“We have defeated big business disease,” said Ma's memo to Alibaba employees. “We transformed the company from a cumbersome organization to a simple, agile organization that is efficiency-first and market-first.”
“The reason we're falling behind is because we've forgotten who the real customer is,” Tsai said on the podcast. “Our customers are the users who use our app. [for] They were shopping and we didn't give them the best experience. In a sense, we stepped out on our feet and didn't focus on where we could add value. ”
Capital markets punished Alibaba for its mistakes. The company's share price has plunged 77% in Hong Kong from a 2020 record of HK$307.40 per share to HK$70.50 in recent trading, worse than the Hang Seng Index's 31% decline in the same period. ing. Alibaba lost HK$2.6 trillion (US$332 billion) in value during the period.
Alibaba Chairman Joe Tsai says e-commerce giant intends to bounce back: CNBC
Alibaba Chairman Joe Tsai says e-commerce giant intends to bounce back: CNBC
Tsai touched on a number of topics during the 37-minute podcast, from Alibaba's challenges and U.S.-China relations to her work routine and love of sports. Tsai is also the chairman of the South China Morning Post, which is wholly owned by Alibaba.
He also commented on the current state of China's AI industry. Although China is about two years behind the United States in the global AI race, Tsai said China will develop its own capabilities to manufacture high-end graphics processing equipment in the long term.
Tsai's candid admission of Alibaba's failures caused an uproar on Chinese social media. There is nothing to be afraid of making mistakes, as no one is infallible, but the “truly scary” specter is arrogance and refusal to change, Marr wrote. He acknowledged the “commendable courage and wisdom” of Tsai and Alibaba CEO Eddie Wu in leading the company's transformation.
China's government is trying to break down online walls, but big tech companies are treading cautiously
China's government is trying to break down online walls, but big tech companies are treading cautiously
“We have made countless mistakes over the past 25 years, and we will continue to do so. [continue to] “We're going to make mistakes over the next 77 years,” Ma wrote of Alibaba's three-century journey of goals. “To face a problem is not to deny the past, but to take responsibility and find a way to the future.”
While the messages from the two co-founders served the same purpose of boosting Alibaba's morale, Tsai acknowledged that a confluence of factors had caused morale to decline over the past three years. Another key theme for him was reminding employees to better understand future needs and challenges.
Alibaba's most fundamental change this year is to abandon the blind pursuit of performance metrics and instead focus on customer value, Ma wrote, echoing Tsai. To get back on track, Alibaba simplified its organization in February to focus on its two core businesses: cloud computing and e-commerce, following a major reorganization announced a year ago.
08:54
Is Chinese technology falling behind in its own ChatGPT race?
Is Chinese technology falling behind in its own ChatGPT race?
Chen Daofang, general manager of Taobao and Tmall Group, Taobao's main shopping platform, has announced that they will receive 10 billion yuan (1.38 billion yuan) to subsidize the production of content such as live streaming and short videos on the platform in 2024. announced that it would provide cash in US dollars. -Commerce Content Division, said this at an event last month.
Four months ago, Ma encouraged Alibaba employees in an internal letter to embrace change and stick to the company's original vision. PDD Holdings, which operates China's low-cost shopping platforms Pinduoduo and Temu, was closing in on Alibaba's valuation and Taobao's market share.
“What's important [question] “It's important to think about how tomorrow's e-commerce will improve the consumer experience, not who to catch up with today,” Ma wrote.
