First heard over at Paul Denlinger's excellent China Vortex 2 days ago, MySpace China Loses Out To Local Competition, David Barboza at the NYT notes that Luo Chuan is leaving the CEO position at MySpace China after a bit more than a year. MySpace China Says Its Chief Will Resign. Paul posits:
My conclusion: The problem does not lie with China, but instead lies with the reluctance of western social networking sites to empower their local management to do whatever they need to win users and market share. By trying to force common features, standards and branding too early from their headquarters way before the market is mature, they cripple their local companies' chances of success, and cede the market to the local competitors.
That is why the successful local competitors get such high
valuations; they make ideal acquisition candidates and give their
founders a good exit strategy.Ask Meg Whitman, former CEO of eBay.
And all that after even having Rupert Murdoch's Chinese wife, Wendi Deng Murdoch, on the board of MySpace China: Danwei, FinancialTimes, AsiaMedia.
I totally second with Paul's observation.