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Alibaba's strategy reflects the concept of entry and exit barriers in several ways. Firstly, Alibaba leverages the explosive growth in the Chinese e-commerce market, which serves as a key entry driver. This growth provides a large customer base and high demand, lowering entry barriers. Secondly, Alibaba's global expansion strategy helps it overcome geographical entry barriers. However, there are also significant entry barriers that Alibaba faces. For instance, the company must navigate complex regulations in different markets, which can act as a significant entry barrier. As for exit barriers, Alibaba's substantial investments in infrastructure and technology make it costly to exit the market.
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Amazon's rival Alibaba makes a great "lab rat" for looking at entry barriers. While the Chinese company specializing in e-commerce, retail, Internet and technology has several key entry drivers, such as explosive growth in the Chinese e-commerce market and global expansion, "Forbes" lists a few important entry barriers for the company.
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