Alibaba Pestle and Swot Analysis 2018

By: Prudence K Magezi

By September 2018, Trump had imposed more than $250billion worth of tariffs on Chinese exports to America (or 50% of total exports to the US in 2017) with the threat of a further $267billion worth of tariffs in the near future. If implemented, total tariffs would cover 100% of all Chinese exports to America, which would put macroeconomic pressures on Chinese export-led firms such as Alibaba. Alibaba, in fact, had to cancel the creation of 1million US jobs by 2020 as a result of the tariffs, consequently shifting its revenue strategy to focus on the domestic economy and become less reliant on exports. After all, Alibaba generates approximately 80% of all online sales in China. The consequences of Trump's tariffs on Chinese firms like Alibaba demonstrates perfectly how external actions, from political forces, in this case, can become emergent threats for firms. As will be demonstrated in this report using Alibaba pestle analysis, changes in the macro environment can present opportunities for expansion and market growth but they can also be fatal for organizations. A Swot analysis of Alibaba will tell you more clearly how Alibaba can take advantage of new opportunities in its domestic market such as the rising Chinese middle class, to mitigate against emergent threats such as Trumps Tariffs.

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