Alibaba is “top tech disruptor” according to KPMG
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Alibaba is “top tech disruptor” according to KPMG

Professional services company KPMG has just released its 2018 Global Technology Innovation Report, an in-depth survey of 800 technology industry executives. The findings are clear: Alibaba is the world’s top tech disruptor. This marks the first time that a Chinese company has been named in the top spot, and is a clear indication of the impact that the country’s technological powerhouses (notably Alibaba, Tencent and Baidu) are having on the global landscape.

Alibaba’s share price has risen by 21% so far this year

graph 1406 alibaba

SOURCE: Yahoo Finance

According to the Big Tech experts surveyed, now is not the time to be cautious. Advances in artificial intelligence (AI), robotics, the Internet of Things (IoT), and other areas necessitate a pro-innovation approach to business. The risk is huge: disruption.

In naming the companies that these respondents felt could disrupt their own businesses, there was a clear winner: the king of Chinese Ecommerce, Alibaba. The FANG stocks (Facebook, Amazon, Netflix, and Google) represented for the U.S., with Facebook coming second. However, the perceived gap between Alibaba’s ability to disrupt and Facebook’s is significant.

The businesses most at risk for disruption are largely the ones that you may expect: media (threatened by social media, streaming video on demand, and AI-powered news curation); the automotive industry (which is having to adapt to electrification and autonomous driving); and consumer markets and retail (which is already undergoing a profound shift into digital landscapes).

With the Chinese Ecommerce scene already dwarfing that of other countries, is Alibaba destined to eventually become the world’s biggest player in this crucial sector?

Disclosure

Dominion holds Alibaba, as well as Tencent, Baidu, Amazon, Netflix, and Alphabet (the parent company of Google), in its Global Trends Ecommerce Fund.


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The views expressed in this article are those of the author at the date of publication and not necessarily those of Dominion Fund Management Limited. The content of this article is not intended as investment advice and will not be updated after publication. Images, video, quotations from literature and any such material which may be subject to copyright is reproduced in whole or in part in this article on the basis of Fair use as applied to news reporting and journalistic comment on events.