Alibaba Announces Organizational Upgrade in Its New Life Service Sector

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(Source: Alizila)

Alibaba has announced a major organizational shift in its company, integrating three of its major location-based businesses, namely AutoNavi, Local Life and Fliggy, into its life services section.

The announcement was made on Friday by Zhang Yong, the current chairman and CEO of Chinese tech giant Alibaba Group. Yu Yongfu will be in charge of the new business partition..

Li Yonghe will serve as the president of the local life business group, while Wang Lei , the former CEO, will be assigned to a new position.

Development has been driven by the tech space’s competitive arena. Alibaba has been gradually moving towards a section-based business model, and moving away from its prior management-led model.  Previously, the Cloud Intelligence and business to consumer (B2C) divisions also have adopted this model.

“We must make bold assumptions, carefully seek evidence, and carry out an all-round transformation in a planned, step-by-step and more patient manner in the future,” Zhang Yong said in his announcement.

Zhang Yong further explained in his letter that its Tmall Supermarket and Import and Export Business Group will be established as a separate entity.  The new entity will be led by Liu Peng, who will serve as the president of the group. This adjustment is designed to improving the supply chain capability in the new retail field, so that consumers can enjoy a more reliable experience with the company’s goods and services.

In addition, Zheng Junfang, chief risk officer of Alibaba Group, will be in charge of the customer experience business group, in an effort to further enhance customers’ experience with the company and create a more efficient customer- and market-response mechanism. Wu Minzhi, the customer experience business group’s former head, will continue to be responsible for procurement, administration and home ownership.

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Zhang Yong proposed that Alibaba should be powered by both consumer and industrial needs. Long-term thinking and comprehensive capacity-building, he said, hold the key to the company’s   success in the future in rapidly-changing and highly competitive markets.