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Google In China - Case Study

Google in China Case Study

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Google In China - Case Study

  1. 1. in China Presented by: Maria Gizelle Aragon Date: March 21, 2014
  2. 2.  Googol, a misspelled named of Google, began in year 1996 founded by Larry Page and Sergey Brin in California specializing in internet-related services and products including search, cloud computing, software, and online advertising.  Google at first had a simple design and registered in year 1997 and incorporated in year 1998.  In 2011, Google surpasses a 1 billion of visitors which is an 8.4 per cent of increase from a 931 million visitors since 2010.  Google offers products like online productivity software (e.g. Gmail, Google Drive, Google+) and a mobile operating system.  As of 2013 the Revenue: US$59.82 billion with an operating income: US$13.9 billion, Profit: US$12.92 billion, Total Assets: US$110.92 billion, Total Equity: US$87.30 billion, and Employees of: 47, 756.
  3. 3.  In-lined in their mission statement, “to organize the world’s information and make it universally accessible and useful” and an unofficial slogan, “Don’t be evil” are consistently followed and has led to criticism of the company.
  4. 4. Google, the leading Internet search engine company in the world, entered the Chinese market in early 2000 by creating a Chinese-language version of its home page,, that was located in the United States but that could handle search requests from China. In this way, the technology was not subject to Chinese censorship laws as the facilities were not within China’s physical boundaries, and Google did not need a license from the Chinese government to operate its business. In 2002, the Chinese version of Google was shut down by the Chinese users and completely inaccessible for Chinese colleges and universities. Problem Analysis Solution Conclusion
  5. 5. By 2005, the Chinese search engine company Baidu emerged as the leading Internet search company in China. Problem Analysis Solution Conclusion
  6. 6. To compete with Baidu, Google decided in 2006 to launch a Chinese website ( and agreed to censor its content enforced by means of filters known as “The Great Firewall of China.” “Harmful” content included material concerning democracy (e.g. freedom), religious cults (e.g. Falun Gong), or anti-government protests (e.g. Tiananmen Square). Google received much criticism from human rights advocates because it censored information such as human rights. A moral question in here whether Google’s slogan “Don’t be Evil” (“It’s about providing our users unbiased access to information”) and their mission statement “Google’s mission is to organize the world’s information and make it universally accessible and useful” have been consistently followed. By censoring information, one could argue that Google has strayed from dedication to helping every user get unrestricted access to content on the Internet. Google admitted that the launching of was problematic with respect to their mission. In the words of Schrage, Google’s vice president of Global Communications and Public Affairs: Problem Analysis Solution Conclusion
  7. 7. “[Google, Inc. , faced a choice to] compromise our mission by failing to serve our users in China or compromise our mission by entering China and complying with Chinese laws that require us to censor search results… Self- censorship, like which we are now required to perform in China, is something that conflicts, deeply with our core principles… This was not something we did enthusiastically or something we’re proud of at all.” On March 22, 2010 after a cyber attack on Google’s servers and increased demands for censoring , Google decided no longer to censor its search results. In the words of David Drummond, senior vice president of Google Corporate Development and Chief Legal Officer: “On January 12, we announced… that Google and more than 20 other US companies had been the victims of a sophisticated cyber attack originating from China, and that during our investigation into these attacks we had uncovered evidence to suggest that the Gmail accounts of dozens of human rights activists connected with China were being routinely accessed by third parties, most likely via phishing scams or malware placed on their computers. We also made clear that these attacks and the Problem Analysis Solution Conclusion
  8. 8. surveillance they uncovered – combined with attempts over the last year to further limit free speech on the web in China including the persistent blocking of websites such as Facebook, Twitter, Youtube, Google Docs and Blogger – had led us to conclude that we could no longer continue censoring our results on So earlier today we stopped censoring our search services… on Users visiting are now being redirected to, where we are offering uncensored search in simplified Chinese, specifically designed for users in mainland China and delivered via our servers. In Hongkong” ( (accessed April 11, 2010)). On March 30, 2010, the Chinese government blocked access to Google’s search engine from Mainland China. Problem Analysis Solution Conclusion
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  14. 14. People may click the two cartoon policemen to enter the cyber space (, ) of two virtual cops and ask questions about information safety. Real policemen will answer their questions immediately. Internet users may also learn information about the Internet laws and regulations and some typical Internet criminal cases from these two virtual policemen. “The two dummy policemen were made to remind Netizens the Internet is protected by the law. People should pay attention to their behavior when they are surfi ng on the Net,” a senior offi cial of the Shenzhen cyber police told China Youth Daily. “ChaCha and JingJing” Cyber Police to Guard all Shenzhen Websites Shenzhen police plan to equip all Shenzhen Websites and electronic bulletin board systems with two virtual policemen icons on the main pages to maintain order in cyber space. Problem Analysis Solution Conclusion
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  16. 16. Problem Analysis Solution Conclusion - Understand the business and regulatory problems faced by multinational companies in China. - Evaluate the growth opportunities of the Internet businesses in China and the reasons that led to the loss in its market share. Objectives
  17. 17. Strengths Threats Weaknesses Opportunities Problem Analysis Solution Conclusion
  18. 18. - Google possesses one of the most globally recognized search engine in the world. Problem Analysis Solution Conclusion Strengths - Google offers many of its products and services at no-cost to the average user. They are able to deliver advertising content to a tremendous number of consumers around the world.
  19. 19. - Their Android software platform does not make the company any money; however, it allows Google to reach the mobile market, and thus generate more revenue as they are able to run advertisements on this platform. Problem Analysis Solution Conclusion Strengths
  20. 20. - Google's search engine is not tailored to individual cultures - this has been an issue for Google's attempted expansion into China, in particular. In order for the search engine to penetrate certain markets, it will need to modify it's search algorithms to account for such cultural differences. Problem Analysis Solution Conclusion Weaknesses - Google offers many services: Android, search, e- mail, photo and video sharing, Google drive, YouTube, Google maps, and many other services for free, and these services cost a lot of money and labor to update.
  21. 21. Problem Analysis Solution Conclusion Weaknesses
  22. 22. - In China, a massive internet market, Google possesses 16.6% of the market, second by a large margin to Baidu, so the company still has a lot of room to grow in this massive market. Problem Analysis Solution Conclusion Opportunities - If Google could handle both the hardware and software sides of the Android devices, like Apple does with its iOS and iPhone, Google would rake in much greater profits.
  23. 23. Problem Analysis Solution Conclusion Opportunities
  24. 24. - While Google may be the most popular search engine, globally, there are specific markets it has not been able to penetrate (i.e. China and Japan). Since about 20% of the worlds population is in China, this represents a huge and relatively untapped customer base for Google. Problem Analysis Solution Conclusion Opportunities
  25. 25. Problem Analysis Solution Conclusion Threats
  26. 26. - One of the biggest threats to Google’s success is the Chinese government, as long battles have raged between the two, and without the Chinese government on their side it is unlikely they will ever gain much traction in one of the largest internet markets in the world . Problem Analysis Solution Conclusion Threats
  27. 27. • Inculturate code or make the company code consistent with Chinese Laws. • Align code of company with Chinese concepts and slogans of key government officials. • Incorporate References to Global Standards Embraced by the Chinese. • Publish the Code in Bilingual Format. • Introduce the code in the Chinese way. • Do Whistle-blowing the Chinese Way. Problem Analysis Solution Conclusion Alternatives
  28. 28. - Google should stay in China since China's market is a huge investment for its shareholders and alternatives recommends to shape the company's code to fit, adjust and adapt to local norms of China. Problem Analysis Solution Conclusion Conclusion