Case Study # 5

1) The Search engine makes money by having advertisements clicked on the page and through Ad words so when someone clicked a key word Google would get a big percentage. The exportability of a search engine like Google is that they are looking to expand and be known overseas, but at the same time when they do try and expand each culture is different along with the governments (i.e. the French government and USA govt.) With the Business model the exportability was very good (as shown in Exhibit 1) they expanded and teamed up and got “Cost-per-click basis which almost doubled their revenue.

2) Many governments appeared threatened by Google because of a few reasons, first its different cultures so when the USA came into a foreign territory and how we came in they got scared of being dominated by a larger corporation. The next reason is for example in some of these foreign cultures the government saw that the sponsored links are portrayed as trademark counterfeiting. Every country basically did the same thing for instance France sued them for trademark counterfeiting and the court was on Frances side and each made their own search engine to top Google. In Germany they sued Google for using “Gmail” because it was trademarked so they lost that case and had to change the name to Google Mail, and spent a lot of money to create “Theseus” to top Google. In Japan they sued Google for censorship and the government made their own search engine that was $885 Million dollars.

3) The threat that is portrayed in my opinion is imaginary because when Google came in to these foreign countries they acted as a “bully” and came in to make money and did not care about the culture at all and I feel like the government’s reacted by instead of doing business with the USA they made their own search engine so they could control everything about it. If Google wants to secure it’s dominance in these countries they need to learn about the country and understand and respect their rules.