Google in China

Google in China

Business Case Analysis

Facts of the Case:

Key - Stick to the most important facts presented

▪ Case is based on the negotiation that took place between Google Inc. and the Chinese government to allow their citizens access to Chinese version of Google.com (Google.cn)

▪ Google looking at vast business opportunities in China as a long-term strategy. Due to its population size and market potential, China has become an attractive market for many U.S. and multinational companies

▪ In order to establish a presence in China, Google had to agree to allow Chinese government to censor access to certain sites

▪ Google take great satisfaction in being different from other corporations; strives towards the highest possible standard of ethical business conduct. Most important asset is their reputation (“Don’t be evil” motto); expressed mission is to “to organize the world’s information and make it universally accessible and useful”

▪ In 2006, China attempted to move away from socialism and declared itself committed to economic reform and to opening itself to the outside world. Expanded personal freedoms for its citizens, however, China still maintained a harsh enforcement of political and religious regulations

▪ Membership in the WTO put China back on the map as a possible market for Western companies

▪ Yahoo! first American Internet company to enter China in 1999. Uncensored Internet information was not welcomed by Chinese authorities and government officials immediately implemented rules restricting access to content deemed improper or harmful, and monitored Internet usage of its citizens

▪ Included many private citizens in their surveillance efforts, and implemented public propaganda campaigns to create atmosphere of fear from reprisal and self-censorship

▪ Tom MacLean director of International Business for Google Inc. for last nine months; starting to worry about his job security after a storm of criticism...