Internet Enterprise Development In China And Its Implications

As a brand-new industry compared with traditional manufacture industry, internet industry has its unique economical features. In this industry, there are no clear difference between upstream and downstream, no outsourcing and dumping. Even the branding and economic of scale don't have such effect. China is no longer the global cheap manufactory; it is the heaven full of creativities and ideas. The international internet companies, for example Amazon,AOL,eBay,Yahoo and Google, have faced lots of problems during the development process in China. China is not only the potential prosperous market, but also helped them to rethink their strategy in localization development.This thesis tried to analyze the problems of three international companies (Google, Yahoo, eBay) and the challenges when they develop their business in China. The problem and challenges may be related to government policy, culture, management team and etc..We use PESTLE model to analyze the Macro-environment and Porter's five forces model to analyze the Micro-environment of internet industry in China. Meanwhile with the guide of internationalization related theory, we analyze the strategy and problem when international internet companies entering china market. We also get the strength,weakness,opportunity and threat through the SWOT analysis. From the analysis, we can conclude the current situation and problem international internet companies facing, also we can get some useful suggestion for those china internet company willing to enter international market in the future.