Commentary: What Western tech firms can learn from LinkedIn’s failure in China

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Arrogance and a lack of market understanding seem like key reasons why Western tech firms from LinkedIn to Amazon floundered in China, but there are deeper issues at play, says Jianggan Li of Momentum Works.

But the problem here is not the individual product managers, but the whole organisational setup. Why would product managers in the US decide on priorities for China’s market? Why not give the local manager resources to implement changes - and hold them accountable for such decisions?

The same root causes of failure also apply to Chinese companies venturing overseas today. WeChat, part of Chinese tech giant Tencent, failed to gain traction in any other country despite significant investment. At home, Tencent has a super app ecosystem with more than 1 billion active users.The failures of these expansion efforts hold lessons for Western and Chinese tech players venturing overseas.

File Photo. The same root causes of failure also apply to Chinese companies venturing overseas today. WeChat, part of Chinese tech giant Tencent, failed to gain traction in any other country despite significant investment. Commentary: The rise of China’s Gen Z will have massive consequences for business and politics

Leadership will also need to pick, sustain and motivate the right people to cultivate their businesses in large foreign markets.

 

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