Chinadotcom after the Dotcom Bust


Code : COM0011

Year :

Industry : Internet and e-commerce

Region : China

Teaching Note:Not Available

Structured Assignment :Not Available

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Chinadotcom Established in 1997, Chinadotcom Corporation was a leading Pan-Asian Internet Company offering web solutions, portal and online advertising services. It was a company listed on the Nasdaq with business focusing on the Asian subcontinent. Through its three dimensional business model, Chinadotcom was able to provide a full range of Internet services across the Asia Pacific region. The three dimensions were: 1) build e-business strategies and solutions (Web Connection), 2) distribute content via its portal network and 3) sell services through online advertising (24/7 Media Asia)...

Chinadotcom & Xinhua Chinadotcom in the beginning focused on providing content and media solutions. In 1997, it worked as a web outlet for 'Xinhua', China's official news agency. Xinhua owned around 13.6% stake of the company. The news agency was regarded as the "the portal's line to Beijing" [Because many Chinese laws, regulations and legal requirements with regard to the Internet were relatively new and untested The Chinese government also regulated access to the Internet by imposing strict licensing requirements and requiring ISPs in China to use the international inbound and outbound Internet backbones]...

Partnership with America Online Finding few takers for Xinhua's news, Chinadotcom switched to a new pasture: the portal business. But this venture too was not a cakewalk either, which the dotcom realized later. In 1999 China's Internet industry predicted that many of the country's leading dotcom companies would disappear. The reason being that there were "too many Internet portals chasing too fewInternet advertisers"...

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