Google is a transnational public corporation, it develops and hosts internet based services and merchandises. Google is one of the biggest hunt engines in cyberspace and it processes a billion hunts. Larry Page and Sergey Brin started Google as their research undertaking while making at that place PhD at Stanford university in California in January 1996. Google is one of most dominant hunt engines in United States with a market portion of 65 % .

Google besides provides some other on-line packages such as Gmail electronic mail package, societal networking tools such as Orkut and Google bombilation late, besides some desktop application such as with their ain web browser Google Chrome, Picasa exposure administration and redacting package and Google Talk messaging application. Google leads in development of their ain Mobile runing system Android which is now used by many taking nomadic phone makers such as Motorola, Nexus Etc. Google is one of the most powerful trade name of these yearss

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Google China was introduced in 2005 and was originally headed by Kai-Fu Lee. In January 2005 Google ‘s China based hunt engine was lunched with the consequence topic to censoring by Chinese authorities. After 5 old ages on taking Google China, Google announced that they and other United States engineering companies had been hacked and the Google is no longer willing to ban hunts in China may draw out their company of state.

Therefore in 2010 March Google moved Hong Kong which is one of the Special Administrative Regions ( SARs ) of People ‘s Republic of China ( PRC ) . Honk Kong is vested with independent judicial power and non subjected to Chinese jurisprudence and besides including the limitations of free flow of information and censoring of internet stuffs. Google started airting all their hunt questions from to which is Google Honk Kong with go throughing their regulators and leting uncensored simplified hunt consequences. As a consequence on March 30 2010, seeking utilizing all google hunt sites in all linguistic communications non merely including utilizing Google Mobile was banned in Mainland China, any efforts to utilize or seek via Google may consequences in Domain Name System ( DSN ) mistake, but other Google services such as google mail and Google maps was left unaffected and was free to utilize in China.

Based on above surveies the determination which lies is that should Google re-enter into Chinese market or non with their censoring Torahs. This determination could be made out with transporting PEST ( Political Economical Social Technological ) analysis.

Plague Analysis


Chinese political environment non contributing to free flow of information China. Chinese ordinance of censorings provinces that No units or persons are allowed to set up direct international connexion by themselves, all direct linkage with the Internet must travel through ChinaNet, GBNet, CERNET or CSTNET, A licence is required for anyone to supply Internet entree to users.

Certain new age elements in the political system are more unfastened to Google ‘s doctrine and see it as a factor for growing. But the Chinese authorities did non accept Google ‘s doctrine about their cyberspace censoring ordinance.

The setup of the PRC ‘s ( People Republic of China ) Internet repression is considered more extended and more advanced than in any other state in the universe. The government non merely blocks website content but besides monitors the Internet entree of persons.


Chinese currency rate is increased by 3 % from twelvemonth 2005 to 2010 comparison to USD Good long term chances through 2020 ( GDP growing expected to be 14 % ) based on survey from Morgan Stanley

The universe economic system is on the patch. After a crisp, wide and synchronised planetary downswing in late 2008 and early 2009, an increasing figure of states have registered positive quarterly growing of gross domestic merchandise, along with a noteworthy recovery in international trade and planetary industrial production.

World equity markets have besides rebounded and hazard premiums on borrowing have fallen.


China is one of the strongest civilization and linguistic communication orientated state and besides China is figure one state for their population 1,340,960,000 approx as on December 3,2010 and its about 19.5 % of the entire universe ‘s population. Its 65 % of hunt petitions are seen from the immature population.

There is besides rapid growing in users of cyberspace. Peoples are more and more attracted towards globalisation. Internet seen as a powerful media to show sentiments via web logs


Insufficient bandwidth seen as a job. Due to increasing use of cyberspace. Clear digital divide between cyberspace users in Urban and Rural countries. Low incursion of engineering to rural multitudes.

