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1. What are some of the barriers Alibaba is facing as it expands globally?
While counterfeits are more accepted in China that is not always the case with the
rest of the world. This could be an issue as countries have filed suit with Alibaba under
the pretenses that it is allowing counterfeits to be moved directly from Chinese
manufacturers straight to consumers on a global scale. Another barrier would be
competition, right now Alibaba has the benefit of low prices and large supply. But if
other companies start doing their business model, the prices will have to be adjusted
because their supply will dip down in quantity.
2. Why would the sale of counterfeit products through its site be damaging to Alibaba?
If I were to order a baseball jersey off of Alibaba because it was recommended to
me to find an authentic jersey for a fraction of the price but when I received mine
it was counterfeit, I would think twice about ordering from them again. This will
cause doubt in my mind that I would ever receive an authentic item and would
cause to be label this site as “too good to be true.” Then any time anyone would
ask me about buying from their site, I would tell them all about my experience-
which may deter them for ordering. It would be a ripple effect of distrust.
