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Worldwide internet businesses in China - BAT
The BAT companies have the same, if not greater power, the Chinese internet as Google, Microsoft, Amazon, etc. have in the rest of the world.
Up to 75% of the internet business is China trading through BAT companies and their associates.
There is a major difference between China and the rest of the world in the way business approach the internet in China. Most Chinese business want to be part of an existing distribution channel and not create their own internet presents.
This is in part due to
- The histrionic concerns in publishing internet contents in China. By using one of the BAT services on internet does not need internet certification.
- The cost of developing a website in China are 100% to 200% higher than USA or Europa.
- The lack of IT skills inside Chinese businesses.
- The risk of failure of an in depend presence is high and is seen as part of a business strategy not a short term plan.
- BAT overall control of the markets.
The BAT companies supply platforms for IT services, e.g. e-Commerce. The e-Mall services have been very successful as they brought together the on-line stores with the end to end payment and shipping of the goods.
Below is a summary, not a complete list, of the key services supplied offer by the BAT companies.
While Alibaba has its power base in B2B and B2C services, Tencent power base is in Messaging and Social Media which is been successfully used to grow its other services.
Alibaba has been the stonger player in the market, Tencent maket share is growing in all markets. The power bases between the BAT companies and other supplier keeps changing as new services are bought to market and companies acquired.