Strong hunt engine rivals seen to be deriving market portion. The societal networking web sites such as Twitter, Facebook became popular in the universe, and it ‘s the easy manner to portion information with friends, it keeps you in touch with everyone. More and more people like to utilize net phone.

Internet security is still an old job, but it became safer than earlier.

Based on PEST analysis we can pull three chief scenarios

Scenario I – The good

Scenario II – The bad

Scenario III – The Ugly

Scenario I – The Good

Harmonizing to our scenarios in the twelvemonth 2020 universe might faces rapid alterations in all the facets and engineering. The growing in users of cyberspace will be increased

There would be a alteration in authorities policies in their censoring Chinese political environment has allowed a free flow of information related to public due to globalisation. The censoring is still applied in People Republic of China, but it has become more relax than earlier.

China ‘s GDP in twelvemonth 2020 is 14 % as expected by M Stanley. Counting the tendency we can see that the currency rate has increased by 6 % from twelvemonth 2010 to 2020 because there is an increasing rate in the economical factor as compared to the current tendency. Harmonizing to this China economic system would hold been developed which consequences in making more and high employment rates diminishing poorness

Users of cyberspace would hold increased from 21 % to 45 % throughout Asia in the twelvemonth of 2020. Peoples would hold been globalized and concerned about their environmental jobs.

Most of the large metropoliss in China are to the full equipped with WIFI services. Internet existent name system applied in every web site, information, efficaciously cut downing the unneeded information, and the cyberspace become safer to utilize. Internet security will non be a job by so

Scenario II – The Bad

Chinese political environment is still non contributing to free flow of information. There in China the censoring ordinances might hold became harder than on 2010. The PRC ‘s Internet repression has unblocked some web sites but still supervising the Internet entree of persons.

The population is increased to 7.5 billion, and the age over 65 is increasing. There might me increase in the users of cyberspace. The chief users of that will be immature population so many information which we get through cyberspace might hold got filtered and they will non acquire entree to see the information they are required. Because of the growing of population, more and more people unemployed.

Peoples are non willing to accommodate western/foreign civilization. Peoples are a bit funny about PRC ‘s Internet repression supervising them. Therefore they might stay worse so now.

Local hunt engines like Baidu are more preferable as compared to any other hunt engines. Due to in sufficiency of bandwidth, people prefer utilizing baidu which is faster and easier to utilize. Which is besides in their local linguistic communication. Users of cyberspace in rural countries might hold been same when compared to urban countries same like the current tendencies

Scenario III – The Ugly

Chinese political environment does n’t desire any intervention ; so their is no free flow of information. Censor policies might acquire much more harder and transnational companies will happen no grounds to be in china.The PRC ‘s Internet repression continues to barricade website content and besides keeps on supervising the Internet entree of persons.

Many states find hard to transport out trade with China due to rigorous authorities regulations. So some states which are presently in China might travel out and get down their trading procedure in some other Asiatic states such India, Singapore, Malaysia, Japan, Middle E states etc. as their trading hub.

Use of Internet bit by bit decreased because of the rigorous Torahs towards cyberspace. Due to their jurisprudence people finds diffult to utilize cyberspace because of all that of licence. Young population might happen harder to last in China because they will non acquire their privateness. Migrations of people from China to some other states were they are acquiring recognized and have freedom to make anything they want to.

Local hunt engine Baidu has captured about whole market portion and others new hunt engines captured the remainder of market portion. Baidu will be figure one and taking companies in all over China. Because they are merely one who can last with policies and jurisprudence ordinance which are passed authorities of People ‘s Republic of China. Companies are no more interested in puting in technological development. So because of these ground unemployment and poorness in China might acquire more addition increasingly.

Opportunities and Threats for Google

There are many chances and menaces which are impacting the being of Google due to Torahs and ordinances of China and their policy of censoring of cyberspace.

