Wholesale Managers Logo Globe 
User Signup
 

Big shake-up sees Alibaba divide into six different groups

Alibaba Headquaters
Image credit: testing/Shutterstock.com/

The announcement comes one day after the Chinese tech giant’s co-founder Jack Ma returns to mainland China

Alibaba Group Holding Ltd., the Chinese multinational tech company based out of Hangzhou China, just revealed its new business plan to split into six separately run organizations. This is the company’s biggest structural overhaul to date and may have some serious consequences as a result.

The news that Alibaba will now become a holdings company was announced just one day after the company’s co-founder Jack Ma was spotted back in mainland China after nearly a year away.

Alibaba’s large scope of operations will now be divided into six separate sectors: Chinese e-commerce, global e-commerce, cloud, digital mapping and food delivery, logistics, and media and entertainment.

Each of the six groups will have an independent CEO at their helm who will report to each separate board of directors. Each CEO will be fully responsible for their area’s own performance; however, the overall domestic commerce of the business will remain an entirely owned component of Alibaba.

According to a letter issued to Alibaba employees, all of the newly created departments will be free to devise their own fund-raising strategies and pursue initial public contributions in the near future.

The announcement can be seen as one influenced by the actions of Western tech giants such as Google and others, who also recently created separate holding companies in an attempt to drive business growth.

The announcement from Alibaba can also be seen as a consequence of Beijing looking to revive business owners’ trust, in the wake of heavy Covid-19-based regulatory clampdowns and restrictions.

According to experts, Alibaba’s shares and listing status in both the New York and Hong Kong markets won’t be affected very much. It was first reported back in 2021, that Alibaba had begun to delegate operations among its business units, paving the way for potential spinoffs and self-reliant fundraising moving forward.

Alibaba’s new business restructure is an effort to build a more adaptive internal corporate structure and reverse the centralization strategy started back in 2018. The strategy then was to bring the company’s many affiliates closer together, as part of the ‘Alibaba Economy’.

The company’s new model now hopes to entitle and empower all of Alibaba’s business avenues with greater versatility, enhanced decision-making capabilities, and faster responses to the ever-changing market.

Although the announcement can’t be proven as a direct result of its co-founder’s return to China, there can be no doubt that Alibaba is making some big moves that will impact the industry moving forward.

Alibaba Headquaters
Image credit: testing/Shutterstock.com/

The announcement comes one day after the Chinese tech giant’s co-founder Jack Ma returns to mainland China

Alibaba Group Holding Ltd., the Chinese multinational tech company based out of Hangzhou China, just revealed its new business plan to split into six separately run organizations. This is the company’s biggest structural overhaul to date and may have some serious consequences as a result.

The news that Alibaba will now become a holdings company was announced just one day after the company’s co-founder Jack Ma was spotted back in mainland China after nearly a year away.

Alibaba’s large scope of operations will now be divided into six separate sectors: Chinese e-commerce, global e-commerce, cloud, digital mapping and food delivery, logistics, and media and entertainment.

Each of the six groups will have an independent CEO at their helm who will report to each separate board of directors. Each CEO will be fully responsible for their area’s own performance; however, the overall domestic commerce of the business will remain an entirely owned component of Alibaba.

According to a letter issued to Alibaba employees, all of the newly created departments will be free to devise their own fund-raising strategies and pursue initial public contributions in the near future.

The announcement can be seen as one influenced by the actions of Western tech giants such as Google and others, who also recently created separate holding companies in an attempt to drive business growth.

The announcement from Alibaba can also be seen as a consequence of Beijing looking to revive business owners’ trust, in the wake of heavy Covid-19-based regulatory clampdowns and restrictions.

According to experts, Alibaba’s shares and listing status in both the New York and Hong Kong markets won’t be affected very much. It was first reported back in 2021, that Alibaba had begun to delegate operations among its business units, paving the way for potential spinoffs and self-reliant fundraising moving forward.

Alibaba’s new business restructure is an effort to build a more adaptive internal corporate structure and reverse the centralization strategy started back in 2018. The strategy then was to bring the company’s many affiliates closer together, as part of the ‘Alibaba Economy’.

