Google Is Destined To Fail In China
Yahoo, Netscape, MSN, and Lycos had tried to adapt to the Chinese market but none of them succeeded. As for Google’s entry to the Chinese market, existing competitors of internet companies are expected to respond forcefully to make Google’s stay in the industry an unpleasant one. This is what Porter refers to it as the “Expected Retaliation”. In fact, there is still fear among all Chinese Internet companies that they do not want to grow too big and become the sole giant in the industry. It seems to me that Chinese internet marketplace wants to maintain market shares to internet entrepreneurs. The only condition Google would enter the Chinese market without any barriers to entry is to accept to enter and be as equal as other internet companies in China which I don’t think it wants that.
There are two main factors that grabbed my attention of why Google won’t be able to succeed in the Chinese market. First, Chinese internet companies are not very open when it comes to press releases and movements within its firm which contradicts Google’s. This can be explained by Sina.com which got involved in a lawsuit that, if it were an American firm, would get it airtime on CBS's "60 Minutes". Second, in China rival internet companies have developed a relationship of mutual benefit or dependence whereas in North American no other company can currently top the three companies in their respective sectors which are Google rules search, Yahoo rules the Web, and Microsoft rules operating system.
As a conclusion, doing business in China, simply, is different than doing business in America. This is due to the cultural or norms differences between different countries. If Google would want to expand and enter to the Chinese market, it would have to adapt and adjust to the Chinese norms. However, this doesn’t really promise a potential success!
posted by Unknown @ 7:25 PM
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