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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"We believe that to be successful in China, we absolutely have to have strong local management, and Jack Ma and his team are the best-of-breed Internet management team inside China."1 - Jerry Yang, Co-founder, Yahoo! Inc., in 2005. "Yahoo still hasn't made a major impact in China."2 - Duncan Clark, Managing Director of Beijing-based consulting firm BDA China Ltd., in 2006. "Specialization is the key. If Yahoo! is going to win, it has to do so in a new way. What's the point of building another Sina.com?"3 - Jack Ma, CEO of Alibaba Group4, in 2007. Introduction
But Yahoo! China found it difficult to compete with local companies like Sina Corporation (Sina), Sohu.com Inc. (Sohu), and NetEase.com, Inc. (NetEase), who together were popularly known as the "Big Three" Chinese Internet firms. (Refer to Exhibit I for information on China's local Internet companies).
1] "Inside Yahoo's China Gambit,"
www.businessweek.com, August 12, 2005.
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