Once the euphoria fades over Alibaba Group Holding Ltd's high-profile initial public offering major concerns over the company's medium- to long-term competitiveness may emerge.

One of the major concerns is the complex and opaque nature of Alibaba's ownership structure and accounting practices. For example, what are the real relationships among the 29 companies Alibaba has bought during the past two years and the group's overall, impressive profit record?

Market growth is also slowing in China, and Alibaba's initial, tentative overseas forays have not yet led to major success.

Alibaba's success in the Chinese mainland has been built on an "architecture of trust" that has empowered consumers and businesses with its reliable online payments and related services.

China's e-commerce industry is still hampered by deep mistrust, except for Alibaba.

Many Chinese companies that have global ambitions also have low brand awareness among foreign consumers, and Alibaba is no exception.

Most consumers in other countries who are aware of Alibaba mostly think of its charismatic leader and co-founder, Jack Ma. His charm and ability to attract media attention with his passion for business will probably boost Alibaba's initial listing and may well lead to a short-term burst on the NYSE.

But is this style of leadership most suitable for the analysis and planning now needed to secure successful entry and growth in increasingly competitive markets?

Fears of investors looking at the longer term will only be assuaged if Ma can quickly build a senior management team based on international market knowledge and experience.

Clearly, Alibaba's IPO will generate tremendous excitement, but long-term growth prospects remain cloudy, and investors should proceed with caution.

The author is a visiting professor at the University of International Business and Economics in Beijing and a senior lecturer on marketing at Southampton Solent University's School of Business. The views do not necessarily reflect those of China Daily.

(China Daily USA 09/19/2014 page19)