Alibaba’s Trojan Horse Strategy for Asia is Brilliant

Alibaba’s Trojan Horse Strategy for Asia is Brilliant

It’s been several months since Alibaba’s blockbuster acquisition of Lazada, the leading e-commerce platform in Southeast Asia.When the news broke, pundits and critics debated whether or not each side got a good deal, how it would impact rivals like MatahariMall, Tokopedia and Orami, and how the region would be flooded with cheap Chinese products.

Elsewhere, startup founders and VCs high-fived each other as the move put the region on the global map, and they hoped it would lead to more funding and exits in the future.However, everyone has failed to go beyond superficial observations. Alibaba’s acquisition of Lazada is much more than simply growing retail GMV, proving exactly why Jack Ma is Jack Ma and why he’s always been several steps ahead of the game. Those celebrating the news, especially those in the retail space, may end up biting their tongues.

Peter Thiel, PayPal and Why Distribution Matters

In his book ‘Zero to One’, Peter Thiel talks about how PayPal almost didn’t survive were it not for their lucky break stumbling onto what would become their biggest distribution channel, growth engine, and eventual acquirer: eBay.PayPal focused on targeting eBay’s Power Sellers — those responsible for the bulk of volume going through eBay — and then amplified it by paying for user sign ups and invites to friends, effectively turning PayPal into a mainstream payments platform.

No wonder Peter Thiel has been such a fervent proponent of distribution, beyond just building a great product.“Poor distribution — not product — is the number one cause of failure. If you can get even a single distribution channel to work, you have great business. If you try for several but don’t nail one, you’re finished,” Thiel writes.

eBay accelerated PayPal’s growth thanks to its reach and velocity of transactions — high usage kept the payments company thriving. Distribution is exactly what Alibaba needs Lazada for. However, for what? Most not cheap Chinese products. Full Story

Read this story in its entirety for you will understand why China is destined to rule for the next 100 years or more. You will find out how Alibaba strategically teamed up with DIDI and destroyed Uber. However, that was not Alibaba’s goal; their goal was to make Alipay a household name and they succeeded. Alipay is a payment gateway like Paypal that Alibaba acquired and via DIDI they displaced Paypal and all other payment systems in China to become the top player. Alibaba continues to make strategic acquisitions and eventually Alipay is probably going to become the leading player in Asia and through Alipay China is going to bring intense competition to many sectors especially to the banking industry. We also suspect that  China’s UnionPay which has already displaced VISA regarding the volume of transactions processed could eventually unseat VISA and its rival Mastercard.

Many individuals think China is only suitable for producing cheap imitations. That was the 1st part of the game plan; become the factory of the world. Now they have succeeded the second part of the plan to attack all hi-tech industries. China will soon dominate the smartphone industry, and in few years it will wreck havoc on Global Chip manufacturers as it will produce high-quality chips and sell them at much lower prices.  Chinese have an average IQ of 105 that is one of the highest in the world, by contrast, Americans have an average IQ of 98, and most European nations have an IQ that ranges from 98-101. Interestingly the two countries at the top of the list are Singapore and Hong Kong; both have a predominantly Chinese population; these two countries both have an average IQ of 108.

Chinese have Highest IQ in the World

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