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Monday, Oct 14
Alibaba to invest billions as it aims for $500B market place
- Alibaba intends to pour $16B over the next several years into building out its logistics and support systems as part of a strategy to penetrate deep into China's massive interior and reach hundreds of millions of consumers.
- The Internet giant, which is expected to raise $12-15B in an IPO, expects to triple the amount of transactions on its market places to 3T yuan ($490B) by 2016. That would enable Alibaba to pass Wal-Mart as the world's largest retail network.
- However, Alibaba's plans could be preparing the groundwork for it competitors to benefit at its expense in the future.