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Lessons from China’s Digital Battleground
Article

Lessons from China’s Digital Battleground


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Editorial Rating

9

Qualities

  • Innovative
  • Applicable
  • Concrete Examples

Recommendation

China’s digital market has attracted some of the West’s smartest companies – Uber, Airbnb, Amazon and eBay, among others – only to leave them sidelined while Chinese players have grown at mind-boggling rates. In this concise and authoritative report published in MIT Sloan Management Review, a team from the Boston Consulting Group explains why Chinese giants like Alipay, Didi and Tujia.com have bested their Western counterparts. The authors outline four imperatives for non-Chinese companies seeking to participate in the exploding Chinese digital market.

Take-Aways

  • The Chinese digital market has reached 700 million users and a value of $1 trillion, and its largest companies have enjoyed mind-boggling growth.
  • Some of the West’s strongest digital players have competed in China and failed.
  • The dramatic rise of China’s digital giants occurred because they solved bottlenecks in the country’s immature economy.

About the Authors

Shu Li is a partner in the Beijing office of the Boston Consulting Group (BCG). François Candelon is a senior partner in BCG’s Shanghai office. Martin Reeves is a senior partner in BCG’s New York City office and global leader of the BCG Henderson Institute.


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