Alibaba Aims to Regain Momentum with A100 Program after 2018 Stocks Dip

Jack Ma, Alibaba Founder
Alibaba's Executive Chairman Jack Ma holds his certificate at an event marking the 40th anniversary of China's reform and opening up at the Great Hall of the People in Beijing, China December 18, 2018. (Photo: REUTERS/Jason Lee)

A100 is Alibaba's newest strategic partnership program that seeks to provide solutions for digital transformations that the company plans to enforce this year.

The program includes a long list of services that should help improve the business operations of program members. The Market Interactive magazine further reported that Alibaba will assist A100 partners to implement the new system.

The A100 program is mainly aimed at expanding Alibaba's e-commerce background. With the upgraded system that it offers, the Chinese group has more opportunities to enter the digital entertainment industry.

A press release from the company revealed that the A100 program won't stop where it started. Instead, it will slowly expand in partnership with other brands not just locally but also at the international level. These partnerships will then propel Alibaba's plans to increase the potential for digital operations. "The A100 initiative, powered by the Alibaba Operating System, will be a one-stop shop for businesses to access a comprehensive range of enterprise services in the digital era," CEO of Alibaba Group, Daniel Zhang said.

Alibaba has already seen early success with the cross-platform collaboration program. In a partnership with Nestlé, the food and drink provider was able to expand into Alibaba platforms including RT-Mart and Hema, now known as FRESHIPPO. The partnership's success is attributed to a solid foundation that focuses on consumer understanding.

The A100 program was established following an alarming 21 percent stock drop for the company last year. Alibaba suffered from the effects of a declining Chinese economy, not to mention the trade war between China and the U.S.

According to a report by Motley Fool, the Chinese economy's descent was a huge blow to the group, especially since it is considered to be the country's biggest e-commerce store. It is also among the largest conglomerates in China, which is why some analysts aren't surprised by the news.

Some experts attribute Alibaba's fallen stocks to founder Jack Ma's exit announcement. Ma announced his farewell in September, which pulled stocks down by 3.7 percent. On the other hand, January stock records reveal that the group is finally regaining momentum as shares have soared up to 11 percent so far.

The World Bank announced on Tuesday that economic growth will slow down at a global level. For some Chinese companies that fell victim to the trade disputes, this is certainly bad news. This is not so for what is known as the world's fifth biggest internet company.

Financial analysts foresee Alibaba maintaining solid ground through its A100 program amid fears of the Chinese economy plummeting further should the China-U.S. trade war heats up again.

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