Bilal Qureshi

Tuesday, January 31, 2006

"Google is destined to fail in China"

In Google’s quest of entering the Chinese space, there seems to be a big barrier of entry that seems to prevent Google from operating in China. The article mentions that, even though there seems to be a huge rivalry amongst top local Chinese technology companies, they seemed to be getting along very well (Wu, 2006). I believe this is the case because for the fact that Google is not a Chinese company. Due to the strong ties within the Chinese culture, Google will find it very difficult to operate unless they comply with what the government of China requests them to do.

This can be clearly related to Porter’s 5 forces model which illustrates the notion of barrier to entry. It clearly indicates the government policy that caused Google to face certain barriers to enter the Chinese market.

In retaliation to the situation, Google decided to self-censor their own search results that had anything to do with the Chinese government, which claimed in the article by Perry Wu, made other foreign and local companies happy about Google suffering in the share market.

0 Comments:

Post a Comment

<< Home