TOPIC ALIBABAS ACQUISITION OF LAZADA AND ITS IMPACT ON THE SOUTHEAST ASIAN CONSUMER GOODS MARKET

VAN LANG UNIVERSITY FACULTY OF COMMERCIAL —o0o— FINAL EXAM TOPIC: ALIBABA'S ACQUISITION OF LAZADA AND ITS IMPACT ON THE SOUTHEAST ASIAN CONSUMER GOODS MARKET Name : Nguyen Hung Cuong Student ID : 207TM63753 Course code : 212_DCO0530_E02 Subject business : Contemporary issues in international Lecturer : PhD Truong Hong Ngoc 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Contemporary Issues In International BusinessNGUYEN HUNG CUONG Ho Chi Minh City, April 29, 2022 LIST OF TAB Figure 1.1 Transaction slace and growth of china's online retail market, China E-Retail Market Report 2016, 2017 .5 Figure 1.1 Alibaba's gross merchandise volume growth, "Will Alibaba's Fiscal 1Q17 Earnings Top Analysts' Esstimate" Y Figure 2.1.1 Internet users per ASEAN Memb= State IWS 2010 est 10 Figure 2.1.1 Internet Users per Country and % of total IWS 2010 est 10 Figure 2.1.1 Size of Southeast Asia's E-Commerce Market, Temasek Holdings, 2016 11 Figure 2.1.1 ASEAN Consumer Expenditure, Euromoitor 12 Figure 2.1.1 Usage of E-commerce before, during and after Covid-19, Temasek and Bain & Company .12 Figure 2.1.1 The Top 10 Most Visited E-commerce Websites in Southeast Asia 2020 13 Figure 2.1.1 How household incomes will change across developed and emerging asean (2019-2030) 14 P a g e | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat Contemporary Issues In International BusinessNGUYEN HUNG CUONG Contents LIST OF TABLE INTRODUCTION CHAPTER 1: OVERVIEW OF THE ALIBABA’S DEAL TO ACQUIRE LAZADA.5 1.1 The situation leading up to the event 1.2 The cause of the event 1.2.1 Looking for new markets 1.2.2 Acquiring an established platform was a more appropriate option 1.2.3 M&A is easier than building new logistics systems 1.3 Timeline of this event CHAPTER 2: THE IMPACT OF THIS EVENT ON THE ASEAN REGION 10 2.1 The effects of this event on the consumer goods market 10 2.1.1 The positive effects 10 2.1.2 The negative effects .14 2.2 The effects of this event on small and medium distributors 16 2.2.1 The positive effects 16 2.2.2 The negative effects .19 CHAPTER 3: PROBLEMS THAT ALIBABA IS FACING THROUGH THIS EVENT 20 3.1 The environment inside the business 20 3.1.1 Human resource management problems 20 3.1.2 The mistake of operation stage: Lazada is not Taobao 21 3.1.3 The influence of competitors 22 3.2 The environment outside the business .24 3.2.1 The risk of losing market share 24 3.2.2 Fake and poor-quality goods will become mass .25 CHAPTER 4: RECOMMENDATIONS .26 4.1 Solutions that Alibaba can take to overcome the obstacles mentioned 26 P a g e | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG 4.1.1 Strengthen distribution network 26 4.1.2 Develop unique marketing tactics 26 4.1.3 Adapt to di昀昀erent cultural aspects of di昀昀erent markets 26 4.1.4 Expand into new regions 27 4.1.5 Strengthen value network 27 4.2 Solutions for small and medium-sized goods distribution businesses in the region 28 4.2.1 Increasing people productivity: 28 4.2.2 Integrating seamlessly: 28 4.2.3 Providing access: 28 4.2.4 Keeping flexible: 28 4.2.5 Controlling cost to serve: .29 4.2.6 Use third-party of fourth-party logistic providers: 29 CONCLUSION .30 ACKNOWLEDGEMENTS 31 REFERENCES .32 P a g e | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG INTRODUCTION China's e-commerce market is easily seen as the most developed in the world - it's bigger than Western markets like the US and Europe China's e-commerce market has exploded in recent times and there doesn't seem to be enough space to increase market share Against such a backdrop, China's e-commerce giant Alibaba, of course, won't let the game end like that Alibaba, the company owned by billionaire Jack Ma is aiming for the next e-commerce gold rush, a new lucrative market: Southeast Asia Following Alibaba's $1 billion investment in April 2016 at a valuation of $1.5 billion, a second deal that later raised that valuation to $3.15 billion represented exactly that Jack Ma said about business strategy to investors in 2016, Alibaba planned to reach at least 1.2 billion people outside of China in order to achieve its goal - billion customers This statement shows the Chinese giant's ambition to dominate the international market, and Southeast Asia is a focus of Alibaba's plans This group started to buy back a large number of shares of Lazada in 2016 After that, Alibaba continued to increase the stake by billion USD in 2017 and then invested billion USD in Lazada in 2018 This essay builds on the above events and deals with issues about Alibaba and Lazada themselves and their impacts on the consumer goods market and SME distributors In terms of structure, this essay consists of four chapter: Chapter 1: Overview of the Alibaba’s deal to acquire Lazada Chapter 2: The impact of this event on the ASEAN region Chapter 3: Problems that Alibaba is facing through this event Chapter 4: Proposal solutions for Alibaba P a g e | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG CHAPTER 1: OVERVIEW OF THE ALIBABA’S DEAL TO ACQUIRE LAZADA 1.1 The situation leading up to the event After Jack Ma founded an online directory website for Chinese companies looking for international visitors, he came up with a new vision to develop an online platform that allows consumers, manufacturers, and