The company’s new model now hopes to entitle and empower all of Alibaba’s business avenues with greater versatility, enhanced decision-making capabilities, and faster responses to the ever-changing market.

Although the announcement can’t be proven as a direct result of its co-founder’s return to China, there can be no doubt that Alibaba is making some big moves that will impact the industry moving forward.

Related Topics: , ,

Comments are closed.


We use cookies to personalise content and ads, to provide social media features and to analyse our traffic. We also share information about your use of our site with our social media, advertising and analytics partners. View more
Cookies settings
Accept
Privacy & Cookie policy
Privacy & Cookies policy
Cookie name Active
We at Wholesale Managers are committed to protecting your privacy. This Privacy Policy applies to both our website and our subscription service. This Privacy Policy governs our data collection, processing, and usage practices. It also describes your choices regarding the use, access, and correction of your personal information. If you do not agree with the data practices described in this Privacy Policy, you should not use the websites or the subscription service. If you have any questions about this Privacy Policy or our treatment of the information you provide us, please contact us. What information do we collect? We collect information from you when you register on our site or subscribe to our newsletter. When ordering or registering on our site, as appropriate, you may be asked to enter your: name or e-mail address. You may, however, visit our site anonymously without registering. We do not store customer credit card details nor do we share customer details with any 3rd parties. What do we use your information for? Any of the information we collect from you may be used in one of the following ways: To personalize your experience (your information helps us to better respond to your individual needs) To process transactions Your information, whether public or private, will not be sold, exchanged, transferred, or given to any other company for any reason whatsoever, without your consent, other than for the express purpose of delivering the purchased product or service requested. To administer a contest, promotion, survey, or other site feature To send periodic emails The email address you provide for order processing will only be used to send you information and updates pertaining to your order. How do we protect your information? We implement a variety of security measures to maintain the safety of your personal information when you place an order or enter, submit, or access your personal information. We offer the use of a secure server. All supplied sensitive/credit information is transmitted via Secure Socket Layer (SSL) technology and then encrypted into our Payment gateway providers database only to be accessible by those authorized with special access rights to such systems, and are required to keep the information confidential. After a transaction, your private information (credit cards, social security numbers, financials, etc.) will not be stored on our servers. Do we use cookies? Yes. Cookies are small files that a site or its service provider transfers to your computers hard drive through your Web browser (if you allow) that enables the sites or service providers systems to recognize your browser and capture and remember certain information. If you have an account and you log in to this site, we will set a temporary cookie to determine if your browser accepts cookies. This cookie contains no personal data and is discarded when you close your browser. When you log in, we will also set up several cookies to save your login information and your screen display choices. Login cookies last for two days, and screen options cookies last for a year. If you select “Remember Me”, your login will persist for two weeks. If you log out of your account, the login cookies will be removed. We also use cookies to help us remember and process the items in your shopping cart and understand and save your preferences for future visits. The Wholesale Marketplace shopping cart cookies usually last for several hours, less than one day. Do we disclose any information to outside parties? We do not sell, trade, or otherwise transfer to outside parties your personally identifiable information. This does not include trusted third parties who assist us in operating our website, conducting our business, or servicing you, so long as those parties agree to keep this information confidential. We may also release your information when we believe release is appropriate to comply with the law, enforce our site policies, or protect ours or others rights, property, or safety. However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses. Third-party links Occasionally, at our discretion, we may include or offer third-party products or services on our website. These third-party sites have separate and independent privacy policies. We, therefore, have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites. Children's Online Privacy Protection Act Compliance We are in compliance with the requirements of COPPA (Childrens Online Privacy Protection Act), we do not collect any information from anyone under 18 years of age. Our website, products and services are all directed to people who are at least 18 years old or older. What rights you have over your data If you have an account on this site you can cancel your account at any time and also request that we erase any personal data we hold about you. This does not include any data we are obliged to keep for administrative, legal, or security purposes. Your Consent By using our site, you consent to our websites privacy policy.
Save settings
Cookies settings