Lessons from Google's Experience in China

Lessons from Google’s Experience in China • Scott Arbeitman • Jorge Fajardo • Esteban Neuenschwander • Peter Polacek •

Perspectives

Perspectives Mianzi (face)

Perspectives Mianzi (face) Justice and Relationships (guanxi)

Perspectives Mianzi (face) Justice and Relationships (guanxi) Censorship

Perspectives Mianzi (face) Justice and Relationships (guanxi) Censorship Innovation

What Happened? 1949 - Communist China Declared

What Happened? 1970’s - Economic Reform

What Happened? 1989 -Tiananmen Square Massacre

What Happened? 1990’s - 2000’s – Rapid Economic Growth

What Happened? 1998 – Google is Incorporated

What Happened? 2004 – Google IPO

What Happened? 2006 – Google starts google.cn

What Happened? January 2010 – Google discloses hacking attempts

What Happened? March 2010 – google.cn redirects to uncensored HK site

What can we learn?

Losing Face Western ﬁrms should not undertake any communications or policies which would undermine the "face" of the Chinese government. A better approach would be a “partnership” where the two parties attempt true cooperation and discuss their grievances in private.

Justice and Relationships The Chinese legal system is not be best avenue to resolve legal disputes. Instead, companies should invest in relationships with Chinese ofﬁcials (guanxi) to ensure that should any commercial or political friction occur, it can be smoothed over.

Censorship Western ﬁrms cannot expect their corporate values to the universally applicable. Indeed, some issues may clash with the political or cultural sensitivities of other nations.

Innovation Innovation and the introduction of new technology to China will not, alone, create a favourable operating environment for your company. In the short term, the government has other priorities. However, innovation is crucial for future Chinese development and ﬁrms should attempt to foster innovation as best they can.

Conclusion Lee Kai-Fu, former head of Google China

Conclusion 1) Learn the protocols and forge trusting relationships* 2) Establish a strategy for long-term commitment* 3) Nurture local talent and leadership 4) Be ﬂexible and open to local needs and practices* 5) Help build the local business ecosystem 6) Build trust from a uniﬁed, humble organization* It is no wonder Google struggled and will continue to struggle in China.

Conclusion 1) Learn the protocols and forge trusting relationships* 2) Establish a strategy for long-term commitment* It is no wonder Google struggled and will continue to struggle in China. 3) Nurture local talent and leadership 4) Be ﬂexible and open to local needs and practices* 5) Help build the local business ecosystem 6) Build trust from a uniﬁed, humble organization*

Q &A (I’m Feeling Lucky)

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Lessons from Google's Experience in China

by Scott Arbeitman on Apr 23, 2010

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