Yahoo! in China: Local Problems for the Global Internet Giant |
ICMR HOME | Case Studies Collection Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source. |
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Introduction Contd..."We don't want those not interested in business or making money. They can go to Baidu. Our main focus is the high-end. We don't need to compare ourselves with Baidu in market share," Ma said, describing the new strategy.6
Some of the main reasons cited by analysts for the failure of foreign companies in China were strong competition from local Internet firms, the complexity of the Chinese language, the inability of these companies to understand local culture and preferences, and rigid government regulations. Due to these hurdles, most of the foreign Internet companies chose to collaborate with local companies, which had a good understanding of local business and culture.
6] Mike Sachoff, "Yahoo China to Change
Strategy," www.webpronews.com, January 08, 2007.
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