google country's experience

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Case 5 Analysis – Google’s Country Experience: France, Germany, Japan Background Summary
Founded on September 4, 1998 Google quickly revolutionized the search engine and the Internet alike. Within two years of starting operations Google had become the largest single search engine in the world and began to dominate the market. As the World Wide Web (web) grew in popularity and became more and more a part of everyone’s daily life, Google too grew in popularity “because it could provide simple, fast, and relevant search results” (Deresky, 2011). The differentiating factor was Google’s “PageRank technology which displays results…by looking for keywords inside web pages, but also gauging the importance of a search result based on the number and popularity of other sites that linked to the page” (Deresky, 2011). The use of Google has always been free to the user, the two revenue-generating avenues that have made Google one of the most profitable companies of the last decade is advertising and selling its technology. Google’s advertising branch is called AdWords and allows those wishing to advertise to “create ads and choose keywords, which are words or phrases related to the business. When people search on Google using keywords, ads appear next to or above search results” (Google.com). With the rapid success experienced in the U.S., Google quickly grew their business into the global arena by offering search results in hundreds of languages and being available on hundreds of different domains. This expansion helped to significantly increase Google’s revenues and made its IPO launch in 2004 possible. As Google began to dominate search engine market share in France, Germany, and Japan, it created concern and ultimately distrust of the U.S. domination that was taking place in their countries. This distrust led to lawsuits on the grounds of copyright infringement by multiple companies in France who were ultimately successful in the French courts. This perceived dominance by the U.S. and distrust of Google sparked nationalism in France, Germany, and Japan all of whom are attempting to develop search engines to outdo Google.

Issues Facing Google
Issue 1 – Google did not exercise due diligence before entering the global market and did not partner with a local entity. The lack of research and development caused a major failure for Google’s entrance to France, Germany and Japan. Not partnering with a local entity led to unsuccessful bridging to cultural barriers which led to many mistakes. Starting with France, Google began growing rapidly by facilitating a direct point of contact to the French businesses. Google started targeting by language, by country and by keyword in its advertising programs. Soon, Google became the dominant search engine in France and offered services in regional French dialects. One of the biggest mistakes Google made was doing research about its competitors and not preparing itself for any downfalls. As the case explains,”Europe’s patchwork of language and cultures was seen as an advantage by companies, seeking to break into the search market to complete with Google, by entering demand for locally focused search”. The French and German governments reacted with plans to developing their country-specific search engines. The French and German Governments put for the Quaero plan, which was endorsed by President Chirac and the German chancellor Gerhard Schroder, and “would be superior to existing search engine technology” (Deresky, 2011). The lack of research before entering Germany caused Google to have a very threatening, aggressive, unfaithful and evil behavior. If Google had done its research in advance, they would have never entered Germany with the Gmail, free email account, name in the first place to avoid any conflicts with the country. This caused the Google not only to have a bad reputation, but it also lost trust. The German and French government developed the Agency for Industrial Innovation...
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