Alibaba and its Group of 6 Business

What’s the news?

China’s biggest e-commerce site Alibaba has taken a decision to become a holding company with its six business groups. This means Alibaba will not be a single company anymore. And its earnings will be divided into 6 halves.

Reason Behind This Decision

The company is claiming this decision to be “most significant” move and it will be in favor of the company itself. The company also say that is a very drastic decision that the company every made in its business history of 24yrs.

It is being said that every unit of the company will have a separate chief executive officer and board of directors which will help in quicker decision making and smooth running of the business as well.

More in Detail

The experience of Alibaba, a prominent internet conglomerate engaged in multiple ventures such as online shopping and cloud computing, serves as a stark reminder of the repercussions involved in challenging the ruling Communist Party of China.

It also sheds light on the extent of Beijing's aggressive efforts to diminish the influence of its technology giants.

Alibaba's proposed plan to divide the company into multiple smaller entities may assuage the government's apprehensions around the excessive concentration of power and impact among the country's vast web behemoths.

Seeing the scale of business, the decision made is a positive move and could be in the favour of the company. But when governing body increases the mindset also gets multiplied and later these could create a cold war. So, Alibaba have to be very precise and careful which appointing any members to any groups.

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