Chapter 4 Case Study: Domestic search companies have a competitive advantage when it comes to understanding the needs to their target customer base. Therefore, the country makes a strong effort to eliminate any web content that speaks negatively about the government or its policies.
The company must also consider the competing search engines in the Chinese market, such as Baidu. However, the government is also very inviting to foreign businesses that can help increase the prosperity of the growing economy.
Summary of Strategic and Operational Challenges Any global business is bound to face a variety of strategic and operational challenges when expanding into a new foreign market. Officials in China have the ability to limit web content that is deemed negative to the government.
Competing in the Global Marketplace. Google developed a physical operations center in Chinese territory to address the censorship challenges and build a product that can serve faster search results. In order to tap into the large Chinese market, Google was forced to stray from its traditional corporate values.
Censoring the search results in advance allows the search engine to provide faster service. Dealing with censorship requirements will create additional operating costs when compared to domestic operations.
Google has a very complex collection of technology that must be tailored specifically for use by Chinese customers. Roles of the Host Government The role of the Chinese government in regulating Internet activity is far more elaborate when compared to the United States.
It is essential for the two parties to develop a strong relationship that is mutually beneficial. However, the decision to be transparent about censorship tactics showed that company had very little flexibility in this matter.
Google will be required to perform a great deal of research to develop a product that will be welcomed by the Chinese people. Google learned this first hand when it was required to censor its search engine result pages that were displayed in Chinese territory.
The choice to set up a physical location in the country will help the Google become more competitive in the market. Although this choice goes against their corporate values, it was a necessary step to deliver high quality search results to customers.
Since it was founded, the company has maintained a high ethical standard on search results by providing users with unbiased algorithm-driven content. The New York Times, Also, Google made an effort to educate their customers about censorship in advance, which is a choice that reflects the high ethical standards of the company Hill In an effort to deliver better service to Chinese customers, Google decided to censor the results.
Google has able to overcome the challenges of international expansion and has developed a strong presence in the Chinese search market. Google was ultimately left with two choices regarding operations in China — either censor the results in-house, or let the Chinese government censor the results.
Internet technology is relatively new to the global economy and has experienced a unique set of challenges. In summary, the case study of Google in China provides an excellent example of the challenges that are faced by multinational firms.
Google must invest heavily in developing new technology for the Chinese market and it must maintain positive relations with the host country to ensue long-term success.
The legal system in China requires that Internet companies remain transparent and provide access to the information that is being delivered to end-users.Transcript of Case Analysis: Google In China. Google In China Section 3: Group 6 Recommendations for Google Problems: Inconsistent Template (for China) Inconsistent Philosophy Solution Stay in China and continue expansion.
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Google in China (B) Case Solution,Google in China (B) Case Analysis, Google in China (B) Case Study Solution, Industry Analysis Porter Five Forces Buyer’s Bargaining Power: Buyers had a very low switching cost in the internet search engine industry because of the.
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