Google to abandon the Chinese market
As we all known that Google out of China to become a hot topic recently. “On March 23, Google announced on the office blog that Google and more than twenty other U.S. companies had been the victims of a sophisticated cyber attack originating from China, and that during our investigation into these attacks we had uncovered evidence to suggest that the Gmail accounts of dozens of human rights activists connected with China were being routinely accessed by third parties, most likely via phishing scams or malware placed on their computers. We also made clear that these attacks and the surveillance they uncovered—combined with attempts over the last year to further limit free speech on the web in China including the persistent blocking of websites such as Facebook, Twitter, YouTube, Google Docs and Blogger—had led us to conclude that we could no longer continue censoring our results on Google.cn. Users visiting Google.cn are now being redirected to Google.com.hk.” Along with the announcement, Google has given up the Chinese market. From the perspective of market strategy, I do not know whether Google is right out of China, but for a global market companies to give up the world's potential largest market. Most of the insiders have pointed out that the West are powerful Internet companies in China, the root cause of failure is the lack of Chinese culture, Internet users demand, changes in the market understanding. We analyze Google event from the perspective of market strategy, as follows: PEST
We go entry more complete discussion using "PEST" analysis (macro point of view). Politics
Chinese market background;
China is a large developing country. China is gradually opening up and reforming policy implementation. Therefore, the China government restrictions scopes of business opening, including internet. At the same time, China is a socialist country. And it is different political structure and legal with other Western countries. So many global companies in China must adapt to China localization and cannot conflict with Chinese law. All business operations need to be approved by the government. Any network companies operating in China need to be approved and regulatory by the Chinese government. Chinese network monitoring system
For the outbreak of Internet development in China, China declared the network monitoring system to standardize the Chinese Internet system. This system is not aimed at a business. Any network business in China must be received regulatory. If Chinese Internet monitoring system is out of Google into China one after the new system, and finally forced out of business and forced out of China, Google is forgiven full of complaint. This is not always the case. The Chinese government's Internet monitoring system is no secret. More importantly, this system existed before Google entered China. China's actual situation is more relaxed censorship, the network's discussion also more open. Any topic can basically be publicly reported on the network, the introduction of the new policy can also be open for discussion. This trend is obvious. Google is the Chinese government's Internet monitoring system is more stringent when entering the Chinese market, Google want a share in the Chinese market share. Google in the Chinese government's Internet monitoring system where more and more relaxed out of the market, but the stand out high-profile criticism of the network monitoring system, which is funny and untenable. At least that Google and its statement of ethics are incompatible. Since Google can search in some illegal information, it has repeatedly warned by regulators. However, Google ignores the laws of China, refused to make concessions, the Chinese government to stop Google's China operation. This is Google a provocation to the Chinese law, so it must fail. Bill Gates delivered a speech after the event: “If you want to conduct...
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