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Google vs. China

Google vs. China. Vivian Liu, Lauren Croke , Ann Zheng. Basic Info. Renowned search engine Google.com/ fr /de Expand in 2005 China 2 nd highest Internet users. Currently. Restricted access- ‘Great firewall’- Thus Google unreliable, inefficient and slow. Baidu .

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Google vs. China

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  1. Google vs. China Vivian Liu, Lauren Croke, Ann Zheng

  2. Basic Info • Renowned search engine • Google.com/fr/de • Expand in 2005 • China 2nd highest Internet users

  3. Currently • Restricted access- ‘Great firewall’- Thus Google unreliable, inefficient and slow. • Baidu. • Google's stake in Baidu. • Google under pressure.

  4. The Plan • Hired Dr Kai-Fu Lee to help negotiations. • Set up research and development centre in China. • China: Access to Googles technology and research. • Google: Gain presence in Chinese market (increase revenues).

  5. Possible Outcomes • There are three possible outcomes for Google, they could: • Establishes a local domain. • Continues offshore. • Lobby the Chinese Government for a greater stake in Baidu.

  6. WHAT TYPES OF SEARCHES ARE censored/monitored?

  7. Goal: Need to develop a good rapport with Chinese users • China is a collectivist society – suspicious of foreign firms. • Key learning #1: assimilation of company culture • The government acts in the interest of the country at large. • Key learning #2: consideration of all players

  8. Goal: Use of Dr Lee to assist in opening new research facility • Advantages for Chinese government • Curtail ‘brain drain’ and create new jobs • Access to key research technology • Reconcile ascription and achievement societies • Key learning #1: recognise ‘comfort zone’ of home party • Appeal to China’s relationship oriented society • Key learning #2: importance of personal relationships

  9. Goal: Social and Political Stability – Confirming to Censorship • Google’s sacrifice • Future Orientated Society • Confucian philosophy • Key Learning: collective identities

  10. Goal: Establishing a positive relationship with Chinese government • Power distance community • Hierarchical society • Sequential v Synchronic cultures • Key Learning: building relationships

  11. Sources • Grogan, C. and Brett, J, 2006, “Google and the Government of China: A Case Study in Cross-Cultural Negotiations,” Kellogg School of Management • Kalathil, S, 2003, “China’s New Media Sector: Keeping the State In,” The Pacific Reviewvol 16. No. 4 pp. 489-256 • Phatak et al, 2009, International Management, 2ndedn., McGraw-Hill/Irwin, New York • Philip P. Phan, 2005, “Hu Tightens Party’s Grip on Power,” Washington Post, April 24 • Brett, J. M., 2007, Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries, John Wiley & Sons, Inc. • Graham, J. L., Lam, N. M., ‘The Chinese negotiation’, Harvard Business Review, vol. 81, no. 10, p. 82-91. • Kusyk, S. 2010, ‘Unmasking the myths: learning to navigate the rough seas of ethics’, Deep Insight, no. 5, p. 31-37.

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