Google to abandon the Chinese market

Introduction 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 business in a country, you have to respect the laws of this country.”   Other country’s network monitoring

Network monitoring, the Chinese government is not the only one in the word. After the 911 event in the United States Government introduced the Patriot Act. The bill aims to prevent terrorism, the expansion of police authority in the United States. According to the bill's contents, the police power to search telephone, e-mail communications, medical, financial and other types of records. Canada's Personal Information and Electronic Documents Act itself allow law enforcement agencies to investigate the extent permitted by law personal information.

For the reasons Google out of China which may not be only ordinary business relationships. It has the potential to become a U.S. pawn inhibited the rise of China. Perhaps Google is a victim of political products. This is not evidence of a reason, so this report does not consider this factor.

Economy Chinese market environment; China as an emerging market, therefore, most of legal systems and economic systems are incomplete. So the market is not standardized. But it has great potential market. For a number of global enterprises pay more attention to their own future. So many large companies have chosen the Chinese market for the future corporate strategy. Most businesses like to use the data to decide market everything. However, on China, some problems cannot be resolved with the data. Because of in the Chinese market, the market changes rapid and involving many factors to change the result. So the data does not reflect changing in the Chinese market. It can not accurately to judge the market trend.

Google has the same problem. Google's business concept is that Google does not interfere with any search results. But the government asked Google to filter for search information. Google did not agree to do it. This is equal to asking the Government to change law. The end result we all should know. For this a market environment can be adapted to other network companies, why cannot Google? Different conditions have different adaptation.   Google out of China commercial considerations;

Google high-profile out of the Chinese search market and it improved their ethical reputation. It acquired many aspects applause, which praised it defended freedom of speech though sacrificed the commercial interests.

This decision really is so selfless it? Little doubt that Google's insistence on freedom of expression, for the Soviet-born co-founder Sergey Brin, the freedom of expression is particularly important. The reason is simple: Google's business model determines the information to make users believe that their information is absolute security in Google system. So when Google said it would "not be evil" and will never compromise in the principles and technology, Google want to let the world believe in it.

Why China has become a problem, let us look at the following. Google Chinese search engine in the review, the principles already had discounted, it caused great harm to Google reputation. If Google continues to remain in China and R & D centre, training engineers, and even the training have a day to steal a lot of Google source code, then the user has every reason to ask whether Google could be for a little money at the expense of their data. If Google is doing in China, the data it seems unsafe, then Google's global strategy will be defeated.

So Google is a great interest around the world, but the fact that its interest in China has not much. Google in China, a year earned about 300 million U.S. dollars, most of profits from advertising. And that there are about a third of profit from China companies using Google overseas advertising, if Google give up search service, the Chinese companies will maybe continue to use this Google service. So, Google will be lost 200 million U.S. dollars after the event. This is Google less than 1% of global income, it is negligible.   Society

Environment Internet is a new industry in China, and China has nearly 400 million Internet users, at the same time, China became the largest number of countries in world using the Internet and continuing to increase each year. It is the most potential market in world. Google is open threat to out of China two months later, the hot discussion and imagination has a result on March 23 morning. Google cannot be negotiated with Chinese government. Under this circumstance, Google chose to out of China.   The Chinese government and Google

 Direct benefits from the perspective of both sides, first of all, the Chinese Government abandon the image to defend principles line, if properly and carefully deal with the substance would not be big losses; Google ruin future opportunities in the China market, it express a moral giant of their image, it acquired fame and fortune in the West. Second, Google's exit is expected to get all the additional benefits from the United States, the relatively impact limited for Internet users in China. Google out of China have an impact on both sides. Local companies and Google

Actually, Google China had good growth in recent years. According to Analysys International's data, the fourth quarter of 2009, Baidu and Google China search engine market in China, respectively, account for 58.4% and 35.6% share, followed by three or four, Sohu subsidiary Sogou and Tencent subsidiary Soso shares were 1% and 0.7%, with a huge distance with the before two companies.

Baidu occupied the highest proportion of Chinese search in China. This is a local search tools. And most of Chinese know Baidu and don’t know Google. Therefore, Chinese like using Baidu. Baidu is Google's biggest competitor. Google to abandon the Chinese market, it means giving away a piece of cake to Baidu enjoyment. If Google wants to return to the Chinese market, it may only grab the cake from the mouth of Baidu.

Western Internet companies failed in China In fact, Google is not alone in the defeat of China, but China Internet content service market common phenomenon. In E-commerce market, Taobao in defeated Ebay. Taobao and Ebay eBay looks like twins, in fact fundamentally different, and this difference makes the fighting began on the decisions of the outcome, but it took three years to understand the truth. Yahoo China also suffered defeat.

Yahoo China site officially opened in September 1999, but Yahoo had to sell own brand in China power and operating right to China Alibaba local businesses in the end, after, Yahoo spend 10 billion dollars in exchange for a 40% stake in Alibaba. Strength of Western Internet companies in China, the fundamental reason for the failure is the lack of Chinese culture, Internet users demand, and the understanding of market changes. Technology

History About search engine technology, Yahoo is the first operations corporation. However, due to inefficient search and Portal Site operations. Making users search information for inconvenient. On 1998, Larry Page and Sergey Brin established Google Inc. And they simplify the information search. After Google became the world's largest search engine company.

Robin Yanhong Li established Baidu on 1999. And Baidu only is the best Chinese search engine. From the company's role, Google's position in the world is much higher than Baidu. However, Google does not agree update their technology to prevent illegal information in China. Google to abandon the Chinese market, Baidu Chinese search has achieved a monopolistic position.

Today, we see Google products, such as rich and refreshing the search page and precise and correct map, soon Google might also just a small part of the product line. Google's long-term plan is not only to network with other publishers and search engine competition, but also with Microsoft and Apple and other technology companies lower in competition. Needs special attention is that Google wants to be "cloud" of the leader.

The cloud is a set of servers and applications system. Businesses and individuals from their hard drive to read a lot of information will be stored in the above. Users may not use Word, Excel and Outlook, but the use of Google Docs and other applications of Google. They will store data online, any computer or mobile phone can access.

In a word, Google wants to be the guardian of your private information. Despite Google's corporate online applications in China has not fully commercial using, but there are a lot of businesses using Google Apps , Google Docs , Google Sites , Google Groups, Gmail, etc. , it is learned that Google Apps users in China has reached one million. Google be abandoned by the Chinese partner

One fact proves that Google does not want to give up the Chinese market. As part of the search service will go to Hong Kong from mainland China, it invested in the mainland five companies are still operating. However, Google announced retreated to Hong Kong for a week only, the outside world has found Google in China is not good than before.   China Unicom CEO declared: We are willing to cooperation with abide by Chinese law partner, we have cancelled the cooperation with Google, China Unicom mobile will remove the Google search function.

China Mobile also will have to cancel cooperation with Google. Experts believe that China's mobile market closed the door to Google. Google may make the Internet giant suffered heavy losses because of its war with the Chinese government, that is not just the loss of its normal network market in China, and China may also close to the Google into the mobile network market's door.   Reference

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