Google defeated the Chinese market

Refraction Industry: Internet search engine market honoured Index: ★ ★ ★ ☆ Status Survey Only official in China for more than a year, Google on the unfortunate failure of the four major shows: 1. "Google.cn" did not achieve operating in China Internet Information Services by the ICP licence must, but "Go Network" used the same ICP licence, for alleged business irregularities by relevant departments of investigation, are still waiting for Finally, "saying"; 2. Baidu's acquisition plans come to nothing, in June 2006 but sold by the full 2.6 percent of Baidu shares; 3. Or not anti-market share drop, fell to 20 percent, even before it entered the Chinese market share of 33 per cent failed to keep; 4. Wang Huainan, Marketing Director of the Asia-Pacific region due to performance reasons for separation, which can be seen as Google's start-up team collapse of the first domino. Reasoning process Google people in. This is quite proud of "Google" Chinese name, and not for the Google look forward to bringing in the Great Victory. The failure of the back four, but Yinyinyueyue point to a frightening conclusion: Google is extremely likely in 2007 to withdraw from the Chinese market. Because the so-called human rights, and other reasons, Google. com has been reluctant to comply with Chinese laws on the search for self-filtering information, stop by the Chinese firewall. To break the deadlock, Google launched a self-filtering through the Chinese search service Google. cn, but in fact it has not made in China ICP licence, but "Go Network" cooperation with the use of an ICP licence. This is clearly not in line with China's relevant policy, Google still waiting for the Ministry of Information Industry last "argument." This last "is" very likely for Google to disappointment. This situation forced by Google founders Brin had to position: If I can not in the information services and meet the local demand for policies to balance, will also intend to do. Google's "intention to do another" triple somebody with the phrase: First, can not withdraw from landing on the Chinese market through the acquisition of two local Chinese companies to achieve truly landed third on Google.com for self-filtering, in exchange for the Chinese government removed the firewall. In addition to these three possible, Google seems to be no fourth option. Then, three "possible" in the Google are most likely to do what "intended"? » In fact, Google tried to start a "through the acquisition of the way into the Chinese market," it will target for Baidu, Baidu to intensify the acquisition of shares. However, in June 2006, Google sold all the shares held by Baidu. Clearly, Google acquisition of Baidu has rebuffed the idea. Another takeover target now is Google's partners, "Go Network." If "Go Network" eventually sold to Google, Google.cn will have its ICP licence. However, if Google clearance so that any one foreign Internet companies can follow the example of China, the Chinese government's Internet regulations will face severe challenges. Therefore, almost certainly, the relevant departments will not allow Google easy clearance. Thus, in 2007, Google.cn through the acquisition of local companies get the idea of ICP licence is unlikely. The third "intended"? » In fact, this idea has long been Google to give up, otherwise there will not be the advent of Google.cn. Because the U.S. domestic political pressure and the pressure of public opinion, and that the long-term Google.com "Zuowu" idea, Google.com self-filtering the possibility of almost zero. Excluding the second, three possible, "to withdraw from the Chinese market," Google has become the most likely "intended." Of course, the above reasoning is not convincing enough, the performance problems are often caused by transnational corporations is the fundamental reason for the withdrawal. 2006, Google in China's market share fell from 32.9 percent to 20.6 percent, while its rival Baidu showed a growth trend, from 51.5% to 64.5%. At the same time, Google also has been found in the Yahoo search of strong challenges, the loss of market share significantly speed up the pace. 2007 Chinese search market is a watershed, with the exception of Baidu, Yahoo and other major competitors to stop, some local enterprises such as Netease, and so will actively search of the market, which will undoubtedly increase the pressure on Google. The more fatal, in the Chinese search market, Google's search keywords business is not the mainstream market, and search the auction business is the main way of profit. Google in the Chinese market is shrinking, due to localization predicament. If we can break this impasse, perhaps to turn the tide in 2007, but just this time, Google encountered the "resignation of the door." December 31, 2006, Google Greater China co-president Johnny Chou formal separation, rumors of its departure of the outside world because the localization programme has not been recognized headquarters. In before the Asia-Pacific marketing director for performance reasons also Wang Huainan in the December 2006 departure. Johnny Chou, Wang Huainan leave, Kai-fu Lee also no guarantee that will not run away in 2007, Google China's three-person start-up team has now disintegrated domino trend. For a long time, Google and the Google headquarters of China's differences are obvious. In fact, Wang Huainan departure will not have much impact on Google China. Because Google, Marketing Director of the Asia-Pacific region set up a dual-core, one Chinese, one for foreigners. It is expected that once the three venture team of collapse, as successor in line with the headquarters, will be more conservative and a strong opponent in the spiralling retreat under attack. Almost certainly, Google China, difficult to overcome this watershed, in 2007 the performance will be difficult to avoid further decline. Google executives seem difficult to find stay in the Chinese market and the path of reason. Shock wave If this prediction realized, the Chinese search engine market, Baidu Jiangcheng only overlord; Yahoo search may become the largest of the variables, its e-commerce search may be an important strategic breakthrough because Google's withdrawal from the PPC and other search services more mature The area of the charges, agents of the channels for low-price dumping and even free competition, will shake the stability of being eco-industries. The success or failure Point This predicted that the establishment of the three key points: First, Google.com Jianchijixian stubborn and continue to stop by the Chinese firewall; Second, Google.cn can not be achieved ICP licence, loss of legitimate competitive basis; Third, the continued decline in performance. Conversely, if Google.com is co-operating with a firewall and smoothly get rid of, or Google.cn at all costs to acquire a permit ICP have the strength to send Chinese companies, and to take strong localization strategy to seize the market, then the basic prediction will come to nothing The. Can the establishment of this prophecy, we must also consider an important premise: Google is able to withstand the temporary loss of the Chinese market. If Google is optimistic about the Chinese market, the temporary loss and loss, should not be sufficient to allow withdrawal from the China market. In fact, many multinational companies entering the Chinese market early, had to suffer for years or even 10 years of losses