Google Considers and Reconsiders China

University of Phoenix

MGT/448 Global Business Strategies

May 20, 2012

As what has become the most widely used search engine in the world, it was a natural business progression to expand to another billion-plus people as Google considered entering the Chinese market. Google’s mission is to organize the world and it’s information resources and make it usable for everyone and very simple to understand. As the company debated its strategic entry into China, it had to consider the ramifications of that philosophy in a vastly different market.

Google had to achieve a balance between its corporate mission and the seemingly contradictory laws and practices of the Chinese government. In 2005 before Google was available to the masses in China, it was estimated that the government had employed over 30,000 watchdogs to serve as Internet policemen. They were to provide commentary in an effort to neutralize anti-government opinions and to “accentuate the good, avoid the bad and use the Internet debate to our advantage” (Watts, 2005).

It is with optimism and their corporate mantra of ‘Don’t Be Evil’ in mind, that Google went live in China in January of 2006 under the agreement to provide filtered search results and to censor certain input queries. Google’s managers adopted the philosophy that its objective would be to provide the greatest amount of search opportunities possible which had an apparent distinction from its domestic practice of allowing users to access all information. China had measured up to be the Internet giant’s largest source of ad revenue and Google could not ignore the opportunity, despite knowing there the parameters would contradict its business philosophy as usual. Management hinged the bet that it was better to meet the Chinese