Farah the Fantastic

Wednesday, February 01, 2006

The real cost of Google's sell out to China

According to the article, “The real cost of Google’s sell out to China,” China is considered the second largest internet market in the world which made Google and other internet companies strive to enter this market. Using porter’s framework, Google has faced a government policy restriction which is an aspect of the barriers to entry when it decided to enter the Chinese market. Google is not the first internet company that gave up to China’s pressure; however, it is the most troublesome case.
Google’s decision to censor web searches in China is due to the government policy that placed restrictions for users in China. According to the article, the Chinese government had placed filters on access to Google which badly hindered its search engine. It slowed down its search speed and made it unreliable. Also it would keep Google at a competitive commercial disadvantage unless it complies with the Chinese government demand. Therefore, Google decided to help China in blocking access to thousands of websites that might threaten the authoritarian government in China. Also it will exclude the blogging and e-mail services that it offers to users all around the world.

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