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Alibaba Splits into 6 Entities

Under the new organizational restructure plan, the Chinese ecommerce giant will divide into 6 major business groups: Cloud Intelligence Group (including cloud, AI, DingTalk and other businesses), Taobao Tmall Business Group (including Taobao, Tmall, Taobao Deals, Taocaica\i, and other businesses), Local Services (on-demand businesses like food delivery), Cainiao Smart Logistics (logistics), Global Digital Commerce Group (overseas retail businesses, including Lazada) and Digital Media and Entertainment Group (including the likes of video streaming). Each group will have its own CEO and support staff. There has not been much explanation (at least not in the English-speaking media), however, readers will recall that this Newsletter reported over a year ago that the Alibaba founder, Jack Ma had fallen foul of the Chinese authorities having criticised too much central control by government for Alibaba’s activities.

Alibaba has been very active in East Africa, with a base in Kenya and a training academy. There is no news to date of what these moves will mean for Alibaba’s African interests.

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Alastair Tempest

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