Chapter 11 discusses diversification strategy. Diversification means branching out into new business opportunities, not just expanding your existing business. For Alibaba, such strategy is also critical. In recent years, Alibaba has attempted different moves, with the most move into professional soccer and movie making business.
However the following articles analyzes some moves that can be rash and undermine Alibaba.
http://usa.chinadaily.com.cn/epaper/2014-09/15/content_18600772.htm
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Alibaba, founded and led mostly by the Zhejiang-born Jack Ma, continues to stretch its corporate brand with investments far outside the e-commerce, Internet and high-technology sectors. The company’s investment in finance, entertainment and healthcare this year alone has exceeded $6 billion with no clear, cogent strategy underpinning many of these moves.
A prime example of Alibaba’s rather rash diversification occurred only a few months ago with the purchase of a 50 percent stake in China’s most successful football club, Guangzhou Evergrande, for $192 million.
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