Tencent and Alibaba have the market cap off Facebook, and Baidu is larger than Twitter. Yet, they have failed to expand internationally like Xiaomi, Huawei or DJI? Why is that? #tencent #alibaba #facebook #dji
Have you heard about bytedance
Yes, precisely shows that it is totally possible and there is no law or role against it, yet tencent and Alibaba are nowhere to be found
You kidding me? "musical.ly Inc. was founded by longtime friends Alex Zhu and Luyu Yang in Shanghai, China."
Having worked on Uber when it was still in China, my theory is that it's because the Chinese market is so large and unique in what its customers want. You can make a ton of money just focusing on making the best product for that market and win. But then those products aren't good fits for other markets and similarly products for other markets are often inferior in China. The hardware companies have more success because the hardware demands around the world are more similar, but even these companies often don't do well because the software doesn't fit the market as well. It's not the same in other markets like India or Mexico or Brazil because they're not as large as China in terms of $$$ and customer needs are not as different (partially driven govt demands on these companies).
Good points. I'd add that market fragmentation in Western economies make it harder to penetrate and innovation takes a bit longer. When you own the market you can start experimenting with features that takes decades to get adopted.
I think it is also cultural and language differences. For example, India was british colony and people are more English educated. So many US products will naturally be adopted by middle class. I haven't seen any companies including Google and Amazon breaking language/cultural barrier of china.
You will want to use Huawei and Tencent software if you have the choice. Because they put more effort in their products offering you a better deal. Now they put down these software by calling out security risks and setting up regulations to specifically target on these products. Just like what they have done to Japanese car, so American cars that last 2/3 mileage or European cars that are 2x overpriced can still compete.
As long as CCP has tight control over Chinese tech companies, other countries are not gonna trust them due to security, privacy and data leak concerns.
That’s just a cheap excuse, Chinese companies have always been the same, nobody called out anything until their products become competitive. They are even trying to abolish patents from Huawei in US. How is that related national security? It is just a trick to secure profit margin for zombie corporations in the west. It is a sign of weakness, not sign of strength.
Not really. The security concerns with 5G networks may be legitimate. Giving control of your communication equipment and Network to a Chinese company is a bad idea from US perspective.
Main product of Tencent, Alibaba and Baidu can't expand outside as they would need to compete with Facebook, Amazon and Google which dominated the markets before them. Their success in China are also linked with heavy localization in Chinese markets, which might not make sense elsewhere. That said it doesn't mean they didn't try or they won't expand in future, but it's more likely to be some new product. E.g. Tencent games are actually getting some traction in some markets.
Chinese companies have no problem competing with these companies if they are offered a fair game. They have problem to defeat Intel, IBM, Microsoft or Oracle who own some really complicated products. The true advantage FB/Amazon/Google have is the ability to try business ideas quickly with traffic monopoly and cheap capital gathered from a historic inflated stock market. Chinese companies are even more crazy on that. Amazon is famous for reinvesting everything, Alibaba has to sell iPhone cheaper than Apple.
It's less about difference between Chinese / American companies but more about status quo. Google tried so hard to create a social network to compete with FB but it failed. FB would have no chance to create a search engine that takes down Google. Microsoft did and failed. The competition is now in new products and new markets
Cause no one trusts the CCP
Stop being so NA/euro-centric. Look into how big AliExpress/Cainiao is in Turkey and Russia. Look at how big Tencent mobile games are in SEA (ex. PUBG Mobile/Arena of Valor). Even considering western markets, look at PUBG Mobile and AliExpress marketshare in France/Spain/Italy/Greece. Don't forget investments/acquisitions like Riot, Epic, Supercell, PayTM, etc. Outside of Tencent and Alibaba, Chinese mobile games are massive world-wide. Look into Moontoon, MiHoYo and Lilith. Also in ecommerce, look into JD Indonesia/Thailand as well as SHEIN, Club Factory. Look into all the Chinese players in the Indian app ecosystem. Didi is also expanding very well into LATAM, Japan and AU. Look into live-streaming apps like Bigo Live. The trend is upward. Give it a few years and Chinese internet companies will be even bigger globally.
These are all good points, for a company that size, I expected dominance like FB or Amazon, rather than games that sometimes come from tiny companies (Rovio etc...), but all good points for a potential future trend.
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Protectionism. Just like the other way around. All governments are evil, but US govt has more slave countries so it has better internationalization.
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So true!