Google's Problems in China (B)

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Case Details:

Case Code : BSTR374
Case Length : 17 Pages
Period : 2000-2010
Pub Date : 2010
Teaching Note :Not Available
Organization : Google Inc
Industry : Internet Search
Countries : China, US

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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

Background Note

Google was founded by Larry Page and Sergey Brin (Brin), students at Stanford University, California, US. Its first version was released on the website of Stanford University in August 1996. Google opened its first office in Menlo Park, California, in September 1998...

Problems Persist

After Google agreed to censor its search, its blogging site, www.blogger.com , also became accessible in China. The site had been unavailable since 2002, when Google and other websites were blocked in China...

Google Takes a Final Call

In late 2009, Google discovered that its site was being attacked. The company approached Rafal Rohozinski and Ron Deibert, cyber security experts who had published a report on 'Tracking GhostNet' in 2009, about the existence of a malware-based cyber espionage network, based on their research across the world between June 2008 and March 2009...

The Aftermath

Some industry experts opined that Google was planning to exit the country as it was unable to compete with Baidu. It had found a logical reason to exit the country by reporting that its site was being attacked...

The Road Ahead

Industry analysts opined that if Google decided to exit China, it would be the first major foreign company to leave the country citing freedom of speech as the main reason. The exit of Google would benefit both Baidu and Tencent, which operated China's most popular instant messaging service...

Exhibits

Exhibit I: A Note on Censoring Content on Internet Sites in China
Exhibit II: Google - Income Statement
Exhibit III: Google China and Goojje

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