Google in China Case study

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Google in China Case study Introduction

Modern organisation seeks to overcome competitive forces through modification of business strategy as well as understand the involvement of competitors within the industry. The company opportunities for future growth are inversely proportional to weakness in the industry. The introduction of large corporations and medium corporations into Asia pacific region has become a dominant practice to increase consumer awareness and thereby increasing the popularity of organisation. External factors of company are bound to influence the business decisions of company and also result in changing the business process. This assignment has considered SWOT and PESTLE analytical tool for understanding the effect of Google in China.

Google in China Case study

Company Name

Google

Type of Industry

Internet, Computer hardware and advertising

Headquarters

California, USA

Sales/Revenue

110.8 billion Euros

Area Served

Worldwide

Number of Stores

70

Competition

Yahoo, Facebook and Twitter

USP

Search Engine

Target group

All age groups

Products

Online advertisement tool and search engine

Website

https://about.google

Table 1: Google Information

Google in China Case study SWOT Analysis

Strength

  • Popularised in worldwide manner as search engine
  • Utilised by multinational corporations to increase online traffic in their website.
  • Google presently acquired a revenue of 110.8 billion Euro (about.google, 2019)
  • Generates maximum revenue from company advertisement and increasing their online consumers

Weakness

  • Dependency on Confidential information from company algorithm
  • More than 4 million accounts in Google have been compromised due to security failure (thesun.co.uk, 2019)
  • Requires regular updates to configured with modern devices

Opportunities

  • The compatibility of Google with android increases the possibility of new production
  • Possible inclusion of cloud computing can increase consumer base
  • Diversification of Google advertisement

Threats

  • Major competition with companies Facebook, Twitter and Yahoo
  • Increase in cyber attacks from third party invaders

Table 1: SWOT of Google

(Source: thesun.co.uk, 2019)

Google in China Case study Analysis

The world wid3e popularity of Google can be considered a major platform for company to practice business process in Chinese region. The need to develop competitive strength among international corporations of China can be fulfilled through SEO system of Google. As per the case study of Google, advertisement procedure can be a relevant factor in determining growth as well as consumer base for MNCs in China. It has been highlighted by Liu et al. (2017) social media and online advertisement is particularly being implied by organisation to not only have positive influence over consumer but also result in amendment of customer queries. The statement of author is an influential aspect for Google to generate their business revenue from medium sized companies in China. As per the case study of Google, cyber security need to be considered as major priority while attending business shareholders in China. The rise of information theft from Google can be taken up as a negative factor while delivering the expected outcome to Chinese counterparts. On the contrary, Vanwersch et al. (2016) have pointed out the influential role of android system that are easily operated with a simplified IT framework. As per the case study of Google, compatibility between Android and Google software can be helpful for the company to enter into smartphone market of China. It might not only help in securing potential consumer base but also makes Google capable of increasing the recognition of company and search facilities of Google among Chinese consumers. The introduction of cloud computing facility has not only surprised enterprises with larger storage space but also result in acquiring a private cloud for multinational corporations. As per the case study of Google, cloud platform can help Chinese organisation to utilise unlimited storage space and also practice authentication ID for individual unit to access confidential information. However, Google faces competitive threat with social media tools that also advertise businesses as a part of revenue generating scheme.

Google in China Case study PESTLE Analysis

Areas

Factors

Impact

Political

  • Local stability in political situation of China
  • Lack of citizen freedom due to communism

Negative

Economical

  • GDP of China contains 21% of world economy (tradingeconomics.com, 2019)
  • Inflation of basic utilities has increased by 2% (tradingeconomics.com, 2019)

Moderate

Social

  • Unemployment in China is decreased by 3.6% (tradingeconomics.com, 2019)
  • Ethnically diversification of China’s demographics

Positive

Technological

  • Online business growth in the country
  • Implementation of technologies like RFID and ICT in organisational premises

Positive

Legal

  • Socialist legal system with PRC labour law 1995 and PRC Labour Contract Law 2008

Moderate

Environmental

  • Amendment with environmental conservation through fuel usage

Moderate

Table 2: PESTLE for Google

(Source: Tradingeconomics.com, 2019)

Analysis

The stabilised environment in political region is considered to be the most positive factor for companies to enter into unrecognised market zone. The opinion of Tallon et al. (2016) states that local political environment and freedom of expression plays a vital role for companies to develop profitable business. The viewpoint of author has reflected that lack of freedom in China could be a negative blow to Google while setting up their operational base in China. As per the case study of Google, they require political affirmation for conducting business and conduct tie-ups with other technological organisations. The economical growth of China can play a vital role in increasing the business facility and commercial aspect of Google. Increasing aspect of China’s GDP points to the fact that Google can expect a profitable change in their business and also introduce profitable business concept. As per the case study of Google, economic support from national scale is required to grow business and also instill necessary changes into client interaction. However, inflation of China can provide a challenging aspect to Google while attaining clients from market in China. It has been highlighted by McIvor (2016) that low employment does not motivate any organisation to experience higher economic or operational growth. As per the case study of Google, reduction in unemployment can provide the needed edge to Google for accessing consumer base from clients.

The diversification in business can also fulfil business needs of Google to acquire clients from various types of ethnicities and communities. Social diversification is the key factor in promoting consumer growth of company. As per the case study of Google, online advertisement and ICT implementation provides interconnection facility and increases the popularity of company. The increase of technological usage among Chinese consumers can be helpful for Google to acquire efficient employees and also increases the complexity of business. It has also allowed the company to increase profitability and reduce friction in business. As per the case study of Google, authentic business is relevant for acquiring higher client base. The introduction of legal and environmental conservation system can be helpful for Google to practice authenticated business practice.

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Reference

About.google (2019). HOMEPAGE. Available at: https://about.google [Accessed 2 September 2019]

Liu, S., Wang, L. and Huang, W.W., (2017). Effects of process and outcome controls on business process outsourcing performance: Moderating roles of vendor and client capability risks. European Journal of Operational Research260(3), pp.1115-1128.

McIvor, R., (2016). An analysis of the application of process improvement techniques in business process outsourcing. International Journal of Quality & Reliability Management33(3), pp.321-343.

Tallon, P.P., Queiroz, M., Coltman, T.R. and Sharma, R., (2016). Business process and information technology alignment: construct conceptualization, empirical illustration, and directions for future research. Journal of the Association for Information Systems17(9), p.563.

thesun.co.uk (2019). Google Chrome warning as 4MILLION users ‘may have had private photos and videos’ nicked. The Sun [Online]. Available at: https://www.thesun.co.uk/tech/9563564/google-chrome-warning-data-breach/ [Accessed 2 September 2019]

Tradingeconomics.com (2019). China GDP. Available at: https://tradingeconomics.com/china/gdp [Accessed 1 September 2019]

Tradingeconomics.com (2019). China Inflation Rate. Available at: https://tradingeconomics.com/china/inflation-cpi [Accessed 2 September 2019]

Tradingeconomics.com (2019). China Unemployment Rate. Available at: https://tradingeconomics.com/china/unemployment-rate [Accessed 31 August 2019]

Vanwersch, R.J., Shahzad, K., Vanderfeesten, I., Vanhaecht, K., Grefen, P., Pintelon, L., Mendling, J., van Merode, G.G. and Reijers, H.A., (2016). A critical evaluation and framework of business process improvement methods. Business & Information Systems Engineering58(1), pp.43-53.

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