Joseph Tsai: Alibaba has fallen behind
If one word could describe Alibaba's journey over the past five years, "lost" might be the most fitting.
Whether it's Alibaba's stubborn adherence to its internet-era strategies or its hesitant forays into new domains, this sense of being adrift is palpable.
It wasn't until veterans like Joseph Tsai and Eddie Wu took the helm again that the lost Alibaba finally began to find its new direction.
This shift is subtly hinted at in a recent interview with Alibaba's Chairman, Joseph Tsai.
As Joseph Tsai put it, "When we looked inward and reflected on the past few years, we realized we fell behind because we forgot who our real customers were. Our customers are the users shopping on our apps, and we failed to deliver the best experience for them. So, in a way, we shot ourselves in the foot by not focusing on where we could truly add value."
Admittedly, it takes courage for Joseph Tsai to openly acknowledge the crisis Alibaba is facing.
Yet, his remarks also reveal that Alibaba is clearing the fog that once clouded its vision and charting a new course.
One might even speculate that Alibaba is embarking on a journey of self-redemption to rediscover its former self.
The five years after Jack Ma left Alibaba were five years of Alibaba being lost.
Clearly, Alibaba failed to align itself with the evolving market over the past five years, fully leverage its value, and instead found itself in a dilemma.
Acknowledging this misstep and finding the right path forward may be the key to Alibaba's cyclical rebound.
Blindly clinging to the internet era, lacking the courage to make bold cuts
When Jack Ma stepped down as Alibaba's Chairman and Daniel Zhang took the reins, we witnessed a series of reforms and upgrades under his leadership.
Admittedly, Daniel Zhang's reforms did address some of Alibaba's issues to an extent.
For instance, flattening the organizational structure, aggressive overseas expansion, and segmenting business modules.
However, while these reforms alleviated some of Alibaba's challenges, their internet-centric nature meant they couldn't fundamentally resolve Alibaba's core problems.
Thus, despite Daniel Zhang's efforts, Alibaba failed to regain investor confidence or reverse its declining domestic market share.
Pinduoduo's market cap surpassing Alibaba's and competitors encroaching on its local services business underscore that Daniel Zhang's reforms couldn't solve Alibaba's deeper issues.
At their core, these reforms remained tethered to the internet framework, offering superficial fixes rather than a radical reinvention of Alibaba.
As rivals embraced AI and digital-physical integration, Alibaba lagged, losing its pioneer's edge.
Clearly, such internet-bound approaches couldn't provide lasting momentum or address Alibaba's fundamental challenges.
Thus, Alibaba continued to decline under Daniel Zhang's reforms, stripped of its former magic.
For Alibaba, breaking free from the internet's constraints and injecting new vitality through bold technological and model innovations is the key to entering a new phase.
Overemphasizing capital, neglecting true value
Capital undeniably played a pivotal role in Alibaba's rise.
Alibaba's growth story is a symphony harmonized with capital.
From its storied ties with SoftBank to capital-driven ecosystem expansions, capital's influence is undeniable.
Capital built Alibaba, and Alibaba rewarded capital.
Yet, overemphasizing capital while neglecting industry integration and user value creation is unsustainable.
Without capital's lifeline, such a model inevitably collapses.
Alibaba's 迷失 stemmed from prioritizing capital and boundary expansion over users and core value.
As capital 红利 faded, Alibaba's capital-centric model faltered, prompting exits from investments and refocusing on e-commerce.
Going forward, Alibaba must align with modern capital models to fuel its next chapter.
Post-internet 断层， missing the tech 红利
The internet era is visibly waning.
While rivals embraced AI like ChatGPT, Alibaba clung to internet-era strategies, lacking tech-driven reinvention.
Innovations like live commerce and Taobao Deals were internet-derivatives, unable to bridge the tech gap.
These brought growth but couldn't connect with booming new technologies.
As internet models failed to sustain value, their relevance dwindled.
Once a leader, Alibaba became a follower in the tech era.
While peers leveraged AI and big data, Alibaba floundered in internet-era tactics.
The disconnect between internet and new tech is why Alibaba hit a dead end.
Its breakthrough lies in tech-driven e-commerce innovation.
Under Joseph Tsai and Eddie Wu, Alibaba is now embracing AI across its business lines, signaling a tech-powered revival.
Organizational rigidity, slow youth infusion
Joseph Tsai and Eddie Wu's tenure saw sweeping changes, like Trudy Dai's departure and Yu Yongfu's exit, signaling a youth-driven overhaul.
These moves highlight Alibaba's push to rejuvenate its 僵化组织。
Daniel Zhang's reforms tweaked existing structures without addressing core rigidity, leading to inefficiency.
Surface-level changes couldn't revive Alibaba's organizational 活力。
Empowering youth to lead frontline battles is key to Alibaba's revival.
As young talent rises, Alibaba's stagnant waters will stir, unlocking new momentum.
Epilogue
The past five years were Alibaba's lost years.
It shed its leader status, becoming a follower.
Root causes include clinging to the past and losing sight of user value.
Now, under Joseph Tsai and Eddie Wu, Alibaba's self-redemption begins.
By shedding old baggage and embracing AI-driven e-commerce, Alibaba may yet rebirth.$Alibaba(BABA.US)
—End—
Author: Meng Yonghui，资深撰稿人，专栏作家，行业观察专家，知名 KOL.
The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
