Global Marketing
Google’s failure in China
TABLE OF CONTENT
Table of content 2
Abstract 3
Critical Analysis 3
The key issues and the lessons 5
Conclusion 6
References 7
Abstract
It has been 9 years since Google entered China Market officially, and 5 years since Google established Google China. Despite having a brand value of an amazing $66.4 billion, Google.cn still fails to dominate the search engine market in mainland China and faces stiff competition from bitter rival Baidu. In other words, Baidu’s market share in China is nearly 75 percent to Google China’s 25 percent. The secret to Baidu’s success and Google’s failure is largely positioning. Chinese authorities blocked Google
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Hence, Baidu.com is easier to remember than Google.cn.
Inability to control sensitive content. The Great Firewall is extremely sensitive when it comes to pornography contents. The reason of blocking Google International is that netizens in China can search pornography images via Google Images when the default setting of SafeSearch is off. In contrast, Baidu has a strong filter to sieve out any unsuitable content that displeasure the Chinese government. As a result, it’s almost impossible to search any sensitive content on Baidu. Google failed because government would not care about its position when all of us have to face the laws.
In China, consumers rely on blogs and other user-generated consumer reporting when deciding what to buy, mainly because they trust word of mouth much more than any blatant advertising campaign. So it should come as no surprise that they 're also very active participants, leaving more than twice the amount of comments their peers elsewhere post.
The key issues and the lessons
China is a complicated market, more so with the media industry. The Chinese government retains far more control over media, the press, and the internet than any other economy at a similarly-developed level.
Chinese internet users do not like to type, perhaps due to the fact that Mandarin has many thousands of characters. They navigate almost entirely by using the mouse. This may look cluttered and disorderly to an American, but it makes
The economy in China is doing well. China has in its recent years reached financial stability. This is due to the fact that there is a high level of domestic demand. Because of this, many companies around the world begin to invest in the Chinese market. China is also one of the fastest growing when it comes to Information Technology and has been able to attract companies such as Google and even Microsoft. It has been forecasted that the Internet industry in China is expected to increase at a rate of about ten percent within the next five years. This is great news because Google will be able to benefit.
It is important to note the following when evaluating China’s media industry: Public service television is an essential service to the community and cohesion of democratic societies aimed at the production, publication and distribution of a set of radio and television channels airing the diverse and balanced for all audiences, covering all genres and designed to meet information needs, culture, education and entertainment of Chinese society, spread their identify and cultural diversity, promote the information society, promoting pluralism, participation and other constitutional values, ensuring access for significant social and political groups.
Internet censorship and the requirement of self-censorship not only harm the economy inside China, but also are negatively affecting China in aspects of international commercial trade, even as globalization becomes the trend of today’s world. Chinese Internet censorship is applied to both directions; not only blocks Chinese Internet users’ access to certain foreign websites, but also prevents foreigners from knowing the truth about China through refusal of releasing reliable information. So when foreign companies want to enter the Chinese market, they face a serious question: “How do you assess an investment opportunity if no reliable information about social tensions, corruption or
Google Company is one of the global leaders in technology and in enabling people access information from the internet through their efficient search engines. Google immediately gained the attention of the internet sector for being a better search engine than its competitors (Wheelen, Hunger, Hoffman, & Bamford, 2015). This was after a tremendous effort in marketing their services and capturing a large market worldwide. However, there being so many risks and challenges in this line of business Google has had the urge to come up with new strategies so that they are able to overcome any challenge before them. The major problem that Google has
China joined the global Internet age in 1994, and has been commercially available since 1995. Since then, Chinese Internet usage has seen explosive growth, doubling every six months, and the number of online users is only second to the US. The Internet age ushered in the information age with a new world of freedom and expression for the Chinese. However, soon after its inception, the Chinese government has reined in the free wheeling Internet users and has imposed new laws and restrictions to access and content on the Internet.
