For months, Daniel Zhang huddled with a small team in an underground garage in Shanghai. The chief executive of Alibaba Group Holdings Ltd. was working on a secret plan that would sound crazy even to

Strategy: To create a sustainable competitive advantage using existing technical capabilities.

Alibaba has a large database of customers and it has developed its unit set of algorithms for making e-commerce deliveries. It has matured its technology and has the requisite IT infrastructure to support an early-stage start-up in the delivery app. People across the globe is going digital and Alibaba aims to earn half of its annual revenue through international markets. The delivery applications for food and groceries have witnessed significant traction across the globe and the industry is pegged at USD 20 Billion. Venturing into the delivery application segment will help Alibaba to consolidate its position in the e-commerce and digital delivery segment.

Merging artificial intelligence, robotics, and facial recognition will further cement Alibaba in the digital space. These technologies can be scaled up and used in warehouse monitoring, reducing delivery time and inventory turnaround time. The revenue will be boosted due to effective utilization of the existing resources and the efficiency of the system will go up. All of these will contribute positively to the revenue (top-line) and profit (bottom-line) of the company in the long run.

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