distributors can cooperate, buy and sell directly with each other By 2013, his Alibaba was starting to get strong enough, and as evidenced by the fact that Alibaba’s online transactions had 昀椀nally surpassed the combined transactions of eBay Inc (eBay) and Amazon In 2014, Alibaba was listed on the New York Stock Exchange and was valued at $160 billion Through Alibaba, he not only created millions of jobs, but also changed the economic and social landscape of the country, making China the largest Internet market in the world The e-commerce market had grown substantially, and the online retail market was at peak in 2013, with a nearly 60 per cent annual growth rate However, this growth was expected to decline to 20 per cent in 2018 due to the economic downturn in the Chinese economy (see 1.1.1) In 2016, China’s economy grew at only 6.7 per cent—its worst performance in 26 years—and growth was expected to weaken further, to 6.2 per cent in 2018 Growth of gross merchandise volume (GMV) was the most important performance metric in the ecommerce industry Alibaba’s GMV was at 40 per cent in the fourth quarter of 2015 but was reduced to less than 25 per cent in the same quarter of 2016 (see Exhibit 1.1.2) Although Alibaba still managed to increase its revenue during this downturn, the company could not ignore the fact that competition among e-commerce players would become sti昀昀er and would potentially jeopardize its leading position P a g e | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG 4.2.4 Keeping 昀氀exible: Multi-channel marketing gives your customers options for how they want to place an order Maybe last week it was easiest for them to visit your website and place an order digitally But tomorrow they might be on the road and realize they need to order more products, so they call your phone center It’s very important that distributors stay flexible so customers have options 4.2.5 Controlling cost to serve: Distributors must avoid the pitfall of losing money in the logistics costs of ecommerce They could be losing money trying to compete by offering free or discounted shipping, for example Those selling costs may be the biggest cost for some distributors doing business Distributors need to control the cost to serve their customers You have to map out the cost to serve each customer, highlighting the services they’re willing to pay for The challenge is to match up the cost to serve with customers’ needs and what they’re willing to pay It makes no sense continue providing services the customer ultimately doesn’t really want or need Sometimes this means rethinking a pricing program or, in an e-commerce distribution channel, altering shipping and handling costs 4.2.6 Use third-party of fourth-party logistic providers: 3PLs or 4PLs are a big factor in e-commerce, and you should be considering them for e-commerce fulfillment These public warehouses make shipments for you, but they it in your name To the customer, it appears that the product came from the distributor, but it was actually fulfilled and shipped by a 3PL or 4PL While the 3PL or 4PL may handle all the parts, the distributor still handles the back-office details In nearly all situations, there’s an obvious advantage to minimizing distributors’ fixed costs through a 3PL or 4PL Your needs aren’t really predictable, and rather than committing to long-term capacity, through a 3PL or 4PL a distributor can adjust its capacity based on the needs of the customer Distributors: Be sure to fully embrace e-commerce as an effective, low-cost tool Integrating your e-commerce system with the rest of your databases will make your business thrive P a g e 36 | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG P a g e 37 | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG CONCLUSION Given their potential synergies, acquiring Lazada which is the market leader seemed to be a strategic move for Alibaba to extend its geographical reach into the promising Southeast Asian e-commerce market Lazada’s competitive advantages in the region, particularly its brand recognition, would take years for Alibaba if it chose to build them from scratch—that is, through greenfield investments For Lazada, the acquisition provided opportunities to use Alibaba’s strong online retail knowledge and other resources to position itself competitively ahead of its competitors With Alibaba’s backing, Lazada was able to build a stronger fortress to fight against the intensified competition in the region, particularly from the anticipated entry of Amazon Nevertheless, Lazada occupied only 20 per cent of the Southeast Asian e-commerce market, and the market—like the geographical conditions—was very fragmented; Lazada would have to double its efforts to consolidate its competitive position and increase its market share There were also reports early in 2021 that Amazon would delay its entry into Singapore to a later date Alibaba and Lazada had to determine what this delay meant: either that they had successfully created unbeatable competitive advantages—preempting even the world’s largest e-commerce player—and had already won the ecommerce battle in Southeast Asia or that Amazon was planning an even bigger strategic move to counter them in this new e-commerce market frontier P a g e 38 | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG ACKNOWLEDGEMENTS First and