Google Goes To China

Presented By:
D J Srikanth
Gyan Prakash
Vikram Kumar
Ankush Tiwari
Bikash Acharya
Pratap Reddy

History and Milestones

Founded in1998 by Sergey Brin and Larry Page
Headquarters in Mountain View, California, (Google
Plex)
Google is having more than 52,069 employees
worldwide
1996: They had built a search engine (initially called
BackRub)
1999: Google had secured $25 million in venture capital
funds
2000: 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.

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 Focus

The 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

13%
13.60%
53.30%
20.10%

Google
Yahoo
MSN
Others

GOOGLE USERS
3% 2% 2%
9%
37%
20%

27%

Asia
Europe
North America
Latin America
Africa
Middle East
Australia

STRENGTHS

WEAKNESSES

Brand equity
Consistent innovations
Most efficient search
engine
Wide range offerings
Concentration 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.

SWOT ANALYSIS

Google China
Google China is a subsidiary of Google.
Founded in 2005 and was headed by Kai-Fu Lee
Google 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 governments strict internet censorship policy
screens what users can access.
Googles 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.

Googles Response

Googles 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 incentives
Total 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 China

Google 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 Spaces 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

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, dont be evil.
Alma David a member Student for a Free Tibet
groud told that Google is selling its values for profit. Its
dont 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 wont be
in one night

Question for discussion

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 Googles
mission, providing no information is more
inconsistent with our mission
3. Defend Googles 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 Googles critics in this
case using in not accepting- Google presence in
1.

Recommendations

Emphasis on Sustainable Relationship

Follow the principle of Do in Rome as Romans do
Protect the interest of the investors & share market
More information & connectivity than non at all
Function as a server not as a ruler

Conclusion

Google 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 function
Bears wider role and scope for further business in
future market