Dear American people:

  In finance, we know there is an old saying about the effect of IPO, the short-term overpricing and long-term underperformance on the stock price. Alibaba is no exception. But the problem is not due to those old sayings about the initial public offering of used-to-be American-type companies but the deep-rooted issues of Alibaba.

  Alibaba is a monster which can do not only about the e-commerce transactions and daily in-time delivery but the money flow behind. Alibaba replaces the role of banking and the role of financial management of other financial institutions which may create some black holes for the great China. Those black holes may drag many business units in their dangerous spirals which may bring more than we know unemployment in China. The most important issue is that Alibaba seems to have too much pricing power which may destroy the lately emerging higher quality Chinese product producers. In the end, Alibaba may destroy the future of China, including higher quality and higher paid jobs, higher quality products, and a dream of higher living standard for Chinese people who may want to have a payroll raised each year. Alibaba has rewritten many rules and bring the western-type unemploement and lower product quality with cheaper price issues into China. It will destroy many mid cap banks and financial institutions and middle-sized but with higher quality producers. Those with higher quality producers, no matter their products are real goods or services, will be totally destroyed by Alibaba. In the end, the vicious circle happens, it will hurt Alibaba eventually because it may has less and less consumers with tons of oney in their pocket. The reason is simple. Those ones with higher payroll jobs are replaced by the vendors on the Alibaba sites. Those ones with higher quality can not survive in the dominant world of lower price concept. Those heterogeneous markets will become old fashioned. There may not have other heterogeneous markets anymore. Pricing becomes everthing, the quality seems not to be that important anymore. Those heterogeneous factors on specific products for comsumers become obsolescent. All will be destroyed by Alibaba's lower price policy. And people with tons of money in their pockets will eventually find they get less and less from their jobs each day hereafter. So we may see the trend of vicious circle happens, especially when Alibaba gets even stronger in the great China.

  The remedy for the trend breaking of Alibaba is more regulations and more price discrimination rules for others to survive. Those one with heterogeneous services or product qualities may survive under the carefully ruled and regulated e-commerce environment. It needs the China authority to carefully regulate Alibaba and really understand the deep economic meanings behind the just one time emerging exciting story of Alibaba. The money flow reguation seems to be the first priority for Alibaba. Alibaba should not replace the role of daily banking services provided by ordinary business unit in the financial institution. It seems to be wrong to let Alibaba have so many power to make or rewrite the rule for the future of great China.

arrow
arrow
    全站熱搜

    Vegetable 發表在 痞客邦 留言(0) 人氣()