Business Case Studies, Leadership Case Study, Tata Group,Ratan Tata

Code : BSM0019

Year : 2005

Industry : Internet and e-commerce

Region : China

Teaching Note:Not Available

Structured Assignment :Not Available

Introduction:The history of the Internet's development in China can be traced back to 1987, when the first email was sent by a professor in Beijing through the Chinese Academic Network, the first computer network in China. In the following years networks were created only for the purpose of academics or research. In May 1995, ChinaNet, China's first commercial computer network was setup allowing Chinese people to access the Internet for the first time. By then, the Chinese CommunistParty (CCP) had recognized the economic potential of the Internet and classified the development of Internet in China as the "Golden Project". The Internet unlocked massive investment opportunities in China. China soon became "the world’s fastest growing Internetmarket", with the number of Internet users doubling every six months and thousands of websites being launched every year. While in 1997, Internet was being used by only 6,70,000 users the number increased to 2.1 million in 1999, 22.5 million in 2000 andmore than 60 million in 2003.

Foreign investors channeledmillions of dollars intoChinese Internet startups, recognizing the huge growth potential in China. However the global economic slowdown that began in 2000 followed by the terrorist attacks onWorld Trade Center in 2001, caused a majority of the dotcom companies to go bust. In spite of such unfavourable conditions a fewof the Internet startups displayed the staying power needed to build a successful enterprise. One such dotcomcompany was SINA.