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Google in China

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Igor Kresic

on 5 September 2013

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Transcript of Google in China

Google and the Government of China
Introduction to the case

Developing a theoretical

Key learnings
Who are Google?

Cultural training:
- Can never be well enough prepared
- Precautions done by most western managers are
rarely sufficient

China's nationalism:
- Status important
- Believe in intellectual superiority
- Limit westernization
Compromise and freedom of press:
- Difficult to change regulations and laws
- Google had to make a compromise
to remain in the market
- Freedom of press has a huge influence
- Inconsistency with a company’s own
code of conduct

Having a plan B:
- Important in the face of many
possible outcomes

To organize the world’s information and make it universally accessible and useful


"We hail from all walks of life"

Headquarter: Mountain View CA
70 offices in over 40 countries
Presented by: Aase, Nina and Igor
Case Summary
Key Learnings
Key persons:
- Key persons like Dr. Lee important on the way to

Cultural, political and historical influence:
- Cultural dimensions like individualism,
collectivism, particularism, ascription, achievement,
→ communication problems
- Culture, politics and history influence the way of
doing negotiations
Only a 2 week preparation

Google attempts to establish a more permanent presence in China with the help of Dr. Kai-fu Lee

Censorship: the "Great Firewall" of China

Baidu follows the censorship laws

Both parties have different agendas and perspectives
Left with 2 options
1. Follow the Censorship Laws in China and break their code of conduct in order to establish a .cn domain
2.Risk having a slow server whilst the ‘Great Fire Wall’ filters and blocks search results on the google.com domain
2 Conflicting Agendas
1. Technological parity with the US and access to Google's proprietary research technology
2. Restrict westernizing elements through Internet that could threaten their political stability
Thank you for watching!
Do we attain status through personal effort (achievement) or is it given to us (ascription)?
Chinese government at apex of hierarchical structure, status-minded culture
Seeks to promote independence, both economically and politically
Self image defined in terms of 'We' or 'I'?
Cooperative relationships within 'in groups' and occasional hostility to 'out groups'
Can have a correlative relationship with strong nationalist sentiments
There is scope for Chinese government action on some regulations affecting foreign businesses
China wants/needs to encourage international investment, but there are limits
Free market economic values in China need to be measured against a political system that requires control over online content
What can we realistically achieve?
Should they stay close to its ideal
– Don’t be evil - or should they stay
close to their shareholders and the
potential interests of the market?
Do we have rigid rules (universalism) or are problems often managed on a case-by-case (particularism) basis?
Rules over relationships? Can certain truths be applied in all situations?
Reliance on contracts in the US whereas in China individual relationships are the channel through which trust is built
Ackowledgement that every situation is built on unique circumstances
1.Set up a google.cn domain name with as little government intervention as possible and ensure access to information for its users, which is largely consistent with Google’s existing offering to other international users.

2.Acquire a controlling share of Baidu, which has already established a large user base and leverage Google’s unique technologies to build and improve upon Baidu's product offering.

3.Increase its share in Baidu and continue to operate google.com but with attempts to attract at least some concessions from Beijing in regards to its operation in order to increase popularity.
Best Case Scenarios
Full transcript