An Analysis Of Why International Companies Fail In Emerging Economies Assignment

An Analysis Of Why International Companies Fail In Emerging Economies (China) And Facebooks Strategies For Entering In Chinese Emerging Markets - Assignment Example These companies are characterized y having factories and offices in different countries that are all managed form a centralized office that coordinates the corporation’s global management. These multinational corporations not only produce but also sell a variety of services and goods in various countries around the world (Fatemi, Saint-Phalle and Williams, 1975). According to Bjà ¶rkstà ©n and Haglund (2010), most multinational companies fail to perform well in China not because of the Chinese government policies but mainly because of their own incompetence. This is chiefly credited to the fact that the management teams of most companies fail to try and understand the Chinese market, drastically underestimates the challenges involved in doing business in China or even simply just choose the wrong business partners (BjörksteÃŒ n and Hägglund, 2010). This view is supported by Joerg Wuttke who is the Chief Representative of the German chemical giant BASF. Wuttke has ha d a long experience with working in China but points out that more often than not, every body is always rushing to blame China but when an indepth analysis of an organization’s failures is conducted, it is usually fond that the mistakes were mainly of the organization’s making. ... t lead to Google’s and eBay’s failure in China China first allowed its first internet 16 years ago and the various companies and western governments quickly hailed the move as being a major move away from the country’s traditional authoritarian control and censorship. Most of the foreign companies immediately laid down various policies and plans that were aimed at enabling them to take advantage of China’s massive consumer base that was perceived by many to be relatively untouched (Daltorio 2010). Google planned on taking over China in the same manner and fashion that it was taking over the United States market. In attempting to take over the Chinese market in the same way it took over the United States market, Google foolishly and blatantly ignored what is considered by many to essentially be one of the most vital rules necessary for conducting any business: Know your market. In essence, by attempting to impose its western vision of the internet on the As ian nation, Google ended up creating a huge mess for itself and inadvertently made easy profits for its local competition. China has about 384 million internet users that account for an average of one-fifth of the over 1.73 billion global internet users. It is especially in light of these statistics that Google adopted a trend that was keenly focused on global domination. Google is commonly faulted for the fact that it initially took many years for it to research and find out some of the basic facts as pertaining to some of its local Chinese competitors such as Baidu and Tencent Holdings. Google also happened to largely ignore the free music downloads market segment an element that was greatly capitalized by Baidu and helped to make Baidu extremely popular in the Chinese market (Daltorio 2010). Google’s