Abstract
On the 6th of last November, one week after its introduction, the Alibaba stockmarket was quoted for the first time: it acquired 190% of its introduction price .
Other than being a testimony that both China and the internet have a habit of going to the heads of investors, Alibaba was created from the increasing need of having a comprehensive and reliable base of information while sourcing and doing business particularly in China. It helps to skip the common barriers while trading with another country (E.g. language, knowledge of the market, reaching remote manufacturers with limited exposition or marketing resources).
Alibaba has increasingly become what eBay once was and created buzz in the B-to-B market.
At the beginning of the month, one week after its introduction in the stock market, the value of the stock increased by 190% after its first quote. We will attempt in this study to determinate whether this a translation of a strong enthusiasm of the investors in diversifying their portfolios (e.g. shifting from some ‘cash flow dying' market such as the US) and investing in anything Chinese, or a real testimony of the strength of this new born company.
We will first analyze the situation of the company. Then we will determinate the segmentation of the market. Lastly we will look at their market strategy.
