Google in China Memo
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- Date Submitted: 10/12/2014 02:14 PM
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TO: Senior Management, Google, Inc.
FROM: Advisor
DATE: September 14, 2014
SUBJECT: Google in China
In 2006, Google launched Google.cn, China-based search engine with results subject to censorship by the Chinese government. Three years later, Google announced that it would stop censoring search results on Google.cn. This memorandum outlines what Google should have done differently in China that could have led to better result for the firm.
Google did encounter some success when it entered the Chinese market but that success was short lived. The polarity Google faced was between maximizing profit through entering a hot market and keeping their core values in tact. Google continuously managed this polarity throughout the expansion into China but as a result re-shaped the “Don’t be Evil” image of the company.
To determine what could have been the best scenario for Google’s entrance into the Chinese market, it is important to note that the main goal of a publicly held company is to maximize profit for its shareholders. Google’s motto, “Don’t be Evil,” shares that the company can sustain its integrity by doing good things and also make money simultaneously. This motto has worked well in growing Google in the USA and almost all other parts of the world, except entry in China. The Chinese communist party is notorious for having high regulation on almost all aspects of their citizens’ lives, especially when it comes to media. So why would a company like Google, who thrives for bringing openness and information to all people, want to enter such a highly regulated market? The answer lies in the ultimate goal of the company, to make money.
With the largest population in the world, China shows tremendous growth opportunities as more of their population is gaining access to the Internet and mobile devices. Financially, it makes all the sense for Google to enter into the Chinese market to get a piece of the action. Which Google did, but why did it take so long?...
FROM: Advisor
DATE: September 14, 2014
SUBJECT: Google in China
In 2006, Google launched Google.cn, China-based search engine with results subject to censorship by the Chinese government. Three years later, Google announced that it would stop censoring search results on Google.cn. This memorandum outlines what Google should have done differently in China that could have led to better result for the firm.
Google did encounter some success when it entered the Chinese market but that success was short lived. The polarity Google faced was between maximizing profit through entering a hot market and keeping their core values in tact. Google continuously managed this polarity throughout the expansion into China but as a result re-shaped the “Don’t be Evil” image of the company.
To determine what could have been the best scenario for Google’s entrance into the Chinese market, it is important to note that the main goal of a publicly held company is to maximize profit for its shareholders. Google’s motto, “Don’t be Evil,” shares that the company can sustain its integrity by doing good things and also make money simultaneously. This motto has worked well in growing Google in the USA and almost all other parts of the world, except entry in China. The Chinese communist party is notorious for having high regulation on almost all aspects of their citizens’ lives, especially when it comes to media. So why would a company like Google, who thrives for bringing openness and information to all people, want to enter such a highly regulated market? The answer lies in the ultimate goal of the company, to make money.
With the largest population in the world, China shows tremendous growth opportunities as more of their population is gaining access to the Internet and mobile devices. Financially, it makes all the sense for Google to enter into the Chinese market to get a piece of the action. Which Google did, but why did it take so long?...