Google's Problems in China
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BENV001
Case Length : 13 Pages
Period : 2000-2006
Pub Date : 2006
Teaching Note : Available
Organization : Google China
Industry : Internet Search Engines
Countries : China
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Google in China
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In September 2000, Google began operating a search engine in Chinese by offering
24 million web pages in Chinese language (Refer Exhibit IV for Internet and
Internet search market in China). By 2002, Google had gained lot of popularity
in China owing to its simplicity and ability to carry out searches effectively.
During that time, the Chinese government was blocking several websites through
IP filters intermittently. The blocking increased during times of heightened
security like the anniversary of Tiananmen Square events, the national party
congress, etc. But users of Google could circumvent the government censorship
through cached pages...
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Google Loses Market Share
By early 2004, users in China had thought that Google was
unreliable and started using alternative search engines. Elliot Schrage,
Vice-president, Global Communications and Public Affairs of Google said that
Google was seven times slower than its rival Baidu and Google itself was not
happy with the way its services were being operated in the country...
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The Launch of Google.cn
Google wanted to have a major presence in China. The
market was lucrative because of its size. China had the second largest
number of Internet users after the US. Google felt that only a local
presence could help it to provide better and more reliable services to
customers. To operate in China, Google needed an Internet Content
Provider license, which required it to filter its content. In April
2005, after obtaining permission from the Ministry of Information
Industry in China, Google announced the opening of a representative
office in Shanghai (Mainland China), and registered the URL - www.google.com.cn... |
The Road Ahead
Analysts opined that with Internet users would have a better experience after
the launch of Google.cn, and Google may once again emerge as the most preferred
search engine in the country. According to findings reported by Keynote Systems
in January 2006, Google was in a strong position to challenge Baidu in the
Chinese search engine market. The study concluded that Chinese users, once they
started using Google, preferred it to any other search engine...
Exhibits
Exhibit I: Internet in China - Key Regulations
Exhibit II: Forbidden Searches in China
Exhibit III: Google - New Services
Exhibit IV: An Overview of the Internet Market in China
Exhibit V: ISPs Filtering Methods
Exhibit VI: Websites Not Showed by Google.cn
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