Yahoo! in China: Local Problems for the Global Internet Giant

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Case Details:

Case Code : BSTR260
Case Length : 18 Pages
Period : 2000-07
Pub Date : 2007
Teaching Note :Not Available
Organization : Yahoo!
Themes : Business Strategy | International Expansion Strategies
Industry : Internet and e-Commerce
Countries : China

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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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Excerpts Contd...

Yahoo!'s Problems in China

Unwanted Pop-Ups

Yahoo! China was often accused of promoting unwanted pop-ups, which irritated the browsers. Yahoo! China's erstwhile General Manager, Zhou Hongyi (Zhou) accused it of spreading malware, a software that installed itself without permission. When Yahoo! China bought Zhou's search engine in 2003, Zhou was made the general manager. He later shifted to (Qihoo) in August 2005.34 Zhou accused Yahoo! of knowingly distributing its toolbar and getting users to visit sites through pop-up windows. His company, Qihoo, started distributing an anti-spyware program that identified Yahoo! China's toolbar as malware and removed it from computers...

Business Strategy | Case Study in Management, Operations, Strategies, Business Strategy, Case Studies

Future Outlook

Analysts opined that apart from providing content and other premium services, online search and online advertising were the key focus areas that could generate revenue growth for Yahoo! China.

Ma himself opined that that Yahoo! China would have to leverage on its understanding of the Chinese consumers and chart its own path in the online search market. "If you follow Google's way, you will always be a follower…We have to make the Yahoo search engine more human, more interactive ... something for the 1.3 billion people in China who aren't technology-oriented, who don't know how to ask the right questions to a search engine - for people who are like me,"Ma said describing Yahoo! China's future course of action.50 Industry experts felt that by positioning itself in the high end segment, Yahoo! China would be on a different platform when compared to Baidu. But it would have to compete with Google, a dominant player in that segment...  


Exhibits I: A Brief Note on China's Local Internet Companies
Exhibits II: Yahoo!'s Mission Statement
Exhibits III: Yahoo!'s Important Acquisitions (as of 2006)
Exhibits IV: Some important Events in Yahoo!'s Journey
Exhibits V: Important Business Activities of Yahoo!
Exhibits VI: Income Statement of Yahoo! Inc.
Exhibits VII: People's Republic of China: Some Facts (2006)
Exhibits VIII: Share Price Movement of Yahoo!

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34]  "How Yahoo China Missed Out on The Mainland,", December 18, 2006.

50]  John Heilemann, "Jack Ma Aims to Unlock the Middle Kingdom,", October 02, 2006.


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