CTQ2

Why did Jack Ma purchase SCMP?

A great deal of people doesn’t understand this behavior in fact but we all know that a business man will first consider the development of his company. So we can explore the deal in terms of the benefit Ma will get.

First, it’s easy to realize it is a method of industry expanding. Jack Ma’s company Alibaba has been the biggest Chinese e-commerce company and Ma also wants to expand into the media industry. In fact, he has participated in many media acquisitions. As we all know, SCMP is an influential English newspaper. Ma spent a little number of money (just to him) but can enter the media market at a high starting which has a mass calculation. Then he can combine the Internet with the traditional newspaper to make more profit.

Secondly, I think it’s also a new try for Ma to promote the company image and develop Hong Kong market. In recent years, more and more people focus on the freedom of speech in Hong Kong media and resist the central government’s intervention. Also, as one of the most important companies in mainland, Alibaba can’t escape from being thought to have a strong link to the central government. If Jack Ma wants to develop the Hong Kong and even international market, he’d better get rid of the stereotype that Alibaba is more like a stated-owned enterprise. So, if he operates SCMP well and keep it neutral as much as possible after this acquisition, the recognition degree and internationalization degree in Hong Kong and western countries will be improved especially when the readers of SCMP are usually of elevated level of consumption and of a certain qualities cultural level. So, the company declares that they won’t interfere the operation of SCMP in the future. Besides, the mainland consumers are also willing to accept an Alibaba with richer resources. However, I think it’s challenging to achieve this because it’s difficult to stop some people from using colored glasses but it can be a attractive choice with so much potential profit.

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