Alibaba Group Holding Limited is a major e-commerce corporation majoring in the provision of sales through web portals. The company performance in the United States has been tremendous, and it has attained an enormous capital base. The company intends to venture in the furniture industry in the United States based on its forecasted financial gains. Their intention is based on furniture market gap, which has resulted because of a growing population and the booming real estate industry within the United States. It explicitly acknowledges that United State furniture industry heavy relies on import products. Based on its interest it will conduct a market research so that it can be able to understand the furniture industry clearly. A market research is an organized effort intended to gather information pertaining a target market or consumer (Silver, Stevens, Wrenn, & Loudon, 2012).
The market research will be conducted for two months. It will mostly major on the current market competition level that the company expects to face, the market niche needs and size based on the product, regulations and policies governing the furniture industry, and the market trends based on the product (Silver, Stevens, Wrenn, & Loudon, 2012). The market research techniques will be aimed at providing different insights into consumer behavior. Qualitative methods will be composed of individual depth interview, and ethnography, which is the study of an entire culture. Quantitative techniques in research emphasize objective measurements, statistical, or numerical analysis of data. This raw information will be collected by use of polls, questionnaires, and surveys. Questioners will be assigned to existing customers who will fill them out based on their preferences and views (Silver, Stevens, Wrenn, & Loudon, 2012).
The company expects to face stiff competition from the current existing companies in the furniture industry. These companies included Williams-Sonoma, Incorporation, La-Z-Boy Incorporation and many other companies. However, Alibaba intends to overcome this competition by first identifying their competitor’s product is unique are compared to the company’s products. This will enable the company to identify the areas to compete on and enable it to attain a platform for differentiating itself. Other ways in which the company can use to overcome competition may include a comprehensive advertisement to create awareness on your existence, expanding on its offer through promotions as well as home delivery and be the best employer based on the fact that skilled and motivated employees underpin vibrant and growing business.
The research analysis illustrated a high market demand for furniture in the United States. The high demand was fuel by an increase in population growth and the booming real estate industry within the United States. As a result of the demand the company will acquire some warehouses that it will use for storage of retails products as they await delivery (Shani & Chalasani, 2013). The company will able to identify market trends in the furniture industry and to come up with strategies that will enable it to determine future trends within the industry. Pertaining regulations and policies governing the industry through the research the company will be able to incorporate terms and policies in their organization structure that will adhere to them (Silver, Stevens, Wrenn, & Loudon, 2012).
Alibaba Group Holding Limited should implement their market strategy in the United States market. Their implementation will be based on the fact that first there is an existence of a market gap in the industry. Second is their improvised strategy of handling competition from their competitors. Lastly are the flexible rules and policies governing the furniture industry.
Shani, D., & Chalasani, S. (2013). Exploiting niches using relationship marketing. Journal of Services Marketing.
Silver, L., Stevens, R. E., Wrenn, B., & Loudon, D. L. (2012). The essentials of marketing research. Routledge.