Introduction:

What is the case about?

Case is about the trade-off between exploring growth and escaping from
inflexible and stringent government regulations.
The case is about re-evaluating the Googles license in China should they
continue operating in China or should they exit
The main commercial problems are between growth and negotiation.
Should google maintain its Chinese domain to explore the increased
growth in Chinese internet users, population and economic influence, or
should they exit from the chinese market due to the governments
stringent operations which compromises the companies vision and
operations provoking social denouncement.
The important stakeholders are Schmidt, Page, Brin and the chinese
government
Remain in China
Exit
Internet usage is growing in
Overcomes the negotiation
China: In particular the number
issues between Google and the
of users have grown since 2006,
Chinese government regarding
as Chinas now have the most
censorship.
users in the world at 20%,
Win the trust of shareholders
compared, nearly double the
again, to ensure that share
second best, the US.
prices remain strong.
Take advantage to these
To maintain and be consistent
increased users to increase
with its vision and mission
market share and licensing
statements, as Google has been
revenue for the business.
accused of compromising by
This has been historically shown
engaging in self-censorship. This
as revenues and market share
may result in a decline of the
have exponentially increased
share price.
over its 4 year licensing to
Satisfy the shareholders
earning 1 billion US and gaining
proposal to exit its services from
a 20% increase in market share
China
in the Chinese market.
To participate in the economic
growth of china, as china is
becoming a dominant worldwide
language.
Recommendation and Benefits:
From a commercial standpoint, firms should thoroughly negotiate with the host
country to ensure that both parties are satisfied. So that the company is
performing as desired within the regulations and expectations of the host nations
government. This will include establishing a set of written guidelines or through
mediation to address certain issues that have arose.