The problem of counterfeit products on Alibaba platforms is twofold: its first part is concerned with the managers’ awareness (or the neglect of the necessity for a change), and the second one is the issue proper: the presence of counterfeit products (Buchwald & Neckes, 2014). As a result, our recommendations include a two-step system of actions.
First Step: Management Awareness
The first step towards changing the situation consists of encouraging the management to realize the necessity of attending the issue. A thorough analysis of the situation with the help of strategic tools and the presentation of the results to the leaders of the company is suggested (Rao, Rao, & Sivaramakrishna, 2008). As shown in this paper, the results of such an analysis demonstrate the fact that counterfeit products are a weakness and tend to cause other weaknesses; therefore, these tools should improve the awareness of the managers.
Another form of analysis, the development of multiple scenarios can be recommended as well. The main scenarios would include “doing nothing” and “changing the situation” with the latter developed according to the recommendations of the second step that is discussed below. Scenarios, as stated by Lindgren and Bandhold (2009), are both a “learning tool and planning instrument,” which means that they are suitable for the demonstration and analysis of the situation and the creation of a detailed plan for the implementation of the second-step recommendation (p. 24). Still, the primary role of scenarios consists of improving the awareness of the company’s leaders by demonstrating to them what the results of their actions and lack of actions can be.
Second Step: Counterfeit Products
After the first part of the issue is dealt with, the problem of counterfeit products can be attended. Here, the second recommendation from the previous chapter is chosen: it is suggested that the firm’s operations are revisited and restructured. The main reason for this choice is the fact that counterfeit products play a vital role in the company’s operations (Schuman, 2015; Alibaba Group, 2016). Since the problem is so deeply rooted, the attempt to deal with it is a major change that is likely to involve several aspects of the company’s activities: in other words, it will result in a reorganization that should be managed. Restructuring is a transformational tool for substantial and consistent change that is suitable for such management (Zilka & Bischoff, 2010).
Several remarks can be made about the implementation of restructuring. As stated above, restructuring beings with an analysis as well, and the key tools include IFE, EFE, and PESTEL. The primary aim of restructuring deals with the improvement of the control over suppliers and distributors as well as the related policies. However, the targeted area is bound to cause changes in the company as a whole, which includes its competitive strategy. On the other hand, the restructuring must integrate conservatism elements so that the company’s current assets and competitive advantages are used, and its image remains whole and improved rather than replaced. It is noteworthy that the specific features of this restructuring can be figured out as a part of the scenarios presented to the company’s leaders during the first step of the action for change.
Conclusion: Recommendations Effectiveness
Given the significance of the issue, Alibaba is very unlikely to benefit from the lack of actions, which explains the need for the first step of the recommendations. This first step needs to include all the means of improving the managers’ awareness; the tools that are mentioned here were chosen for their demonstrative and illustrative capabilities. The choice of the second-step recommendation is explained by the fact that the problem is very deeply rooted in the organization. The two-step plan addresses both aspects of the problem; therefore, it can be suggested that the presented proposition is a viable option, and the company is likely to benefit from it.
References
Alibaba Group. (2016). Company Overview. Web.
Buchwald, B., & Neckes, J. (2014). Alibaba’s Catch-22. The Business of Fashion. Web.
Lindgren, M., & Bandhold, H. (2009). Scenario Planning. New York: Palgrave Macmillan. Web.
Rao, C., Rao, B., & Sivaramakrishna, K. (2008). Strategic Management and Business Policy. New Delhi, India: Excel. Web.
Schuman, M. (2015). Why Alibaba’s Massive Counterfeit Problem Will Never Be Solved. Forbes. Web.
Zilka, C., & Bischoff, W. (2010). Business Restructuring. Hoboken, NJ: Wiley. Web.