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March 29, 2010

Comments

Clara

What if eBay had gone to Turkey directly, not via taking shares of GG?

Do these US players acquire shares because they are forced to (because operations like GG are already present) or because the value they derive from a GG-type local player is higher than entering alone?

cem sertoglu

Clara, I suspect the reason is both. IMHO, a stand-alone eBay service could not have caught up to GG, in a business with such network externalities.

Gulistan T. van der Linden

very true... even for the highly technology driven ventures, I believe success of marketing strategies depends increasingly on how succesfully they deal with local market dynamics ...to keep/make the competetive advantages repetitive..

Clara

Yes, I think you're right too. But, of course, I would differ if we were dealing with a service that has not been replicated with a local flavor by some people in the native market.

Spain (my country) has an interesting case with Tuenti (Spanish FB) which has been around for 4 years, still has not made break-even, is populated by 20-somethings and became big (8M RU) -for the most part- because at the time of it's growth FB did not offer a Spanish interface.

Now they just had to scape another 9M from PRISA as all other possible investors said "No".

However, their breaking even is a huge challenge and I just fail to see how "localization" is in any way going to help them vis-a-vis FB in the long run.

Gulistan T. van der Linden

Please check Otto Group's Limango and Strawberrynet.com.

Limango.de (Limango for Germany) and limango.com.tr (Limango for Turkey) provide different products at the same campaign periods and with different web site designs-images etc. Limango considers local preference, local purchasing power and internet infrastructure differences when providing the same service to different markets.

Strawberrynet.com,like FB, provides the same service all around world. As I notice, recently they added language option...


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