foremost, I would like to thank my lecturer, PhD Truong Hong Ngoc Without her assistance and lectures every step throughout the process, this essay could have never been accomplished I am extremely grateful to you for advising and helping me during the past time I would also like to show gratitude to my old group, including Mr Nguyen Viet Anh, Ms Le Ngoc Han, Ms Duong Thi Xuan Nhi, Ms Quach Thao Vy and Ms Nguyen Kieu Viet Que We discussed early versions of the Alibaba Invests Additional USD2 Billion in Lazada and its impact on the southeast Asian consumer goods market with old group Both of the raised many precious points in our discussion and I hope that I have managed to address several of them here Even though I have had a mistake and I have not had the opportunity to work with Mr Nguyen Viet Anh, Ms Le Ngoc Han, Ms Duong Thi Xuan Nhi, Ms Quach Thao Vy and Ms Nguyen Kieu Viet Que previously, the impact of their work on my own study is obvious throughout this essay Getting through my dissertation required more than academic support, and I have many, many people to thank for listening to and, at times, having to tolerate me over the two weeks I cannot begin to express my gratitude and appreciation for their friendship My friends, Nguyen Tri Thong, Le Anh Quoc have been unwavering in their personal and professional support during the time I spent at the University For many memorable and inspired evenings, I must thank everyone above as well as Tran Thi Kim Sung, Nguyen Huong Giang and Truong Dac Trung Most importantly, none of this could have happened without my family My mother, who o昀昀ered her encouragement through phone calls every week – despite my own limited devotion to her phone To my parents and my sister – it would be an understatement to say that, as a family, we have experienced some ups and downs in the past four years Every time I was ready to quit my education, they did not let me down and I am forever grateful This essay stands as a testament to their unconditional love and encouragement P a g e 39 | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET logistics system Due to working capital, distributors can improve their distribution systems to solve the problems of reducing inventory and delivery delays The store system introduces products that are replaced or supported by online showrooms Save on storage costs Finally, intermediaries may enter channels facilitated electronically Where this occurs, it will be because they perform one of the three fundamental channel functions of reassortment and sorting, P a g e 23 | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG routinization, or searching more e昀昀ectively than anyone else ca Therefore, this helps small and medium-sized distributors increase the speed of product delivery to consumers, easily adjust customers and partner relationships, and reduce communication costs Currently, the goods distribution system in ASEAN has developed relatively strongly in both quantity and scale, initially satisfying the diverse needs of people In that process, Lazada as well as e-commerce support very e昀昀ectively for the processes of managin the goods distribution system, therefore, in order to develop modern goods distribution systems, it is necessary to promote accelerate the application of e-commerce in the distribution of goods in the ASEAN region today 2.2.2 The negative e昀昀ects Besides the above positive e昀昀ects An economic event alwa has a two-way e昀昀ect First, Alibaba's entry into the Southeast Asian market will lead to some disadvantages for distributors in the region Alibaba is China's largest e-commerce group, Alibaba’s entry into Southeast Asia will lead to 昀椀erce competition between domestic and Chinese produc According to the market, Chinese products are often very cheap, which leads to competition in the prices of Chinese products and products of businesses in the region According to the buying psychology of customers, they always prioritize cheaper products, and the Southeast Asian market has such purchasing tastes Alibaba, on the other hand, will tend to prioritize Chinese businesses, which would be detrimental to distribution businesses in the Southeast Asian market In addition, consumers will tend to choose products of reputable and well-known distributors in the market, so if those small and spontaneous distributors participate in the competitive trend not keep up will be eliminated Consequently, they will be swallowed up when they are unable to compete with Alibaba's Chinese distributors Second, Information Technology develops, and it also re昀氀ec the competitiveness of distributors Distributors that not yet have strengths in technology, speci昀椀cally: technology to support the sal force, reach customers, measure operational e昀฀ciency, and manage P a g e 24 | 44 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET Contemporary Issues In International BusinessNGUYEN HUNG CUONG inventory will be left behind and lead to the risk of being eliminated Therefore, it is necessary to develop a speci昀椀c technology developme strategy with a clear roadmap 0 TIEU LUAN MOI download : skknchat123@gmail.com moi nhat TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET TOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKETTOPIC.ALIBABAS.ACQUISITION.OF.LAZADA.AND.ITS.IMPACT.ON.THE.SOUTHEAST.ASIAN.CONSUMER.GOODS.MARKET