Jack Ma urges Alibaba to embrace competition amid growth challenges

Jack Ma, co-founder of Alibaba Group, has encouraged the company to embrace competition as a vital driver for growth, acknowledging the challenges faced by various business segments. In an internal memo, he emphasized that no company can maintain its leading position indefinitely, highlighting the importance of adapting to market forces. This message comes after Alibaba received a favorable ruling from Chinese regulators, which had previously hindered the IPO of its fintech affiliate, Ant Group. In the fiscal first quarter of 2024, Alibaba reported a 4% year-on-year increase in revenue, totaling $33.47 billion, although this fell short of analyst expectations of $34.81 billion. The company's net income saw a significant decline of 29% year-on-year, amounting to $3.34 billion, largely due to a domestic e-commerce price war that has intensified competition in the market. Additionally, the company is facing challenges from U.S. semiconductor sanctions that have impacted its ambitions in artificial intelligence. Despite these hurdles, Alibaba has joined China’s Stock Connect, which could potentially unlock $12 billion in investment funds, signaling a strategic move to enhance its market position. Over the past year, Alibaba's stock has experienced a 6% decline, reflecting investor concerns over its growth trajectory and competitive landscape. Ma's call for resilience and adaptability in the face of competition underscores the need for Alibaba to innovate and respond effectively to the evolving market dynamics.