Scenario I – The Good


Rapid growing in the users of cyberspace. There will be a high addition in rate of users of cyberspace as compared so that there will be a good patterned advance in a organisations economical growing

Globalization in China. There a globalisation in universe so that there is a free flow of information and there jurisprudence and ordinance towards cyberspace will be censoring of cyberspace will be broad

Steady growing in economic system. As China is a developing economic system it could go one of the most of import trading hub among the universe. Employment chances will increase for people all over the universe

Internet security which plays a chief function. New security system and firewalls might hold introduced through which confidential papers can be maintained


Due to increase in market competition may increase which leads to misery for the company to last in those sorts of difficult and tuff state of affairs. They have to do certain that they will ever take in market and give a good competition to the rivals in the market to guarantee their being.

Cyber offense besides will increase. When there is an betterment in the engineering there will be a addition in cyber offense besides. They have to do certain the security is really good to command and detect the felons.

These are the chances and menaces which will go on when there is when the scenario is good and works with Google in favours of them

Scenario II – The Bad


There is immense and increase in figure of population. So that many of them uses cyberspace for their work and day-to-day intent.

Free flow of information is controlled by the authorities. So that there is minimum cyber offense. It would be the authorities ‘s duty to safeguards there information and nil at that place to make with Google.

New hunt engines are developed which could a good competition for Google. Without any competition we ca n’t compare and happen out the best of them. Therefore holding a rival is ever good.


When there is a immense population and users of cyberspace it will be impossible for them to supervising each of them to cut down unwanted hunt questions by the user. If there is immense detonation of population so cyber offense will certainly increase because there is no 1 to command them.

Peoples may prefer utilizing other hunt engines which is in their local linguistic communications which may ensue in the failure of the company for the endurance in future span of clip

These might be the chances and menaces faced by Google if the scenario is bad

Scenario III – The Ugly


When there is rigorous regulations and ordinance of utilizing cyberspace. It will non be misused by any anyone because everyone is been monitored by authorities

Regulation of information could be controlled. This reduces cyber offense

No competition. When there is least sum or no competition they can govern the market and safeguard the place in marker for the hereafter span of clip which will be really utile for them.


The chief menace will be Chinese authorities non leting Google to re come in the market. Because they do n’t believe that Google could cover with Torahs and ordinance of censoring of cyberspace by the authorities

Low growing in GDP of China which will impact the companies being

All the people may coerce to utilize the local hunt engines. Which are safer for them.

This all could be chances and menaces if the scenario worse delaies for them


The chief program which Google to do is they should or should n’t hold to censorship policies of China. Besides it will be safe for them to travel to china so that internet security should be increased so that there will non be any jobs for them in hereafter. Then they should make up one’s mind to travel into china really easy and carefully with the position of future jobs taken into mentions which would impact their being in China.

Google besides appoint a similar individual like Kai-Fu Lee as the caput of the company who is capable of keeping a good relationship with authorities. So that in future if there any alterations in jurisprudence of authorities

Then the other chief factor they should see is that is how to convey it back into figure one. Because they are out of China they should see the fact that the other local hunt engines such as Baidu captured the place of figure one. They besides have to be after how to catch them and recapturing the market.


Looking at the three scenarios we can do some of import determinations

Scenario I – The Good

From the first scenario we can come to the determination that Google should re-enter Chinese market because it will convey them a nice and good hereafter. Recapturing the market besides will non be a job because they had been already been and successful in the market. So with keeping good relation with the authorities they can guarantee their being

Scenario II – The Bad

From the 2nd scenario we come to the determination that Google should come in Chinese market if the Chinese authorities is willing make some alterations in Torahs in which Google will non acquire affected due to their ordinance towards censoring policy and if besides to increase the security processs by which they can forestall cyber offense.

Scenario III – The Ugly

From the 3rd scenario we can come to a decision that Google should non come in into Chinese market they stay where of all time they are in Honk Kong and have to drop their thought of come ining into Chinese market and if that is good so they have to travel to some other Asiatic states.


Sing through all these scenarios and trusting the best happens in future. Google should re-enter into Chinese market and go on their recapture all the market and do a successful entry.