Digital Economy

Digital economy, generally refers to the use of digital knowledge and information as the key factors of production, the modern information network as an important carrier, the effective use of information and communication technology as an important driving force for efficiency improvement and economic structure optimization. A series of economic activities.����

·Digital Economy

• The word "number" in the "digital economy" has at least two meanings. First, as digital technology, including the still developing information network and information technology, such as big data, cloud computing, artificial intelligence, blockchain, Internet of things, AR / VR, UAV, autopilot, etc., it will greatly increase productivity, expand the space for economic development, create new economic forms and create new incremental wealth. At the same time, it will also promote the transformation and upgrading of traditional industries. Optimize the industrial structure and transform from the traditional real economy to the new real economy.

In 2003, Alibaba experienced the test of "SARS". Because some employees were diagnosed with SARS, "all the staff entered the state of working from home." At the time, this could almost be seen as a "life and death" moment for a young start-up. But in that year, Taobao was born in Hangzhou and rapidly grew into an important commercial force affecting people's lives.��20 years later, Alibaba has become a dazzling star in Chinese and even world enterprises. In fiscal year 2023, Alibaba's total income was 868.687 billion yuan ($126.491 billion) and net profit was 65.573 billion yuan ($9.548 billion).�

For example:

·Alibaba's Digital economy

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Pitfalls of Differentiation Strategies

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• In hindsight, the test of SARS has become an opportunity for Alibaba's rapid development-because of isolation, the original convenient offline shopping system has been impacted, and people's acceptance of e-commerce has become higher; logistics has also been impacted. with the development of e-commerce, logistics for individual consumers began to change to modernization, standardization and specialization.

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• The market changes, and the real economy is also on the eve of upheaval. It was then that manufacturing companies began a long and painfully electrocuted journey. After 2003, the words of "no transformation waiting for death, transformation seeking death" quietly sprang up, behind which is the entity manufacturing owners' perception and even fear of the general trend of the Internet.

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• In 2022, the added value of the core industries of Zhejiang's digital economy reached 897.7 billion yuan, an increase of 6.3 percent over the previous year, double that at the beginning of the 13th five-year Plan, and accounted for 11.6 percent of GDP. This year, Zhejiang has made greater efforts to implement the "No.1 Development Project" to innovate and improve the quality of the digital economy, making it clear that by 2027, the added value of Zhejiang's digital economy and core industries will exceed 7 trillion yuan and 1.6 trillion yuan respectively, realizing a "double increase".

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From the perspective of the development of digital economy in Zhejiang, we put forward the construction of "digital Zhejiang" in 2003, carried out the "dual integration" of informatization and industrialization in 2008, and the information economy was listed as the first of the "eight trillion industries" in 2014. We will deploy the "No.1 Project" of the digital economy in 2017, launch the digital reform in 2021, and implement the "No.1 Development Project" of innovation and quality improvement in the digital economy in 2023. Continue to build strength for the development of the digital economy.

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On the fertile soil of "Digital Zhejiang", the digital economy continues to breed, incubate and innovate. Alibaba started from the 1688 website, which is mainly based on information connections, developed Taobao, which is mainly deal-making, and then gradually upgraded its digital services, extending a number of innovative businesses such as Aliyun, rookie, nails and so on.

Therefore, enterprises can achieve differentiation by better meeting the needs of specific target groups, or they can serve this target group by reducing costs, or by focusing on serving specific target groups in a combination of low cost and differentiation.

The centralized strategy often has the limitation of market share, which generally requires a tradeoff between the profitability and sales volume of the enterprise. Similar to the differentiation strategy, the centralization strategy may sacrifice the total cost advantage, but this is not absolute.

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For example:

• The seven business groups and business companies of Alibaba holding Group will continue to strengthen cooperation with the Zhejiang provincial government to jointly create innovative, competitive and dynamic digital science and technology, digital commerce, digital life, digital foreign trade, digital logistics, and digital travel industry.

As a whole, "digital economy" includes new digital technology, new processing process of economic activities and new ways of organizing economic activities, which will also bring new economic effects. Digital and digital technology will play a huge role in the whole economic activities, optimize the overall economic structure, promote the reallocation of production factors, improve production efficiency, and promote economic growth.

For example:

• Alibaba has established a large-scale and popular business infrastructure. On the face of it, this platform generated a transaction volume of 8.4 trillion yuan last year, with 1.3 billion consumers and more than 8 million small and medium-sized enterprises; at a deeper level, these more than 8 million small and medium-sized enterprises are not only from Zhejiang, but also national, and even global, and consumers also cover 1 billion Chinese consumers and 300 million overseas consumers, so Alibaba has gradually grown into a digital economy enterprise radiating the world. In technological research and development, Aliyun has invested 120 billion yuan to serve more than 4 million enterprises, and the market share of cloud computing ranks among the top three in the world. Cainiao has become one of the four major cross-border logistics enterprises in the world. Nails provide enterprises and organizations with digital office systems and digital tools for organizational change. "

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