‘Google in China’. Within 3 years of launch of its website, Google garnered 30% of the share of total web search industry. (Google 2008) Later, due to its reluctance to apologize for allowing certain illegal sites to be obtained through its search results for Chinese users, it faced some regulation process from the Chinese government, banning several features of it. Following that, some malicious attacks on their Chinese servers and Gmail through alleged sources from China, Google reported in January 2010 as putting its operations in China in abeyance. A lot has been discussed about this move and several notions have been posed from several quarters. Decisions are yet to happen in a unanimous manner from all parties.
Google’s stand on continuing its operations in China has presented an interesting proposition for analyzing the pros and cons of its decision. The current scenario is such that both the parties could lose out on major opportunities if Google decides to continue its suspended action in China. Google could lose out to its competitors of China and may end up losing out a major stake of its business from the fastest establishing super power of the world. At the same time, China’s rules and regulations are in correspondence to the rule of government, thereby disabling itself from any change of its course with respect to Google. The report aims at identifying the different factors such as the internal and external contributors, providing key inputs on the current strategy followed by both the parties involved, and depicting a possible movement of the market according to the different decisions that might be taken in future.
Google established its Google China (Google.cn) in 2006. The first step of its strategy was to obey to the rules of the government prohibiting certain search results accessible to its users.