Within the United States, the first amendment, freedom of speech includes the cyber-web. However, the government may try to examine personal information to protect its citizens from planned terroristic activities. Even so, these terrorists are allowed to say whatever they want, but it does not mean it will be ignored and not taken as a literal threat by the government. Throughout other parts the world, however, countries rely on communicating through means of the internet as ways to spread propaganda. In countries like China specifically, their government censors its citizens to prevent the spreading of propaganda or other radicalism. However, due to the fact that China’s strategy is so
Google is one of the most popular, and most used web search engines in the world. Google also has many services that helps you send mail, generate website pages, and create blogs. With all of these great tools come many great, user-friendly features specifically tied to Google. Google has vastly become one of the best search engines in the world, if not the best. Google averages about 12 billion searches per month, which is the most by any search engine in the world. Users can also search for photos, newsletters, and even geographic locations. The best part is, that all of these services are basically free. Google has also set to build more then just a search engine. Google is working on Google glass, self-driving cars, and even have a cell phone called the Android. Google also owns the rights to YouTube, where many users go to upload and watch countless videos. Another great thing the company is doing is spending money on alternative energy sources; last year Google spent 1 billion dollars trying to increase the use of wind and solar energy. Google is also fighting in D.C. to keep the Internet free for Americans. Lastly, Google has one of the best working environments in the world. Google has been the number 1 best company to work for 5 times in a row, including this year. They have been reported to the best human resources department in the world, taking their employee’s happiness over profit. There is no doubt in anyone’s mind that Google is not the best company to work
The Freedom of Speech is granted to every American citizen and has been since it was founded in 1776; however, not every nation grants that right. China, as a communist nation, retains most individual freedom rights from its citizens. Although in the Peoples Republic of China’s (PRC) 1982 constitution, people are guaranteed Freedom of Expression and Press; it is often violated by the current corrupt government. The government demands the news to be 80% positive and 20% negative, altering the facts n occasion. In contrast to that, America has recently become more involved with the pressing issue as well because of the involvement of Google. Thus it has shined the light on government censorship and corruption. China’s government corruption
Corporations that move into China have long recognized that internet censorship is a fact of life. In 2006,
Google entered China in 2006 with high hopes of taking over the Chinese internet market. In order to become a major player for internet search engines in China, however, they had buckled and filtered search results according to the Chinese government. When Google.cn was launched, a loud public outcry over its giving in to the Chinese government on censoring and filtering search engine results, the company faced a communications crisis. Since Google had always been known for its free thinking, this seemed a vast contradiction. From a communications standpoint, Google’s greatest vulnerability in this crisis lay with a tarnished public image.
This issue is very concerning for all of China because the government will not allow any opposition to itself. The government is not moderated and therefore has indefinite power. There is nothing to stand in the way of the government doing whatever they want. There are 420,000,000 Internet users in China. That is more than the entire population of the United States. Also, recently there have been some rally cries on the Internet in China that are similar to those of the Middle East/Egypt. China is becoming even stricter on the Internet usage policies because they do not want what happened in Egypt to spread to China. The government has also said that if any reporters come to the supposed rally sites they will either be deported or arrested and sent to jail.
Baidu adopted a strategy that focuses on searches in Chinese. The company has an advantage on this as the team understood the Chinese language, culture and the operations as opposed to other overseas competitors.
By having complete control over the few entities and their network connections, the Chinese government is able to monitor and regulate the Internet more effectively. Sherman, co-author of “Red Wired: China’s Internet Revolution”, explained that “China is not on the Internet, it's basically an intranet. Everything is banned by the Great Firewall”. Although Internet is accessible outside of China, the vast majority of the population refuse to use it because it is so inconvenient (Herold, 2012). For instance, recurrent time-outs, very slow Internet connection, and the content
Today, Google, Inc. is worth more than General Motors, McDonald's and Disney combined, and the company continues to model the way in the global technology industry in which it competes. In fact, the company's name has become a verb and it is common practice for consumers to "Google" what they want to find online. To determine how Google, Inc. reached this dazzling level of performance in a relatively short period of time, this paper provides an analysis of the three external environments in which Google competes, the general environment, the industry environment and the competitor environment. Next, a discussion of two specific strategic issues as well as opportunities and threats that are facing Google, Inc. is followed by a summary of the research and important findings in the conclusion.
Interests: A population of 1.3 billion along with a growing economy makes Chinese market extremely important for Google to enter