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
Continues for 3 more pages >>
Paper Details
Category:
Business
Word Count:
832
Page Count:
6