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Alibaba: Investing Abroad Key To Surviving Next 100 Years

Alibaba: Investing Abroad Key To Surviving Next 100 Years

By many definitions, Alibaba Group Holding Ltd (NYSE: BABA) has conquered the local Chinese e-commerce market. However, this isn't enough for the company's new Chief Executive Officer Daniel Zhang, who said the company needs to look outside of China to remain relevant over the long-term.

Zhang, Alibaba's former Chief Operating Officer, assumed top ranks of the company on May 10. In his first speech as CEO, Zhang told employees that international expansion is a top priority in the coming year.

"We must absolutely globalize," Zhang said during a company-wide strategy session. "We will organize a global team and adopt global thinking to manage the business, and achieve the goal of ‘global buy and global sell,' " he said, adding that Alibaba would continue to invest heavily in new and existing overseas operations including AliExpress, a cross-border online marketplace positioned to sell Chinese goods to consumers all over the world, and Tmall Global, which helps foreign brands sell online directly to Chinese consumers."

The executive added that globalization is "not just a slogan" rather it is a "journey." He added that Alibaba "must absolutely" expand to new markets, but first the company needs to take the time to understand the cultural differences and way of thinking as Alibaba reshapes its overwhelmingly Chinese workforce.

"Over the next five, 10 years, 30 years, this is the journey," Zhang said. "We must absolutely globalize and it must be a successful effort – if not Alibaba won't be able to last."

Zhang's long-term objective isn't to ensure the survival of Alibaba over the next five, 10 or 30 years, rather he is focusing on the extreme long-term survival over next 100 years.

Posted-In: Aliexpress Daniel Zhang TmallNews Best of Benzinga


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