Dec 26, 2015
Google Goes To China
Presented By:D J Srikanth
Gyan PrakashVikram KumarAnkush Tiwari
Bikash AcharyaPratap Reddy
History and Milestones Founded in1998 by Sergey Brin and Larry PageHeadquarters in Mountain View, California,
(Google Plex)Google is having more than 52,069 employees
worldwide1996: They had built a search engine (initially
called BackRub)1999: Google had secured $25 million in venture
capital funds2000: Google introduces AdWords
2002 : The launch of Google Labs. Google News launched in beta in September of 2002, offering access to 4,500 leading news sources from around the world.
2003: Google acquires Pyra Labs and became the home for Blogger.
History and Milestones 2004: New web-based mail service called Gmail
launched and Acquisition of Picasa, Inc. In August 2004 Company is go for the IPO of $100 billion
2005: Launch of Google Talk and acquires Orkut
2006: launch Page creator, Google Finance, Google Calendar, Custom Search, Trends, Notebook. It offers online productivity software including Gmail, Google Drive, Google Docs and Google+.
The company leads the development of the Android mobile operating system
620 million visitors visit Google.com daily. Run more than one million servers in data centers
around the world In December 2013 Alexa listed google.com as the most
visited website in the world.
Vision Mission and FocusThe Vision
◦ To make search engines so powerful they would understand "everything in the world".
The Mission ◦ To organize the world's information and make
it universally accessible and useful.
The Focus◦ Google continues to focus on innovation and
on the user experience.
◦
Global Market Share in Search
53.30%
20.10%
13.60%
13.00% Google
YahooMSNOthers
GOOGLE USERS
37%
27%
20%
9%
3% 2% 2%
AsiaEuropeNorth AmericaLatin AmericaAfricaMiddle EastAustralia
SWOT ANALYSIS
STRENGTHS WEAKNESSES
Brand equityConsistent
innovationsMost efficient search
engineWide range offeringsConcentration on
consumers
All the products not known to the consumers
Over dependence on contextual advertising for revenue
SWOT ANALYSIS
Opportunities Threats
Search continues…Today is the world of
computer literacy Mobile technologies
add another opportunity.
Cheaper global telecommunication costs open new markets
Legal issues about information stores
Threats from core competitors (developing search engine)
Users get confused.
Google ChinaGoogle China is a subsidiary of Google. Founded in 2005 and was headed by Kai-Fu
LeeGoogle China ranks as the number 2nd search
engine in China, after Baidu.com, often called the "Google of China" because of its similarity to Google.
Chinese-language interface was developed in 2005
In Jan 2006, Google launched its China-based google.cn search page with results subject to censorship by the Chinese government.
Google China serves a market of mainland Chinese Internet users that was estimated in July 2009 to number 338 million.
“Do No Evil”?The main issue critics is that the company violated its own
values and original philosophy, indicated in the statement, “You Can Make Money Without Doing Evil”.
For example, Beijing prohibits users from bringing up any results about “the Tiananmen square protests of 1989.
The Chinese government’s strict internet censorship policy screens what users can access.
Google’s e-mail, chat room and blogging services would also not be made available since the Chinese government could demand users’ personal information.
The company planned to advise users when access had been restricted on particular search terms.
Google’s Response Google’s operation started in china on the Chinese version of Google
news china on September 28, 2004. Search results deemed to be sensitive for political or other reasons are
inaccessible within China. Leaving aside the politics, that presents with a serious user experience
problem. Google news does not show news stories, but rather links to news
stories If they clicked on a headline from a blocked source, they would get an
error page. The company can play a more helpful role in China by being there than
by boycotting the invitation, even with the concessions.
Business incentivesTotal number of internet user in china
210 million at the end of 2007 and 107 million internet users are under age of 25
Google was late entrant in china market (behind Yahoo, AOL, Micro-soft.
26% internet search revenue in 2007 previously it is 17% in 2006.
Chinese online search leader(Baidu) share of market climbed from 58%-60%
Other internet companies enter ChinaGoogle followed some of its competitors
and related technology firms into china like Yahoo, Aol , Microsoft, MySpace and Skype.
Google acquired a small stake in the online retailer Baidu.com.
Google first followed by yahoo for the site that captured the majority of the search share in the region.
Controversies faced by Google and its counter part companies
Yahoo was accused in 2005 of supplying data to china that was used as evidence to jail a china journalist for 10 years.
My Space’s Chinese version, omitted and filtered certain discussion forum topics such as religion and politics.
Balance interest of American and Chinese users
Microsoft agreed to censor content from its blog services windows live spaces stating that providing internet services is more helpful for the Chinese than not having up presence in that country
Controversies faced by Google and its counter part companies
Dalai lama, Falun Gong, and Taiwan Independence were also blocked.
Endangering nation security, leaking state secrets, subverting the government, undermining national unity, spreading rumours or disturbing the social order.
“To make money ,Google has become a servile Pekinese dog wagging its tail at the heels of Chinese communists” Quan said.
Market share
Google in China: Face of the future? Or Derailed from its values • Google had signed up with china in February
2006 then students chanted “shame on Google” and “Google, don’t be evil”.
• Alma David a member “Student for a Free Tibet” groud told that Google is selling its values for profit. Its ‘don’t be evil’ just seem like a bad joke.
• Cheng Siwei Vice chairman of National People congress of china told, China was a
Backwater country and there are still some anti Chinese groups spreading rumors about our policies.
• Google had started a process that is good for free expression but china would be opened but it won’t be in one night
•
Question for discussion
1. What is the issue from your reading of this case?
2. What is your reaction or response to this statement made by a Google spokesperson in 2006 ? “While removing search results is inconsistent with Google’s mission, providing no information is more inconsistent with our mission”
3. Defend Google’s argument to do business in china
4. Defend the critics who argue that Google betrayed its values when entering china
5. What ethical principles did Google use to do business in china with its censorship policy? Explain
6. What ethical principles are Google’s critics in this case using in not accepting- Google presence in china
RecommendationsEmphasis on Sustainable RelationshipFollow the principle of “Do in Rome as Romans
do”Protect the interest of the investors & share
marketMore information & connectivity than non at allFunction as a server not as a ruler
ConclusionGoogle as a major player globally ;staggering to
provide full services i.e. search engine in china Inbound with political scenarios of china
emerging as a major hurdle to functionBears wider role and scope for further business
in future market