Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

22

Transcript of Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Page 1: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA
Page 2: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA
Page 3: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

China

Alex | Appy | Carlos | Marta | Rafa | Sophia

Vs.

Page 4: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

19491976

http://www.nytimes.com/library/world/asia/china-index-timeline.htmlhttp://www.edu.cn/introduction_1378/20060323/t20060323_4285.shtmlGoogle in China - Case Study

Death of Mao

Zedong

Economic Reform

1978

Deng Xiaoping

- Special economic zones

- New taxation policies

- Allowance of foreign companies

Hua Guofeng New

Party’s Chairman

Preserve the communist ideology by

purging remnants of capitalist

Mao Zedong Possession Declares the

People’s Republic of China

Mao Introduces the

Cultural Revolution

1965

Page 5: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

http://www.nytimes.com/library/world/asia/china-index-timeline.htmlhttp://www.edu.cn/introduction_1378/20060323/t20060323_4285.shtmlGoogle in China - Case Study

1989

Tinanmen

Square incident

1990

1997

Britain cedes

Hong Kong control

1994

China accepts

the internet

1998

Google

Foundation

First

McDonald’s

Page 6: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

2000

20102006 2015

2008

Google starts operating

in Chinese

Google.cnChina-based website

700 employees | 300+ million users

Google

leaves

China

China became the

largest population on the internet

Tighten cyber security policies

Page 7: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

This presentation is through the point of view

of a Consulting firm advising the

Ministry of Industry and Information Technology

Point of View

Page 8: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

The protectionist policies of the

Chinese government are challenged

by the growing pressure of free

speech from both foreign institutions

and China's increasingly globalized

population.

Highest Order Issue

Page 9: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Highest Order Issue

Foreign

Tech Comp.

Chinese

Gov.

Chinese

Tech Comp.

Chinese

People

The protectionist policies of the

Chinese government are

challenged by the growing pressure

of free speech from both foreign

institutions and China's increasingly

globalized population.

Page 10: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

59 70 92 161 190 307 359732

1,2051,462

1,942

2,730

4,558

6,040

8,462

10,360

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2002 2004 2006 2008 2010 2012 2014

GDP (current US$ Billions)

China’s

Economic

Success

Public

Policies

Page 11: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

@wearesocial

47%642

Million

1,367

Million

Total

Population

Active

Internet Users

Internet

Penetration

Page 12: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

10 most accessed

web sites in ChinaTop Blocked Sites in China

Baidu.com 1

http://www.alexa.com/topsites/countries/CN https://asiancc2014.wordpress.com/2014/05/13/why-are-you-being-anti-social-china/

Google Seach

Google Apps

Facebook

Twitter

Blogger

Tumblr

WordPress

TypePad

FriendFeed

Posterous

Technorati

Youtube

Vimeo

Dailymotion

TwitPic

ImageShack

Google Picasa

Ustream

blipTv

Scribd

Bit.ly

Ping.fm

Xmarks

Diigo

YouSendit

The Pirate Bay

Mixx

LiveLeak

WikiLeaks

BBC News

WikipediaGmw.cn

360.cn

Tmall.com

Sohu.com

Weibo.com

Hao123.com

Taobao.com

Sina.com.cn

Qq.com

10

9

8

7

6

5

4

3

2

Tools & SharingPhotos & VideoSocial & CommNews & Info

Page 13: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Chinese

Gov.

Censoring

InformationSince 1970

Risk of losing legitimacy once information

is released

Protectionism has worked for local companies

Its being challenged by more and more

global firms

Chinese

People

Buying timefor its local tech comp

Delaying ‘fully’opening

To foreign companies

To catch up

Chinese

Gov.

Chinese

Tech Comp.Foreign

Tech Comp.

Page 14: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Earned time

From Google

issues

Chinese

TechComp.

500M monthly70M daily mobile

Users:

~ $670Mnet income 2014

“Content

Issues“

Apps for

Everything

Established

Player

Loyal

Fanbase

Page 15: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Foreign

Investment

Global

Pressure

Local

Innovation

Censorship

Global

Expansion

Free Speach

Social

Consciousness

+

-

-

+

-

+

+ +

+

+

+

Domestic Companies

Revenue

-

+

-

Protectionist

Policies

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Foreign

Investment

Global

Pressure

Local

Innovation

Censorship

Global

Expansion

Free Speach

Social

Consciousness

+

-

-

+

-

+

+ +

+

+

+

Domestic Companies

Revenue

-

+

-

Protectionist

Policies

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minimum compliance from foreign companies in China

Related Servers in

China

Government access

if under investigation

Bi-Annual

Policy compliance

Review

Introduce

non-competing

technologies

Healthy Competition

Copy -> Innovation

Streamline

patent process

Page 18: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Sponsor small/medium

companies to global

conferences

Enhance Branding efforts

Award top Chinese

companies for best

branding practices Scholarships for

design, advertising,

media, etc.

Page 19: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

Foreign

Investment

Global

Pressure

Local

Innovation

Censorship

Global

Expansion

Free Speach

Social

Consciousness

+

-

-

+

-

+

+ +

+

+

+

Domestic Companies

Revenue

-

+

-

Protectionist

Policies

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+

-

-

+

-

+

+ +

+

+

+

-

+

-

Foreign

Investment

Censorship

Global

Expansion

Free Speech

Social

Consciousness

Protectionist

Policies

+

Progressist

Policies

-

+

--

-+

+

+

-

+

-

Local

Innovation

Domestic Companies

Revenue

+

//

Global

Pressure

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+

Foreign

Investment

Censorship

Global

Expansion

Free Speech

Social

Consciousness

Protectionist

Policies

-

+

--

-+

+

-

+

Local

Innovation

Domestic Companies

Revenue

+

//

+

Progressist

Policies

+

Global

Pressure

Page 22: Google Exit China - the analysis and recommendations for Chinese Government_HultMBA

ChinaTeam 3 + Team 4

Vs.