.
For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The chief executive of Alibaba Group Holdings Ltd. was working on a secret plan that would sound crazy even to
For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The chief executive of Alibaba Group Holdings Ltd. was working on a secret plan that would sound crazy even to many of his own colleagues 100 miles away in Hangzhou. Zhang wanted to launch a start-up inside the e-commerce giant that would combine a grocery store, a restaurant, and a delivery app, using robotics and facial recognition to speed up logistics and payment. That project, Freshippo, has since become a major part of Zhang’s blueprint for Alibaba’s future, with 150 stores (and counting) across 17 Chinese cities.”
Identify one specific strategy by extracting compelling evidence from the article to support your decision for choosing that particular strategy
- @
- ANSWER
Strategy: To create a sustainable competitive advantage using existing technical capabilities.
Alibaba has a large database of customers and it has developed its unit set of algorithms for making e-commerce deliveries. It has matured its technology and has the requisite IT infrastructure to support an early-stage start-up in the delivery app. People across the globe is going digital and Alibaba aims to earn half of its annual revenue through international markets. The delivery applications for food and groceries have witnessed significant traction across the globe and the industry is pegged at USD 20 Billion. Venturing into the delivery application segment will help Alibaba to consolidate its position in the e-commerce and digital delivery segment.
Merging artificial intelligence, robotics, and facial recognition will further cement Alibaba in the digital space. These technologies can be scaled up and used in warehouse monitoring, reducing delivery time and inventory turnaround time. The revenue will be boosted due to effective utilization of the existing resources and the efficiency of the system will go up. All of these will contribute positively to the revenue (top-line) and profit (bottom-line) of the company in the long run.