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The biggest reason is our cultural differences. EBay was an outsider and did not understand the cultural market there. By understanding our cultural differences we will understand why EBay was unable to successfully enter the Asian market.
The main concept is a word, Guanxi . Guanxi describes the basic dynamic in personalized networks of influence, and is a central concept in Chinese society. At its most basic, Guanxi describes a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. (Ansfield, 20047) Chinese companies are winning because they understand the market better and the power of Guanxi...
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