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Google's Failed China Strategy Explained

Google launched its search engine in China in 2006 but abruptly pulled out in 2010. The main reasons for Google's failure in China were the conflict between China's censorship policies and Google's code of conduct to provide equal access to information, as well as Google's lack of understanding of Chinese culture. Google struggled to balance complying with censorship laws while staying true to its mission, and failed to establish strong relationships with Chinese authorities due to its poor management and cultural misunderstandings. Analyzing Google's experience in China can provide insights on addressing political, economic, and cultural challenges for companies expanding internationally.

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72 views2 pages

Google's Failed China Strategy Explained

Google launched its search engine in China in 2006 but abruptly pulled out in 2010. The main reasons for Google's failure in China were the conflict between China's censorship policies and Google's code of conduct to provide equal access to information, as well as Google's lack of understanding of Chinese culture. Google struggled to balance complying with censorship laws while staying true to its mission, and failed to establish strong relationships with Chinese authorities due to its poor management and cultural misunderstandings. Analyzing Google's experience in China can provide insights on addressing political, economic, and cultural challenges for companies expanding internationally.

Uploaded by

Mai Nguyễn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

Chosen case study


Google LLC, a subsidiary of Alphabet inc, is an American-based global technology giant that
provides Internet-based solutions, including search engine, advertising technologies, cloud
computing, and software applications. It is renowned as the world leader in search engine
solution, with an exception, the Chinese Mainland market. Google launched its search engine
in China in 2006, however, made an abrupt decision of pulling out from mainland China in
2010.

2. Reasons for failure


The death of Google in China is described as ‘by a thousand cuts', among them, the conflict
between the host country's politics and the company's ethical code of conducts as well as the
ignorance of cultural disparity in Eastern and Western are considered to be the most
detrimental ones.
Google famous motto is ‘Don't be evil' which means their role is to grant equal access to
information for users across the world and respect human rights. Accordingly, the censorship
policy of Chinese authority diverges from Google code of conduct which put Google in a
quandary. To remain its operation in China, they had to breach its business ethics to follow
government’s censorship regulation or they had to opt out from the largest digital market to
comply with their mission. Google had tried to find the balance point, yet their efforts were
never adequate, especially for the notorious uncompromising and aggressive attitude of the
Chinese government toward those they regard as a component.

The difference between Eastern and Western culture also played a role in the failure of
Google as the firm failed to acknowledge it comprehensively. This led to a deep lack of
understanding of the Chinese market and customers resulting in an unsuited market
penetration strategy. An ignorance of Chinese culture is also a synonym of failing to
understand how relationship and relationship establishment works in Chinese political and
business context. Consequently, Google operated under the chaos of censorship requirement
with a poor management of relations with the Chinese government. In China, a quality
relationship with authorities is a guarantee for corporations in sensitive conditions. As a
result, there was no umbrella for Google to stand under when the heat from the government's
pressure was growing hotter.
3. Relevant topics
The topics of political-economy aspect and culture aspects in business internationalization are
useful resources for the assignment. The topics would give me a fundamental base to
understand the issues that Google had been suffered in China. From that input, I could
propose recommendations that could address the root causes. After that, the topic related to
internationalized strategies, such as Bartlett & Ghoshal model of international strategy, types
of entry mode, could provide me the knowledge to make a comprehensive decision of how to
the organization should behave accordingly in a particular foreign environment.

4. Reason for the choice of case study


Many of Ameria's leading technology companies, including, Google, eBay, Facebook, Uber,
Amazon have successfully internationalized their business in other countries. Yet these
players all failed in China, the global largest digital market. Therefore, I want to further
understand the reasons behind the systematic failure of these digital companies in China
under the scope of international business theories and concepts by the exemplified of the case
of Google, the company that is in the top 5 largest technology in the world.

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