Case Study: Google in China





Case Study: “Google in China”
MGT/448
November 18, 2013


“Google in China”
The case study chosen is Google in China and how the challenges in the legal cultural and ethical confrontations working in the country. Also look at the various roles the Chinese government effects Google’s operations. This will hopefully summarize the Google’s global business presence in China with the challenges it faces with strict government.
Politically, Google's well-known mantras “don’t be evil!” (Smith, 2010) collective with its United States origins is substantial drawback in the Chinese market. There are already documented cases of the Chinese government demanding search filtering or disclosures of user information as the admittance price to China's vast Internet market. These external forces make it difficult for Google to keep face with its western users, a problem Baidu.com does not have. Culturally Chinese users may want to continue with Baidu.com as it is nationally owned company, rare among the technology companies that lead China's landscape.
We will take a long term view to win in China. The Chinese have 5,000 years of history. Google has 5,000 years of patience in China a quote made by Eric Schmidt, Google CEO. “Although Google has made some progress in terms of market share, they may indeed need 5,000 years to pass Baidu ....and not only Baidu” (Hilgers, 2013). Based on the comment made by Eric Schmidt, Google, including its developing strategies in China, competitors and company situation, they want to make a progress forecast on the future development of Google in China.
Chinese Internet market will still thrive without Google.' said the former CEO, Kai-fu Li. If Google will pull out of Chinese market because of the internet censorship is still uncertain. But abandoning Chinese market will sure to be a big loss (Hilgers, 2013).
If Google finally decides not to quit China, several factors will become the stumbling stone in its way to improve market share and beat competitors. The first will be the major factor that blocks the way of Google. Google's threatening to quit Chinese market for the dissatisfaction with Internet censorship is a provocation of Chinese government. If this problem is not solved, Google will never get the proper resources or compete in the market freely. Another is the use of wide publicity and people-oriented strategy has helped Google's largest competitor, Baidu capture the nearly 70% of the market share (Hill, 2009). As a technology-oriented company, Google believe it can win as long as it has an edge in the technology. However, future development with little publicity will estrange Chinese people with the international brand.
These are the vital elements that determine the future path of Google. If Google does not solve these problems, we do not see a bright future in its development. Instead, we speculate that one day Google will retreat from Chinese market as a result of its inability to understand the rules of the game in China. If Google are ready to change and adapt itself to the huge market, with its advanced technology, we think it will divide equally the market share with Baidu and it is just the first step. Once Google has a stronger effect in China, Google can do better in China it can take the leadership in the world as well as China is going to be the second largest internet users market right after the United States.
The summaries this attainment of the share against an established competitor is a difficult proposition in one’s own country, but in trying to take shares of market in another country can be enormous. Currently Baidu is looking to expand overseas in Thailand, Egypt and Brazil, the United States not a target for expanding or boosting shares. In a comment from Robin Li, “For Baidu, we choose not to come to the U.S. market first because this is a market that is very different from developing countries,” he said. “For a company to be successful internationally, they don’t need to be successful in the U.S. The U.S. is just one part of the world.” (Chen & Chang, 2013). How does Google compete with Baidu in China, where Baidu does not consider expanding in the United States with a comment like that?





















Reference

L.Y. Chen & E. Chang, (2013) Baidu’s Li Looks to Deals to