PESTEL Analysis of Alibaba Assignment Example | Topics and Well Written Essays - 750 words

PESTEL Analysis of Alibaba - Assignment Example The researcher states that a number of political factors and legal issues that come up due to the government regulations affect Alibaba. In China, the political force is the most turbulent force in the electronic commerce industry in which Alibaba is a player. For instance, the ministry of information industry has guidelines on the standards of operation in e-commerce. In fact, the Chinese government has laid a lot of emphasis on the development of the e-commerce. By so doing, the ministry of information industry has an obligation of coming up with summaries on the development of technology as time goes by. For instance, it has to provide a summary of both the middle and long-term goals on the development of information technology plan. Thus, this is a major booster in the development of Alibaba since it already has the support of the government and by the fact that it is the largest company in e-commerce in China. There is no clear legal legislation on the e-commerce industry in the Chinese government. This is because the Chinese government has not dealt with the issues for long. There minimal experience in coming up with legislation like transactional security, tax and intellectual protection of business rights in the Chines government. Much worse is the fact that there are no laws written on consumer rights, privacy, and recognition of digital signatures and validation of online contracts. This is one of the major threats to the growth of Alibaba as a company. Development in a countries economy has a great impact on the operation of a particular business. For instance, fiscal and monetary policies, of employment, GDP per head, rate of inflation and the banking policies. In China, there has been a prolonged rapid growth of its economy, at the same time, there is a continued improvement on the country’s GDP per head. This is one of the major advantages of the company Alibaba since it leads to increased shopping rates by the residents. Alibaba is affecte d by the global economy because it has now spread its wings further to serve most developed and developing countries.