- Google entered the Chinese market in 2000 but its site was blocked in 2002, leading to lost market share. By 2006 Baidu had emerged as the top search engine in China. - Google launched google.cn in 2006 but agreed to censor results per Chinese law, drawing criticism for compromising its mission. In 2010 after cyber attacks and censorship demands, Google stopped censoring search in China and its site was soon blocked. - The document evaluates Google's business opportunities and regulatory challenges in China, highlighting the strengths of its global brand but also the weaknesses of not tailoring its search to Chinese culture and threats from the Chinese government. It considers alternatives like aligning with Chinese concepts to potentially remain in the large Chinese market.

1. International
Business Negotiation
between
Google & China
Presentation prepared by
Nabaraj Giri
Date: April 20, 2017

2. in China

3.  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.

4.  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.

5. 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, google.com, 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

6. By 2005, the Chinese search engine company Baidu emerged as the leading
Internet search company in China.
Problem Analysis Solution Conclusion

7. To compete with Baidu, Google decided in 2006 to launch a Chinese
website (www.google.cn) 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 google.cn 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

8. “[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

9. 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
Google.cn. So earlier today we stopped censoring our search services… on
Google.cn. Users visiting Google.cn are now being redirected to Google.com.hk,
where we are offering uncensored search in simplified Chinese, specifically
designed for users in mainland China and delivered via our servers.
In Hongkong” (http://googleblog.blogspot.com/2010/03/new-approach-to-china-update.html (accessed
April 14, 2017)). On March 30, 2010, the Chinese government blocked access to Google’s search
engine from Mainland China.
Problem Analysis Solution Conclusion

10. Problem Analysis Solution Conclusion

11. Problem Analysis Solution Conclusion

12. Problem Analysis Solution Conclusion

13. Problem Analysis Solution Conclusion

14. Problem Analysis Solution Conclusion

15. People may click the two cartoon policemen to enter the cyber space
(http://66110.qzone.qq.com, http://777110.qzone.qq.com ) 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

16. Problem Analysis Solution Conclusion

17. 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

18. Strengths
Threats
Weaknesses
Opportunities
Problem Analysis Solution Conclusion

19. - 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.

20. - 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

21. - 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.

22. Problem Analysis Solution Conclusion
Weaknesses

23. - 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.

24. Problem Analysis Solution Conclusion
Opportunities

25. - 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

26. Problem Analysis Solution Conclusion
Threats

27. - 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

28. • Enculturated 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

29. - 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

30. References
• Wall Street Journal
– http://online.wsj.com/article/SB116014813857884917.html?mod=technology_mai
n_whats_news
– http://online.wsj.com/article/SB116039852999986783.html
• BusinessWeek
– http://www.businessweek.com/technology/content/jan2007/tc20070126_817521.h
tm
– http://www.businessweek.com/technology/content/feb2007/tc20070202_568443_
page_2.htm
– http://www.businessweek.com/technology/content/oct2006/tc20061010_083340.h
tm
• ZDNet
– http://news.zdnet.com/2100-9588_22-6060691.html
• Yahoo! Finance
– http://finance.yahoo.com/q?s=goog&x=0&y=0

31. Questions?

32. Thank You!