Google in China: Market Entry Analysis

2602 Words Apr 15th, 2012 11 Pages

In today’s ever-changing marketplace, many companies have been forced with a challenge to reinvent themselves and alter their core values in the interests of profit and market share. As we move into the second decade of the twenty-first century, many critics argue whether it is possible for Google Inc., a major innovator and leader within the search engine industry, and China, a communist country, to co-exist. China in 2005, with its estimated 134 million Internet users, has been subjected to the country’s Great Firewall, which restricts citizens from accessing certain websites deemed inappropriate by the Chinese Government (Lawrence & Weber, 2011, p. 471, 473). As a result, Google must now decide whether it wants to be an
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Another argument against Google’s move into China would be the competition; especially the Chinese internet provider, Baidu (Lawrence & Weber, 2011, p. 467). Baidu’s popularity and business success has been linked to its compliance with the Chinese government. Question 2
From an ethical perspective, what are the arguments for and against entering China?
The ethical perspective of why or why not Google should enter China is complicated by the theory of Ethical Relativism which is based on the idea that “ethical principles should be defined by periods of time in history and a society’s traditions during that time period (Lawrence & Weber, 2011, p.72). Considering the ethical climate in China in 2005, Google’s decision to enter can be considered unethical because Google’s market and nonmarket stakeholders will believe that Google failed to provide its customers with the product it provides elsewhere due to China’s censorship policies. Google will also disappoint stakeholders who support the company based on their motto of “Don’t Be Evil.” Entering China and allowing censorship could have a negative impact on Google’s global image and thus hurt business performance. Google’s entry is also considered unethical because the company will have failed to minimize or prevent harm to the general Chinese public who are now at risk for prosecution and imprisonment when their search
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