Google’s failure in China
TABLE OF CONTENT
Table of content
The key issues and the lessons
It has been 9 years since Google entered China Market officially, and 5 years since Google established Google China. Despite having a brand value of an amazing $66.4 billion, Google.cn still fails to dominate the search engine market in mainland China and faces stiff competition from bitter rival Baidu. In other words, Baidu’s market share in China is nearly 75 percent to Google China’s 25 percent. The secret to Baidu’s success and Google’s failure is largely positioning. Chinese authorities blocked Google because it allowed through some pornographic search results but many of these same results were also available on Baidu. Moreover, the government allowed Baidu to operate illegal music search while Google was not. Baidu was also creating a social community that is a way of ensuring Baidu’s long-term dominance. Indeed, Baidu's entire business strategy is tailored to Chinese governmental, legal, business, and social culture -- and that is what has set it apart from Google. Baidu's market share could be more than 90 percent. Although Google might be one of the most well-known brand names in the world, most people outside big cities like Beijing and Shanghai have never heard of it. The combination of a great market strategy and government favoritism means that Baidu will likely not fall from the top. Google might be success almost everywhere else but that was not happen in China. Critical analysis
The Internet has been seen in the West as the quintessential expression of the free exchange of ideas and information, untrammeled by government interference and increasingly global in reach. But the Chinese government has shown that the Internet can be successfully filtered and controlled. Google's mission, "to organize the world's...
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