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Alibaba: Strategic Initiatives to Drive Growth

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Why Alibaba is eyeing Australia

As we’ve already seen, one of the key priorities of Alibaba (BABA) is to expand its business globally. As part of that initiative, the company plans to open its first office in Melbourne, Australia, by the end of this year, according to several reports.

Alibaba expects the latest move to help the company increase the number of sellers on its e-commerce platform. That, in turn, would enhance its inventory of foreign goods for its customers in China. Moreover, the move is likely to increase the number of active buyers on its platform.

At the end of fiscal 4Q16, Alibaba had 423 million active buyers on its platform, as you can see in the graph below. The company plans to increase the count through vast offerings since the demand for original foreign-made products remains high in China.

Besides focusing on its e-commerce business, the company also plans to roll out its other offerings. They include fast-growing cloud services and the mobile payment platform, Alipay, in the Australian market.

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Why Alibaba is investing in e-sports

In order to draw more user engagement and fortify its entertainment offerings, Alibaba recently announced that Alibaba Sports Group (or Alisports) entered into a strategic partnership with the International e-Sports Federation to promote the global recognition of e-sports.

The company further stated that it plans to build e-sports stadiums in China. It also said it will host the World Electronic Sports Games with prize money of more than $5.5 million in order to attract players from around the world.

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