Management Question
Topic 1 DQ 1
Apr 4-6, 2024
Identify an online sales company and explain how the concepts of complexity and divergence apply. Provide specific examples in your response.
Rufina Chukwu
Apr 4, 2024, 12:53 PM
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Hello everyone,
Online sales have become more popular in our society, especially since the COVID-19 pandemic, shoppers seem more likely to stay home and shop online, further increasing online sales.
Complexity and divergence apply to all online sales companies, but the extent to which they apply differs based on the company’s services and options. Complexity is the number of steps involved in a service and the possible actions that can be taken at each step. Divergence refers to the degree of latitude, independence, decision, choice, and variability. It is also the number of ways a customer/service provider interaction can vary at each step according to the needs and abilities of each (Jacobs & Chase, 2020).
One example of an online sales company where the concepts of complexity and divergence apply is Alibaba Group Holding Limited. Alibaba is a multinational conglomerate based in China, primarily operating in e-commerce, retail, internet, and technology industries. Complexity and divergence are evident in various aspects of Alibaba’s business.
I have been a long-time shopper of Alibaba, an online shopping site best known for its consumer-to-consumer sales, and its sales channel used by smaller online merchants (Ecommerce Platforms, 2022).
Complexity in Alibaba’s Operations:
Vast Product Offering: Alibaba’s platforms, such as Taobao and Tmall, host millions of individual sellers offering diverse products ranging from clothing to electronics. Managing a vast product offering adds complexity to infrastructure, logistics, and customer experience management.
Personalized Recommendation Systems: Alibaba utilizes complex algorithms and recommendation systems to personalize the shopping experience for users. These algorithms analyze extensive user data, including browsing history and purchase behavior, to provide tailored product recommendations, contributing to the overall complexity of Alibaba’s operations.
In summary, Alibaba faces complexity in managing many products and providing personalized recommendations to users. They have also diversified into cloud computing services with Alibaba Cloud and expanded their payment platform, Alipay, into a broader digital payment service. These moves show how Alibaba deals with complexity and explores new areas beyond its original e-commerce business.
Reference: Ecommerce Platforms. (2022). How does Alibaba work? https://ecom).operationsorms.com/glossary/ what-is-Alibaba. Jacobs, F. R., & Chase, R. B. (2020).Operations and supply chain management(16th ed.). New York, NY: McGraw-Hill
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