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Analysing Joint Venture and Strategic Alliance of Alibaba

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select two of the more prominent cooperative linkages that Alibaba has made. Please explain to me the meaningful differences between the two different alliances or joint ventures you have selected. It would be most helpful if you summarizing key details about Alibaba's two alliances or joint ventures so I can best understand.

For each alliance or joint venture:

1. Summarized information about the organization's two alliances (intro) and key take-aways

2. Assessed the firm's business-level or corporate-level cooperative strategy for each alliance.

3. Evaluated advantages of each alliance for competitiveness and performance.

4. Evaluated the risk from each alliance.

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Solution Preview

Guidance on Alibaba
Alliance 1
Alibaba's Joint Venture with Dubai based Meraas Holding
Alibaba has formed a joint venture with Dubai based Meraas Holding through its cloud computing arm - Aliyun to establish a cloud computing data center in Dubai to provide cloud integration services to governmental organizations and enterprises in North Africa and Middle East (Luo, 2015: May 13). Jack Ma, the founder of Alibaba has stated that "we are moving from IT era to Data era" and this cloud computing initiative is another international data center after the one already established in United States of America (Luo, 2015: May 13). The company has plans to have 12 data centers across the globe including Germany, Japan, Singapore etc.(Luo, 2015: May 13). The cloud computing data center in Dubai will also help in developing a smart city in Dubai with focus on infrastructure development, electricity, transportation, communication , urban planning etc (Luo, 2015: May 13). Aliyun has formed the joint venture with Meraas Holding setting up a new company to leverage the opportunities in IT sector in the Middle East and North Africa region which is predicted by International Data Corporation (IDC) to grow by 9% with IT expenditure in the region projected to be $27 billion in 2015 (Luo, 2015: May 13).
Business Level Strategy of Alibaba
Alibaba is focusing on differentiation focus strategy at the generic level as specified by Porter (1985) as the company is establishing cloud computing data center as the company needs to establish a competitive advantage by offering unique cloud computing services to the enterprises and government organization. Since the market segment on which Alibaba is focusing on very narrow comprising of enterprise and government organizations using cloud computing services. The company is using a preemptive attack before the competitors could tap the cloud computing market in North Africa and Middle East.
Corporate Level Strategy of Alibaba
Alibaba is pursuing a growth strategy and is going for geographical diversification in new market of Middle East and North Africa. ...

Solution Summary

The solution provides guidance on pros and cons of Joint Venture V/s Strategic Alliance of Alibaba

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