The statement that Alibaba has potentially higher prospects for success in developing countries than in developed ones is considered to be logical and reasonable from the point of view of modern market trends. Large corporations like Amazon and eBay are aimed primarily at Western audiences. Alibaba, on the contrary, was originally created as a Chinese sales platform taking into account local market trends.
Despite the growth of the corporation and its significant expansion around the world, the principles of sales maintained by its management more closely match the models of developing countries. Such programs as discounts and promotional offers, wholesale propositions, and other strategies for attracting as many consumers as possible prove that Alibaba is more concentrated on the quantity of buyers than on their financial value. Consequently, this principle of customer-seller interaction is suitable for work in developing countries.
Sticking to this separation strategy has both benefits and some risks. For instance, when Alibaba concentrates on specific target markets, it develops proposals for its target customers based on their interests and offers relevant products. It also simplifies logistics since no complicated delivery schemes are required. At the same time, there is a threat of supply chain disruptions because small businesses operating through this platform may not have reliable partners.
Amazon’s and eBay’s strategies that focus on Western audiences have a good advantage in terms of consumer confidence and a well-formed technical base. Moreover, in these corporations, a supply chain problem may also arise. Demand for licensed and certified products dictates the need for cooperation with trusted suppliers, and delivery delays may occur. Therefore, there are certain difficulties and potential benefits in both operational mechanisms.