Lazada & Alibaba 2017

Abstract

Lazada, a rapidly growing e-commerce player in Southeast Asia was dragged into the strapped for cash position due to financial mismanagement. The company was struggling to raise funds to continue its operation. Then, Alibaba, the largest internet company in China stepped in and offering capital injection in exchange of Lazada controlling stake. The case discusses the attractiveness of Southeast Asia e-commerce market, Alibaba’s motivations and objectives behind Lazada acquisition and how Lazada and Alibaba work together to strengthen their position in Southeast Asia market and pre-empt future competition.

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