What is the lesson of Yahoo China for five years in China market?
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In recent days Yahoo spent one billion USD to acquire 40% of Alibaba’s shares, it means Yahoo plan to pay more attention to develop e-business. It also means Yahoo accept the failure fact of Yahoo China within five years, so Yahoo sold Yahoo China to Alibaba.
Why Sina, Sohu and 163 have made great profits within five years, but Yahoo China could not? What are the lessons of Yahoo China?
1. The decision makers are far away from market and customers.
This is common mistake for global company in China Market. Usually global groups’ headquarters are not in China, their top leaders of headquarters consider China divisions are only one department of groups, so China Divisions have not right to make decision.
However these decision markers are far away from market and clients, how they can make right decision? How they can make quick response?
2. The top management team members are not local talents.
Although global groups understand very much the importance of localization, however their top management teams are not from local talents. They love to use American and European managers, so these top managers should spend two or three years to understand Chinese market.
3. The strategy and tactic of marketing are not right at beginning.
Although global groups have strong advantages on Investment and Technology, however they do not understand Chinese market at beginning, their strategy and tactic of marketing are not right, so they go wrong way in the market at beginning. When they realize the wrong strategy, it is too late, because competitors never give them enough time.
Yahoo China spent five years to understand China market. Now Yahoo plans to develop e-business. The lesson is too expensive. We hope Yahoo can grasp new chance in China.
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