This is important for every organization

Subject: Consumer Behavior

Paper Model: APA

Paper Type: Capstone Project

Total Words: 1066

Document Outline

Introduction

Problem statement

Environmental Analysis


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Google is expanding and operational around the globe. This is important for every organization to start business in other countries to have good growth rate and success. In this study, we will discuss, Google business in China, and try to identify the problem related to article. Emphasis of study will be on environmental analysis and strategies that Google intend to implement in China. However, business has been successful for Google in different countries but in China, case is quite different. Study will have its own analysis and recommendations at the end to evade the barriers regarding business in China.

Problem statement

Google start its operations in china in early 2000. Google was in limelight due to the Chinese version of home page for users. For this purpose, Google management decided to operate from United States to evade the china censorship laws. China had banned numerous sites with help of Chinese international gateway internet service providers. When users searched anything, they have to wait too much to get the results as compared to other competitors. This is main problem for Google, as company is losing its market share and still have low rate. It was slow for users in china, which is frustrating and a reason to shift from Google to other search engines. However, starting in Chinese language is good initiative but, people need fast process to get their results. (Bort, 2013)

Environmental Analysis

Strengths, weakness, opportunities and threats are important to consider finding effective and workable solution.

Strengths: Google has a good reputation and strong brand image around the globe. Google is widely known due to its fastest and reliable search engine in the world. The most important strength is services for average user. People can have Google products and services in low prices as compared to other competitors in international market. Google has effective management to deal with customers around the world, and can make improvisations in any country, such as, China.

Weakness: Expansion in China has been an issue for Google so far. Google has struggled to gain success in this country because it is not tailored to individual cultures. Google does not have modified search algorithms to sustain the culture differences. Relative to China, Google is struggling with its search engine. However, it also offers different services, such as, maps, photo, videos sharing and other numerous services for free to customers. This is weakness for Google that it cannot generate revenue from search engine in China, which is a big barrier to sustain free of cost services to customers.

Opportunities: In China, Internet market is bright, as everyone is getting online. BAIDU is a big giant in China internet market but Google has an opportunity to beat, and share the market. There is massive opportunity for Google to compete in this market with lot of room. This company must have to deal with Chinese censorship law regarding search to gain greater profits. China is containing 20% of world population, which is big for any company to grab the market. Therefore, Google has opportunity to have large customer base.

Threats: Chinese government is biggest threat for Google in China. Government of China has censorship law for search which is big cause of delayed search results for users. People can shift from Google to other competitor. In addition, new arrivals are coming in Chinese market to convert the people’s attentions. These are threats for Google in China, and management must have to consider key alternatives or solutions. (Einhorn, 2010)

 Alternative Strategy

Google can shake hand with Chinese government and make the company y code consistent with Chinese law. Google management has an option to shift their operations from United States to China. To be lucrative in China market, Google must be developed to face the cultural differences in this country. In means, Google can invest heavily on marketing and advertising to identify the needs and demand of online users. I think this will be right decision to accept Chinese censorship laws.

Another alternative is to develop its own internet service providers and filters to filter the search requests by the users. One thing is necessary to be mentioned that these search filter systems must be assumed faster than Chinese filters. In result, user will not have to wait for a while to get the results. This will grab the market, as they can share the huge market share with its competitors in China. The most important thing is to adopt each and every aspect of business in a Chinese way to position better in this market. (Fannin, 2010)

Recommendation

This is high suggested for Google that it must sustain its business operations in china market. Market is big, as they can grab more customers than any country in this world. China is world’s largest economy and it creates a big chance for Google to position its products and services in the presence of key competitors. Regarding censorship, vitality can be derived through different international events. Google must invest heavily on marketing and advertising to have emotional attachment with people. However, technology will play a vital role to have faster search engine, and if customers become loyal, then it will be the bonus point for them. Advances in technology, business and legality are three main aspects to consider in China. (VASCELLARO & CHAO, 2010)

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