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