Expansion into foreign markets is an issue that many companies have to address if they want to offer their products and services not only in domestic markets but also in foreign markets. In order to become successful internationally, various internationalization strategies can be chosen.
The first part of the work describes traditional internationalization strategies with the focus on the Uppsala approach as well as a relatively new concept called "Born Globals" from a theoretical standpoint. In the second part of the work, the theoretical learning about Born Globals is applied to practice at the example of the Alibaba Group. The work ends with the conclusion that the Alibaba Group shares the most common behaviors and characteristics of Born Globals.
Table of Contents
1. Introduction
1.1. Problem statement
1.2. Objectives of the Paper
1.3. Research Methodology
1.4. Structure of the Work
2. Theory and Concepts
2.1. Traditional Internationalization Strategies
2.1.1. Economic Approach
2.1.2. Behavioral Approach
2.1.3. Uppsala Model (International Process Approach)
2.2. Born Global Firms
2.2.1. Forces that Drive Early Internationalization of Born Globals
2.2.2. Characteristics of Born Globals
3. Practice Transfer / Case Example
3.1. Alibaba: Fundamental Information
3.1.1. Alibaba’s Present
3.1.2. Numerical Facts
3.1.3. History
3.2. Alibaba: Characteristics and Drivers of Internationalization
3.2.1. Timing of Internationalization
3.2.2. External Drivers of Internationalization
3.2.3. Comparison of Alibaba with Characteristics of Born Globals
4. Results and Analysis
4.1. Traditional Internationalization Strategies versus Born Globals
4.2. Classification of Alibaba's internationalization strategy
5. Summary and Outlook
6. Reference list
Objectives and Topics
The primary objective of this work is to explore the internationalization process of "Born Global" companies by comparing them with traditional internationalization strategies. The paper specifically examines the Alibaba Group to determine if it exhibits the defining characteristics and behaviors of a Born Global firm.
- Theoretical comparison between the Uppsala model and the Born Global concept
- Identification of external drivers for early internationalization, such as globalization and technology
- Analysis of the seven core characteristics of Born Global firms
- Case study of the Alibaba Group's historical and strategic development
- Evaluation of Alibaba’s status as a Born Global enterprise
Excerpt from the Book
2.2. Born Global Firms
In the second half of the 1980s, scholars discovered that more and more firms didn't follow the slow and incremental internationalization process that the Uppsala model postulated (Cavusgil and Knight, 2015, p. 3). In contrast, some companies started internationalization within the very first years of their existence (Knight and Cavusgil, 1996; McDougall, Shane and Oviatt, 1994; Welch and Luostarinen, 1988). Such companies that expand into foreign markets and exhibit international business abilities and superior performance from or near their founding (Knight and Cavusgil, 2004, p. 124) are since then called “Born Globals” (Knight and Cavusgil, 1996), “Global Start-Ups” (Oviatt, McDougall and Loper, 1995) or “International New Ventures” (McDougall, Shane and Oviatt, 1994).
Summary of Chapters
1. Introduction: Outlines the problem statement regarding rapid internationalization and defines the two primary objectives of the paper.
2. Theory and Concepts: Provides a theoretical foundation by contrasting traditional, incremental models like the Uppsala approach with the rapid-growth paradigm of Born Global firms.
3. Practice Transfer / Case Example: Applies the theoretical framework to the Alibaba Group, detailing its history, current business structure, and internationalization drivers.
4. Results and Analysis: Synthesizes the findings by comparing the Born Global model against Alibaba’s actual corporate behavior and revenue patterns.
5. Summary and Outlook: Concludes the study by confirming Alibaba's alignment with Born Global characteristics and offers a perspective on future market trends.
Keywords
Born Globals, Alibaba Group, Internationalization Strategies, Uppsala Model, E-commerce, Globalization, Market Entry, SME, Digital Business Ecosystem, Business Networks, Strategic Alliances, Information and Communication Technology, Differentiation Strategy, Rapid Internationalization, Global Start-Ups.
Frequently Asked Questions
What is the primary focus of this academic work?
The work investigates the internationalization strategies of companies, specifically contrasting the traditional, slow-growth "Uppsala approach" with the rapid, early-stage "Born Global" concept.
What are the central thematic fields covered in the text?
The text focuses on international business theory, the impact of technological development on business expansion, and the practical application of these theories to modern, web-based companies.
What is the core research question?
The central question is whether the Alibaba Group can be classified as a "Born Global" firm based on its early internationalization behaviors and core corporate characteristics.
Which scientific methodology is utilized?
The research employs a qualitative deductive approach, relying on secondary data such as books, academic articles, reports, and company information from reputable sources.
What topics are discussed in the main body of the work?
The main body covers the theoretical foundations of internationalization, the specific characteristics and drivers of Born Global firms, a detailed case analysis of Alibaba, and a comparative analysis of the results.
Which keywords best describe the paper's content?
Key terms include Born Globals, Alibaba Group, Internationalization Strategies, Uppsala Model, E-commerce, Globalization, and Digital Business Ecosystem.
How does Alibaba's internationalization timeline compare to the 2-3 year benchmark for Born Globals?
The study confirms that Alibaba initiated its international efforts (e.g., International TrustPass) in 2001, which is within two years of its 1999 founding, thus aligning with the Born Global timeline.
How does the author address the concern regarding Alibaba's high domestic revenue share?
The author argues that while domestic revenue in China is high, the exorbitant growth of the domestic market masks significant and rapid growth in international commerce, therefore not disqualifying it as a Born Global firm.
Why is the World Wide Web considered essential to Alibaba's success?
The invention of the WWW provided the infrastructure for Alibaba's business model, allowing it to revolutionize e-commerce and gain a strategic advantage through a standardized, low-cost global platform.
- Quote paper
- Thorsten Mannherz (Author), 2018, Internationalization Strategies of "Born Globals" and the Alibaba Group, Munich, GRIN Verlag, https://www.grin.com/document/416396
