Last Tuesday, March 28 Alibaba Group announced “The 24th most important organizational shift in 24 years” with the purpose of achieving “agile organization”, that is, the “1+6+N” organization. This means that Alibaba’s six major business groups (Taobao Tmall Business, Alibaba Cloud Intelligence, Local Life, Cainiao, International Digital Commerce, and Big Entertainment) and multiple business companies (Ali Health, Sun Art Retail, Yintai Commercial, Quark, etc.) Each department will be responsible for its own operation. Other than Taobao Tmall Business Group the other business group have the Possibility of seeking independent financing or a separate listing.
This is comparable to the largest organization structure adjustment in human history. Its main purpose is to “promote various businesses to become more agile, shorten the decision-making chain, respond to market changes faster, and further develop the business by seizing their respective market and industry opportunities, thus unlocking the value of Alibaba Group’s various businesses.” This decision may also, to some extent, improve the shortcomings of large organizations with multi businesses, namely “unclear positioning of customers, rigid…
