I am not surprise that Google, Inc. has had difficulty launching its products in China. Whenever an organization tries to enter a company, they should adapt the product to fit into that nation's culture. This includes laws, dialect, languages, website format preferences, and several external factors that may be effecting them. If entering China does not adhere to their mission statement, they should not have entered that market. They should have considered partnering with a Chinese company or developing a subsidiary that dealt solely with Chinese markets. With over 1 billion potential customers, it is difficult to overlook China. However, Google may be forced to be unprofitable in the short run in order to maintain the benefits of entering China and developing brand recognition for long run sustainability.
Bukky Post 9 Google, Inc. Figuring out how to deal with China
Indeed a tough decision. Google realizes the vast potential China holds for profits and market share but there is also the issue of compromising it's values to meet the requirements of the communist government. Perhaps Google should have considered entering the Chinese market via a partnership with a local trusted business. This would have freed them from compromising directly and the local partner would have been better able to navigate the complex issues of doing business in China. Though over 50% of their client base is in the foreign markets, Google generates most of it's income from it's US market. Advertising revenue which is it's main source of income is not growing in foreign markets like the US because most of it's customers do not have access to credit cards to shop on line. It's amazing how something we take for granted here in the US is a huge luxury in most countries. Though the Chinese use the internet mostly for entertainment, it can be considered to be sensored entertainment. The communist government has such a tremendous control over what the people see, hear and say. I believe this can only go on for so long. The younger generation of Chinese citizens will not be as complacent as their parents. The values of the younger generation around the world is changing. They tend to question authority a lot more and they are not as accepting of limitations to their right. I think Google made a good business decision to enter China. When things change in the government, they would have already had the advantage of being in the market and be better able to adapt to the requirements of their customers.
I am not surprise that Google, Inc. has had difficulty launching its products in China. Whenever an organization tries to enter a company, they should adapt the product to fit into that nation's culture. This includes laws, dialect, languages, website format preferences, and several external factors that may be effecting them. If entering China does not adhere to their mission statement, they should not have entered that market. They should have considered partnering with a Chinese company or developing a subsidiary that dealt solely with Chinese markets. With over 1 billion potential customers, it is difficult to overlook China. However, Google may be forced to be unprofitable in the short run in order to maintain the benefits of entering China and developing brand recognition for long run sustainability.
ReplyDeleteBukky Post 9
ReplyDeleteGoogle, Inc.
Figuring out how to deal with China
Indeed a tough decision. Google realizes the vast potential China holds for profits and market share but there is also the issue of compromising it's values to meet the requirements of the communist government.
Perhaps Google should have considered entering the Chinese market via a partnership with a local trusted business. This would have freed them from compromising directly and the local partner would have been better able to navigate the complex issues of doing business in China.
Though over 50% of their client base is in the foreign markets, Google generates most of it's income from it's US market. Advertising revenue which is it's main source of income is not growing in foreign markets like the US because most of it's customers do not have access to credit cards to shop on line. It's amazing how something we take for granted here in the US is a huge luxury in most countries.
Though the Chinese use the internet mostly for entertainment, it can be considered to be sensored entertainment. The communist government has such a tremendous control over what the people see, hear and say. I believe this can only go on for so long. The younger generation of Chinese citizens will not be as complacent as their parents. The values of the younger generation around the world is changing. They tend to question authority a lot more and they are not as accepting of limitations to their right.
I think Google made a good business decision to enter China. When things change in the government, they would have already had the advantage of being in the market and be better able to adapt to the requirements of their customers.