| Summary: | This research aims to provide an overview of strategies adopted by three Chinese companies—Taobao.com, Baidu, and QQ to gain competitive advantages. Three strategies—first- and second-mover strategy, generic strategy, and resource-based theory are identified and further analyzed. The analysis employs documentary research methods, particularly firms’ historical documentary review and analysis, for this qualitative research to study each case.
The Chinese internet industry is developing rapidly with great potential for attracting both domestic and foreign companies. Compared with international giants eBay, Google, and MSN, the young Chinese dot-com companies have many disadvantages in terms of capital, reputation, experience, and technology etc. However, the three Chinese companies have all managed to defeat their foreign competitors in the Chinese market by using right and suitable strategies. The findings of this research also support this argument, showing that Taobao.com, Baidu, and QQ have gained competitive advantages from external opportunities as well as internal resources and capabilities by using first- and second-mover strategy, generic strategy and resource-based theory.
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