Alibaba Group said it would reorganize into six business groups and other investments in a bid to boost market competitiveness in what could be the Chinese multinational technology company's biggest restructuring in its 24-year history.

Cainiao Smart Logistics would be one of the six units that would be split off from the Alibaba Group.

 Source: Cainiao Logistics

The other units are Cloud Intelligence Group, Taobao Tmall Commerce Group, Local Services Group, Global Digital Commerce Group, and Digital Media and Entertainment Group.

Each group would be managed by its own chief executive and board of directors.

For Cainiao, the logistics arm of the Alibaba Group, the announcement said Wan Lin would continue to be CEO of Cainiao Smart Logistics.

The move positions Alibaba's business to capture market opportunities and further stimulate growth. The announcement noted that each individual unit could list on stock exchanges in the future.

"The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready," said Daniel Zhang, who will continue to serve as chairman and CEO of Alibaba Group.

John Choi at brokerage Daiwa in a note to investors said setting up individual business groups will enable quicker market response amid intensifying competition.

The announcement said each CEO would report to a board of directors and assume full responsibility for company performance.

Meanwhile, Zhang will also serve as the CEO of the Cloud Intelligence Group — which will house all cloud, artificial intelligence activities and businesses of the Alibaba Group.

"Reorganization unlocks the SOTP [sum-of-the-parts] valuation of different business segments," said analysts, including Thomas Chong at brokerage Jefferies in a report to investors.

Goldman Sachs stock analysts noted that Alibaba is trading at one of the steepest discounts to net asset value globally among holding companies, and the investment bank expected the restructuring to help close the gap.