Alibaba Group: Acquiring Lazada to Win the Southeast Asia E-Commerce Battle
In April 2016, Alibaba Group Holding Limited (Alibaba) acquired the cash-strapped German e-commerce company Lazada Group (Lazada) to enter the Southeast Asian market and gain an additional source of revenue. Lazada's value proposition of an effortless shopping experience, combined with rising competition, had caused Lazada to over-invest in logistics infrastructure. The cash injection from Alibaba's acquisition would allow Lazada to continue to pursue its strategic imperatives while leveraging Alibaba's online experience and other resources in China. Given the competitive environment in China, was the entry into Southeast Asia through the acquisition of Lazada an appropriate strategy for Alibaba? Had Lazada made the appropriate decision to sell its company to Alibaba? How should Alibaba implement its post-merger integration in 2017? Wiboon Kittilaksanawong is affiliated with Saitama University. Noor Izzati Binti Harun is affiliated with Nagoya University of Commerce & Business.