Google in China Analysis 2 Pham - Essay Example

Google in China April 16 From a holistic business perspective (regardless of functional discipline) comment on Google’s decision to enter China in 2005 to compete in the Internet search market. Limit the response to 200 words. From a holistic perspective, Google’s decision to compete in China’s Internet search market industry in 2005 will be good for Chinese users and Google, because it will provide another option for users and will enhance Google’s revenues, as well as its economies of scale and scope.

Google struggles in following the various and complex internet filtering laws and processes of the Chinese government that is not aligned with the firm’s motto, “Don’t be evil.” It also experiences challenges in brand positioning in China. Baidu is the most popular search engine in China because it is perceived as a “Chinese brand with good technology” (Lawrence, 2009, p.266). Baidu also provides added services that Google does not offer, such as messaging, entertainment, news, and email.

If Google can change brand associations that will make it more competitive, it can oust Baidu from its market leadership. Google can also have an opportunity to test and boost its expertise in global technology by serving the Chinese market inside China, thereby expanding its technology’s economies of scope and scale. Google can leverage its superior global technology that is built on its efficient search engine, and change its brand personality, so that it can be more Chinese. Right now, Google uses umbrella brands for its brand name Google, but it should consider a House-of-Brands approach.

For its Chinese brand, it should expand its Internet services, by offering services such as: online chatting; downloading music, TV shows, and movies; and playing online games, since these are the most popular Internet activities for Chinese users, according to latest surveys. 2. Extracting specific data, provide an analytical assessment about the market potential (size and growth) in China. Limit the response to 200 words. About 46 million users in China are connected to the Web, and a rapidly growing population has DSL/cable access (Lawrence, 2009, p.266). In 2005, as seen in Exhibit B, more than 50% of all Web users had a high-speed Internet connection.

Usage rates also indicated that sixty-nine per cent of users use Internet at home, while 38% use the Internet at work (Lawrence, 2009, p.266). Exhibit B also provides evidence that from 2002 to 2005, users with broadband access grew from less than 10 million to 50 million, or around 80% growth in five years. Other estimates showed that there were 134 million Internet users in China in 2005 (Lawrence, 2009, p.257). This means that the market potential of China will expand as more users eventually shift to broadband access.

As the economy of China improves also, more people will have higher purchasing power that will enable them to have Internet at home (Lawrence, 2009, p.258). Surveys showed that the Chinese enjoy the following activities: online chatting; downloading music, TV shows, and movies; and playing online games. These activities are the main drivers of using the Internet.3. Graphically characterize the Internet search service experience for a Chinese user in 2005. Create a planning design in terms of the “Core” and “Value-added” elements.

Be as detailed as necessary to insure reader comprehension.4. Briefly comment on the state of the Google search service as it has evolved to today (2012). Google no longer follows censorship practices from the Chinese government, particularly after the attacks to its Internet structure in December 2009. These attacks have been connected to the Chinese government, because the foremost target was the Gmail accounts of Chinese dissidents and human rights activists. It might remove its Chinese operations soon.

I believe that Google has done the right thing. Its company motto, “Don’t be evil,” sends the message that Google should never serve the goals of a repressive state. It should use its technology to promote human rights and basic civil freedoms, such as freedom of speech. One day, the Chinese people will be the ones telling their government that they resist Internet censorship. They will fight for their freedoms, because they are tired of the breach of their human rights. When this time comes, they will use Google and look for the Tank Man as their primary inspiration.

ReferenceLawrence, A.T. (2009). 4.3. Google, Inc.: Figuring out how to deal with China. The dark side: Critical cases on the downside of business (ed. Raufflet and Mills).